The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-11-13
BRAZIL'S TROUBLES
Not Politics but Money Grabbing
is the Cause.
BANK OF ISSUE PRIVILEGES
Granted Fonseca's First Associates yer
tible Paper Distributed Among the
Dictators Friends.

Especial to THE misunderstanding Dispatch.l
LONDON, Nov. 1.-THE Times to-day
Thursday prints the following special
article: Lisbon, Nov. Ida Fonseca's
coup d'etat or violent dissolution OF the
first congress of the republic, and his con-
temptuous dismissal of the fathers of the
constitution, did not originate in political
causes or financial difficulties. The money
grabbing proclivities of those who sur
round Da Fonseca are the real causes of
late Gictatorial revolution. Paper money
making has always been the greatest temp
tation to South American dictators.
FoNsECA's FIRsTHAssoCIATEs,
led by Ruy Barbosa, could not escape this
general rule. They gave Mr.. Mayrinck
the privilege of great bank of issue which
sent out more than 24,0O0,000 contos of
practically inconvertible paper which was
distributed among the friends Of the die
tatorship, mostly for the purpose of launch
ing colossal foolish companies and for the
most shameful money gambling ever
known. The original amount of state paper
IL Brazil was ISL, 100 contos, which was at
par, that is, the milreis was worth u pence,
AT present the milreis is only worth Is
pence, which means a loss of more than 30
pei CSuu by law tu6 Uauh udu GU nave
one-third of the value of it's notes in gold
deposits, but that gold was
CARRIED AWAY FROM THE BANK BY BAR
BOSA.
1.-THE chairman of the Banco da ReDu blica,
! Mayrlnck, and the present financial dicta-
tor, Is not yet satisfied and has forced
! t'onseca's government to allow him to is
sue more paper. The minister OF finance
| proposed resolution raising the amount
| OF paper money from 100000 contos to 600,-
O00 contos, but this measure raised gen.
eral outcry in the press, and congress by
| liz votes against 80 defeated it. Msyrinck
and his group were infuriated, and it is
well known that they had intended to issue
nearly 100000 contos to save the Banco da
Republica and its friends from imminent
bankruptcy, the money being intended to
| be Immediately lent to few INSCRIPTIONS
and pennlless people who, as was well
known, were owing colossal sums to tho
| Banco da Republlca
The vote of the chamber produced very
good impression and exchange began to
rise. The Banco da Republica was now in
| hopeless difficulty. 1t therefore concocted
with Fonseca's adherents
THE EXPULSION OF THE CONGRESS
which scheme was carried out, and May
rlnck now rules the lawmakers, if not of
the whole country, at least of Rio. The
| paper currency will now be increased as
Fonseca and Mayrinck wish, although some
have expressed suspicion of the author
ity that would warrant the issuance of this
money, and question that Under which
Mayrlnck issued money in the past"
The cable says the Brazilian government
has leased the Central railway Of Brazil
for thlrty-three years, so the second die
| tatorShip of Fonseca begins with the alien
| a n nor NO limo h 10 fota
Half of the amount of the lease is to be
paid Immediately. Thus, not unlike Port
! ugal, Fonseca begins to deprive the cred
| ltors of the country Of their best guaran-
tees. Another financial achievement of
FOnseca's second dictatorship is the repeal
of Barbosa's law converting the interna-
tional 3 per cent. loans, which amount to
an actual breach of national faith. BY
a decree Of Fonseca himself year ago the
holders OF the international per cent
paper bonds were allowed to convert their
bonds into per cent. gold bonds. Now
Fonseca repeats his own law and tells the
4 per cent. bond holders that they must be
satisfied with 5 per cent. deprecated paper
THE GABLE ALSO SPEAKS OF THE PECULA-
| TIoNs
Brazilian bank. A few weeks
ago Lucena issued a decree obIig-
ling all foreign associations working
in this countr. to have their charters and
concessions renewed within sixty days.
This measure was directed only by May
rinck against the English bank The man
ager Of the London and Brazilian refused
to ask for new charter, claiming that the
charter his bank did bushes under was q
solemn decree Of the Brazilian government
granted thirty years ago. and was irrevocs-
BILE. Il the manager asked renewal he
claimed that he would thereby recognize
the right of Fonseca to refuse a continue
ton of the charter. l hear that the bank
is supported in this action by the British
legation, which has advised the manager
it would be much better for him to shut
his doors than to recognize the dictator S
decree.
NOBODY CAN TELL WHAT THE FUTURE HOLDS
for Brazil now under the rule of Fonseca
and Mayrinck. Certainly the late congress
was composed of very Indifferent men.
noisy, insubordinate young officers, igno-
rant proteges of F'onseca, lawyers without
clients, doctors without patients. These
formed majority of the congress which
submitted always to Fonseca and his mill
tary supporters. Only few days before
the coup d. etat congress was weak enough
to refuse its authorization for q Grimm al
suit against Captain Espiritos Santos, who
had been proved by the court guilty OF
shameful outrages against morals. Never
theless there is no doubt that congress by re-
fusing Fonseca permission to print any
more paper acted rightly and periodically
even al the cost Of its own existence