Evening star., 1924-01-25
BRITISH TO EXAMINE
ASSETS OF BRAZIL
Important Commission to Study
Possible Securities for Big
National Loan.
MANY PLEDGES ARE GIVEN
Indebtedness of Country Already
Regarded as Great.
BY, CLAUDE O. PIKE.

Correspondence Of The Star and the Chicago
Daily News.
RIO JANEIRO. Brazil, December 20.
Much interest is shown in the Brit
ish economic mission soon to arrive
the Brazil The commission will spend
about three months in this country, and
10 expected to go very thoroughly into
economic and financial conditions.
The mission includes some of Eng
lands best known bankers. industri-
alists and economists. Because of
their high standing the opinion here
is that the Brazilian government
socks a good-sized loan in England
and that the mission is coming TO
look over the security.
Just what the mission finds out may
never be made public, but the future
or refusing to make a loan may fur
nish q basis for conclusions. 1t is
felt here that New York fnanciers do
not look favorably on more loans
down here until a disposition is
shown to utilize borrowed money for
and not to let the funds be sQuan-
dered as they have been in the last
few years.
Many Pledges Already Given.
Foreign bankers here are wonder
ing what Brazil has left to put up as
security for another Joan and what
the specified objects Of the proposed
loan will be. II one of the objects is
the identification. of the Central Rail
road OF Brazil. it's gross receipts are
already pledged for the payment of
100000 loan made in Wall street,
the proceeds OF which disappeared
under the administration of Epitacio
Pessoa. who wen; out of office year
ago with not a stroke of work done
on the project Coffee is pledged to
take care of the syndicate advancing
the cash for its valorization, and
practically every resource of the
other outstanding loans, it 10 claim ed
From time to time informa ton
comes out as to the extent Of Bra
Ellis indebtedness. 1t has been dis
closed that under the late Presi-
sident Pessoa the government was
the debts incurred by the city of Rio
Janeiro in some of Pessoa's beauti-
fication schemes Charges are being
brought daily by newspapers that are
delvtnS into the government records
Of the last four years that numerous
private contracts were paid for by the
municipality or the government and
that hardly any expense was incurred
by tire contractors, who were politi-
cal fAyorites.
Financial deals and paper signed by
the former president keep coming to
light for settlement, 1t is asserted.
so that the present administration is
having q dfff1cult task to meet cur
rent expenses.
Hard Job Tor Bernardes.
In foreign banking circles here it is
expected tAxt disclosures Will be made
Of further government indebtedness.
President Bernardes believes in TAX
ing the public into his confidence on
affairs Of the Eovernnlent-pArtic
larly its financial condition. Hereto
fore most of Brazil's presidents have
held the view that the peoples only
right in their government was to pay
taxes. AS president OF his native state,
Minaes Geraes. President Bernardes
was an admirable financier. After
seven years as president there he LEFT
money in the treasury and the for
eiRn debt wiped out. He has a mans
task ahead Of him to bring Brazil out
Of the financial depths He has no
really powerful political friends will
ing to stand back Of him in the task.
The politicians show plain indications
Of being hungry. They are reported
to be in q surly mood because Of be-
ing kept from the public crib.
However, the presidents making
known the hidden debts his admins
tration inherited, the newspaper SER
Witty to the politicians and the trou-
BILE Brazil Is having in getting loans
may all work out for the benefit of
Bernardee and may help to keep back
the political wreckers.