Chapter VI: Part 6

In my account of the Province of San Paulo I have alluded to the settlement of Germans on the coffee plantations of Senhor Vergueiro, and to the desire of other large owners of property to follow his example. I also instanced the case of a little colony of Germans at Juiz de Fora, in the Province of Rio de Janeiro, which I had an opportunity of seeing, and there are besides in the same province other colonies on a larger scale. Various efforts have been made by individuals in other parts of the Empire to introduce foreign labour.

Slave labour is of course an impediment to the more general influx of Europeans, but where lands are set apart and arrangements made for the location of colonists there is no reason why the latter should not succeed, and form the nucleus of a large future population. The assistance and pecuniary co-operation of Government is of course required to effect any decided progress in this direction; and considering that every labourer brought into the country contributes to the national revenue, as well as to national production, the primary expense of passage money is soon repaid.

Many of the high table-lands of Brazil are admirably adapted to agricultural purposes, the climate, owing to elevation, being also favourable to European settlement. Enormous tracts of such land are at the disposal of the Executive, but it needs some outlay in order to prepare the way for emigrants, as they cannot be expected to pioneer as in the case of the United States, on account of their ignorance of the language and the difficulty of access from the port of debarkation.

The time is fast approaching when slavery must cease to exist in Brazil; and it behoves the Government to anticipate this event by the introduction of free labour. It is morally certain that the negroes, even if they settle down under their new condition, will not labour so constantly as when in a state of servitude. The Government ought, therefore, I repeat, to adapt itself to the exigences of its position, and encourage by every means the accession of European agricultural labourers of a suitable class. Large landowners, whose estates are now only partially worked, might devote a portion of them for new comers, and, in connection with the Central and Provincial Governments, attain the desired end. Financial difficulties, caused by the long war with Paraguay, may be pleaded as an excuse for neglecting this great question, but the very drain that has thus taken place of men and money only renders the case more pressing. I believe the Emperor entertains the most enlightened and practical views, both as regards doing away with slave labour and replacing it by the introduction of emigrants; but the trammels of a war expenditure, and the degree of attention the struggle demands on the part of the Ministers, prevent their inauguration of measures which all must see are inevitable, if the Empire is to prosper as heretofore.

In our own colonies the Colonial Governments have naturally been the chief promoters of emigration, from exercising, as they do, full control over their own revenues and over public lands; but in Brazil the impetus must first come from the action of the Central Government, which receives and distributes the provincial revenues after payment of provincial expenditure.

In the southern provinces of Brazil the cultivation of coffee and cotton offers the greatest scope for European labour, and the Province of San Paulo alone is capable of wonderful development as respects the growth of these two important articles if only proper means are adopted to provide augmented manual power.

The northern provinces present greater difficulties, from the nature of the climate, which is more adapted to a people like the Chinese than to Europeans. There is, however, an objection to this industrious race in consequence of their desire to return home when they have accumulated a little money. A further introduction of the African race as free labourers would be very advantageous. Though this might be a great gain to the negroes themselves, whose lives in their own country are at the mercy of such wretches as the sable King of Dahomy, philanthropists object to the removal of Africans from their native soil on any grounds, entirely ignoring the miserable existence they lead there and the barbarities to which they are subjected. But let slavery be once abolished in Brazil, and there could be no objection that I can see to their settlement in those provinces where their labour would be most useful, say from the River Amazon down to the Province of Bahia. This, however, is only a casual remark, and does not come within the scope of my present inquiry, namely, as to the best mode of introducing European labour into Brazil. As I have already pointed out to the Government, the passage money of emigrants must be paid, or advanced, the selection of them must be carefully attended to, and on reaching Brazil they should be sent on immediately to their ultimate destination, where suitable accommodation should also be provided against their arrival. Every necessary arrangement can easily be made if the Government and landed proprietors would take some trouble and show their practical earnestness in the matter.

There is an Emigrants' Home, or temporary abode in Rio de Janeiro, where proper attention is paid to them, and an officer (Dr. Galvao) is especially appointed by Government to look after this department. I quite intended to have visited this establishment, but was unable to do so. I had, however, a conversation with Dr. Galvao on the subject of emigration generally.

EMIGRATION TO THE RIVER PLATE.

No country in South America is more favourably placed, or presents a greater field for European labour than the River Plate, notwithstanding the drawbacks which have to some extent retarded its progress and injured its character. It has an advantage over Brazil in the absence of slavery, and is of a milder climate, though it is very hot during the summer months, as I experienced when at Monte Video, in January last, at which time the cholera was at its height.

A friend, who has resided in Buenos Ayres for two or three years, chiefly out in the campo, has thus recorded his experience of the average temperature:—

20 Days very cold 45 to 55 deg. Fah.
182 Days moderate 55 to 75 deg. Fah.
60 Days warm 75 to 88 deg. Fah.
45 Days hot 80 to 85 deg. Fah.
58 Days intensely hot 85 to 105 deg. Fah.
———
365 Days.

The thermometer, in exposed places, reaches 110 Fah. in the shade, but such cases are very exceptional.

He also adds as follows some very useful remarks as to clothing:

Flannel shirts are best; woollen drawers should also be used

For working, clothes of such colour as will not show the dust are
best.

The thickness of the clothes for summer wearing may be very much the
same as would suit in England during hot summer weather; they
should be waterproofed before being made up.

Indiarubber coats, although very useful in winter, are ruined in hot
weather, and stick together and tear, so as to be useless.

Good English boots are not to be had, and are therefore very useful.

