Each bag consists of 5 arrobas, or 160lbs. English weight each, the gross value being upwards of £2,000,000.
Since the foregoing data were published, they have been summarised and annotated by a very competent authority in London, and the results issued for private circulation among Anglo Brazilians. The document so published presents, in a very succinct and comprehensive form, the financial status of the empire; and a further condensation of it, to suit these pages, cannot but be acceptable to such readers as the previous chevaux de frize of figures may repel from the perusal of what is really most interesting fiscal and instructive political facts.
The National Debt of Brazil dates from 1824, when the imperial government contracted a loan of 1,000,000l., 5 per cents, at the price of 75, in order to defray the expenses of the war of independence. In the following year, the government contracted a second loan of 2,000,000l., also 5 per cents, at the price of 85, with the further advantage of a year’s dividend, to provide for the expenses attendant on the suppression of the revolt in the northern provinces; and in consideration of the recognition of Brazilian independence by Portugal, they undertook the liability of the loan of 1,500,000l. 5 per cents., which the mother country had contracted at 87 in 1823. The expenditure was seriously increased by the subsequent war with Buenos Ayres, and scarcely was this brought to a conclusion when the government was led into fresh liabilities by the assistance which Dom Pedro I. gave the constitutional party in Portugal, on the usurpation of the crown of that country by his brother, Dom Miguel. In 1829, two 5 per cent. loans, 392,584l., were contracted at 54; and the Regency, ten years later, were compelled to contract another 5 per cent. loan of 312,512l. at 78, in order to meet the deficit in the revenue, which then embarrassed the government. During the usurpations of Dom Miguel, the payment of the dividends on the Portuguese loan of 1823 was suspended; but as soon as the authority of Donna Maria was established, her government provided for the arrears, and in 1842 a financial treaty was concluded between Brazil and Portugal, under which the former delivered to the Portuguese agents stock to the amount of 732,600l., which at 85, the price at which it was issued, was equal to 622,702l., the sum agreed to be paid by Brazil, in liquidation of this and all other claims.
The National Debt of Brazil, therefore, amounted in 1853 to 6,999,200l., the interest on which, throughout all the difficulties and embarrassments of the government, has been punctually paid, though, at times, the measures necessary to provide for its payment have been severely felt by the people. The several loans specified were contracted on the terms of a sinking fund, which were fully carried out until 1828, when the increased expenditure compelled the government to put a period to its operations. But as soon as the expiration of the commercial treaty with England in 1844 allowed the government of Dom Pedro II. to revise the tariff of customs duties, and by that means to obviate the pressure of a deficiency in the revenue, the provisions of the sinking fund were revived. The Portuguese loan was thus reduced to 954,250l., and in 1852 it was paid off by a new 4½ per cent. loan of that amount, contracted at 95. Reductions of the other loans have been effected in the same way, and the foreign debt of Brazil now stands at only 5,900,000l. Further reductions are being gradually effected, and if the provisions of the Sinking Fund continue to be carried out, as doubtless they will be, the time cannot be far distant when the foreign debt of the empire will be entirely liquidated.
Between 1836 and 1840 the deficiency in the revenue increased from 476,825,000 reis to 3,639,608,000 reis, and in consequence of the expenditure consequent on the rebellion in the province of Rio Grande do Sul, this deficiency continued to increase until 1844, in which year it amounted to 9,484,520,000. This deficit did not entirely disappear during the next three or four years, but in 1849-50 there was a surplus of 3,035,006,000 reis (341,438l.), in 1850-1 of 3,552,404,000 reis (399,645l.), in 1851-2 of 4,010,220,000 reis (451,149l.), in 1852-3 of 3,970,202,000 reis (446,647l.), and in 1853-4 of 3,528,934,000 reis (397,005l.). Since 1836 the revenue has increased from 13,024,749,000 reis to 35,290,691,000 reis, at which sum it may reasonably be estimated for some years. The expenditure has increased from 13,501,574,000 reis to 30,471,066,000, which increase has not only been at a slower rate than that of the receipts, but exhibits a progression from a deficiency to a surplus, and since 1844 it may be taken as representing an improvement in the administration, the growth of an efficient steam navy, and those numerous public works which have been referred to in preceding pages. The surplus revenue of the last five years has been the natural result of the fiscal reforms of 1844, which have extended commerce and promoted internal prosperity, at the same time that their success has paved the way for further and more extensive reforms in the same direction.
These accounts refer only to the imperial revenue, in addition to which each of the twenty provinces into which the empire is divided has its separate revenue, raised by its Provincial Assembly, and expended on local objects, the aggregate amount of which is about one-third that of the imperial revenue. This system causes the demands on the imperial treasury to be much fewer than in countries where the administration is centralised, and the entire expenditure is defrayed from the general revenue. The entire debt of Brazil does not much exceed three years’ revenue, and while the latter is yearly increasing, the former exhibits an annual diminution. This proportion between income and liabilities is such as few states can exhibit, and considering the almost illimitable resources of the country, and the commercial prosperity that is fast growing out of its adoption of a Free Trade policy, a debt of 12,362,290l. cannot be deemed a serious or burdensome charge. Indeed, when we look at the progress which has been made towards the diminution of the debt, in years when the facilities of the government for meeting its liabilities were much less than at present, there can be no doubt that it will in the course of a few more years be extinguished altogether, and thus enable the government to carry out farther reductions, and promote many schemes of improvement.
