Los Angeles herald., 1891-11-22
SUD AMERICAN NEWS
Chile Rehabilitating Its FL
nancial System.
President Montt Proposes to
Cut Down the Army.
The Situation i'm Brazil is by no
Means Improved.
The Government Unable to Land Troops
at Porto Aiegre--A Movement to
Form Northern Republic.
The Dictator's Health.
Aasociated Press pispatches.


with the view of resumption Of metal
lie basis and the gradual withdrawal ol
paper issue. The following programme
is proposed by the council OF state: To
rehabiIitate Chilean finance gradually,
and at the earliest time advisable retire
the issue by Balmaceda of $21 ,000, 600 Of
paper; also to repay banks $9,OO0,OOC
obtained in forced loans by Balmaceda,
and Authorize President Montt to issue
100000 bonds for the purpose
of retiring the above paper and
paying the banks; government bonds
to bear interest at 5 per cent, with
an amortization of 2 per cent annually
banks to guarantee bonds and all paper
issued prior to '9l; reduction to 60 on
until it reaches 100000, and the
government to withdraw the fractional
metal coins which now are only per
cent silver.
President Montt has proposed to con-
gress to cut the army down to 5000 men
and the navy to first, second and third.
class ships, two Transports, two school
ships, eight small launches and two tor
pedo boats.
The crew of the British steamer Kaiso,
which foundered at sea, arrived here on
the steamer Ecuador VIZ ~
THE SITUATION IN BRAZIL.
The Herald's Montevideo cable says !:
Passengers from Desterro say the three
generals sent by Fonseca to.Rio Grande
have returned. They found it impossi-
BILE to land troops at Porto Allegro, owing
to the Instructions placed in the bay by
the insurgents. There is general
movement to form a new republic
throughout the northern part of
Brazizil among those who op-
pose Fonseca. Volunteers from
Montevideo are focking to the army. Of
the junta. General Alliston, with q
large force Of troops, has left for Rio
Grande to engage the insnrgent army In
battle.; General Ossorio, chief of the
military forces Of the juhta, declares his
intention to march upon Rio de Janeiro,
overthrow Fonseca and restore liberty.
Within eight days the army Of the junta
will amount to so, 900 men. The junta
has six ships stationed at the entrance
of the Rio Grande river- The dictator's
health is better.
AN OFFICIAL REPORT.
WASHINGTON, Nov. 21.-Senhor Mem
donca, Brazilian minister here, today
received the following from the Bra
lillian minister of foreign affairs "Tele-
grams daily received confirm the reports
Of complete tranquility in all the states
except Rio Grande, where the constitu-
tional authorities have been deposed and
a provisional junta proclaimed, presided
over by DIR. Brazil, who declares himself
hostile to the federal government. The
government is taking measures to sup
press the anarchial movement. 4
blockade of the port Of Rio Grande will
be decreed. The government proceeds
with all moderation"
REBELLIoUs PROVINCES.
Rio DE JANEIRo, Nov. 2l.-The gov
ernment has issued orders for an addi-
tional force of troops to proceed at once
to Desterro, capital of Santa Catherine.
At San Palo popular outbreak is mo-
mentarily expected.
THE MAN FOR THE OCCASION.
LONDON, Nov. 2l.-Today's advices
from Rio Grande do Sui. by way of San
tiago, add very little to what is already
known. 1t is again asserted that the
man whose influence is greatest at the
present juncture is Caspar Silveira Mar
tins, at one time governor OF the province.
who was exiled at the. time of Dom
Pedro's dethronement, and afterwards
permitted to return. It is believed bis
views as to what is the best policy for
the state to pursue will prevail. Mar
tins is admitted by all parties to be
both able and energetic. He is in favor
of republican form OF government,
while personally very friendly to Dom
Pedro.
THE GOVERNMENTS ACTION.
An official dispatch from Rio de ia
metro, this afternoon, says the govern
ment dictator is continuing to take
active measures to suppress what
is termed the 'anarchical move
ment' in the state OF Rie
Grande do Sui. 1t is proposed
to establish close blockade at the por1
of Rio Grande, and so attempt to cut The
state off from communication with ths
outside world. 1t is said the govern
ment will use moderation in its treat
ment of the seeded states. The dispatch
says nothing about Fonseca's reported
illness, or the possibility of plots to maxi
away with him.