As to food he says:—

Be careful about eating and drinking, especially when newly landed,
and avoid as much as possible unnecessary exposure to the sun.

Fruit should not be taken in quantities at first. Peaches are said
to be the best and most wholesome.

I may add from my own experience that where it is intended to frequent the campo a pair of good riding boots are very necessary, and a rough pea jacket would be a very good companion in winter. In town cloth cloaks are much worn, and in the campo chiefly _ponchos_.

The boundless tracts of open country are in a great measure occupied by sheep and cattle, and do not require much of the labour of man; but sheep farming having been carried to a large extent, the price of wool has much depreciated, and sheep can be bought very cheap. In consequence, agriculture is now much more attended to and will require labour. Good wheat can be grown in most of the Argentine Provinces, and now forms a staple commodity, which may be increased to almost any extent where railways afford the means of easy transport, and so soon as there are sufficient labourers to cultivate the soil. Indeed, there is no reason why wheat, as well as Indian corn, should not be largely exported, and I believe this will be the case in a very few years. Wheat crops are liable to injury from drought, but the price obtained for the product is a very remunerative one, and it is not subject to losses by depreciation as frequently occurs with sheep and cattle.

Foreign settlers in distant provinces have of late been much damaged by Indian raids, to prevent which the Government has done very little, owing to the drain of soldiers for the war and to internal discord, but this plague is merely a temporary one, and nothing would tend more to remove the evil than a large increase of population, of which the country stands greatly in need.

Emigration, at present, goes on to a limited extent, but chiefly of the class suitable for cities and towns, and not for an agricultural or country life. Several colonies, founded under arrangements with the Provincial Governments of Santa Fé and Entre Rios, are prospering, and those in the fine Province of Cordova will also do well when the National Government is able to repel Indian inroads and protect the settlers. Many young Englishmen have settled in Cordova during the last four years, with more or less capital, and have bought land, particularly near the line of the Central Argentine Railway, naturally looking to Government for protection, which unhappily has not been effectively extended. In many cases their stock has been carried off by the savages, and their prospects seriously injured. They are now turning their attention to agriculture, and I have every reason to think they will be successful.

Numbers of young men have come out to the Plate with little or no resources, expecting to find employment on sheep farms, and failing this, have fallen into bad habits, often wandering about the country and undergoing great hardships and misery. To do any good in such a country steadiness of character is the most essential quality, nor is it at all safe to trust to the chapter of accidents. It is only by well organised arrangements, and great perseverance, that new comers can expect to overcome the difficulties attending their settlement in a new country, the very extent of which is a disadvantage until such time as the influx of population and the formation of communities do away with these inconveniences.

The Chilian Government have lately made a contract with a Hamburg house for sending to the port of Lota Swiss, Tyrolese, and German emigrants, on a principle that may be adopted with benefit in relation to the River Plate. The emigrants must be provided with good characters, viséd by the Chilian Consul at Hamburg, and on their arrival at Lota they are to be sent on to Arauco by the Government, and placed in possession of their land, according to the terms of the Chilian law lately published. The colonists are to be furnished with between-deck passages, and they will be allowed one ton of measurement for every adult, and half a ton for each person under 12 years, and they are to be treated on board in conformity with the Hanover Passenger Act. The Government also agree to pay 40 dollars (£8) for the passage of each adult, and 20 dollars for each child under 12 years of age. The contract is to last for four years, and if the scheme should meet with favour in Germany, the Government agree to contract for 100 families for the first year, 150 for the second, 200 for the third, and 300 for the fourth year, with liberty to the contractors to exceed these numbers to the extent of 25 per cent. It appears to me questionable whether the contractors can afford to take emigrants that distance for £8 passage money, but probably the nature of the land concession is an inducement to families possessing some means to augment this sum, in which case it becomes a scheme of assisted passages on terms arranged between the emigrants and contractors. It is, however, a step in the right direction, which other Governments will do well to follow.

At Monte Video there is an Emigrant Office under the management of a respectable committee, where every information is afforded as to employment, but there is no Home or Asylum. At Buenos Ayres there is a miserable building on the ground floor, called an Asylum, where emigrants are allowed to remain four days. It seems to have been formerly a large stable, and is indeed more fit for horses than human beings. It wants both ventilation and cleanliness, the latter at all events easy to provide, but, considering the vast importance of emigration to the country, a more appropriate place might be maintained at very moderate cost. It is not necessary, nor desirable, that emigrants should on landing find themselves so comfortable as to care little about removing, but there is a medium between this and the dirty place open to them at present. Of course the sooner the emigrants are sent off to the locality where their labour is required the better.

If ever there was a time when sheep farming ought to offer advantages to new comers it is the present, when the value of sheep has fallen so low that land may be stocked for a very small sum as contrasted with former years, and land itself can be bought or rented at considerably less than formerly. This has inflicted great loss upon the older residents; indeed the result has been sometimes so disastrous that sheep farmers here and there are giving it up altogether, and others putting as much of their land as possible under tillage. Everything is therefore in favor of new settlers who may choose to try their fortunes in this particular line, only they must make up their minds to rough it for a few years, and be content with a life in the campo.

The consumption of an article like wool can never be subject to any lengthened depression, and with railway facilities there will be increased means for utilising the carcasses of sheep, by boiling down, or otherwise disposing of them. On the other hand, in the ordinary course of things, more land will be put under cultivation, and agriculture as well as sheep farming is destined to play an important part in the commercial history of the River Plate.

