498 BRAZIL.
The stock of the internal loan of 1868, the interest of which is 6 per cent., payable in gold, was held as follows in 1809 : —
Brazil ......... 1,751,800
Great Britain ....... 237,850
Other nations .' .' ..... 252,050
Charitable establishments (Brazil) . . . 758,300
While the foreign debt of Brazil is in course of being paid off, the internal debt is increasing, in consecpience of the liabilities incurred in the six years' war in Paraguay. On the 80th April 1870, the internal funded debt had risen from 10,107,650/., at which it stood Dec. 31, 18G9, to 22,146,250/., showing an increase of 3,038,600/.
The internal debt is represented by bonds, called Jpolices, in- scribed to the holder, and the payment of its capital and interest, which is provided for by the annual vote of Parliament, is under the charge of the sinking fund department (Caixa da Amortisacao), in- dependent of the Government, directed by a committee, presided over by the Minister of Finance, and composed of a general inspector and five Brazilian capitalists. The bonds held by foreigners are by law exempt from embargo and reprisal in time of war, .and no op- position to the payment of interest and capital is admitted, nor to the transfer of the bonds, except when claimed by the bondholder.
In the budget of 1869-70 and 1870-71, the expenditure on account of interest and amortisation of the foreign debt was set down at 906,363/.
Besides the funded home and foreign debt, Brazil has a floating debt, consisting mainly of Treasury bills. They increased during the Paraguayan Avar to 8.300,000/. ; but did not exceed 7,000,000/. in December 1869, the proceeds of the internal loan of 1868 having been partly applied to their payment. According to official re- ports the expenses of the war, calculated to amount to about 40,000,000/., were up to- the end of 1869 met as follows:— By the sale of ApoliceSy 14,182,826/.; by the issue of paper currency, 12,307,469/.; and by the issue ofTreasury bills, 5,661,820^.
The Government paper money, in 1852 'of a very small amount, and quite insufficient for the circulation, which consisted then of gold and silver coins, has in recent years become the national currency of Brazil.
Army and Navy.
The army is formed partly 1 >y enlistment and partly by conscription. In extreme cases, impressment is resorted to. Liberal bounties and grants of land at the end of fourteen years of service, are held out as inducements to enlist, and procure large numbers of soldiers. Ex- emption from military service may be obtained by either personal substitution, or on payment of the sum of 120/. to the government.
