The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1875-04-10
rFroa the ISneon FiAaaei0.I
The New Brazilian Loan.

As IL Is now announced from Rio de Janeiro
that the Imperial Government. on the lst OF Dc
tober, concluded a contract with Messrs Erlanger
and Raphael. for a i've per cent. loan of IS ,0O0,-
600, at the price of emission Of 9S Ito what ex-
tent practically lowered by allowances usual in
such operations does not appear0 attention Is
naturally directed TO the purposes fOE which such
a loan is required by the Empire, and TO Its fnan.
cial condition. M
As the internal funded debt OF Brazil, in 6 per
cent. "Apolices,' was at the last dates quoted
at l03 to 104 at Rio, the Government, 1t is
obvious, could have raised a loan at home on easy
terms. But to have done that would have alien
ated floating or loanable capital. however largely
increased by the late high prices Of coffee, from
more useful application TO extending the agricul-
ture OF the country, and have raised the value of
money. The preferences Tor an external operation
Of credit Is, therefore, so explained, and also by
the fact that the existing foreign debt of Brazil
does not reach a year and a balfs revenue of the
Empire, being little more than IA millions ster-
ling. In that preference, too, the Government
was no doubt encouraged by the high values
which its existing loans here had attained, its five
per cent. bonds being quoted at the date OF this
new contract at 991 to 1904. OF foreign securi-
ties. none had Of late been more stationary IN
value than those of Brazil, as they are well held
by permanent investors, and IN them there was
an entire absence of speculative dealings. Con-
fdence in the security of Brazilian loans has long
been great, and, properly managed, Brazil can,
of course, easily obtain a loan of IS 600 900 in
London. The only question touching such an
operation is one of price.
The objects of the new loan may, we appre-
bend, be thus explained. The Imperial Govern
ment had for some time past been in possession
of legislative authority to raise money for rail-
way purposes. Instead of using these powers,
it, however, drew on the Treasury to carry for
ward the Dom Pedro Segundo Railway from Rio
towards the great internal province of Minas
Geraes, and Iaterally towards the Aourishing
province of San Paulo. During the last twelve
months, political complications IN the River
Plate necessitated some increase of naval and
military expenditure, and led to augmentation of
floating liabilities IN the shape of Treasury bills.
AS an increase of these bills tends to make money
scarce in Rio, and to divert, contrary to public
policy, domestic capital from industrial applica-
ton and agricultural development, the approach
of a loan had for some time been anticipated.
Moreover, the Government is now engaged in the
preparation of an extensive system of railways
of an Imperial character, and likely to prove re-
muneratiye, in its great southern province of Rio
Grand de Sui, which it proposes to execute under
contracts, at its own cost and for them it must
betimes provide the means. Sir John Hawkshaw
is, it may be added, at present engaged in sur
veys of some of the Atlantic ports of Brazil, with
a view to their improvement, and that, of course,
will require money. So there are concurrent use
full projects in hand for which a loan is wanted,
and for its interest, charge, and reimbursement
there are ample means in the excess of ordinary
ton of taxation.
The financial prospects of the Empire are at
present excellent. Last year, short coffee corps
were far more than compensated for by an enor-
nous rise in the price of that article, of which
Brazil supplies one-balf the worlds consumption.
This year abundant production of coffee will make
up in money for the fall in its value. In the
Province of Rio alone the crop is estimated at not
far short of 5000, 900 bags of 160lbs each. In
the Province of San Paulo, Mr.. Fox, the superin-
fondanf NJ tho EnOliah iIua from 1unAIahu
to Santos, writes to the Board of that Company
that its coffee crop is 50 reported abundant, . even
though last year " nearly 5000 tons more than
have been transported in any previous year. =" was
brought down the line for shipment at Santos.
Last year. the sugar and cotton corps of Bahia
and Pernambuco were unusally short, consequent
upon an unprecedented wet season but, says Mr.
Mawson, the superintendent of the Bahia Rail
way, under date of the 9TH August. "The pro-
spects of the season We are now entering on con-
tiuue to be very good. The sugar cane has grown
I an abundant crop on all the estates served by the
railway, and, with favourable weather, good traffic
returns may be considered certain" Over that
the quantity of tobacco carried was rapidly in
crceasing in the LIST half of the year closing the
Both June, 1874, at the rate, it is stated, of
ss about so per cent" And in P~ernambuco, as
in Maranham, the cotton crop is well spoken of.
Under these influences the rate of exchange on
London is rising, to an economy IN Government
and other remittances, and to an increase to trade
WIFI Inl6 country. Auu, de power U OK
port enlarges, the increase of imports will, of
course, augment, to the further Improvement of
the revenue of the Empire.
An addition of 95, 900 900 to the foreign debt
of Brazil, with an Imperial Gas distinguished from
Provincia) revenue of, say Ell 600 900 a year,
will make the foreign debt of the empire a little
in excess of Els, 00O, 900, or not equal to two
years. imperial income. And it is to be noted
that the pressure of its railway guarantee here is
diminishing. Already the San Paulo Railway,
enjoying q Government guarantee of 7 per cent
on f2,650. 900, is proving to be a source of
profit instead of financial burthen TO the Empire,
its profits last year being 929 ,052 lbs 4d in excess
of the sum represented by the guarantee, OF which
the Government takes 96,8S9 15s 4d. The
burthen of its guarantee on Ell ,685 $50 capital of
the Pernambuco r lway was last ~halE-year re-
duced, if we read the account accurately, to
Ell, 765 los sd. md it is only in the case of
the Bahia line that the full weight of the guar
antee now falls on the Government. This i'm
proved position of two of it's guaranteed railways
amounts practically to a large dimunition of the
Governments pecuniary liabilities to England.
Such are the more obvious circumstances of the
empire under which the new loan is about to be
announced. OF its detail we are uninformed.
But it is to be presumed that it's high price Of
emission will be considerably reduced by allow
ances, to be hereafter explained.
Leprosy In Canada.