New-York tribune., 1901-08-29
BRAZIL'S CRITICAL STATE.
FEARS OF REVOLUTION UNDER PRES
ENT ADMINISTRATION.

ro.r,sr,b,co Aue s-Telegrans from Rio Janeifo
FOR the last few days indicate that the bia .
covernuent is in critical state. luparuai op
. bs,,e been exuecting this, though the Crisis
pas nerhaps come sooner than most people ahH0i
mated There IS widespread discomfort even VIE
nut the people are spathetic ana long su'A
and are accustomed 10 endure mueh oeiofe siO"
sng opposition. ,-a,s,v
thai the state OF affairs may be more accurately
understood il VIII be necessary to give suiil-as ~
of the situation for the last three OF ioui 80 a.
The Floriano PeiNoto administration, "ilSi1 s- -.
,,nvve~ during the naval revolt or 1875 ~ 1eiI '
.9,anres of the country In extremely oisofs9i.
,zed condition. II is even yet known no" M. M
was expended in that period, ana IN an pios p'
,S viii never be known. The next aoiiiiiis' -.
that Of President Prudente de Moraes-was hohes'
s nell meaning but was not strong enough 10
dominate the situation Expenditures were hep'
,lp TO meet the demands Of the floriani9'a9 - -
followers OF Floriano Peixoto). and the treasury
rs bes,ilv burdened by the debts and con-
tracts Inherited from the preceding acnnlhisli a'
Trusrd the close of the latter administration an
ARRANGEMENT was made with the representatives, u
the Brazilian foreign debt in LONDON TOT the 80 80
pension of cash interest payments on the ioie'ei'
debt Including interest guarantees on seVeiHl iei
roads built and operated by foreign companies, hoi
s neriod Of three years. This plan went into euect
in July 1885, under the present administrator Inc
interest thus affected was 20 be funded IN ne"
loan secured by the revenues OF the iNio '"i
custom house.
THE CAMPOS SALES RULE.
-4 ,-,-.-,s sslles administration took office
,J,,,.,,ber IL 1895 II found the public service
be,ter organized and better standard OF moraIl'S
rrevailed I'm official circles than had existed uuei
FToriano PeiKoto but the country was puiueio"
-v.,b seht and an enormous amount OF paper money
was in circulation. ,,,o
Trnder the funding loan agreement the Brazilian
Government agreed to withdraw an amount OF cur
rapcv equivalent to the amount or pohas issueu IA
,ax,pent Of interest and also TO effect ecohoinieS
l ,,ro,,is, 70 do this and his Minister OF FINANCE
rr Joaouin Murtinho known 20 he an ardent
advocate Of such a policy Unfortunately. NOV"
.ver she government has been unable TO make any
real economies in expenditures for every reoucuoh
made has been supplemented by new OF incieas '
,xnenoiture in some other direction. The minister
was therefore compelled arbitrarily To reduce tne
rates Of interest certain national loans py WHICH
large savings We're made: to Increase taAduo' anu
N cornnel creditors make large abateInenls on
heir claims against the treasury. Even judgments
awarded by the courts were subjected to these
abatements.
As the country has been suffering from a pro
.raced commercial and industrial crisis these ad-
s,,,opag burdens have naturally created much dis
content and especially so through the operation OF
the consumption taxes imposed upon many articles
of home production well as upon the same artl-
cles imported from abroad. Lack OF employment
greatly restricted trade, business embarrassments
ana the Increased cost living. all Of which are
largely due present situation, have tended to
create discomfort and make the Campos-Sanes gov
ernment unpopular, though il began with the sup
port Of the whole country.
RIOTS IN THE CAPITAL.
The present crisis has been preciptateo, now
ever by events Of secondary Importance. few
weeks ago there riots in Rio Janeiro over an
attempt of a tramway company to make a slight
increase in fares Under the orders Of the Minister
of Justice and the Interior and his subordinate,
the Chief of Police the police fired upon the peo-
pie and killed several Of them most Of those shot
being spectators. The riots continued however, 10
the surprise of everybody, and the company was
N q nla farn