Rate

The outstanding debt of Brazil on December 31, 1903, was as follows:

The rate of interest on the Foreign Debt varies from 4 per cent. to 5 per cent., that on the Internal Funded Debt from 4 per cent. to 6 per cent. The internal debt is chiefly represented by bonds, called Apolices, inscribed to the holder, and the payment of its capital and interest, which is provided for by an annual vote of Congress, is under the charge of the sinking fund department (Caixa da Amortisação), independent of the Government, directed by a committee, presided over by the Minister of Finance, and composed of a general inspector and five large Brazilian bondholders.

In 1902 the debts due to the Brazilian Union amounted to 51,998,000 milreis, as follows: From Uruguay, 23,906,000 milreis; Paraguay, 133,000; State of Bahia, 18,051,000; State of Pernambuco, 9,898,000 milreis. The debts of the States in 1898 amounted to 10,135,7297. sterling.

Defence.

The active army consists of 40 battalions of infantry, with 1 transport company and 1 depôt company; 14 regiments of cavalry, each of 4 squadrons, 6 regiments of horse artillery and 6 battalions of foot artillery; 2 pioneer battalions of engineers. The army, consisting nominally of about 28,000 men, contains actually only about 15,000. The gendarmerie numbers 20,000 men. The national guard has been re-organised. Military service is by law compulsory, but conscription has not yet been put in operation.

There are 4 torpedo gunboats and 8 effective torpedo boats, besides some older ones and several miscellaneous vessels.

The personnel numbers about 8,800 of all ranks.

Ships of the Brazilian navy are as follows. The rate is on scale with that given in the preliminary pages. a=above water torpedo tube, s=submerged ditto. Ships in italics are deck-protected only.

A project is on hand for a modern fleet of three first-class battleships, three armoured cruisers, three protected cruisers, and a number of destroyers and torpedo boats.

There are five naval arsenals—at Rio de Janeiro, Pará, Pernambuco, Bahia and Ladario de Matto Grosso.

Production and Industry.

Brazil is an agricultural country, though only a small fraction of its soil has been brought under culture. Coffee is the chief product cultivated, and after that sugar, tobacco, and cotton, maté (Paraguay tea), india-rubber, timber, cocoa, and nuts. There are in San Paulo 15,000 coffee plantations, of which 590 have each from 200,000 to 500,000 trees; 1,000 have each from 100,000 to 200,000; and 1,800 have from 50,000 to 100,000. In Minas Geraes there are 2,739 coffee plantations, of which 64 have each more than 500,000 trees, and 844 have each over 100,000. The recent fall in the price of coffee has checked this industry, and the plantation area has ceased to extend. The coffee production in 1901-02 amounted to 16,276,465 bags; in 1902-03, to 12,393,560 bags; in 1903-04, to 11,193,500 bags (of 60 kilos.). The tobacco industry flourishes at Bahia, whence in 1902, 603,685 bales of tobacco (of about 75 kilos.); in 1903, 311,386 bales were exported. From this port also 262,513 bags of cocoa were shipped in 1903. From the Amazon valley rubber was exported in 1901-02 to the extent of 29,998 tons; in 1902-03, 29,890 tons. In Pernambuco there are 30 sugar factories, in Campos (Rio de Janeiro) 40, in Bahia 12, and in other parts of Brazil 15. From Pernambuco, sugar, rum, cotton, hides and skins are shipped in large quantities. In Rio Grande do Sul the cattle industry is important. The number killed in 1900-01 was 264,902; 1901-02, 472,378; 1902-03, 452,676. In the same State are prosperous fruit preserving establishments, tanneries and breweries. Both the forests and mines of Brazil are of value, but little has been done to make use of them. The mines, with certain reservations, belong to the proprietors of the soil. Coal mines are worked in Rio Grande do Sul. In Minas Geraes there are 5 important gold mines worked by English companies and 1 by a French company. Gold is worked also to some extent in Bahia, where silver, lead, zinc, iron, manganese, copper, quicksilver, and other minerals are found. The gold ut-put in 1900 was 127,820 oz. fine (value, 528,4127.); in 1901, 133,636 oz. (552,4887.); in 1902, 146,898 oz. (607,2767.). Diamond mining is carried on in Minas Geraes, Bahia, and other provinces. The export of precious stones from Brazil in 1902 amounted to the value of 110,5407.; in 1903 to 113,5827. The Boa Vista Company has been formed to work the diamond mines, as distinguished from the river beds, on the Santa Maria in Minas Geraes, and suitable machinery is being provided. Vast quantities of iron are known to exist in Minas Geraes and elsewhere, but they cannot be worked from want of fuel, the coal found in Brazil being mostly of the nature of lignite. Petroleum also exists in workable quantities. Manganese ores are largely exported from Rio de Janeiro and Bahia; 157,295 metric tons in 1902, and 161,926 in 1903. Monazite sand was exported in 1903 to the value of 74,1397 Cotton mills are on the increase; in Brazil there are 155 cotton factories, of which 43 are in the State of Rio de Janeiro, 35 in Minas Geraes, 11 in San Paulo, 15 in Bahia, 14 in Maranhão, 17 in Santa Catarina, 5 in Pernambuco, 4 in Ceara, 2 in Sergipe, and 1 each in Piauhy, Rio Grande do Norte, Parahyba, and Espirito Santo. The capital invested in cotton mills and factories amounts to about 100,000,000 milreis, and the persons employed number about 200,000. In 1900 the cotton factories of the city and state of Rio de Janeiro had 10, 100 looms and

288,066 spindles. There are important woollen factories for cloths, flannels, rugs, felts, &c., at Rio Janeiro, Nictheroy, Maranhão, Porto Allegre, and Rio Grande do Sul. There are 2 silk mills at Petropolis near Rio. In Rio de Janeiro are also 2 large flour mills (but one of them was recently closed) capable of grinding per annum 60,000 and 40,000 tons respectively, wheat being imported chiefly from the Argentine and Uruguayan Republics. The industries of Brazil have recently been injuriously affected by fluctuations in the rate of exchange and by alterations of the customs duties.

In the southern States of Brazil there are prosperous German and Italian colonies. In Santa Catharina, German colonising companies buy large tracts of land from the State Government and sell small allotments to settlers. The state has 72 miles of railway; several new lines are projected, and roads and mule tracks are rapidly extending. Joinville, Desterro (or Florianopolis), Itajahy, Blumenau, and Brusque, are rising towns, exporting large quantities of agricultural and dairy produce.

Commerce.

The chief imports into Brazil are flour, wheat, rice, dried meat and fish, cotton manufactures, coal, and wine; while the principal exports are the agricultural and forest products of the country. The total value of the exports in 1902 and 1903 is given as follows, conversions being made at 20-198 milreis to the £ in 1902, and 20-140 to the £ in 1903 :

The distribution of the imports in 1902, and of the exports in 1901 and 1902, stated in gold milreis of about 2644., was as follows:

In 1903 the import duties amounted to 45,433 contos gold, and 157,846 contos paper or, roughly, about 12,840,000Z.

The amount of the commercial intercourse of Brazil with the United Kingdom, according to the Board of Trade returns, is shown in the subjoined table, for each of the last five years :

The chief articles of commerce between the United Kingdom and Brazil in two years were :

The imports into and exports from the United States from and to Brazil (according to United States statistics) in 5 years ending June 30, were as follows: