I have had several interviews and conversations with the Viscount de
Oaravellas, as with his predecessor, on this matter, calling their attention
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to the great injury thus wrought
to our interests. And as a commission is now considering what changes, if
any, should be made in the pauta, I thought it a
convenient opportunity to again show the injustice of the present list.
The statements in the note are based upon the best authorities attainable,
and they will be seen to agree with those contained in my No. 102 to the
Department. I have endeavored to show, and I think I have demonstrated, the
utility to Brazil of this change, as well as its propriety. I wish that I
could add that there was satisfactory reason to believe that such changes
will be made as would properly answer the liberality of own tariff toward
Brazilian products.
One difficulty lies in the fact that this assembly has just increased the pay
of everybody, and nearly doubled their own, so that the expected surplus
will be prevented.
However, no effort of mine shall be wanting to obtain it.
(Inclosure.)
Mr. Partridge to the Viscount de
Caravellas.
Legation of
the United States in Brazil,
Petropolis, April 16,
1873.
The undersigned, envoy, &c., of the United States, has the honor to
invite the attention of his excellency the Visconde de
Caravellas, minister and secretary of state for foreign
affairs, to certain facts, and to considerations growing out of them, in
relation, to the condition of trade and commerce between the United
States and Brazil. This has been done with a view to the future
development of those interests to the advantage of both countries, and
for the purpose of offering certain suggestions, founded on those facts,
which the undersigned hopes will be favorably received and acted on by
the imperial government.
It is known to his excellency the Visconde de
Caravellas that, since the 1st of July, 1872, the duty of
3 cents per pound on coffee in the United States has been abolished. The
duty, which had only existed since 1861—and which had been reduced in
1866 or 1867 from 5 cents to 3 cents per pound—was imposed by the United
States only as a measure of necessity during the war, and the Government
embraced the earliest opportunity to abolish it entirely in 1872.
It is hardly necessary for the undersigned to remind the
Visconde de Caravellas of the immense advantage
accruing to Brazil by reason of this abolition. Of the whole coffee crop
of Brazil, nearly one-half—and sometimes three-fifths—is sent to the
United States. That country is Brazil’s best customer; and from this
empire is exported to the United States nearly as much in value as to
all other countries combined. The United States thus takes more than
one-third (38 per cent.) of the entire exports from Brazil.
These assertions are sustained by the statistics published by the Relatorios of the ministry of “Fazenda;” by the Associacas Commercial of Rio de Janeiro,
(1872;) by the Retrospecto Annual of the Jornal do Commercio, (1872;) by
the returns to this legation from the United States consulates in
Brazil, and by the official statements of imports into the United
States.
From the “Relatorio of Fazenda,” (1872,) it appears that the amount of
the whole exportation from Brazil during the year (October) 1870,
(September) 1871 was Rs. 168,018:757||000, ($84,000,000.)
To the United States, of this amount, according to the consular returns,
was shipped produce to the value of Rs. 62,983:525||740 (over thirty-one
millions of dollars) from Brazil.
From the port of Rio de Janeiro alone, during the year January-December,
1871, was shipped to all foreign countries, produce to the value of Rs.
77,043:332|| 316;* of which
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the amount to the United States alone, and not
including the export duty thereon, was Rs. 37,996:634||480, or nearly
one-half.
Of the whole export of coffee from Rio de Janeiro for 1872, (2,011,192
bags,) there went to the United States more than one half, (56¼ per
cent.,) or 1,130,680 bags.
In 1871, the proportion of coffee to the United States from Rio was
nearly 58 per cent. of the whole export, (1,354,346 bags out of
2,358,001.)
In 1870, it was nearly 62½ per cent. (1,373,654 bags out of 2,209,456,)
or more than three-fifths of the whole export of coffee from Rio.
Of the whole import of coffee into the United States from all countries,
nearly four-fifths (79 per cent.) is furnished by Brazil. Of this, about
2 per cent. is distributed to other countries, (Mexico, &c.,)
showing that, of the coffee consumed in the
United States, Brazil alone furnishes 77 per cent., or more than
three-fourths.
