120 per cent. ad valorem. On agricultural machinery and tools and implements of industry light duties are charged. The chief imports are cotton and woolen cloths, iron, machinery, coal, flour, cattle, jerked beef, rice, codfish, pork, lard, butter, corn, olive oil, macaroni, tea, candles, petroleum, salt, timber, wine, and spirits. The total value of exports for 1895 was computed to be about $180,000,000. The exports of coffee from Rio de Janeiro in 1895 were 2,763,720 bags; from Santos, 3,574,484 bags; from Victoria, 307,438 bags; from Bahia, 264.775 bags; from Ceará, 20,202 bags. The export of cacao from Belem in 1894 was 4,963 tons. Of sugar 58,014 tons were exported in 1895 from Pernambuco, 36,000 from Maceio, and 4,360 tons from Rio Grande do Norte. Maranhão exported 1,521 tons of cotton; Pernambuco, 5,900 tons; Rio Grande do Norte, 21,568 bales. The export of rubber from Pará in 1895 was 20,600 tons; from Manãos in 1894, 4,370 tons. Rio Grande do Sul in 1894 exported 20,831,226 kilogrammes of dried beef, 3,552,375 kilogrammes of tallow, and 496,011 rawhides.

Navigation. During 1895 there were 1,460 vessels, of 2,243,163 tons, entered at the port of Rio de Janeiro; 1,015, of 1,325,777 tons, at Bahia; 1,002, of 1,175,572 tons, at Pernambuco: 188, of 184,809 tons, at Ceará; and 148, of 181,852 tons, at Maranhão. Rio Grande do Sul was visited by 331 vessels, of 109,993 tons, in 1894.

The mercantile fleet of Brazil in 1895 comprised 285 sailing vessels, of 65,575 tons, and 189 steamers, of 75,283 tons. Under the law that went into force in November, 1894, foreign vessels are excluded from the coasting trade and river navigation, and companies that engage in such traffic under the Brazilian flag receive subventions from the General Government which amount to 2,809,640 milreis a year.

Communications.-There were 8,086 miles of railroads in operation in 1896, and 5,403 miles were under construction, 4,670 miles under survey, and 8,440 miles more projected. The Federal Government owned 1,832 miles of the completed lines and subsidized 2,259 miles more; 3,000 lines were managed by the State governments or operated under concessions received from them, and 995 miles were roads that received no subventions. Of the roads under construction 385 miles were being built with out subventions, 961 miles were being constructed for the State governments, 667 miles were being built for the Federal Government, and 3,390 miles companies were building with concessions and guarantees from the Government. The majority of the companies owning the railroads have a guarantee of 6 or 7 per cent. interest on their capital from the Federal Government. The deficit paid from the national treasury up to the end of 1894 was 11,118,481 milreis. The capital invested in the national railroads was 257,674,937 milreis, and their receipts up to the end of 1894 had fallen short of the expenses and interest by 11,118,477 milreis.

The post office forwarded 33,441,000 letters and postal cards in 1895, and 37,674,000 samples, circulars, etc. The telegraphs are owned by the Government. There were 10,143 miles of line in 1895, with 21,936 miles of wire. The number of dispatches sent was 1,283,695; receipts for 1897 were estimated at 3,600,000 milreis, and expenses at 9,844,722 milreis.

Financial and Political Crisis.-Commercial depression, consequent upon the great fall in the value of coffee, the continuous depreciation of the currency, and the financial embarrassments of the Government produced a widespread feeling of political uncertainty and unrest. The people became dissatisfied with the way in which they were governed,

and yet were as strongly attached as ever to republican institutions and the more mistrustful of the Conservative element, formerly identified with the empire, because the very misfortunes of the republic seemed to suggest the advantages of monarchy. The men of tried experience, who gave tone to political life before the revolution, have been debarred from any participation in public affairs; many of them are in exile. A strong and turbulent factor in the political situation has been the semimilitary element that has sprung up as a result of the disturbed condition of affairs in the last eight years. This party is composed of ardent and jealous republicans, who imagine they see at every turn an attempt to restore the monarchy. On slight provocations, or with none at all, such men have organized riots in the streets of Rio de Janeiro and other cities and attacked their political opponents, even going to the length of killing prominent citizens suspected of monarchist sympathies. In 1896 and the early part of 1897 violent and irrational outbreaks of this character occurred repeatedly. The authorities took no precautions to prevent such disturbances, and in consequence these extreme republicans, most of whom are young men, have exercised a species of terrorism over peaceful citizens of Conservative tendencies.

