BRAZIL. 



Foreign debt, 4i * and 5 per cent 



Internal debt, 4, 5, and 6 per cent 



Total.... 109,704,381 



Overdue amortization 552,675 



.During the five years from 1855-'56 to 

 1859-'60, inclusive, the reign of reckless ex- 

 penditure on public works began, and since 

 then there has been but one single year 

 (1856-'57) in which the revenue has exceeded 

 the expenditures. Some of these works were 

 necessary, and either have been or will be pro- 

 ductive; but in great part they have been 

 unnecessary and enormously expensive. The 

 best of these investments has been the Dom 

 Pedro II railway, upon which the Govern- 

 ment has expended, not including interest on 

 investment, over 10,000,000. In this period 

 three foreign loans were made, aggregating 

 3,407,500, while the internal debt was slightly 

 decreased. The aggregate deficit for the five 

 years was 14,766,501 milreis, the average an- 

 nual revenue being 45,653,024 milreis, and 

 the expenditure 48,606,324. With that year, 

 1860-'61, anew portfolio was added to the Im- 

 perial Cabinet, that of "Agriculture, Commerce, 

 and Public Works" a department which 

 was designed to preside over and develop the 

 wealth-producing industries of the nation, bat 

 which has succeeded only to the extent of 

 mischievous interference and burdensome ex- 

 pense. In 1860-'61 its operations were cov- 

 ered by the modest expenditure of 3,871,544 

 milreis ; in 1880-'81 this annual expenditure 

 was 36,798,932. In the last year of this quin- 

 quennium (1864-'65) a war broke out between 

 Brazil and Paraguay, which lasted through the 

 succeeding five years. But one foreign loan 

 was contracted, amounting to 3,855,300, but 

 the internal debt was increased to 84,265,751 

 milreis by the issue of 6 per cent, apolices. A 

 large amount of paper money was also put into 

 circulation. The aggregate deficit of the five 

 years amounted to 39,291,247, the average an- 

 nual receipts being 52,591,518, and the expen- 

 ditures 60,449,967. 



In the next five years (1865-'66 to 1869-'70) 

 the expenditures of the Government were 

 enormously increased by the war with Para- 

 guay, the total cost of which is calculated to 

 have been 613,183,263 milreis. The extraor- 

 dinary credits of the Government during this 

 period amounted to 297,901,468 milreis," taxa- 

 tion was largely increased, and new issues of 

 paper money were made. The aggregate defi- 

 cit amounted to 324,308,487, the average an- 

 nual revenue was 75,378,204, and the expendi- 

 ture 140,239,901. One foreign loan, amounting 

 to 6,963,600, was raised in London, and the 

 internal debt was largely increased by the issue 

 of 6 per cent, apolices. The total public debt 

 (1870) was as shown in the next column. 



In the five years following there was a large 

 falling off in the expenses of the War and 



* The loan of 1852, amounting to 9,201,004 milreis, was the 

 only one issued at 4* per cent. 



Milreis. Milreis 



51,760,214 Foreign debt, 4, 4J, and 5 per cent 118,186,525 



57,944,117 Internal debt, 4, 5, and 6 per cent , 288,590,558 



Total ; 851,727,078 



Overdue amortization 2,054,162 



Navy Departments, but the steady increase in 

 those of Agriculture and Finance kept the total 

 up to an unwarranted high figure. Although 

 this was a period of peace, the expenditures 

 were largely disproportionate to the revenue, 

 the aggregate deficit for the five years being 

 56,612,024 milreis. Extraordinary credits were 

 authorized to a total of 70,426,709, more paper 

 money was issued, and taxation was again in- 

 creased. One loan of 3,459,600 was placed 

 in London, and the internal debt was increased 

 to 289,562,250 milreis. The average annual 

 revenue was 102,850,543, and the expenditures 

 114,173,147. 



In the last quinquennial period under review, 

 there was a steady increase in the expenditures 

 of the Department of Agriculture, and the ag- 

 gregate expenditures of all the departments 

 largely exceeded those of the five years of the 

 war. This period included the great drought 

 of Ceara, in which there was so great a loss of 

 life and property, and upon which the Govern- 

 ment expended 60,503,848 milreis for public 

 relief. A large part of this expenditure, how- 

 ever, was swallowed up by speculators and dis- 

 honest public officials, of whom the Govern- 

 ment has the names of 1,539, with evidence of 

 guilt, not one of whom has ever been prose- 

 cuted . The aggregate deficit of these five years 

 was 208.226,627 milreis, the average annual 

 revenue 101,489,514, and the expenditure 149,- 

 134,839. The extraordinary credits footed up 

 to 194,252,407, a large issue of paper money 

 was made, and the internal debt was increased. 

 One loan was made in London (1875) amount- 

 ing to 5,301,200, and a national loan was 

 made in 1879 amounting to 51,885,000 milreis. 

 At the close of this period (1880) the state of 

 the public debt was as follows: 



Foreign debt (estimated at 27<2.), 4, 4$, and 5 per 



cent 144,059,479 



Internal debt, 4, 5, and 6 per cent 416,306,722 



Total 560,366,201 



Overdue amortization 3,364,972 



Paper currency (April 1, 1880) 189,199,591 



Public deposits (finance report, 1880) 52,956.885 



Treasury bills (April 80, 1880) 11,632,700 



Total 817,520,349 



Tabulating the aggregate quinquennial revenue 

 receipts, expenditures, and deficits of this period 

 of twenty-five years, gives the following result : 



Average annual deficit, 25,728,195 milreis. 

 Since 1879-'80 only the accounts of the year 