As I have already remarked, the want of population is the great drawback under which this country now suffers, and is an impediment to progress in every way. This can only be remedied by emigration receiving the direct aid as well as the encouragement of Government. It is not sufficient that a few stray people find their way up the country, but centres of population and labour should be formed in the most productive parts of every province, which would lead to agricultural progress, and eventually to the formation of new towns and cities. The mere extension of existing cities will never bring solid wealth to the Argentine Confederation, nor develop political stability.

RAILWAYS IN BRAZIL.

Unfortunately the promoters of railway enterprises in Brazil, entered into with British capital, have looked more to the guaranteed interest offered by the Government upon the money to be expended than to legitimate sources of traffic, out of which a dividend might be earned. All the Brazilian Railways, with the exception of the little Mauá, at Rio de Janeiro, and to which reference is made in my former book, have been created since 1853, the first in order and time being the Recife, or Pernambuco, about which there has been so much controversy between the Company and the Government. Before submitting any comments of my own, I will quote the following from the report lately issued by the Minister of Public Works, Senhor Dantas, upon this and the other lines. The document is official, and therefore worthy of reliance:—

The annexed gives the length, receipts, and expenses of the railways
in 1867. The receipts and expenses of the S. Paulo Railway include
only nine and a half months:—

Name. Kilos. Receipts. Expenses.
D. Pedro II 197.4 2,523:796$781 1,117:034$992
S. Paulo 139.0 1,236:423 702 305:140 286
Pernambuco 124.9 599:331 445 414:772 537
Bahia 123.5 263:323 292 517:870 760
Gantagallo 49.1 709:222 555 365:830 300
Mauá 17.5 297:595 347 172:297 628
————— ————————————— —————————————
Total 651.6 5,599:693 122 2,892:955 503

These figures leave a balance of 2,706:737$610 over the cost of
working.

D. PEDRO II. RAILWAY.

With the Macacos branch the length of this railway is 203
kilometres, 56.6 kilometres having been added during last year in
its prolongations towards the station of Entre Rios. Failing to come
to an agreement with the Companhia Mineira for the extension to
Porto Novo da Cunha, an offer was made by the Companhia Uniao e
Industria to construct a cart road to that point, the final offer of
this Company being to make it gratuitously if certain favours were
conceded to it. However, its offers were declined, as a cart road
was judged incompatible with the requirements of the railway. Under
these circumstances, as the state of the finances did not permit the
contracting for the extension, orders were issued to give it a
commencement by administration; and at the present time the works of
the first miles are tolerably advanced.

A proposition to construct and work the fourth section has been
received from capitalists and planters of the district it would
serve, and it is now awaiting solution.

The competition between the railway and the Uniao e Industria road
being prejudicial to both, the directory of this road has proposed
bases for a compromise as under:—The Uniao e Industria road company
to give up all its traffic between its station of Posse and Rio,
receiving as compensation certain advantages, the principal one
being the duration of its contract for twelve years, and the receipt
of 120 rs. on every arroba transported on the railway between Entre
Rios and Rio, which, it is estimated, would give the company
324:000$ annually, and transfer traffic of 2,700,000 arrobas, or
1,000:000$ annually, to the railway. In order to facilitate this
transaction the company proposes to lease the railway for twelve
years and pay a dividend of four per cent. to the Government. It
also proposes to make any extension determined on, that to Porto
Novo to be finished in five years, the Government to furnish the
money, and the company to receive no compensation for its trouble
except what would arise from the 120 reis the arroba upon the
traffic over the line from Entre Rios and Rio. On the completion of
the Porto Novo branch, the company would receive 2,000:000$ out of
the profits over the four per cent. dividend as indemnity for any
loss, rights or advantages secured to it by the contract of October
29, 1864, and it would then commence the construction of the railway
through the valley of the Parahybano towards the Serra of
Mantiqueira, using for this purpose four-fifths of the net revenue
received from the railway, one-fifth remaining for the company, this
continuing until the end of the twelve years, and the company
binding itself to make, at its own cost, the branch from Juiz de
Fora to the railway station of Uba. If, however, the Government
judge it better to construct a system of macadamised cart roads,
centering at Entre Rios, the company will then pay six per cent. on
the railway, and will construct within four years, twenty leagues of
road to Porto Novo da Cunha, and on to Barra do Pomba, and will,
within six years, macadamise the Serraria road as far as Mar de
Hespanha, the road from the Parahybuna station to Flores, and that
from the Uba station to Juiz de Fora; making also, during the last
six years of the contract, the road to Barbacena, following as much
as possible the trace drawn for a railway, and prolonging it to S.
Joao de El Rei. Besides, the company will settle 2,000 families of
colonists along the road from Uba to Juiz de Fora, and on that
between Juiz de Fora, Barbacena, and S. Joao de El Rei. The company
also binds itself to keep in order all the cart roads in
construction, transporting freight and passengers on them at the
rates provided for the Uniao e Industria road; and, in addition, to
deliver up to the Government, at the end of the twelve years, the
railway and roads in good condition.

Three proposals have been made for the prolonging of the railway to
the waterside; that of the engineers, Senhors Bulhoes and Passos,
proposes to bring the line to the Praia da Gambôa, and there
construct large warehouses and furnish all facilities for shipping
and landing goods; that of Senhor F. B. Jansen Lima and others
proposes to pass by a tunnel through the Livramento Hill to the
Praia da Saude; that of Senhor Feliciano José Henrique proposes to
connect the Santa Anna station with the principal parts of the city
wherein goods are now stored.

