ventions. You will be cautious not to commit this Government to the expression of any opinion on this point, should your views thereon be solicited.

I am,

&c.,

No. 77.

WM. M. EVARTS.

No. 147.]

Mr. Hilliard to Mr. Evarts.

LEGATION OF THE UNITED STATES,

Rio de Janeiro, January 23, 1880. (Received February 28.) SIR Before the recent close of the session of the General Assembly of Brazil, the budget presented by the minister of finance, Mr. Affonso Celso, was discussed, and some new subjects of taxation were introduced. The wants of the treasury led to an increase of taxes, and it was thought proper to adopt some method for collecting a revenue from the prosperous companies engaged in transporting passengers over the lines of travel throughout the empire. The original plan was to tax the companies directly by requiring them to pay a small sum to the Government for each person transported over the lines. This plan, however, was not acceptable to some of the companies, as it would require them not only to increase their rates of travel, but would at the same time make them responsible for the collection of the tax, whether collected from the passengers or not.

When the bill was matured it provided that such passengers should pay a certain sum to the Government, and that the minister of finance, charged with the execution of the law, should come to an understanding with the managers of the several companies as to the method of collecting the tax.

The sum to be collected was what is known as a 66 vintem," "20 reisa small amount. But when notice was given that the law would go into effect on the 1st day of January, 1880, it produced a popular excitement in this city, which deepened every day. The law was so odious that it was denounced in some of the leading papers published here, and it was asserted that it would be impracticable to enforce it. It is estimated that within the limits of the capital 75,000 persons are transported daily over the several routes of travel by public conveyances, and the return travel being equal, made it clear that the new tax must be collected from 150,000 passengers daily.

The minister of finance called the managers of the several lines of conveyance within the city to meet in conference previous to January 1 and agree upon the best method of collecting the tax. Several meet

ings were held, and several plans were discussed. The manager of the Botanical Garden Railroad Company, an American enterprise, whose board of directors reside in New York, promptly proposed to pay the amount of the tax estimated to be due for the travel over its line, a sum not less than 120,000 milreis per annum (about $60,000 of our money), in monthly installments, in accordance with the terms of the law. But this offer was not acceptable to the minister of finance, as it would be impossible to induce the other companies to take the same step. The minister insisted that there must be uniformity in the method of collecting the tax, and he declined the offer of the manager of the Botanical Garden Railroad Company, which would have relieved its passengers

from the payment of the tax, and at the same time insured to the gov ernment the payment of the amount due under the law. The minister issued his regulations, intended to be binding upon all the companies engaged in the transportation of passengers, and instructed the managers to demand and enforce the payment of the tax in every instance. Not only was the law an injudicious one, imposing a tax upon every person who for business or pleasure took a place in the lines of travel, but the method of collecting the tax was irritating. Instead of taxing the companies upon their receipts, the law imposed a tax upon each passenger who paid his fare in a public conveyance, thus levying a tax not upon income but on expenditure.

Public meetings were held, addresses were delivered by popular citizens, remonstrances were made against the measure; so that, when the 1st of January came, the public feeling was strongly excited against the tax and the proposed method for its collection. To increase the difficulty, the 1st of January is recognized here as a holiday, and the streets were filled with people. As it had been anticipated that resistance would be made to the enforcement of the law, a body of troops was called out by the government to preserve order. The city police, aided by a small body of cavalry and one or two companies of infantry, took position at certain points where the tramways of the city had their stations, and where crowds of people were gathered.

The people were inflamed by speeches delivered in some of the neighboring squares, and some acts of violence occurred. The lines of sev eral of the tramway companies were obstructed; the animals were detached and the cars were broken. A scene of great confusion followed, and the troops present to preserve order found themselves engaged in a conflict with the people. An order was given to disperse the crowds in the streets, and the troops fired upon the people. Some three or four persons were killed and a number were wounded. The excitement increased; attempts were made by the people to break open shops where arms were kept for sale, and the military attacked them and finally dispersed them.

