FINANCE-ESTATE FINANCE — DEFENCE 691
Finance.
Revenue and expenditure (gold milieis = 2s. M.; paper niilreis =\s. Ad).
—
! Revenue 1
Expenditure
(Gold)
(Paper)
(Gold) i
(Paper)
£
£,
£
£
190S
(3,982,190 \
•23.597,t546
0,880,090 ,
23,546,810
1909
0,756,49-J
•20,775,081
11,541,279 1
27,588,209
1910
11,745,450
19,569,875
8,205,525
22,088,415
1911
9,507,9.39
22,493,130
7,312,950 !
20.1^3,119
191'J
17,481,078
15,2SC.,321
11,130,101
31,992,132
The Budget for 1913 fixed the expenditure at 431,374,055 milreis paper and 80,861,909 milreis gold, and estimated the receipts at 125,792,996 milreis gold and 354,243,000 milreis paper. (Expenditure, 37,855,128Z. ; receipts, 37,767,800Z.)
The consolidated foreign debt of Brazil on December 31, 1911, amounted to 82,903,120/. and 300,000,000 francs ; the internal paper debt, to 620.525,600 milreis. Paper money in circulation on March 31, 1912, 612,519,626 milreis.
The rate of interest on the Foreign Debt varies from 4 per cent, to 5 per cent., that on the Internal Funded Debt from 4 per cent, to 6 per cent., but this last has been to a large extent redeemed. The internal debt is chiefly represented by bonds, called Apolices. inscribed to the holder, and the payment of its capital and interest, which is provided for by an annual vote of Congress, is under the charge of th-' sinking fund department {Caixa da Amortisac/to), independent of the Government, directed by a com- mittee, presided over by the Minister of Finance, and composed of a general inspector and five large Brazilian bondholders.
State Finances.
Each of the States of Brazil has its own receipts, expenditure and debt. The last available figures are those of 1907. For these see The Statesman's Year Book, 1912, p. 676.
On July 24, 1912, a bill was introduced into the Senate, making it necessary for the States to obtain the Federal aulhorization before contracting any loans.
Defence.
Under the military law of January, 1908, military service is obligatory on every Brazilian from 21 years of age to 45. The terms of service are 2 years in the ranks, 7 in the reserve, 7 in the Territorial Army, and 8 in the National Guard. The reservists are called up for training annually for 4 weeks, besides which there is rifle practice once a month. The men in the territorial army also have an annual training of 2 to 4 weeks. The army consists of 15 regiments of infantry each of 3 battalions, and 12 battalions of rifles, of 12 regiments of cavalry of 4 squadrons, and 5 regiments of 2 squadrons, 5 regiments of field artillery of 9 batteries each with 4 guns, 5 howitzer batteries, 6 mountain batteries, 5 battalions of engineers, and 8 battalions of garrison artillery. The country is divided into 13 territorial districts, each generally containing one rifle battalion : they also supply men for 5 "strategical" brigades and 3 cavalry brigades, all stationed in the south near tlie frontiers of the three southern republics. Each "strategical"
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