The capital employed in the railway having been 27,525:957$816 upon
the 31st of December last, its net income of 1,422:434$402 during
the last year represents a dividend of 5.16 per cent. upon its cost,
which percentage should, when the Entre Rios traffic assumes a
normal condition, rise to six per cent. in view of the greater
number of stations now open, and if the Uniao e Industria freights
pass over the line there can be no doubt that the percentage will
exceed seven per cent. per annum.

The following table shows the progress of the railway since its
commencement. The Macacos branch is excluded, it not existing in the
first years:—

Year. Working. Revenue. Per Cent.
1859 606:870$492 720:900$443 84.18
1860 611:402 672 920:765 784 66.40
1861 688:506 150 1,073:731 050 64.12
1862 800:934 211 964:996 982 82.99
1863 849:421 671 969:621 542 87.60
1864 964:199 300 1,211:615 205 79.57
1865 1,088:133 594 1,756:148 520 61.96
1866 834:057 521 1,848:783 351 45.11
1867 1,082:283 327 2,506:836 961 43.17
Net revenue of 1867 1,422:434$402

The stations opened during 1867 were:—Uba on May 5, Parahyba do Sul
on August 11, Entre Rios on October 13.

BAHIA RAILWAY.

The shareholders of this railway continue to suffer the consequences
produced by the excess of expenses over receipts. Last year's
balance showed an increase of 12:867$764 in receipts, and of
24:383$445 in expenses, giving a deficit of 218:630$092, more by
11:515$681 than the preceding year's.

This result is no doubt disheartening, but meantime I await the
report of the commission I authorised the President of the province
to appoint, whose investigations must have revealed the latent
causes of this state of things, in order to take such measures as
may be recommended for the purpose of placing the enterprise on the
footing reclaimed by its and the public treasury's interests.

The construction of the feeding roads judged necessary for the
improvement of the traffic could not be carried on rapidly owing to
the financial condition of the province.

The register of cattle established at Alagoinhas is estimated to
give the railway a further traffic of 24,000 bullocks and to augment
the receipts by 40:000$.

In my opinion, however, the only measure which can save the capital
employed in the railway is its prolongation, but unfortunately those
causes subsist which counselled me to postpone surveys for the
prolonging of this and the other railways, with the exception of the
Dom Pedro II. line, whose existing conditions are different.

The debt of the Province of Bahia to the National Treasury for
advances on account of the Two per Cent Guarantee was estimated at
1,516:862$220 up to the first half of last year, and at present must
be more than 2,000:000$.

PERNAMBUCO RAILWAY.

Notwithstanding the elements of prosperity which the company already counts on, and those which the future reserves for it, its financial position is not at present satisfactory, nor have its shares been able to obtain in London quotations worthy of the destinies awaiting it. To such result that false position has contributed, besides other things, in which the company has been placed by the various operations through which the company sought to obtain its capital. As you know, part of this capital enjoys the guarantee of interest, another part was obtained by a loan effected by the Imperial Government, and finally, a third fraction, furnished by the shareholders, runs the risk of not realising the least return for a long time. The question of the increase of guaranteed capital, in discussion between the Imperial Government and the company, must indubitably have aided in augmenting the embarrassments in which the company flounders. It would be very proper to put an end as soon as possible to every question delaying the prosperity of an enterprise whose capital has contributed largely to the development and riches of the Province of Pernambuco. It is needful to give a definite settlement to that question of the increase of the guaranteed capital of this railway which has been submitted to your deliberation. The directory in London is constantly reiterating its reclamations for a final decision. As we do not possess the needful means for undertakings of this kind, it is of much importance to us that foreign capital, which comes to try and to explore, may obtain advantages that may encourage other enterprises.

On the other hand, it is of very great interest to the State that companies which enjoy a guarantee of interest may prosper in such a mode as to dispense with the guarantee. The company having to meet the next payment of debenture bonds, whose time was ending, and neither having funds in hands for it nor the power of raising them in London, it recurred to the Imperial Government, asking for a loan of £40,000, but this the Government could not grant, as it was not duly authorised.

The question of the prolongation to the city of Recife has occupied my attention, especially since the engineer of the company presented the plans and estimates for the realisation of the project. According to them the direction of the line should run parallel to the streets of Santa Rita, Nova, and Praia, and the cost is estimated at £5,000.

Although the company comprehends the advantage it should obtain by
this prolongation it is not disposed to undertake the works without
a guarantee on the capital expended, or without some other pecuniary
assistance. The advantages which this work will produce for the
agriculture and commerce of the province, and the small sacrifice
which its execution asks from the public coffers dispose me
favourably towards it, and if, as I hope, the examinations I ordered
into those plans and estimates do not change my opinion, I will at a
proper time authorise a contract for this improvement.

In accordance with the dispositions of the law I authorised the
Imperial Legation in London to lend the sum of £15,000 to the
company, to be employed in increasing the rolling stock. The company
proposing, however, to accept the loan without interest, and to
amortise the principal with the excess of revenue over seven per
cent., I declared the proposal inacceptable.

The revenue diminished by 47:917$011 from that of the preceding
year, it coming to 599:331$445. The expenses on the contrary rose
from 364:134$259 in 1866 to 414:772$537, an increase of 50:638$270
occurring therefore in 1867. This double result is partly explained
by the diminution of the traffic in consequence of bad harvest in
the localities profiting by the road, and partly by the need to
promptly carry out the repairs of the road. Although it is desirable
that this result had not occurred, it should not suscitate serious
apprehensions for the future of the railway.

SANTOS AND JUNDIAHY RAILWAY.

