companies, with the following chief conditions: After the Government is satisfied that the capital of a new company applying is sufficient, an annual interest of 7 per cent. is guaranteed, the latter payable half-yearly during thirty-two years. While the construction of the line proceeds, the Government pays interest on the sums of money it considers necessary; the latter are deposited in a bank, and can only be drawn as wanted. The state grants gratuitously to such companies all Government lands that may be requisite for the lines, depots, entrepots, shops, etc., designated in the contract. The companies are allowed to import duty-free all material and, for twenty years, coal and all other fuel.

In return for these privileges the companies engage to forward at reduced rates all Government officials, luggage, and material, and, if called upon to do so, furnish the Government whatever information it may wish to obtain respecting the business of the line.

From the moment the dividends exceed 8 per cent. per annum, the excess is equally divided between the Government and the company; but this participation of the Government in the excess of profits ceases as soon as the sums of money advanced for interest are paid back. Should the dividend at any time exceed 12 per cent. during two consecutive years, the companies, if called upon by the Government to do so, bind themselves to reduce their freight rates. If the construction capital be procured abroad, the exchange is fixed at 27d. per milreis. The following are the leading companies that have gone into existence on this basis:

LINES BUILT UNDER GOVERNMENT GUARANTEE.

Capital,

in milreis.

and the empire counts land telegraphs of a total length of 7,419 kilometres of line and 13,250 of wire, communication being established by means of 136 stations. The number of telegraphic messages sent in 1881-'82 was 739,906; the gross receipts were 1,241,770, and the expenses 1,632,549 milreis.

Trade-Marks.-Brazil protects the trade-marks of persons domiciled in the country and foreigners having in Brazil an establishment of commerce or industry. Foreigners who do not possess branch houses or manufactories in Brazil receive no benefit from the law, except in cases where treaties of reciprocity exist between Brazil and their own country.

Foreign trade-marks are registered at the office of the secretary of the Tribunal of Commerce at Rio de Janeiro.

The legal effect of the registry continues for fifteen years, and may be renewed for another term of the same duration.

A Floating Cathedral. A floating cathedral on the Amazon river is the most novel idea conceived and to be carried out by enterprising missionaries in Brazil. The matter has been taken in hand by the Catholic Bishop of Pará and Amazonas. The best architects and shipbuilders of Europe are to construct it complete and in magnificent style, and it is to be baptized "Christopher," because it is to carry Christ over the waters. It is to attend to the spiritual wants of the whites and Indians inhabiting the banks of the great river.

Emancipation.—A new issue is steadily forcing its way into Brazilian politics, and will, at no distant day, form a disturbing factor of vital importance to the country. Thus far there has been no abolition party and no division between the old parties on that question. Since the beginning of the present year a new movement has set in which promises to change all this. In the northern provinces, especially in Ceará, the popular sentiment in favor of aboli5,496,052 tion has been worked up to such a pitch that 6,000,000 the people are voluntarily emancipating their 14,977,965 slaves. Ceará has already liberated about 5,000,000 4,558,000 6,000 slaves, and may free all before the close 16,000,200 of the year. As this movement is principally 18,000,000 6.000,000 confined to the northern provinces, it is not 10,000,000 improbable that the abolition of slavery in 23,555,850 Brazil will be transformed into a sectional 11,492,042 5,451,000 issue at no distant day, and that it will lead to 4,000,000 troubles which will have an important influence upon the future of the country.

18,521,423
10,000,000
6,000,000
16,150,000

171,197,582

All these lines have been built with English capital, with the exception of two, the Recife-Limoeiro, which is Brazilian, and the Paranagua Coritiba, which is French."

Telegraphs. The first telegraph lines were laid in 1852, but not till 1866 did Petropolis and Rio de Janeiro receive telegraphic communication. Now, Rio has two telephone lines,

Slavery. In July, 1883, there were in Brazil 1,346,648 slaves. When the gradual abolition decree of Sept. 28, 1871, was passed, there were officially registered 1,547,660 slaves; since then about 130,207 slaves have died, the Government has liberated 12,898, private individuals and savings-banks 56,056, and 1,851 slaves have bought their freedom themselves. The average value of slaves is at present about $375, so that the amount of slave property still existing in Brazil represents a value of something like $505,000,000. The provinces in

Naturalization. The new bill relating to nat-parison with the annual reports of the Minuralization of foreigners in Brazil, stipulates that all foreigners residing for three years in the country shall thereby become and be considered Brazilian citizens, unless during the interval they have made a declaration before their consul that they do not wish to relinquish the nationality of their native country. The time of residence for acquiring Brazilian citizenship will even be reduced to two years, if the foreigner marries a Brazilian or holds office under the Government. The naturalized citizen is to be eligible to municipal office and other public functions, and may even become regent of the empire. This law would place Brazil even above the Argentine Republic in point of liberality toward foreigners, and the probability is that the latter will follow the example. The Brazilian press unanimously approves of the project.

Foreign debt, 4 and 5 per cent
Internal debt, 4, 5, and 6 per cent.

Total

Overdue amortization..

Milreis.

51,760,214 Foreign debt, 4, 44, and 5 per cent...
Internal debt, 4, 5, and 6 per cent..

57,944,117

109,704,881

552,675

During the five years from 1855-'56 to 1859-'60, inclusive, the reign of reckless expenditure 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 productive; 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 Government 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 annual revenue being 45,653,024 milreis, and the expenditure 48,606,324. With that year, 1860-'61, a new portfolio was added to the Imperial 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, but which has succeeded only to the extent of mischievous interference and burdensome expense. In 1860-'61 its operations were covered 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 quinquennium (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 inilreis 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 annual receipts being 52,591,518, and the expenditures 60,449,967.