The next day the scenes of violence were renewed, but the people, unable to obtain arms, were controlled by the military. Meanwhile the greatest indignation prevailed among the people. Some of the political leaders, men of both parties, met and discussed affairs. The public journals presented daily communications upon the subject. Appeals were made to the Emperor, and a large body of the people, estimated at some 4,000, proceeded to the imperial palace at San Christovão to represent their grievances to His Majesty. They were repelled at the gates of the palace by the guard on duty, and returned peaceably to the city. The manager of the Botanical Garden Railroad instructed the conductors on his line to ask for the vintem required by law, but in no case to use force to collect it. The minister of finance wrote to the manager repeatedly upon the subject, insisting that the collection of the tax must be enforced. The manager replied that he was endeavoring to collect the tax, and that if any persons failed to pay it he would make up the sum to the government; that nothing should be lost by his method, and that the books of the company would show daily an accurate statement of the number of passengers transported over the Botanical Garden Railroad line. The result was that no obstruction was offered to the service on that line; and it was understood that the tax was generally paid by its passengers, though some declined to do so. The president of one of the important tramway lines fled from the city to escape the popular

feeling against him. There was a rumor that the enforcement of the law would be suspended, but no decree to that effect has been issued. Public feeling has become calm and tranquillity is restored. It is understood that the Emperor was much disturbed by the scenes of violence in the capital. But he bore himself well, and displayed the wisdom which has heretofore characterized him. He drove through the streets of the city as usual, and made no public demonstration of his feeling in regard to the disturbances.

It is supposed by some who profess to be acquainted with political affairs here that there will be a change in the ministry at an early day. To make an immediate change would be construed into a concession, to the demands of the people expressed in acts of violence. Of course this is not to be expected from a sovereign so wise and self possessed as the Emperor of Brazil. It is probable that there will be a recasting of the ministry, but to what extent it is not easy to conjecture.

This is the second time during my residence here that I have seen the military called out to preserve order in the streets of the capital. There is a large population, the freedom of speech and of the press is rarely interfered with, and there is a growing influence of the people over the government. I think the people are well disposed and easily governed. The Emperor is a man of large views and of fine temper. Among the rulers of the world to-day, I do not know one who combines more of the qualities which constitute a good sovereign. He is a statesman, he has visited other countries, he is a man of generous nature, he desires to promote the happiness of his people, and he comprehends the embarrassments that surround his government. He said to me in conversation some time since that the trouble with Brazil was a want of productive industry on the part of the people; they expected too much from the government, and looked to it for succor instead of sustaining it by their energy. He said, too, that, the financial condition of the country was unsatisfactory. He spoke without reserve, and I was impressed with his statesmanlike views.

Rio de Janeiro, April 3, 1880. (Received May 1.) SIR: The ministry of January 5, as it is styled here, of which Consilheiro de Sinimbu was chief, resigned the seals of office on the 6th of March last. The event was unexpected. Several causes contributed to produce the important result. As I have heretofore informed you, the failure of the electoral reform bill in the Senate was regarded by Mr. de Sinimbu, president of the council and chief of the ministry, as a disaster. It was the great measure of the administration. The Emperor, acting upon the advice of Mr. de Sinimbu, immediately adjourned the session of the General Assembly. It was believed there would be a dissolution of the chamber, but the Emperor took time to consider.

The electoral reform bill had passed the Chamber of Deputies by a large majority. It did not seem logical, therefore, that the chamber should be

dissolved because of the failure of the Senate to concur in its action. The Senate is a permanent body, and the dissolution of the chamber could not effect any change in its composition. Still the measure was insisted upon by Mr. de Sinimbu, and it was understood that the Emperor had yielded to his counsel. The same question was subsequently considered in the council of state, and a majority of that body advised against dissolution.

The Emperor, in view of the situation, resolved to act upon his own judgment. At a meeting of the cabinet on the 6th of March, he announced his purpose to decline to issue a decree for the dissolution of the chamber. Thereupon the ministers tendered their resignation, and the Emperor consented promptly that they should surrender their portfolios. His Majesty then invited Consilheiro José Antonio Saraiva, a leader of the liberal party in Bahia, to organize a new ministry; who, after taking some time to consider the situation, consented to undertake the task. It was announced on Sunday morning, March 28, that the new ministry had been formed.

Consilheiro José Antonio Saraiva, president of the council, takes the department of finance, for the reason that the question of finance is today of great and vital importance in Brazil. He is a senator from the province of Bahia, and is now minister for the third time. He is generally esteemed as an upright man, a politician of broad views, moderate, and patriotic. Married, but childless, he receives from his fazenda, a country estate, near the Bahia Railway, an ample income. His habits are moderate and simple. He is an enemy of ostentation, and even of ceremony, which has made him reluctant to leave his domestic life. He began his career while very young, having been brought forward by influential relatives of the conservative party. He was deputy and presi dent of the province under conservative régime, but conducted himself with such circumspection that he won the esteem of the liberals. When he observed the condition of the country, and saw that the conservative party did not interpret the constitution in accordance with his views, seeking to retard progress, he frankly announced his purpose to act with the liberals, and has been ever since one of the most faithful, devoted, and patriotic chiefs of that party, which to-day holds him in high es

teem.