This line was inaugurated on the 15th, and opened on the 16th of
February, 1866: this road at once commenced to show an extensive
traffic, which, augmenting day by day as the planters became
convinced of its superiority over ordinary methods, prognosticates
most brilliant destinies to it. However, notwithstanding its evident
inferiority, the common road still maintains a serious competition
with the railway and takes from it a part of the products which are
sent to Santos from the interior, inasmuch as, out of 1,004,779
arrobas, at which amount the total traffic is estimated, 611,818 go
by the railroad, and 392,961 by the highway. Despite this
competition, and the difficulties with which every enterprise
struggles at first, however well organised, the gross receipts of
the Santos and Jundiahy railway, since its opening, up to the end of
1867, rose to 1,236:423$702, thus giving more than 4¾ per cent. upon
the capital employed. It maybe presumed that, when the short life
competition referred to is overcome, and when the line is extended
to Campinas, taking into account the natural increase of production
in a province so favourably placed, the revenue would soon double,
thus freeing the treasury from the onus of the guarantee of
interest. The Santos and Jundiahy Railway is, therefore, one of
those amongst us which promise best; and perhaps it may be
considered the first industrial undertaking of the kind, if the
serra service, by means of inclines, does not exact a constant
outlay which will diminish the revenue.

During the past year the trains of the road transported 176,081
passengers, namely:

1st Class 19,078½
2nd Class 26,033½
3rd Class 130,952
Season tickets 17
————————
Total 176,081

The plan of Engineer P. Fox for the extension of the line to
Campinas having received the preference over the other traces
presented to the ministry in my charge, the President of the
province undertook to promote a company of planters and capitalists
to carry this important benefit into effect. The company having the
right of preference to the extension of the railway, I instructed
our Minister in London to obtain an explicit declaration from the
directory renunciatory of its right, in order that there might be no
future doubts or reclamations. The directors replied that the
company expressly desisted from the right, and, therefore, the
association could proceed with its measures for the realisation of
its object. In the opinion of Engineer E. Viriato de Medeiros the
amount of capital expended up to the 30th of July, 1866, amounted to
£2,548,434, but for payment of interest due it was estimated
hypothetically at £2,650,000.

The provincial assembly not having empowered the President to pay
the interest of two per cent. upon the guaranteed capital, to which
the province had bound itself, it was necessary for the national
treasury to take upon itself the satisfaction of the provincial
promise. It is therefore requisite that the provincial assembly
provide in the estimate of this year for relieving the public
treasury from the charge upon its already too burdened coffers.

It will be seen from these reports that all the guaranteed railways are exposed to difficulties arising out of the special character of the relations existing between the various companies and the Government, and that Senhor Sobragy, the talented manager of the Dom Pedro Segundo Railway, has been sent to England to try to come to terms with the companies. In my opinion, however, nothing short of the Government taking over the railways, giving in exchange a guaranteed stock, can ever meet the requirements of the case, or bring these concerns out of their present unfavourable position. It would be useless to recapitulate here the causes of their failure. Certainly no fault can be laid to the charge of the Government, which has acted in perfect good faith towards them, and done probably more than any other Government ever did or would do to assist undertakings of this or any other kind. Rashness, ignorance, and bad advisers have led to most of their difficulties, and with such proofs of the mismanagement of railway directors on our home lines no one will be surprised at the unsuccessful result of their management of lines abroad.

As an evidence that railways can be made and properly managed by Brazilians I need only refer to the Dom Pedro Segundo, a line quite as important as any in the country. In separate chapters I have referred to this railway, and also to that in the province of San Paulo.

I believe it would be greatly to the advantage of the rising generation in Brazil if the young men were trained to become engineers, rather than lawyers or doctors, with which the towns and cities swarm. Brazilians are neither deficient in talent nor energy, if properly brought out, and the employés of the Dom Pedro Segundo are chiefly natives. The splendid road to Juiz de Fora furnishes an example of this, and I regret time did not permit me to make another visit there, which Senhor Mariano very kindly urged on me. Had it not been for the heavy expenditure of the Paraguayan war, the railway system of Brazil would doubtless have been much more extensively developed, and the provincial lines now in existence carried further into the interior, as it is impossible the latter can ever be productive of much revenue, or of much national benefit until they are prolonged to the chief centres of cultivation, which, as a general rule, lie upwards of one hundred miles from the coast. The provinces of Pernambuco and Bahia both attach great importance to railway extension to the river San Francisco, but it does not appear from the report of Captain Burton, who lately explored that river, that it is likely to yield so much traffic as is supposed. The want of population is the great drawback to railways, and until this want can be met by emigration of some kind, a large amount of internal wealth must lie waste.

My long detention in the southern part of Brazil and the River Plate prevented me visiting Bahia and Pernambuco, and judging from personal observation as to the state and condition of the railways there, or reporting on the new tramway from Caxioera to the interior, which promises to be of great utility to the country traversed by it, as well as remunerative to the shareholders interested in its future.

COMMERCE OF BRAZIL AND THE RIVER PLATE.

During the unfruitful dominion of Spain and Portugal, commerce with South America was limited to the exchange of commodities between the mother countries and the populations planted in the New World revealed to Europe by the daring genius of the great Genoese navigator and those bold spirits who after him traversed and explored strange oceans and seas unknown. The Courts of Madrid and Lisbon adopted the most stringent measures for the preservation of their monopoly and to prevent commercial intercourse with their colonies by the subjects of foreign States. So successful were the means taken to this end that very little was known with certainty in England concerning those immense regions until after the War of Independence freed them from the yoke under which they had so long groaned. I need not in this place indicate all the causes that led to this great revolution, but there can be no doubt the example of our own American colonists and the principles disseminated by the French Revolution exercised a potential influence in stirring the South American communities to liberate themselves from the oppressive restrictions with which they were fettered.

