GOVERNOR'S PALACE IN SÃO PAULO.

In 1863, Florés, a defeated chief, returned from Buenos Aires and set up the standard of revolt in Uruguay. Penetrating as far as the Brazilian border he received assistance, and Aguirre, the Montevidean president, protested. At the same time the latter ruler refused to settle certain claims on behalf of Brazilian citizens which the Rio government had been pressing. The Emperor decided to intervene and help Florés, and thereupon sent a man-of-war up the Uruguay River, which blockaded a port and destroyed Uruguayan public property. Aguirre declared war, and Brazil and Florés in alliance besieged and took the principal towns in western Uruguay. The Argentine received satisfactory assurances and remained neutral.

This high-handed adjustment of Uruguayan affairs furnished a pretext to the Paraguayan dictator, Francisco Lopez, to intervene in his turn. Under a line of vigorous dictators who concentrated all the forces of the nation into their own hands, that country had become menacing to the loosely organised Argentine Republic. Lopez even thought he was strong enough to bid defiance to Brazil. The tyrant was, in fact, an impossible neighbour for the two more progressive and civilised powers. For years he had been preparing for war and at the moment was stronger in a military way than either of his bulky neighbours. He hated both Argentines and Brazilians, and his people had been taught to despise the courage of the latter. Though Brazil's intervention in Uruguay was a matter in which he had an interest, a dignified protest would have obtained ample assurances that the latter's independence would be respected, for there is no evidence that the imperial government intended to do anything more than to replace its enemy Aguirre by the friendly Florés. But the arrogant tyrant wanted to draw the world's attention to himself. He appreciated how difficult it would be for Brazil to send an army against him and how much more difficult it would be to maintain one, and he also knew that she was unprepared to undertake a serious war on foreign soil.

Without any declaration of war, in the fall of 1864 he seized a Brazilian steamer which was making its regular trip up the Paraguay River to Matto Grosso. The crew were imprisoned, and only the intervention of the American minister saved the lives of the Brazilian minister and his family. This outrage left Brazil no alternative. Lopez followed up the seizure of the boat by an expedition up the Paraguay River against Matto Grosso, and easily conquered the principal southern settlements in that province.

The geographical position of the Argentine made her attitude of decisive importance to both belligerents. Uruguay and the southern provinces of Brazil were separated from Paraguay by the Argentine provinces of Corrientes and the Missions. Argentina had favoured Florés's pretensions, and Lopez was so obnoxious that the secret sympathies of Buenos Aires were with Brazil. Further than neutrality, Mitre, then president of Argentina, would not go. He declared that no permission would be given either belligerent to cross Argentine territory with troops. Lopez was made desperately angry at this refusal; he thought he could count on the alliance and support of Urquiza, the virtually independent ruler of the province of Entre Rios and Mitre's enemy, and seems to have believed that he might as well finish up with both Argentina and Brazil at one sitting. In March, 1865, he deliberately declared war on the Argentine, and eighteen thousand Paraguayan troops crossed the Paraná and began offensive operations against Corrientes, Uruguay, and Brazil.

Instead of rising against Mitre, Urquiza declared himself against the Paraguayan dictator, and as his province of Entre Rios controlled access to Paraguay by water, Lopez found that the only result of his rash act was to open up the way by which his enemies could most conveniently reach him. On the first of May, 1865, a formal alliance was made between Brazil, Argentina, and Uruguay. Mitre was agreed upon as commander-in-chief; the allies promised not to lay down their arms until Lopez should be overthrown and expelled from Paraguay; and pledges were given to respect Paraguay's independence. Of the three allies Brazil was the only one which could be expected to give its whole force. Florés could only answer for the colorado faction of Uruguay. Argentina did not represent much more than Buenos Aires. Entre Rios was Urquiza's, and the other outside provinces had no great interest in the result. Nevertheless, the alliance was very advantageous to Brazil. It would have been well-nigh impossible to wage a successful war against an enemy shut up in the middle of the continent, and accessible only by a three-months' march across nearly impassable country, or by tedious navigation up a single river running through a third country, and where an army would have to be disembarked direct from ships on the enemy's soil. The adhesion of Argentina made an aggressive war possible, and the event proved how hopeless would have been a campaign by Brazil alone.

The story of the military operations belongs to the history of Paraguay, and only those events which bore a direct relation to internal affairs in Brazil will be mentioned here. The successful naval battle of Riachuelo, on the Paraná, just below the southern end of Paraguayan territory, in June, 1865, aroused great enthusiasm in Brazil. National feeling was hardly cooled by the news which soon followed of a Paraguayan invasion of Rio Grande, and rose again with the defeat of that invasion. Brazil's regular army numbered less than fifteen thousand men before the war, but at the Emperor's call fifty-seven battalions of volunteers were organised in the fall of 1865. A loan of five million pounds was arranged in London, and no expense was spared in fitting out the army and in strengthening the fleet. By the end of the war Brazil had eighty-five ships, not counting transports, of which thirteen were ironclads. The voyage from Rio de Janeiro to Paraguay takes a month, and the transportation of men and material was tedious and extremely expensive. The government resorted to the issue of paper money, and outraged the feelings of the financial world by compelling the Bank of Brazil to give up the reserve it was maintaining for the redemption of its note issues. The premium on gold rose and the currency fluctuated wildly, although general trade continued to boom.

In September, 1865, the Paraguayan army which had invaded Rio Grande was captured in a body, and peace was confidently expected. Lopez, however, decided to fight it out to the bitter end, and it was April, 1866, before the allies could gain a foothold on Paraguayan soil. For the next six months Brazil was sickened with accounts of desperately bloody and indecisive battles, of which the last was an awful repulse before Curupayty. For more than a year thereafter the allies lay motionless in their camps in the south-western corner of Paraguay, while the cholera carried off thousands.