ADMINISl RATION OF BRAZIL. 289 



sons. Siuce then the effective has varied from 15,000 to 20,000, capable, in 

 time of war, of being rapidly raised to 30,000. The national guard, which has 

 a purely fictitious existence, nominally comprises a million or so of citizens. 



Up to the recent outbreak the navy had been maintained at a considerable 

 strength. Under the empire most of the vessels were commanded and manned by 

 English, Americans, and other strangers. At preaent recruits for this service are 

 raised in Brazil, although the vessels are still, for the most part, built in Europe. 

 Ships of small size alone are launched in the various government dockyards at 

 Rio, Bahia, Pernambuco, Maranhao, and Ladario, near Corumba. 



The struggle with Paraguay cost Brazil £t;0,000,000, a sum which about 

 represents the present amount of the national debt. The interest on foreign loans 

 is payable in gold, and Brazil has hitherto punctually met all its engagements, 



Fio-. 124. — Palace on Fiscal Island — Custom House, Bat of Rio. 



although the annual budget usually shows a deficit. Most of the revenue is 

 derived from customs, which increase by 60 per cent, the mean value of the 

 imports. The expenditure is chiefly devoted to the army and navy. 



Thanks to a recent fiscal arrangement, by which a share of the customs is 

 apportioned to the several States, several of these are in a flourishing financial 

 position. Thus the receipts of Minas Geraes have increased threefold during the 

 last twenty years, while the expenditure has advanced at a much slower rate. 

 Similar relations prevail in Rio de Janeiro, and even in the almost uninhabited 

 State of Amazonia, which has no debt, and a considerable yearly excess of income 

 over outlay. 



Other States are less prosperous, and Goyaz, Piauhy, and Parahyba are unable 

 to balance their accounts without aid from Congress. But nearly all depend for a 

 part of their income on the love of gambling which pervades Brazilian society. 