The

The enormous debt that has accumulated under the republic is, with the diminishing revenue, an excessive burden. Out of a total income of little more than $50,000,000 in gold value the National Government has to pay $30,000,000 to meet the annual debt charges. Except the customhouse scarcely any source of revenue is available. The ordinary expenses of the administration swallow up the rest, leaving unforeseen and extraordinary requirements, such as the cost of suppressing insurrection or the purchase of war ships and munitions, to be added to the debt. The expenditure has invariably exceeded the revenue for many years past, and the usual method of meeting the deficit has been by fresh issues of inconvertible bank notes. To this the chief part of the financial difficulty of the Brazilian Government must be attributed. true condition of the treasury is not publicly known, nor is the exact amount of these paper issues in circulation, but there were computed to be in the spring of 1897 not less than 700,000 contos of reis, equal to nearly $400,000,000 in face value, and $125,000,000 at the depreciated rate of exchange. Commerce has been depressed not only by the low prices obtained for coffee and the falling rates of exchange, but by the constant changes made in the tariff to which the Government was forced to resort in order to protect itself from the results of the constant depreciation of the currency, for the tariff duties are payable in paper, not in gold. To tide over its difficulties, which were increased by the expeditions sent against the fanaties of Bahia, the Government proposed to sell the lease of the State railroads, expecting to get at least $25,000,000 in gold. Negotiations were opened with syndicates in England and Germany.

The depression in the coffee market affected not the finances of the Government alone, but the condition of the whole population of Brazil. Nearly all the energies of the country have been devoted to coffee cultivation, while cereals and other necessaries of life have been imported from abroad. In former times the southern provinces of Paranagua, Santa Catarina, and Rio Grande do Sul produced wheat and beef for the supply of Rio de Janeiro and other northern markets, but the revolutions and disturbances of the last few years have caused these industries to be almost abandoned. Since the currency has depreciated, and coffee prices have fallen at the same time the difficulty of obtaining

food supplies from abroad has been doubled. There was no enterprise shown in pushing manufacturing interests when coffee gave good returns, and all the available labor supply of the country was wanted for coffee cultivation, and this concentration of capital in a single industry makes the conditions of life in Brazil exceedingly hard since that industry has ceased to be profitable. The overproduction of coffee is the result of planting immense additional areas and the opening of railroads not only in Brazil, but in Mexico, Central America, and other countries. The Brazilian crop for 1897 was nearly 9,000,000 sacks, but its value was much less than when the export was less than half as large. The world's consumption is about 11,000,000 sacks, while the total production of all countries in 1897 was 13,000,000 sacks. As Brazil is the chief producer of coffee it has been the principal sufferer through the fall in prices. The estimated value of Brazilian exports for 1897 is $80,000,000 for coffee, $30,000,000 for rubber, and $12,500,000 for other products; a total of $122,500,000, which is $42,500,000 less than the value for 1895, a decline of over 25 per cent. in two years. The value of rubber is constantly increasing, but the quantities available make up but a small part of the loss through coffee.

Dr. Prudente de Moraes, who retired from the presidency in November, 1896, on the plea of ill health, resumed his functions on March 4, 1897. He issued, on the demand of the ministers, a public statement that he would follow the policy initiated by Vice-President Victorino Pereira. In June demonstrations in São Paulo against President Moraes called for the interposition of the military as well as the police. In May the Government was forced by the crisis to increase the customs duties 10 per cent, and to levy a heavier tax on the postal and telegraph services. Economies to the extent of $7,000,000 were introduced in the Government expenses. The financial committee of the Chamber of Deputies in August reported that it would be necessary to suspend the payment of interest and amortization of the bonds, but the Government found means of raising funds to pay the most pressing obligations. The liabilities to be met during the year amounted to £7,174,300 sterling, consisting of £1,956,700 interest on the external debt, £1,156,700 on the internal gold debt, £1,284,300 of railroad guarantees, £776,600 on the internal currency loans, £1,000,000 of advances from the Bank of Paris to be repaid in 1897, £500,000 for war ships and armament contracted for, and £500,000 to pay for the Canudos expedition. The estimated expenditure for administrative purposes was 270,000,000 milreis, equal to £9,000,000, making the total expenditure over £15,000,000, while the revenue was estimated by the Budget Committee at 316,000,000 milreis, or about £10,500,000. The actual receipts were much below the estimate.