By the abolition of duty on coffee, the United States Treasury gave up a
revenue (upon a consumption of over three hundred millions of pounds in
1871) of more than $9,000,000, or nearly eighteen thousand contos of
reis, (lis. 18,000:000||000,) of which nearly seven millions of dollars
(more than thirteen thousand contos of reis, Rs. 13,600:000||000) was
paid in 1871 upon coffee brought from Brazil. The abolition of that duty
in the United States inured, to that amount, to the benefit of the fazendeiros of Brazil, producers of coffee; the
price of which in Rio, on reception of the news, went up and has not
since receded.
On the annual amount and value of coffee thus exported from Brazil to the
United States, the imperial and provincial treasuries levy export duties
of (9 and 4) 13 per cent. ad valorem. Thus, by the “Relatorio of the
Associacão Commercial of Rio de Janeiro for 1872,” it appears that the
whole value valor official) of the exports from that port to all foreign countries, from 1st October, 1871, to 1st October,
1872, was Rs. 67,865:172||258. Of this amount Rs. 37,506:695||822 (56
per cent.) went to the United States.
The export duty (9 per cent.) on this whole amount to all countries from
Rio received into the imperial treasury was Rs. 5,981:494||046, of which
amount Rs. 3,375:602||623 (58 per cent.) was on the coffee sent to the
United States. And the provincial treasury received in addition 4 per
cent., amounting to Rs. 1,500:267||832.
Thus it is shown that on the exports of coffee from Rio, alone, to the
United States in 1871–1872, the export duties paid by the purchaser in
the United States before embarking said coffee, and in addition to the
price paid to the producer, amounted to four thousand eight hundred and
seventy-five contos of reis, (Rs. 4,875:000||000,) nearly two and a half
millions of dollars.
On the whole exports from all the ports of Brazil to the United States,
and which amount, as stated above, to sixty-two thousand nine hundred
and eighty-three contos, five hundred and twenty-five mil, seven hundred
and forty reis, (Rs. 62,983:525||740,) ($31,400,000 United Stages,) the
imperial treasury levies an export duty of more than five thousand six
hundred contos of reis, making in all, with the provincial duty of 4 per
cent, an export duty by Brazil on the commerce to the United States, of
more than eight thousand one hundred and eighty-seven contos annually,
($4,093,000 United States.)
Such is the value and such the export dues on the exports from Brazil to
the United States, of which the value of coffee from Rio (83 per cent.)
and from Santos (2 percent.) together constitutes the greater portion,
(85 per cent.;) and other articles, as India rubber, nuts, &c., from
Para, (6 per cent.;) hides, wool, &c, from Rio Grande do Sul, (5 per
cent.;) sugar, &c., Pernambuco, (2 per cent.;) Bahai, Maranham, and
all other ports, (2 per cent.)
On all these articles, the produce of Brazil, when they reach the United
States, no impost is charged, except a small duty on wool and sugar,
(both of which have lately been reduced,) and of which Very small
quantities go from Brazil to the United States.
On the other hand, in exchange for this large amount exported from Brazil
to the United States, there is imported of the produce and manufactures
of the United States into all ports of Brazil from the United States
annually to the value of only between twelve and thirteen thousand
contos of reis, (between six and six and a half millions of dollars.)
The difference between these respective amounts of exports from and
imports into Brazil from the United States—about fifty thousand contos
of reis— “the balance of trade”— is thus against the United States in
the ratio of about 5 to 1, and must be paid to Brazil either in specie,
or, as is usually done, by exchange on England.
On these exports (thirteen thousand contos) from the United States to
Brazil there is no export duty whatever levied in the United States. But
on their arrival in Brazil, the duties imposed in consequence, not so
much of heavy rate, but by reason of the exaggerated pauta, or
custom-house valuation, is so enormous in comparison with their cost in
the United States, that one great cause of the inequality in the
commercial movement between the two countries is seen at once. The duty
in Brazil by reason of the “pauta” becomes almost prohibitory, or, at
least, prevents the importation and consumption, which otherwise would
be much greater. This will be clearly perceived
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from some examples of the “pauta” in Brazil on
articles which come exclusively from the United States.
