No. 41.
Mr. Partridge to Mr. Fish.
Bio de Janeiro, September 29, 1876. (Received Oct. 30.)
Sir: The situation and condition of political affairs here continue entirely unchanged.
It seems to be doubtful whether the elections ordered to take place under the new law on the 2d of October can be held, since there has been some omission or defect in making out the previous electoral lists in many places and especially in this city.
The list for Rio has been declared invalid by one of the courts, and it would seem that even in case the election (throughout the empire) is held the chief city must remain unrepresented.
In the mean time, there has been a great depression in the market price here of the government 6 per cent, bonds, going down to par from some 6 or 8 per cent, premium.
And it is certain that the imperial treasury is at this moment without the means of paying large amounts already due, and for improvements (railways) ordered to be constructed, the funds for which have been diverted to other payments. The receipts from customs have decreased, and in the northern provinces especially there is a very large reduction in receipts with an increase of expenditure, so that the financial condition is everything but satisfactory.
It is now said that there will be necessarily an additional issue of notes payable to bearer, and having interest-coupons at 5 per cent., and in sums as small as 100 milreis, so as to tempt the investment of small sums now hoarded throughout the empire.
I am, &c.,