Foreign Affairs.-In February, 1897, a convention was signed between France and Brazil for the purpose of arbitrating the boundary of French Guiana in the basin of the Cunani river, a dispute of old standing, which reached an acute phase after gold was discovered along the upper Cunani. This convention President Prudente Moraes upheld vigorously, despite strong opposition among the people, which encouraged Congress to refuse its ratification. The Brazilian Government stipulated that the Amapa question should be dealt with and settled before proceeding with negotiations relative to other points in the Guiana boundary dispute. The Italian Government made heavy additional claims for wrongs committed upon Italian subjects during the revolution that occurred in the presidency of Gen. Peixoto. A new extradition treaty was concluded with the United States in May.

The Fanatics of Canudos.-For more than twenty years a religious enthusiast, Antonio, called Conselheiro (counselor), has gone about preaching the necessity of absolute and unbounded faith among the emotional and naturally religious people of mixed Indian, negro, and Portuguese blood inhabiting the interior districts of Bahia, Pernambuco, and the country farther to the north. He built chapels in many places, and was everywhere followed by a horde of devoted adherents drawn from the ignorant and superstitious country people, to whom he promised future happiness if they should be killed in defending his cause. The followers of Conselheiro were in great part armed, it being the custom of the country to carry arms. From their temporary encampments they committed many depredations and levied contributions on the inhabitants, as they had no other way of obtaining food. Their thefts of cattle and other things became a serious nuisance when their numbers increased to several thousands. The movement became a menace, moreover, to the state, for the constant burden of Conselheiro's harangues was that the present Government of Brazil was atheistic, and hence undeserving of obedience and doomed to be overthrown. In November, 1896, the Fanatic, as the Brazilians called Conselheiro, established his headquarters in Canudos, a town in the Monte Santo district of the State of Bahia. The police charged on the bands when they first invaded the place, the leader having refused to depart, and were routed, some being killed. Re-enforcements of police were sent by the Governor from Bahia, and these too were driven back and a large number killed or wounded by a troop of women, who fell upon them in flight and slashed them with the facao, a terrible cutting weapon. After this second affair Conselheiro went into the neighboring sierra with his followers and took up a position in a natural fort. The movement having taken on the character of a rebellion, people in the rural towns and plantations who were hostile to the Government helped the fanatics with arms and money. Others, who would not give willingly, were subjected to the vengeance of Conselheiro's bands. A battalion of Federal troops was dispatched from Rio Janeiro under the command of Col. Moreira Cesar and Major Francisco M. Beitto. While the troops lay encamped in the valley of Monte Santo, firing with their Mauser rifles at any of Conselheiro's men who showed themselves in the mountains, they were attacked by the fanatic Amazons. The onset was so sudden and furious that the soidiers dropped their arms and fled in panic, pursued by the women, who slaughtered the wounded. This victory of the rebels attracted fresh recruits. of military training improved their organization. In February Conselheiro had 8,000 well-armed men in Bahia. The Federal troops were defeated on March 3 when attempting to move upon the positions held by the rebels, fighting through a whole day with five times their numbers, and finally retreating with a loss of 600, leaving guns and ammunition in the hands of the insurgents. Many plantations and two small towns were burned by the fanatics. Having obtained steam launches, they patrolled the rivers in the districts where they were strong, and thus extended their depredations. Large quantities of arms, ammunition, and provisions poured in from mysterious sources. The growing strength of the rebellion and manifestations of sympathy in other parts of the republic gave rise to the belief that Conselheiro, who raised the imperial flag, was the forerunner of a general monarchist rebellion, and that the Conde d'Eu, the son-in-law of Dom Pedro II, was at the head of the movement. In Rio Janeiro, São Paulo, and other