Kerosene.—Kerosene (refined) costs, in cans, in
the United States about 444 reis per gallon of 3 kilograms, or per
kilogram 148 reis. The pauta (on which the duty of 30 per cent. and 5
per cent. and 28 per cent. is calculated or value assessed in Brazilian
custom-house) is per kilogram 400 reis, which is nearly three times its
value in the United States. The duty amounts to, per kilogram, 179 reis,
which is more than 120 per cent. upon the cost.
Rosin.—A barrel of rosin weighs 140 kilograms, and
costs in the United states Rs. 6||000 per barrel, or per kilogram 43
reis. The pauta, per kilogram, is 50 reis. The duty amounts to about 23
reis, or about 50 per cent. on its cost.
Lard.—Lard costs in the United States 9 cents per
pound, or per kilogram 380 reis. The pauta here is per kilogram 400
reis. The duty amounts to 180 reis, or 47 per cent. upon its cost.
Pitch-pine deals and lumber cost in the United States $18 per 1,000 feet,
or per square metre (1,073 square feet) 370 reis, duty on each square
metre is 150 reis or 40 per cent. ad valorem.
Flour.—This article makes up the largest amount in
value of the imports from the United States into Brazil. The pauta and
the duty are not excessive, not exceeding 9 per cent. on the present
high cost in the United States.
The whole value or first cost of the above articles, with all others from
the United States, amounts to probably between twelve and thirteen
thousand contos of reis, (Rs. 12,000,000: $000, or 13,000:000||000,)
and, from the examples given above, it is evident that this amount is so
small, in comparison with the amount exported from Brazil to the United
States, principally because the duties, levied thereon in Brazil, are so
high as to prevent their more general use and consumption. These duties
add so much to the price, to the consumer, that the quantities demanded
are small; and these would he much greater, and a larger amount of cheap
comforts be afforded to the population, on a lower duty, or, even with
the present rate of duty, on a pauta more in accordance with the cost of
the articles.
Nor should it be feared that the imperial treasury would lose in
receipts, even on these articles, by such lowering of the pauta. The
larger consumption would far more than compensate, by a far greater
importation, the result of the higher tax on the quantities at present
taken. This may be safely predicted of all imports, and especially with
regard to kerosene. This article affords the cheapest light now known;
and its use becoming more general every day, and especially in the
interior provinces, with the extension of railroads and means of
intercommunication, there would be a very far greater importation and a
very much greater receipt in duties in consequence.
The favorable condition of the imperial treasury and of the finances of
Brazil at this time, invite, as well as permit, the lowering of the
pauta on those articles whose inflated value has hitherto prevented a
larger receipt.
The great rise in the price of Brazil’s chief product, which has enriched
the country and given such favorable results to the empire, easily
enable consumers to take larger quantities of imports, and especially of
those comforts which would then he cheap, and of which some of the most
essential come from the United States.
Of the enormous advantage to both countries, and to their commerce, in
case the imperial government could take this step, the undersigned
thinks there is no necessity to speak.
While the imperial government is considering the report of the commission
to which was referred the matter of making the pauta conform more nearly
to the Cost of the articles therein valued, and while the results are
still to be determined, it has seemed to the undersigned a proper
opportunity again, and in written form, to bring these facts and
demonstrations to the notice of his excellency the minister of foreign
affairs, and to respectfully urge their consideration.
Such action by the imperal government, securing an adjustment of the
pauta in conformity with real value, would be a proof that Brazil
appreciated and desired to respond to the liberality already shown by
the United States toward Brazilian products.
It is only proper and right that between the two chief powers on the
American continent such correspondent action and reciprocity should
exist; and these are called for not less by an enlightened self-interest
than by the principles of true political economy.
The undersigned, &c.,