The marauding exploits of Admiral Drake, and the rich prizes captured on the Spanish main, had given our countrymen some notion of the incalculable wealth of Chili and Peru, the Brazils, and the Rio de la Plata; and their erection into separate and Sovereign States was hailed as the advent of a new and prosperous era for the commerce of both hemispheres. With a liberality and promptitude which will always be remembered by the various South American nations, the capitalists of Britain responded to their demands for pecuniary aid, and loans were freely subscribed to enable the enfranchised peoples to establish popular self-government upon solid bases. It may be said that this still remains to be accomplished, and the frequently recurrent revolutions in Bolivia and Peru, and in some others of the nascent Republics, are certainly no manifestation of executive stability; but it must not be forgotten that their antecedents, under the Spanish and Portuguese control, were not of a nature to fit them for a wise and temperate exercise of political privileges. Year by year, however, with the growth of intelligence and the spread of education, the respective States are becoming less subject to internal and civil convulsions; and in this respect the rapid development of industrial and productive activity gives promise of a still more satisfactory condition of things in the proximate future.

Since the abrogation of the monopolies of Spain and Portugal and the inauguration of free intercourse with South America the commercial movements between that part of the globe and the maritime nations of Europe have assumed imposing proportions, and are every year increasing in value and importance. As elsewhere, England holds a high place both in the Pacific and Atlantic markets, as an importer of products and an exporter of manufactured goods. Our Board of Trade Returns show the magnitude of British interests in those countries, and the necessity that exists for promoting the most cordial relations with the different Governments. But at present I must confine my observations to Brazil and the River Plate, and from a reference to the returns in question it will be seen that the former is our largest South American customer, taking commodities to the annual value of £5,822,918, while we in return receive Brazilian produce of the annual value of £5,902,011. The River Plate comes next in order, taking English goods of the annual value of £4,405,548, while it sends to us produce worth £2,146,079. It will appear, therefore, that the total movements between this country and Brazil and the River Plate are respectively of the yearly value of £11,724,929 and £6,545,627. And here I may state, without going into particulars, that the entire commercial movement between England and the whole of South America reaches the no inconsiderable sum of £34,566,405. The above returns are for the year 1867.[6]

The Board of Trade Returns, though they exhibit, in figures surpassing eloquence in their convincing power, the extensive character of our own trading relations with Brazil and the River Plate, of course convey only a partial idea of the commercial activity of the countries named.

Brazil and the Argentine Republic both carry on a large business with other European nations. With regard to the first it will be seen from the statistics we quote below that the Empire has large transactions with France and the Continent, as well as with the United States, to which the bulk of her coffee crop is shipped.

In the Budget of last year, submitted to the National Assembly by the then Finance Minister, Senhor Zacharias, I find the following:—

COMMERCE OF IMPORTATION, EXPORTATION, AND NAVIGATION.

The value of the import trade in 1866-67, according to the official
data in the treasury, was 143,483:745$; 22,503:313$, or 18.6 per
cent, more than the average of the five years 1861-2 to 1865-6, and
5,716:903$, or 4.1 per cent, more than 1865-6.

This importation took place in the various provinces in the
following proportion, which is compared with that of 1865-6:—

1865-66. 1866-67. Over in '65-6.
Rio de Janeiro 80,709:067$ 80,458:064$
Bahia 17,598:941 17,878:203 279:262$
Pernambuco 21,083:655 22,211:290 1,127:645
Maranhao 2,946:760 4,028:383 1,081:623
Para 4,613:218 5,396:706 783:488
S. Pedro 6,514:928 7,746:076 1,231:144
S. Paulo 1,295:948 1,546:755 250:807
Parana 154:083 237:278 83:195
Parahyba 26:067 99:446 73:379
Ceara 1,924:546 2,586:973 662:689
Santa Catharina 449:246 630:912 181:066
Alagoas 62:250 219:537 157:287
Sergipe 63:177 17:390
Espirito Santo 1:209 2:116 907
Rio Grande do Norte 30:853 171:654 140:801
Piauhy 293:157 252:957
——————————— ——————————— —————————
136,766:842 143,483:745 6,053:893

Diminutions occurred in Rio de Janeiro 251:003$, Sergipe 45:787$,
and Piauhy 40:209$; total, 336:990$.

The countries whence the importation came in 1866-67 were the
following:—

Great Britain and possessions 58,276:905$783
United States 4,300:628 878
France and possessions 22,023:196 953
La Plata 12,325:712 734
Portugal and possessions 5,580:451 780
Hanseatic Cities 4,340:509 479
Spain and possessions 805:919 990
Sweden 222:194 583
Denmark 34:134 495
Russia 12:277 800
Coast of Africa 151:773 425
Italy 468:789 695
Chili 537:023 100
Belgium 1,333:855 778
Austria 910:268 440
Holland 3:017 850
China 23:400 000
Peru 680 000
Ports of the Mediterranean 29:744 000
Ports of the Empire 1,354:734 000
Fisheries 1:381 200
Ports not mentioned 30,747:145 332
———————————————
Total 143,483:745 290

The value of the exports of native production and manufacture to
foreign countries was in 1866-67 156,020:906$, 21,516:502$, or 15.9
per cent. more than the average of the five years 1861-2 to 1865-6,
and less by 1,066:652$ or O.67 per cent. than in 1865-6.

