Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-13


Alves, at that time secretary of the treas
ury, that he accepted the presidency of
the bank of Brazil which he held from
October 1895 to November 1898 with uni
versal satisfaction. He then withdrew to
Bello HoriZonte and appointed presi-
dent of the first municipal council, a fit
ting tribute to the founder of the city. At
the same time he directed the law school he
had founded and occupied a seat in the
state senate of Minas Garaes of which he
is life member. In 1899 he was elected
to the federal senate and afterward vice
president of Brazil to fill a vacancy caused
by death. He received the largest major
ity ever given at a presidential election.
At the same time he became ipso facto
president of the federal senate.
Chosen President of Brazil.
His rapid advance and his conspicuous
public services attracted the attention of
the republican party to him as a possible
candidate fer the presidency, and at a po-
litical banquet on October II, 1905, he was
proclaimed upon Ilatform moderate ami
liberal, advising economic protection and
the continuation of the prudent administra-
ton of his predecessor. He prepared him.
self for the duties of the great office by
complete journey through Brazil from north
to south, visiting nearly all the states am
investigating for himself the needs and
desires of all classes of people. He re-
turned full of faith in the future of the
nation and determined to do his utmost to-
sources Important results may therefore
be expected from his administration, which
will mark an era of peace, harmony, prog
ress and economic Improvement. The up
right and energetic character of President
Penna is a guarantee of a prudent and pa
trfotic solution of several grave problems
that perpeXing Brazil
In his inaugural address President Penna
urged the congress of Brazil to take i'm
me diate steps to place the country \
sound financial basis and to ADOPT a geld
standard of value. He showed that, al
though the exports were valued at SD noG,-
90, more in 1900 than in 1904, the producers
realized $27 ,325.IO0 less for their crops. be
cause of the difference in exchange. Such
a tremendous reduction in one year. he
said illustrates how the national economy
is prejudiced and the producers ire in
jured by having a fuctuating currency,
and they must always be exposed - hose
disadvantages as long as paper money Is
tolerated. Brazil is very prosperous; all
her industries are not only profitable. but
are rapidly increasing in volume and value.
Both capitalists and laborers have suffered
from the fuctuation of exchange. After
describing the conditions in Brazil, Presi-
dent Penna compared them with those of
Mexico and urged the congress of his coun-
try to follow the example of their sister
republic, whose economic progress" he
said, has been due to the adoption of a
gold standard to the abolition of taxes
upon commerce between the states and to
the introduction of modern machinery and
methods by which the results of labor
multiplie1.''
Redemption of Paper Money.
Almost Immediately upon assuming au-
thority he undertook to carry out his rec
concentrations, and the congress has since
established what they call conversion
caisse, at which government paper notes
may be redeemed in gold at the rate oc
10 pence (English) or 80 cents American)
per mireis. The milreis, which is the
standard of value in Brazil, was originally
worth approximately 30 cents in our money.
1t has been f1uctuating between 20 and 10
crts during recent years, and since the
first of January, 1895, has been low
81 and as high as 81. Tn congress, there
fore, adopted so cents as fair valuation,
and will redeem the outstanding currency
on that basis.
The total paper currency outstanding is
$50, 100000 milreis, equivalent to about $780,
100000 The government has arranged to
borrow $100000000 in gold for redemption
purposes and now has about So, 100000
available. The old notes will be burned as
fast as they redeemed and new notes
secured by a gold reserve will be issued
in their place up to maximum value of
800 co 600 milreis, or $106, 666, 666 American
money
National Debt of Brazil.
The national debt of Brazil is $3.50, 271 O50
of which s3G6, s67, 735 is represented by bonds
held chiefly by foreign bankers. The bal
dICe VI @to,oop,obO Is llOstlIilS luleIIleti ueDl
There was an increase of $27, $4,000 last
year, which is represented by bonds issued
to pay for local improvements in Rio de
Janeiro and elsewhere Fifteen million dol
lars has been spent in paving and sewering
old streets in that city and in laying out
new ones, and $40, 600 on harbor i'm
provementS.
The bay of Rio is one of the finest N the
world and the city encirces one side of it.
Until rpceptlV the docking facilities
very primitive but Charles Walker d Co.,
a firm of English contractors, who built the
docks of Antwerp, Alexandria and Calcutta,
have entirely regenerated the port works of
Rio, have introduced every form of modern
Improvement and have made it of the
finest and most convenient harbors in the
world. For two or three miles around the
shore of the bay there are now stone and
concrete piers and quays. covered with fire
proof warehouses and machinery for load
ing and discharging cargoes. Several of the
principal streets have been widened and a
broad, stately avenue has been opened
which, when the foliage and plants have
reached maturity, will be one of the great
avenues of the world. AS many as 1000
houses have been torn down by the govern
ment to make these improvements.
The population of Rio has increased from
3D., 651, in 1899, to 81 ,265 in 1905, of whom
46S, liz and 34S, $50 are women.
This large difference in the sexes, more
than 10000, is due to the rapid development
of manufa curing industries and commerce,
WHICH mas ATTRACTED ldDOrefS ana OtQer
men from the provinces to the capital.
Internal improvements.
Similar improvements being made in
all of the great cities of the republic. The
states of Brazil are borrowing a great deal
of money to pay for internal improvements
The state of Para recently negotiated 5
per cent loan from French, Dutch and
Swiss bankers, for the construction of
docks warehouses and other harbOr works
by the firm of Pearson & Son of London,
who have just completed the harbors at
Vera Cruz, CoatZacoalcos and Salina Cruz
Mexico, and have recently rebuilt the Te-
huantepec railroad.
The city of Bahia has made a similar loan
for a similar purpose. Mr.. E. L. Corthell,
the eminent engineer of Chicago, who built
the docks at Buenos Ayres, has a contract
to improve the harbor and build docks,
warehouses and modern facilities for ham
ding cargoes a Rio Grande do Sui
The state of San Paolo has recently nego-
tiated loan of $15 100000 for railways and
other internal improvements, of which ST.