Men

cities monarchists were mobbed, and the offices of Conservative newspapers were wrecked. In March Conselheirota bands appeared in Sergipe, Piahuy, Pernambuco, and Minas Geraes. Saraiva, a lieutenant of Conselheiro, attempted to start an insurrection in Rio Janeiro province. Conselheiro himself had 10,000 or 12,000, and Plato Diniz about 1,500 in the northern provinces. The Government proposed to double the strength of the army, and there were threatening demonstrations in Rio against President Moraes, who expressed a willingness to resign. After the last engagement, in which Col. Moreira Cesar was killed, a fresh Government force of 7,000 men was sent up to Canudos from Rio and Pernambuco. Gen. Cantuzia was dispatched to Bahia with a large force of artillery. These forces, commanded by Gen. Arthur Oscar, attempted no rash movements, but advanced slowly against Canudos, where the fanatics were regularly intrenched. Their progress was impeded at every point of the 250 miles from Bahia. Well-guarded outworks stopped them, and fanatic bands of men and women rushed upon them from hiding-places. The arduous march took two months. Early in June the Brazilian troops, under Gen. Oscar, defeated 8,000 fanatics, killing 300. Before the end of the month they had driven them within their fortifications, and were victorious in several skirmishes. On June 27 and the following days a series of assaults on the town were repelled, with the loss of more than 1,000 of the Federal troops and higher losses on Conselheiro's side. The Government troops were re-enforced until they outnumbered the town's defenders three to one. The bombardment was kept up day after day, and in a final assault on July 7 the town was captured after a fierce battle lasting four hours. The troops destroyed churches and other buildings in which the fanatics took refuge. Conselheiro's forces concentrated in five villages in the Canudos district, which Gen. Arthur Oscar proceeded to invest. Further re-enforcements of 4,000 men were forwarded. On July 23 the Brazilian troops occupied two of the villages. Before the main position was attacked the Government army consisted of 15,000 men. Fighting occurred constantly, and the fanatics frequently held the road between Monte Santo and the front, and interrupted the transport of ammunition and stores. In the mean time fresh bodies of fanatics appeared in the States of São Paulo and Paraná. The force in the Canudos district was still 8,000 strong, and was well intrenched. In the petty engagements that took place during August 2,400 Brazilians were wounded in the handto-hand conflicts. In the beginning of October Conselheiro's position was at last captured after continuous fighting for several days. Admiral Barboza directed the final operations, during which Conselheiro was slain with thousands of his followers. The fanatic leader was a man of powerful build and stern and commanding presence, who possessed unusual military talents as well as a gift of magnetic oratory. He was very good and humane to his mixed troops, who obeyed him like children. Many soldiers deserted from the Brazilian army to Conselheiro. While the victorious battalions were undergoing review on their return to Rio Janeiro a soldier made an attempt on the life of President Moraes, killing Col. Moraes, who intercepted the dagger. Immediately afterward a shot struck Gen. Machado Bethencourt, the Minister of War. The capital was declared under martial law. BRITISH COLUMBIA. This portion of the Dominion of Canada has come prominently before the public of other countries during the past year on account of the mineral discoveries and mining development. It extends about 700 miles north

from the international boundary line, and nearly 500 miles east and west. Its area is 383,000 square miles, which includes part of the ranges of the Rocky mountains and the Selkirks, the Queen Charlotte Islands, Vancouver island, and a great variety of forests, valleys, mountains, lakes, and water ways. The chief harbors are Esquimaultthe headquarters of the British Pacific squadron→ Victoria and Nanaimo, on Vancouver island. Coal Harbor and English Bay, in connection with Burrard Inlet, are the ports on the mainland. dry dock at Esquimault is 450 feet long, with a width of 90 feet, while the fortifications, which are partly built at British and partly at Canadian cost, are considerable.

