The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-05
BRAzIL,s vICISSITUDES.
An Intelligent Discussion Of the Causes OF
Agricultural suffering In That Republic.

To THE Enron or mi SrN-Sir' Your
recent admirable editorial on Brazil. while
stating ooncisrly the vicissitudes throngh
which that country has gone since the estap-
lisment of the republic. laid special stress
on the present financial trouble.
In reality, Brazil as a country. or ralher Us
a government, is not suffering from any
financial trouble; II IL its agricultural popu-
lation that is suffering. Braziis finances
are in better shape to-day than for more thhh
a decade past; the purchasing power OIL ls
practically irredeemRble currency. were l,
quoted as gold was quoted In the uniteu
States before the redemption act went lhto
effect, would be 18S to-day, while IN lsvS tpe
quotation was 500; In other words. In the
latter year 5o2 Brazilian paper milreis we're
needed TO buy 100 gold milreis. while to-day
but 1903 paper milreis are required to secure
100 gold milrels. This appreciation oil the
paper money Is reflected in the enhanced
values Of Government securities.
The artificial prosperity Of the Brazilian
planters and spectators to which you re-
ferred WAS due to imitation. When the Gov
eminent wisely determined to retire and de-
stroy annually a certain proportion OF tine
circulating medium on the one hand aho
collect a certain percentage OF the import
duties In gold, to be kept as q reserve luho
for the security at present ana the reaenipti1h
G. q later date Of their paper money the IN
Planters who benefited by the imitation
either S.9Eu qua masd In \ g, eX yas sbsS t In new e1s
lands, which, in tbs. States Of Rio ana gao
Paplo. were immediately put under coffee
overproduction, lower currency prices. super;
induced by steadily growing supplies, ana
by the Increased purchasing power OF tne
be named the m~ortgaging OF plantations to
European bankers In order TO secure the
necessary funds for maintenance.
Tins the strange HDpCtaplp Is now pre-
scented to the world ola Government growing
wealthler and an important part OF the poDn-
glasses of Brazil, The coffee planters belnF
one 70 Hps cisim the fTn attenttio o%e Of the Goser n
following the scheme, Of giving b]ountles to
propose to buy coffee at a price that literally
covers the cost Of production. and leaves the
BG l%I9GtfeS5 a E e s%sil p pTGfIlt tS Ssd pir if n in tse ma to
kets Of the world advances sufficiently to
produce a small profit. The money r%eauirsd
sal 'n Of b SnSfs' ,guar "a S4 ed 'f BY the Federal
Government, which Ia empowered to raise
the export duty sufficiently TO secure the
necessary appropriations for interest and
redemption.
This. financial operation would reveal the
by lmperishable merchandise in addition to
the faith and credit, of the borrower,
Connected With this proposition Is one Of
a esdd75 uina PIsa@fblHY; r sss 6 efi e4se6 Sf e DG at sRioS
paper money may be redeemed In coin, .
Both the Argentine Republic and Great
Britain in India rave successfully established
a fixed rate at which the peso. In Argentina
and the rupee in India are ,exchangeable for
gold and II Brazil proceeds with prudence,
II will solve the currency question and
enable the coffee planters, who have been
compelled for several years past to sell. their
product at about and below. the actual cost
Of production, to recoup, without appreclable
cost to the country at large. the heavy losses
they have had TO bear.
TO the argument that aid to the Brazilian
! coffee planters would increase the production
Of coffee. the answer may be offered that
prices 100 per cent. above the present value
OF coffee did not perceptibly increase the
production Of coffee In other coffee growing
countries; that by law the, planting of new
1908, and hat it takes five years before the
coffee trees can be relied upon to yield fruit.
New YoRR, March 81. L. s.