Ten years ago the finances of Brazil were in very great embarrassment. Under all circumstances of distress and difficulty, Brazil had, indeed, paid, as she still continues regularly to pay, the interest on her debt, thereby honourably distinguishing herself from other South American, and not a few European states. But, at that time, her expenditure largely exceeded her income. Gradually Brazil has reversed this state of things; instead of a heavy deficit, she now has a steadily increasing surplus, has been able to reduce the rate of interest on part of her foreign debt, is slowly reducing its capital, and is in a position to compete in the money market of London with the most favoured European governments. Ten years ago Brazil was not a little embarrassed by the fiscal restrictions she had imposed on herself by her commercial treaties with other countries. Now she is free from all such embarrassments, has full powers over her own trading and financial system, and has no treaties at all with other states. Intermediately she raised for revenue purposes her tariff of Custom duties; but now that she has a surplus to dispose of, her Government is engaged in reducing those duties, to the enlargement, of course, of her commerce. The total funded domestic debt of the empire on the 31st of Dec. last amounted to 57,704,200,000 reis, and the funded debt of the province of Rio Janeiro to 3,940,000,000 reis. The total revenue for the present year, 1854, is estimated at about 32,353,000 milreis (£3,594,700), and the expenditure at about 29,633,706 milreis (£3,292,630). The income is chiefly derived from the _ad valorem_ duty charged on all articles imported into Brazil, amounting in 1851-2 to £2,814,443; a low duty charged on the articles exported, amounting in the same year to £503,070; and rents, royalties on mines, &c. The estimated expenditure for 1853-4 is thus distributed: Ministry of the Interior, £412,355; Justice, £250,020; Foreign Affairs, £60,000; Marine, £452,138; War, £813,935; Finances, £1,304,162: total, £3,292,630.
Ten years ago the Brazilian navy was small: it is now rising into importance; its courage and capacity were lately seen in the Plate; many of its younger officers have been reared in the British service, and from British yards it is yearly adding to its steam flotilla. It now consists of 1 frigate of 50 guns, 5 corvettes, 5 brigs, and 9 schooners, carrying together 188 guns; and 4 smaller vessels, carrying together 27 guns; 10 steamers, mounting 36 guns; with various unarmed ships and steamers, and several others are building. The Brazilian army has established its reputation at once for success, bravery, and humanity. Ten years ago Brazil had little external influence; now Brazil is obviously at the head of South American states, and has a distinct and separate part assigned to her in the destinies of the human race. Then she had but slow and dilatory intercourse with Europe; now she has two monthly steam services from England—another is being established from Lisbon; and Rio Janeiro is now only a month’s distance from London and Paris.