No. 73.
Mr. Partridge to Mr. Fish.
Rio de Janeiro, April 23, 1875. (Received May 21.)
Sir: The progress of business in the legislative chambers has thus far been more satisfactory than usual, notwithstanding frequent failures to hold sessions for want of a quorum.
The budget has been presented. Receipts for 1875–’76 are put down at 106,000 contos—about $57,000,000—and the estimated expenditures are put down at 102,000 contos, showing an apparent surplus of 4,000 contos, or about $2,160,000.
It is to be suspected, however, from former experience, that the expenditures will, in fact, exceed the estimates; while it is to be feared from the stagnation of business and diminished import dues, as well as from the lessened product of the export duty (from the lower value of coffee and reduction on other exports) that the amount of receipts may not equal their expectations.
This deficit will have to be supplied, as heretofore, by treasury-notes, loans at six months, increase of the floating debt, to be met finally by the proceeds of a new funded loan.
The financial condition of Brazil is proclaimed to be eminently satisfactory by the ministerial journals, and they adduce in evidence the success of the late five per cent, loan (£5,000,000) placed at about 97.
But the condition of the agricultural interest and of commerce, and the high price of all commodities imported, by reason of the heavy duties, and the unsatisfactory situation of the joint-stock companies, railways, and industrial enterprises, all show the effect of a high tariff, (export as well as import,) irredeemable paper money, and a heavy national debt.
The country progresses, but so slowly that the development of its resources and creation of new wealth do not keep pace with the increased [Page 112] outlays. It maintains a large naval force, a comparatively large army, and is burdened with heavy pension-lists, and the financial results of the war with Paraguay.
For this reason, more than any other, I think this empire earnestly desires peace, and dreads any complication of its foreign relations, particularly any embroilment in the river La Plata, which might force it to new expenditures, losses, and the depreciation caused by any war. Brazil is under heavy bonds to keep the peace.
I have, &c.,