The

Political. There were no political changes during the year 1896-'97, excepting the share which the province took in the Dominion elections. Lieutenant Governor the Hon. Edgar Dewdney retired at the end of his term, in November, 1897, and was succeeded by Senator McInnes. William Templeman, a local newspaper editor, was called to the Dominion Senate in place of the latter. The Executive Council at the end of 1897 included J. H. Turner as Premier. Minister of Finance and Agricuture; Hon. Charles E. Pooley as President of the Council; D. M. Eberts as Attorney-General: James Baker as Provincial Secretary and Minister of Mines and Immigration; G. B. Martin as Commissioner of Lands and Works.

The Legislature met on Feb. 8 and adjourned on May 8. The budget speech showed an estimated revenue for 1897 of $1,283,000, and expenditure of $1,566,000. During 1896 the receipts were $989,765, and the expenditure $1,614,723. The Government's railway policy was the lending of $25,000 to various small development lines at the rate of $4,000 a mile. The question of retaliation against the United States was discussed and a parliamentary committee reported in favor of a law for prohibiting aliens from mining in the province. But the central topic of discussion in the province was the Dominion policy of subsidizing the Canadian Pacific Railway to build a branch line through the Crow's Nest region into the heart of the mining districts. The province wanted an independent and competing line, but the continental road won the battle. The following were the terms accepted by the Canadian Pacific Railway in return for a Dominion grant of $11,000 a mile for 330 miles of road from Lethbridge through the mountains to Nelson:

1. Running powers over the Crow's Nest Railway are conceded to other railways at a rental to be fixed by the Dominion Government.

2. The freight rates are to be under the control of the railway committees of the Privy Council.

3. Freights from points on the Crow's Nest Railway to points on any other part of the Canadian Pacific system, and vice versa, are to be under control of the Railway Committee, or of any railway commission to be hereafter appointed.

4. Rates on certain classes of freights on the eastern portion of the Canadian Pacific Railway-that is, from Fort William eastward-are to be reduced by from 10 to 33 per cent. at the beginning of 1898.

5. Rates on wheat and flour from Manitoba and farther west are to be reduced 114 cents per hundred, beginning in 1898, and an additional 114 cents per hundred, beginning in 1899.

6. Fifty thousand acres of picked coal lands are transferred to the Government.

7. Coal is to be put on the cars at the mines at not more than $2 a ton.

8. The sale and price of timber lands, in the lands granted to the company, are to be subject to the regulation of the Governor General in Council.

Resources.-The bituminous coal, of which this region is the Pacific coast center, has steadily increased in production and sale. Large quantities are sent to San Francisco, the Hawaiian Islands, and China. The city of Vancouver is the mainland terminus of the Canadian Pacific Railway, and from its harbor the Canadian Pacific Railway steamships run to China, Japan, and Australia.

During recent years fruit-growing in the New Westminster district has been very successful, and apples, plums, cherries, pears, and even figs, have been produced with profit. In the Fraser river delta wheat has been grown to the extent of 62 bushels an acre, and oats 90 bushels to the acre. The Lilloet district during the past two years has come to the front as a gold region, and considerable milling gold has been found near the town of Lilloet, where the Golden Cache and other well-known mines are situated. There is good grazing land. The population in 1897 was still sparse and scattered.

The Yale district contains a mixed population of farmers, ranchmen, lumbermen, and miners. In it is the Okanagan valley, which is perhaps the best agricultural and pastoral section of the province, and the Nicola valley, where there are large areas of bituminous coal and iron ore and platinum. The chief towns are Agassiz, Yale, Kamloops, North Bend, Vernon, and Ashcroft, along the line of the Canadian Pacific Railway or its branches.

West Kootenay has become known during the past two years for its richness in minerals. It runs north and south from the Columbia river to the international boundary. During 1896-'97 the mining camps of Trail Creek, Rossland, Kaslo, and Nelson were developed into centers of population, and the output of ore during 1896 amounted to $6,000,000. These mining districts are reached from Revelstoke, on the Canadian Pacific Railway, by a branch line to Arrowhead, at the head of the Upper Arrow lake, from which a recently established line of steamers runs to Nakusp, where rail communication is had with New Denver, Sandon, and other mining centers. Steamers have also been placed on the route to Robson, at the mouth of the Lower Kootenay, whence the Canadian Pacific Railway runs to Nelson, Rossland, and other points. The latter place was a small camp in 1894, and in January, 1897, had 6,000 people and a well-organized municipal system. The Slocan section of this district, north of Rossland, includes the best silver-producing mines. Near Nelson are the Silver King mines, purchased recently by an English company for $1,500,000. During the summer of 1896 new and rich discoveries of gold, silver, and copper were made all through this Kootenay district. The wages of laborers are from $2.50 to $3 a day, of miners from $3 to $3.50, of mechanics from $3 to $4.