The countries whither the exports of 1866-7 went were the
following:—

Russia 460:660$717 Sweden 773:111 068 Holland 80:356 944 Hanseatic Cities 4,816:242 458 Great Britain and possessions 37,283:974 040 France and possessions 18,582:278 631 Spain and possessions 165:387 149 Portugal and possessions 4,347:275 259 Belgium 328:0485$841 Austria 61:381 600 Italy 734:400 624 Chili 414:903 411 United States 31,188:066 047 La Plata 7,014:207 881 Turkey 149:347 716 Denmark 913:630 980 Coast of Africa 448:869 272 Channel 16,511:659 000 Ports of the Baltic and Mediterranean 1,363:562 864 Ports not known 30,335:659 000 Consumption 42:642 178 ——————————————— Total 156,020:906 766

The total of the direct importation and the national exportation
abroad was in:—

1866-67 299,504:651

Compared with 1865-66, namely 294,854:400

———————————

There was an augment of 4,650:251

Or 1.5 per cent., and, if compared with the average of 255,483:836
1861-2 to 1865-6, namely

There was an increase of 44,020:815, or 17.2 per cent.

The value of the importation with certificate (carta de guia) was in
1865-67 24,902:670$, 823:969$, or 3.4 per cent. more than in 1865-6,
2,448:821$, or 12.6 per cent. more than the average of the five
years 1861-2 to 1865-6.

The re-exportation in 1866-7 rose to 1,786:052$, 447:993$, or 33.4
per cent. more than in 1865-6, and 377:686$, or 26.8, than the
average of 1861-2 to 1865-6.

The number of national and foreign vessels cleared in the foreign
trade of 1866-7 was:—

Entered 3,439 vessels 1,245,214 tons 51,450 men. Sailed 2,429 vessels 1,496,274[A] tons 49,655 men.

Including nationals:—

Entered 255 vessels 43,579 tons 1,953 men. Sailed 209 vessels 47,703[7] tons 2,174 men.

The products of Brazil are very varied, but the principal articles, and the relative positions they occupy in the commerce of the country, will be seen by the estimated quantity and value of the exports from Rio de Janeiro for 1867, as stated in the Official Report to our Foreign Office by Mr. Pakenham:—

Quantity. Value.
Coffee lbs. 424,532,680 £8,776,590
Sugar lbs. 8,980,960 106,752
Cotton lbs. 9,240,000 350,000
Rum pipes 3,865 40,000
Salted hides pipes 4,200,000 57,540
Dry hides pipes 250,000 8,250
Tapioca barrels 11,294 25,066
Horns barrels 116,860 1,519
Tobacco bales 51,615 154,845
Diamonds oitavas 5,704 37,000
——————————
Total £9,558,287

The exports from Pernambuco, Para, Bahia, Santos, and Rio Grande do
Sul during the same period amount to about £7,000,000.

Mr. Pakenham, in the same report, also remarks:—“The Brazilian imports and exports for the last year for which there are Customs statistics amounted to £14,348,374 for imports, and to £15,607,090 for exports, and the total commercial movement with foreign countries had then increased 17 per cent. on the average of the preceding five years.”

The trade statistics of the Argentine Republic are quite as encouraging as those of its Imperial ally. I have before me a valuable communication of Mr. Daniel Maxwell, of Buenos Ayres, addressed to the Sociedade Rural Argentina, in which he makes the following comparative statements as to the exports of produce during the periods mentioned:—

From 1858 to 1862. From 1862 to 1867. Dry Ox and Cow Hides 5,554,417 6,798,152 Salted Ox and Cow Hides 1,972,755 2,325,084 Dry Horse Hides 305,057 197,264 Salted Horse Hides 780,190 617,945 Bales of Wool 251,191 608,706 Bolsas of Wool 7,456 9,517

With the exception of horse hides these figures manifest a very material and striking augmentation in the productive energy of the Republic. The proportionate distribution is shown in the annexed tables:—

DRY OX, COW, AND HORSE HIDES.

From 1858 to 1862. From 1862 to 1867. Great Britain .233 2.816 France 11.936 8.054 Belgium, Holland, and Germany 25.847 11.585 United States 29.029 48.904 Italy 12.844 10.562 Spain 18.011 17.985 Sweden and Norway .094 ——————— ——————— 100.000 100.000

SALTED OX, COW, AND HORSE HIDES.

From 1858 to 1862. From 1862 to 1867. Great Britain 63.123 45.484 France 12.592 14.533 Belgium, Holland, and Germany 17.873 31.807 United States 2.626 1.889 Italy 3.482 4.893 Spain 6.304 .408 Sweden and Norway .914 ——————— ——————— 100.000 100.000

WOOLS.

From 1858 to 1862. From 1862 to 1867. Great Britain 10.273 7.235 France 27.508 25.109 Belgium, Holland, and Germany 39.784 45.433 United States 21.083 20.340 Italy 1.303 1.766 Spain .039 .030 Sweden and Norway .087 ——————— ——————— 100.000 100.000

The number of sheep skins exported from 1858 to 1862 was 8,705,883 against 20,776,898 from 1862 to 1867; and with respect to the wool exported it may be desirable to explain that a bale of wool usually contains 34 arrobas, and that four _bolsas_ or _chiguas_ are equivalent to a bale. According to this calculation, the export of wool from 1858 to 1862 reached 8,705,883 arrobas against 20,776,898 arrobas from 1862 to 1867.