In the next five years (1865–266 to 1869-'70) the expenditures of the Government were enormously increased by the war with Paraguay, the total cost of which is calculated to have been 613,183,263 milreis. The extraordinary 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 deficit amounted to 324,308,487, the average annual revenue was 75,378,204, and the expenditure 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 44 per cent.

Total

Overdue amortization.

Milreis.

118,186,525

238,590,558

851,727,078 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 increased. 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 aggregate expenditures of all the departments largely exceeded those of the five years of the war. This period included the great drought of Ceará, in which there was so great a loss of life and property, and upon which the Government expended 60,503,848 milreis for public relief. A large part of this expenditure, however, was swallowed up by speculators and dishonest public officials, of whom the Government has the names of 1,539, with evidence of guilt, not one of whom has ever been prosecuted. 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) amounting 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 27ď.), 4, 44, and 5 per

cent...

Internal debt, 4, 5, and 6 per cent..

Total

Overdue amortization..
Paper currency (April 1, 1880)...

Public deposits (finance report, 1880)
Treasury bills (April 30, 1880).

Total

Milreis. 144,059,479 416,806,722

560,366,201

8,864,972

189,199,591

52,956,885

11,632,700

817,520,849

Tabulating the aggregate quinquennial revenue receipts, expenditures, and deficits of this period of twenty-five years, gives the following result:

following have been definitely settled, from which it appears that the receipts were 127,076,363, the expenditures 138,583,090, and the deficit 11,506,727. For 1881-'82 the Government admits a deficit of 5,054,000; but on removing some 7,000,000 milreis of Treasury bills, deposits, etc., from the revenue, and nearly 1,000,000 from the expenditures, which had no place there, the actual deficit amounts to 10,315,847. For 1882-'83 the Government's estimate places the deficit at 6,104,000; but as the revenue receipts include 17,666,800 of Treasury bills emitted, 141,200 in nickel coins, and 3,500,000 of deposits for special purposes, the deficit really amounts to 27,412,000 milreis as shown on the minister's report. For the current year the "Jornal do Commercio" calculates that the deficit on actual appropriations will be 28,366,066, making a total of 62,249,842 for the two years covered by the budget law now in force.

In 1854 the total number of primary schools in the provinces was 4,014; in 1883 it had increased to 6,180, the increase being about two per cent. per annum.

The Mint.-Under provisions of the law of 1849 there have been coined since that year, to the close of 1882, 44,948,083_milreis gold and 18,979,927 milreis silver. From 1703 to 1883 the mint at Rio de Janeiro has coined 262,139,212 milreis gold and 35,508,316 milreis silver.

Commerce. According to the last "relatório " of the Minister of Finance, the foreign trade of Brazil (official values), during the fiscal years 1880-'81 and 1881-'82, was approximately as follows, the minister stating that full reports had not been received from all the provinces:

MERCHANDISE.

....

Total...

Imports On the 19th of September, after a session of Exports... 139 days, the General Assembly of Brazil was formally adjourned. Although the financial state of the country is most critical, the imperial budget laws for the ensuing year were not passed, and no measures were adopted to aid or relieve the public Treasury. Supplementary or deficiency credits were passed, to an aggregate of 18,000,000 milreis ($9,000,000), one of which was for a deficit of 12,000,000 milreis in the public relief expenditures of the Ceará drought of 1878-'80. As the public departments are now running under the budget laws of 1882, which were prorogued to 1883 because the General Assembly failed to pass the regular annual appropriations, it is evident that this failure of last session can not be otherwise than inimical to a proper fiscalization of the public expenditures.

Revenue of the Provinces. The following table shows the revenue of each province in 18821883, the total being 32,662,058 milreis, of which 17 per cent., altogether 5,688,943 milreis, were spent on public instruction:

1880-'81.1881-'82.

Milreis. Milreis. 180,458,700 184,113,800 288,567,700 216,709,800

414,026,400 400,828,100

From this it will be seen that the total foreign trade of the country is about 400,000,000 milreis, or, in round numbers, about $200,000,000 at the par of exchange. During the past fiscal year (1882-'83), although no general statistics of that year have been compiled, it is certain that the above totals were greatly reduced. The imports were considerably decreased because of the general stagnation in business and the increase in taxation. Toward the end of 1882 a new surtax of 10 per cent. was imposed on imports, and the customs-warehouse charges were largely increased. The immediate result of this step was a decrease in imports, both on account of the enhanced cost of goods and the additional costs of storage. Under the new warehouse charges, importers are limiting their receipts to current demands, and are keeping their stock reduced to the narrowest limits possible. In exports, with the exception of coffee, and possibly rubber, there was also a large falling off, owing to the failure of crops in the northern provinces, and to the general decline in many branches of industry. In the rubber-trade it is possible that the exportation was also reduced through the attempt to "corner" the market, though at the same time production has gone on steadily increasing. The customs revenue, however, shows a large increase, though how much of this is due to enhanced values it is difficult to say. In the absence of complete and trustworthy statistics it is impossible to form any accurate opinion as to the trade of the whole empire. The official reports, as complete as they ever appear, are always from three to five years behind, and the customs returns from the provinces are both irregular and confusing. They are neither accurate nor uniform. Taken all together, the customs receipts of last year will show a large falling off from the two or three preceding years. The causes