— 20 — 



This excess in value of exports, in conjunction with the uninterrupted 

 influx of foreign capital in the form of State-loans, Federal-loans and City- 

 loans, the acquisition of mortgages, shares and debentures in Brazilian 

 undertakings, and the supply of materials for public and private buildings 

 and for railways, has kept the rate of exchange for 90 days' acceptances 

 on London at over 16 d. almost throughout the year, and has kept the 

 fluctuations down to a very limited range, between 16 d. and 16 1 / 4 d., 

 whereas in the year 1910 the Brazilian rate of exchange fluctuated from 

 15 Vied, to 18 x Ad. 



The Brazilian Government is continuing its broadly-planned policy of 

 opening-up the country. It has further extended its railway-system and 

 has taken in hand a series of new and important lines in several States, 

 including Bahia, Ceara, Santa Catharina and Parana. The energy displayed 

 by the Government in rapidly increasing the means of communication and 

 in carrying out new harbour-works and public-health undertakings on the 

 widest scale throughout the vast extent of the Republic brings with it as 

 a matter of course an urgent need of capital, and leads to a succession 

 of fresh loans in the country itself and abroad. 



In the neighbouring Republic of Uruguay trade has expanded in a 

 satisfactory manner, and under its new President the social development 

 of the country has taken a long step forward. As it is fair to assume 

 that the new Government will continue to display a sound understanding 

 of the economic needs of the country the continuance of favourable 

 prospects may be looked for, always presuming that these bright hopes 

 are not again brought to naught by a failure of the harvest. The following 

 figures indicate the growth of imports and exports in the course of the 



past year: — Exports Imports 



1911 .. . $44 536000 $43 481000 

 1910 . . . $43 700 000 $41151000 



The sale of our manufactures in Argentina continues to present a 

 cheerful picture. The commercial situation of the country has further 

 improved during the winter, if not strikingly, at any rate in a degree 

 commensurate with the favourable crop prospects. The area under crops 

 has been considerably extended, and the maize-crop in particular promises 

 to yield a splendid return, judging by the estimates at present available. 

 According to a report published by the Argentine Department of Agri- 

 culture, the total value of the crop of cereals and linseed is computed as 



follows:— 1910/11 1911/12 f 



Pesos Gold 



Wheat 140 000 000 174 000 000 



Linseed 49 000 000 51 000 000 



Oats 15000000 25000000 



Maize 22 000 000 150 000 000 



Total 226 000 000 400 000 000 



This means a surplus of 174 000 000 Pesos as compared with last year. 