The war with Paraguay, though it has undoubtedly pressed upon the financial resources of the Republic, has in no manner arrested its commercial, industrial, and fiscal progress. This is very clearly apparent from statistics furnished by his Excellency Don Norberto de la Riestra in connection with the issue of the recent Argentine loan contracted in this country to cover the balance of the extraordinary expenditure caused by the protracted struggle with Lopez. I quote as follows from the document referred to, the value of which will be obvious:—

The official value of the foreign trade of the Republic through the
port of Buenos Ayres alone in 1865 was as follows:—

Imports £5,420,603
Exports 4,399,355
——————————
Total £9,819,958

In 1866 it was:—

Imports £6,453,817
Exports 4,605,942
———————————
Total £11,059,759

The real value of the aggregate trade for 1866, including the other
ports of the Republic, cannot be estimated at less than £16,000,000,
and has continued since to augment.

The declared value of produce and manufactures exported from the
United Kingdom to the Republic in 1867 has amounted to £2,838,037,
taking in this respect the lead of all the other South American
States, Brazil only excepted.

The export of wool, which is the staple article, from the port of
Buenos Ayres alone was as follows:—

Season 1863-64 77,343,200 lbs.
Season 1864-65 104,688,000 lbs.
Season 1865-66 120,362,400 lbs.

and the same progressive increase is observable in the other
productions of the country.

Referring to Brazil, every Parisian luxury is found in the cities, Rio de Janeiro being full of French shops, and the Rua d'Ouvidor, one of its principal streets, is almost exclusively French. Of course many important trades and industrial occupations are carried on, and in particular the manufacture of carriages, which equal in elegance and solidity those of any country in Europe. Iron foundries, iron ship-building, and other useful establishments also exist; but there are few cotton, woollen, or silk manufactories. Therefore the commerce of Brazil is almost entirely one of exchange.

As regards the River Plate, a large trade is maintained with France, Belgium, and other parts of Europe, where River Plate produce is extensively consumed. It is only necessary to look at the manner in which the ladies of Monte Video and Buenos Ayres dress to form an idea of the extent of French imports to those places. There are no manufactories in the River Plate beyond such as have been specified in regard to Brazil, carriage making being equally conspicuous.

It is a feature in the Board of Trade Returns that Paraguay, which has of late years caused such a noise in the world, makes no figure whatever. Now of course it is under blockade, but previous to that event the figures were almost _nil_. Had the ruler of that country used his energies to produce and export 5,000 bales of cotton annually, for which article the land and climate are admirably adapted, what would have been the state and condition of Paraguay at the present moment? It is not requisite to enlarge on such a topic.

Whilst adverting to the commerce of these countries, and to their internal wealth, their mineral products must not be left out of sight, and in this respect Brazil possesses a great superiority from the steady working of her gold and diamond mines, which have always been a source of considerable revenue, even though they are probably not yet very perfectly explored. To do this it requires a large outlay of money and the enterprise of private individuals or public companies. Formerly the mines were worked exclusively for the Crown.

The Argentine Republic has not yet given much signs of mineral activity, but there can be no doubt gold exists, as well as silver, in the Andine Provinces, and when the railway is carried on to Cordova we may hear a good deal more of the San Juan silver mines, to the development of which Major Rickards has devoted himself for so many years.

In the Banda Oriental gold has long been known to exist in the mountains of Canapiru, and the indefatigable Mr. Bankhart has succeeded in forming a company of Monte Videan shareholders to operate there. He is now in England obtaining the needful machinery and securing workmen for the mines. If successful it will be a great boon to the country, and may assist in providing a future metallic currency, from lack of which things now appear to be at a deadlock.

It will be seen from this short summary how closely our commercial interests are identified with those of the countries referred to, and how desirable it is, as at present, that the most friendly relations should be maintained with them. Nor are these likely to be again disturbed. In every port and city in South America are to be found British merchants and representatives of the country, the latter placed there, not, as previously, with a view to cavil, find fault, and threaten, but to see fair play and justice impartially administered to British subjects. The doctrine of non-interference in the political squabbles of other countries is now generally adopted, diplomatic meddlers are discouraged, and the post of foreign minister in South America is much more agreeable than formerly.

-----

Footnote 6:

It may be interesting to show the progressive nature of them by taking
the Board of Trade figures in connection with those countries for the
previous four years as follows:—

Brazil— Imports. Exports. Total.
1863 £4,491,000 4,082,641 8,573,641
1864 7,021,121 6,369,359 13,400,480
1865 6,797,241 5,771,024 12,468,265
1866 7,237,793 7,358,141 14,595,934

River Plate—
1863 £2,460,280 1,897,164 3,357,444
1864 2,285,486 2,788,653 5,074,139
1865 2,263,540 2,824,823 5,088,363
1866 2,613,263 4,250,470 6,863,733

Footnote 7:

The “sailed” are toneladas of 1,728 lbs.

THE RIVER AMAZON.

As it has not been my good fortune to visit this mighty stream, I cannot, of course, speak of it from personal experience, but the Amazon is exciting so much attention in various parts of the world in consequence of the late voyage of Professor Agassiz that a brief notice may not be out of place here.

Most persons have read Mr. Bates' very interesting work, “The Naturalist on the Amazon,” in which he has described in so graphic a manner the wonders of that country in the shape of animal and vegetable life. Since it was written a great change has taken place in the future prospects of the Amazon by the politic step of the Brazilian Government in throwing open its waters to the flags of all nations, from which will result much valuable information, if it is not immediately followed by commercial progress to the extent that some sanguine writers have foretold. This act has called forth in Europe and America the most gratifying tributes in commendation of the unselfish attitude thus assumed by Brazil towards the commerce of the world. The American journals are especially unstinted in their praise. With regard to the probable consequences of this measure one writer, the Rev. J. C. Fletcher, states as follows:—