The East Kootenay district comprises the larger part of the region known by the name of "Kootenay," and is entered from the east by the Canadian Pacific Railway at Golden. It is a rich mineral country, but has not yet been worked to any extent. Within its bounds is a valley 300 miles in length containing the lakes from which the river Columbia has its rise, and providing excellent grazing resources. It contains much big game, and has large undeveloped oil fields. Field, Donald, and Port Steele are the chief centers of population.

Mineral Production.-In the Cariboo districts are the famous mines from which $50,000,000 in placer gold has been taken since the early “fifties." During the past three years a new impetus has been given to mining in this region, and various costly hydraulic plants introduced and operated. The district covers a large area with varying climates, and has no settlements of importance. It

contains one creek-the Williams-from which $20,000,000 in gold has been taken within a distance of 2 miles. The Cassiar district occupies the whole western portion of the province. It contains some rich gold mines and large fish-canning establishments.

At the beginning of 1897 there were over 50 shipping mines in the Kootenay region. Large iron deposits also have been discovered recently on Texada island, and copper abounds at many points throughout the mainland. A ledge of cinnabar is being operated at Kamloops lake. Bituminous coal, as already noted, exists in large seams at various places, and anthracite is being worked on the Canadian borders of the province at a place called Anthracite. The following figures, prepared by the provincial Bureau of Mines, show the total mineral production from 1858 to the beginning of 1897: Gold (placer), $57,704,855; gold (quartz), $2,177,869; silver, $4,028,224; lead, $1,606,427; copper, $254.802; coal and coke, $33,934,427; building stone, $1,200,000; other materials, $25,000; total, $100,931,604.

Fisheries.-The salmon fisheries of British Columbia are very valuable. During the seasons of the "runs" broad expanses of river, or deep pools, may be seen packed with masses of fish making their way to the spawning grounds. The greater number of the canneries where these fish are put up for export are on Fraser river, but there are some in the more northern part of the province. There are 55 canneries in the province, each employing about 500 men during the season. Each cannery costs from $30,000 to $40,000, equipped, so that about $2,000,000 are thus invested. In 1876 the catch amounted to $104,697; in 1880 to $718,355; in 1885 to $1,078,038; in 1890 to $3,487,432; in 1894 to $3,954,228. To this should be added the catch of halibut, sturgeon, herring, colachan, trout, cod, etc. The total fishery production of the province in 1895 amounted to $3,732,717.

Crown Lands.-Crown lands in British Columbia are classified as either surveyed or unsurveyed, and may be acquired by entry at the Government Lands Office by pre-emption or purchase. They may be pre-empted by any person who is the head of a family, a widow, or a single man over eighteen years of age and a British subject. Aliens may preempt Crown lands on making a declaration of their intention to become British subjects. The quantity of land that may be recorded or pre-empted must not exceed 320 acres northward and eastward of the Cascade or Coast mountains, or 160 acres in the rest of the province. No person can hold more than one pre-emption claim at a time and prior record or preemption of one claim, and all rights under it, are forfeited by subsequent record or pre-emption of another claim. Land recorded or pre-empted can not be transferred or conveyed till after a Crown grant has been issued. Such land, until the Crown grant is issued, is held by occupation, and the occupation must be a bona fide personal residence of the settler or his family. The settler must enter into occupation of the land within thirty days after recording, and must continue to occupy it. Continuous absence for a longer period than two months consecutively of the settler or family is deemed cessation of occupation; but leaves of absence may be granted not exceeding four months in any one year, inclusive of two months' absence.

Homestead Regulations.—Farms and buildings when registered can not be taken for debt incurred after the registration, and are free from seizure up to a value not greater than $2,500. Goods and chattels are also free up to $500, while cattle farmed on shares" are also protected by an exemption act.