He was formerly minister plenipotentiary to the Argentine Republic and to Uruguay, when the empire joined with the colorados under General Flores, for the purpose of putting an end to the tyrannies of the blancos in Montevideo. Together with Mr. Thornton he endeavored to prevent bloodshed, although unsuccessfully.

On his return from this mission he became minister of foreign affairs and approved the triple-alliance treaty against Paraguay, negotiating through his successor, Consilheiro Octaviano, his intimate friend and colaborer, who, like Mr. Saraiva, has always refused to form a part of the council of state, for the reason that they both believed this institution to be unconstitutional.

Mr. Saraiva is an animated, but not always correct, speaker; he has great natural talent, and, above all, a frankness in giving expression to his views, which often carries him further than the policy of his party would require. But while he is faithful to his party and to its liberal ideas, he neyer forsakes his reason or his morality to treat of measures or expedients which he considers unworthy. His electoral-reform plan is more in accord with the views of the liberal chiefs of the southern provinces than that of Mr. de Sinimbu. He does not ask for reform of the constitution, because he believes that direct election can be arrived

at by ordinary law, since the actual right of Brazilians, who may be electors according to the constitution, is not restricted. Instead of making a list of eligible persons, from which the people may choose the electors, he declares all persons electors whom the people may elect.

This project puts an end to great abuses on the part of the preponderating classes and the official element. It is already undergoing consideration by the Emperor. It is understood that when the Emperor invited Consilheiro Saraiva to form the new cabinet he committed himself to the approval of any project submitted by him.

The minister of foreign affairs, Dr. Pedro Luiz Percina de Souza, is a deputy from Rio de Janeiro. A young man of great talent, of literary culture, a poet in sympathy with the country, possessing a good estate in a rural district, he entered public life as soon as he graduated at the São Paulo law school. His early success was due to the powerful protection given him by the liberal chief of Rio de Janeiro, Senator Octaviano, whom the new ministry thus far consider its principal friend and support. His appointment to the important post of foreign affairs is regarded as a courtesy shown by Mr. Saraiva to his friend Mr. Octaviano.

The new minister has traveled, speaks French and Italian, and understands English, but is not accustomed to speak it.

The minister of justice, Consilheiro and Senator Dantas, is next after Mr. Saraiva the most important and popular chief of the liberal party of Bahia. He was once minister of public works in the ministry of the late Mr. Zacarias, an eminent leader of the liberal party during the Paraguayan war. He is a fluent orator, studious and upright in his life.

The minister of empire (interior), Baron Homun de Mello, is a deputy for São Paulo. He was a short while ago president of the province of Bahia. He is an intimate and devoted friend of Mr. Saraiva, who required in the ministry a man capable of resisting any extravagant ideas on the part of his colleagues.

The minister of agriculture, commerce, and public works, Deputy Buarque de Macedo, is an engineer, and was director of the section of public works in the department of which he is now chief. He is a prominent man in his branch, and was formerly fiscal of the Pernam buco Railway. He has had charge of other commissions of importance. During the last session of the Chamber of Deputies he became noted for the talent with which he defended the financial measures made necessary by the bad circumstances of the country.

*

For the present, the names of significance are those of Mr. Saraiva, on account of his reputation for sincerity and patriotism, and of the minister of foreign affairs, on account of his talents and of his important friends from the south who support him.

The southern parliamentarian, Martinho Campos, was invited by Mr. Saraiva to become a minister, but refused, promising, however, all his support. He is a friend of the minister of foreign affairs. It seems that in his place will be presented the name of the deputy for Minas, Lima Duarte, who is not a liberal leader, but he is an important planter, highly esteemed for his loyalty to the support of his party. Should he accept, he will be minister of marine.

The war department will probably be occupied by (General) the visconde de Pelotas, who enjoys great prestige for having been the one who fought the last battle of the Cordilheiras in Paraguay, or rather of having skillfully organized the pursuit of Lopez until he was killed.