This error of diplomacy was followed by war against Uruguay, for the Emperor attacked the revolted province, and declared war against Buenos Aires for rendering assistance to the Uruguayans. The campaign was carried on so feebly and expensively that the people regarded it as folly, and at the same time resented the enlistment, already referred to, of regiments of German and Irish troops, aliens, who were never popular.
The people of Brazil were aggravated, in addition to these causes, by the increasing extravagance of the Emperor, and by the expense which his establishment entailed, while his policy had reduced the nation to poverty. There were numerous payments to be made to Portugal in connection with the senseless treaty into which Pedro had entered; there was the cost of the war, including the pay of the hired German and Irish troops; and then there was the personal expenditure of the Emperor to add to these, while the militia system of the country had developed into a sort of conscription, an utter grievance in the sight of people who wanted liberty and peace.
In 1828 Uruguay was declared independent, much to the dissatisfaction of a great number of Brazilians, who advocated the retention of the Banda Oriental as a province of Brazil.
On March 10, 1826, Dom. João died. As soon as the tidings reached Brazil the Emperor assumed the title of King of Portugal, in addition to that of Emperor of Brazil. On May 2, six days later, he abdicated the throne of Portugal in favour of his daughter, Dona Maria. It was resolved that Dona Maria should marry her uncle, Dom Miguel, in order that she should ally herself with a Portuguese of high rank. Nevertheless, a dispute arose between the adherents of Dom Miguel and those of the Emperor of Brazil, and a state of civil war obtained in Portugal for a time. Dona Maria, on her arrival in England on her way to Portugal, was received with royal honours. But Dom Miguel seized upon the throne and managed to hold it for a while.
Supported by the Portuguese or Absolutist party, Pedro went his way, and, even in his latter days of rule, refused to sign Bills for the development of the Constitution. There was undoubtedly much now to unsettle the Brazilian populace. Disadvantageous reciprocity treaties were concluded with various countries, while defeats of the Brazilian soldiers were experienced at the hands of the troops of the Argentine Republic. An indemnity was demanded by France and the United States of America for ships captured during the blockade of Buenos Aires, and large sums of money had to be paid to avert further war. Finally, the English Government persuaded Brazil to make a somewhat humiliating peace with Buenos Aires, and renounce all claim to the colony, which was henceforth to be known as the Republic of Uruguay.
By 1830 the policy which the Emperor pursued had alienated the national affection to such an extent that every member of the Assembly but the Ministers was in opposition. Wherever the Emperor went, he was treated with coldness instead of enthusiasm. A scheme on the part of the Republicans for adopting the Constitution of the United States, but retaining Pedro as hereditary President, caused him to dismiss his Ministers, and surround himself with men of the Absolutist party. At this an immense crowd assembled in the Campo de Santa Ana, demanding the reinstatement of the popular Ministers.
The Emperor sent a magistrate to read a justification of his conduct to the crowd, but the paper was snatched from the magistrate's hands and torn to pieces almost before he had finished reading it. In their turn the people sent messengers to the palace, insisting on the reinstatement of the Republican Ministers. The Emperor listened to the demand, and answered: "I will do everything for the people, nothing by the people."
This answer exasperated the crowd still further, yet no excess was committed. At two o'clock in the morning the last messenger of the people was departing with the Emperor's refusal to yield to their demands, when Pedro bade him stay, and, sitting down at his desk, wrote his last message to the people of Brazil:
"Availing myself of the right which the Constitution concedes to me, I declare that I have voluntarily abdicated in favour of my dearly beloved and esteemed son, Dom Pedro de Alcantara."