In concluding this summary of the commercial and social status of Brazil, I venture, before making any observations on the Plate, to solicit the attention of the reader to some very admirable remarks which appeared in an influential morning journal a few weeks ago, with the signature of ‘Braziliensis,’ explanatory of the precise relationship of the empire to the Oriental del Uruguay and to the Argentine states generally. A knowledge of this relationship is essential to an appreciation of what is called, often erroneously, the ‘River Plate Question;’ and, with the aid of the writer referred to, whose remarks I am about to epitomise, and a few explanatory addenda incorporated with them, the matter may be rendered transparent in a brief compass. First, as to the Uruguay, touching which republic Brazil is assumed by ill-informed politicians in England to have sinister designs. Now, Brazil, of all countries, has most interest in the peace and progress of Uruguay as an independent state. But it must not be overlooked that Brazil is a Platine state, just as much as Uruguay, as the Argentine Confederation, as Bolivia, or Paraguay. It is in Brazilian territories that the River Paraguay has its main source, that the River Uruguay rises, that the Parana begins to flow, and that these (with their tributaries) form the River Plate. All three are navigable in Brazil; each forms the natural access to great and rich provinces of that empire, which has, therefore, a deep interest in the free navigation of the upper waters of the Plate; and that interest is the key to her policy on the southern side of the empire. She has a plethora of land. What she wants is an increase to her free population: to European immigration all parties are directing earnest attention. Civilians, not soldiers of fortune, govern Brazil. The Emperor is a civilian; his ministers are civilians: there is nothing aggressive or ambitious in Brazilian policy. Law, order, commerce, and peace—not the sword—prevail. The army is small, not exceeding 65,000 men, of which the regular troops number 22,540 officers and privates (including 3,127 cavalry, and 3,582 artillery); the remainder are militia, and the whole are strictly obedient to the civil power. Like England, Brazil cultivates a naval force, and that never sways the destinies of the state in any country.
To save itself from the unlicensed soldiery of the Spanish provinces—from the savage Artigas—Monte Video sought and found admission into the Brazilian empire, and became its Cis-Platine province. The jealousies of the Spanish and Portuguese races (and Buenos Ayrean intrigues) produced revolt, and led to war between Brazil and Buenos Ayres for possession of the Banda. But this war was most unpopular in Brazil. Her native population did not regard the territory as worth fighting for, and the obstinacy of Dom Pedro I., in persevering against public opinion, was one cause of his downfall. Hostilities terminated by the creation of the independent Republic of Uruguay. But Lord Ponsonby’s treaty, by which it was accomplished, was one of preliminaries only. So little, however, did Brazil then care to intrigue in Uruguay, that, notwithstanding her material interests suffered from the want of definite arrangements, she was content, so long as Uruguay preserved the shadow of independence, to go on with provisional relations only. But Rosas first attacked and then subdued the independence of Uruguay; and then Uruguay became a source of danger, for it adjoins Rio Grande do Sul, in which serious disturbances had with difficulty been suppressed. These Rosas tried to revive. Its boundaries, too, were unsettled; and Oribe carried his incursions into Brazilian territories, levied enormous contributions on Brazilian subjects, and carried off 800,000 head of cattle. Nor was this all: the navigation of the Uruguay, Parana, and Paraguay was closed to Brazil, and commerce down the Plate, Brazil was allowed to have none. Still, whilst there was a chance that British and French intervention would remedy this state of things, she waited patiently. When those powers not only retired, but wholly failed, Rosas openly assumed the protectorate of Uruguay, and required Brazil to submit to the depredations of Oribe, his lieutenant. Brazil expelled the power of Rosas from Uruguay, then drove him from Buenos Ayres, but at once withdrew within its own frontiers, and, in the succeeding troubles, refused to interfere further than to give good and the same advice to all. Brazil had then the opportunity of annexing the Oriental State, and of again advancing her frontier to the Plate. In fixing the boundary line she has gained no territory; her pecuniary claims she has postponed until those of other countries are discharged; she has insisted on the free navigation of the rivers, not for herself only, but for all the countries they water; and when the government of Monte Video was lately oppressed by poverty, she consented to lend it 60,000 dols. a month, in order that it might preserve its independence. Brazil was no party to the recent change of presidents at Monte Video; and just as Brazil supported Giro himself when in power, as the head of the government de facto, so, in the interests of peace and independence, she now lends moral support to the present government.[58] She takes no part against Urquiza; she is neither his partisan nor that of Buenos Ayres in Argentine disputes; she has, indeed, tried to throw oil on their troubled waters; but, as that was not to be done, like England and France, Brazil now waits for their natural solution. She is the only South American state with a stable government, with a large and increasing commerce, with a growing surplus, with an augmenting population. She has secured the esteem of England by at last abandoning the slave trade, and she will not risk either her prosperity or her reputation by ambitious designs on Uruguay. [See chapter on the River Plate.] We have seen that she is most favourable to the free navigation of those rivers on her southern and eastern frontier, whose opening has so long been the desideratum of European and South American commerce; and we shall see presently that she is most wisely and energetically coöperating with an affluent company, composed of English, Brazilian, and Portuguese capitalists, for bringing the blessings of steam to bear upon the Amazon, the results of which proceeding it is entirely impossible to exaggerate.