Brazilian government, and inflammatory appeals to the Argentine population to carry on a war, which, by its results, shall put an end to Brazilian dictatorship in Paraguay, and to Brazilian pretensions (as they say) to regulate matters in the River Plate. There can be no doubt that there is an intense hostility among the Argentines toward Brazil; and that a large portion of the population, outside of Buenos Ayres particularly, is in favor of a war. The commercial interests in Buenos Ayres, Rosario, and the principal towns, and the large foreign influence in the former especially, are too well informed and have too much at stake, to be willing to run the risks of the only result which they know such a war could have. It is doubtless true, also, that a great deal of the warlike talk of the newspapers, and of many of their public men, is due to the fact that the election (for the college which is to name the President) takes place in June; and that the result of those elections for Congress already had seems to show that the candidate of the party supposed to be in favor of a war with Brazil has more chance of success. These results seem to foreshadow the triumph of Avellaneda (since Alsina has promised to retire in his favor) and the defeat of General Mitre, who is declared by his opponents to be the Brazilian candidate because he is in favor of peace. It is not easy, therefore, to say how much reliance ought to be placed upon these threats, and how much of the war cry is to be attributed to political motive. The fact remains, however, that the Argentines are very busy arming, purchasing war-material; buying war-vessels; attempting to organize a navy; fortifying their positions along the river; and have actually diverted a very large portion of the proceeds of a late loan effected in London, to be used in the construction of railroads, for the purchase of cannon and accoutrements. These things, with the tone of the press in Buenos Ayres, and no doubt the assurances they receive from the Brazilian minister there, have induced this government to move in earnest, and to make the most effective preparations in case such war should be declared by the Argentines. I think it beyond question, both from the assurances of this Government, from their financial condition, and the public feeling here, that Brazil has no intention or wish to engage in such a war. This empire is progressing rapidly, compared with what has been its progress heretofore. Their coffee planters are getting rich with the enormous prices they receive, and the public revenues from export and import dues are far in advance of what they could have even hoped for. They are building railroads and increasing their merchant marine, and the remembrance of the depreciation of their currency, of their losses and sacrifices during the Paraguayan war, renders them utterly unwilling to undertake any new one. But they are determined not to be caught unprepared. They are making every preparation of their navy, (which is respectable,) and es pecially overhauling their gunboats, which did such service in the river during that war. In case war should be declared by the Argentines, we may look at once, I think, for a prompt and efficient blockade of Buenos Ayres and the Parana. The naval commission has already declared in fit condition for active service some twenty-one (21) of their steamers and gunboats. My own impression is, however, that there will be no war. Brazil does not desire it, and the war-cry in the Argentine Republic is, from what I can learn, part of a political scheme to defeat General Mitre. It is so clearly the interest of the Uruguayans to remain neutral and to reap the commercial advantages of such a position, that their journals plainly see and advise such a course. I annex a clipping from the "Nation," here, (ministerial journal,) taken from the "Uruguay," which I think truly states the case. I have, &c., JAMES R. PARTRIDGE. [Inclosure.] Translation of the annexed clipping from the "Nação" of Rio de Janeiro of March 27, 1874. In Montevideo has appeared a new journal called "El Uruguay." Its editors, for the political part, are Messrs. Charles de Castro and Bonifacio Martinez. In an article of that journal, which is headed "Neutrality and War," we find the following: "For those who reflect, even superficially, upon what is going on in the River Plate, a war between Brazil and the Argentine Republic is imminent. "The spirit of the Argentine people is in favor of war, and it is easily explained. "The empire exercises a powerful influence in Paraguay. Only the other day, the civil war which had broken out in Paraguay was ended by the mediation of a Brazilian minister. This alliance must exist as long as the Argentines shall occupy the Villa Occidental-an occupation which was the act of an unwise policy. "Besides this, there is the antagonism of race and the inherited antipathy between Brazilians and Argentines; there is the remembrance of Itazuingo; and finally, the contempt which all Argentines feel for the Brazilians. "The Argentines wish to break down the Brazilian influence, and to wash their hands in the face of the world of the great mistake of the triple alliance. "Diplomacy is at work, not to come to an agreement, but to manage alliances. "The Argentine Republic sends two ministers, one to Bolivia and one to Peru. "On the other hand, Brazil, which has been looked upon since the Paraguayan war by all the South American republics with distrust, sends to Chili one of her ablest diplomatists, who (Mr. Aguiar de Andrada) by force of hard work and unwearied perseverance, has actually succeeded in doing away with the suspicious feelings existing in Chili toward Brazil, and since then the notes exchanged between those governments are of the most friendly and benevolent expressions; in fact, of a profound affection." The article concludes by saying that in case of a war the Oriental Republic ought to maintain a strict neutrality. No. 166.] No. 57. Mr. Partridge to Mr. Fish. UNITED STATES LEGATION, (Petropolis,) Rio de Janeiro, April 16, 1874. (Received May 21.) SIR: In my No. 108 (April 24, 1873) I sent to the Department a copy (annex) of a note I addressed, at that time, to the foreign office here, in view of the then proposed revision of the Brazilian tariff, in which I showed the greatly exaggerated pauta or custom-house valuation of imports from the United States into Brazil; the heavy duties, both export and import, levied by Brazil on that commerce; and begged that, in the proposed revision and correction, the liberality of the United States in abolishing the duty on coffee, inuring to the very great advantage of this country, might be responded to by a reciprocal lowering, at least, of those heavy duties here. At various times since then the Viscount de Caravellas has said to me that they hoped this could be and would be done in the new tariff. This last, to go into effect after the 1st July next, has just been pub. lished, (31 March,) and of which I will send a copy as soon as a suitable one can be procured. On considering its provisions, I was surprised, after what they had said, to find that there was to be no diminution whatever in the (pauta) valuation or duty on any article from the United States, except a small reduction in that on kerosene, which is largely imported. On lard there is to be actually an increased duty of of a cent per pound, making the whole duty (new) equal to 43 cents per pound. On the following articles there is no change, viz: Flour remains at 987 reis, i. e., 52 to 54 cents, per barrel. Lumber about $7 per 1,000 feet. Rosin at $1.15 per barrel. Turpentine about 93 cents per gallon. In view of this, and hoping that there still remains an opportunity, before the 1st July, to have some return for our liberality, I addressed a note on the 15th instant to the Viscount de Caravellas, of which the annex hereto is a copy. Certainly so excellent an opportunity for this Government to do something for the benefit of our interests, and in return for what has been done for theirs in the United States, ought not to be allowed to pass; and still hoping that I may be able to accomplish something in this direction, for which I have been making efforts ever since my first arrival, I trust this note and what I have done may meet your approval. I am, &c., JAMES R. PARTRIDGE, [Inclosure.] Mr. Partridge to Viscount de Caravellas. UNITED STATES LEGATION, On the 16th April, 1873, I had the honor of addressing his excellency the Viscount de Caravellas, minister and secretary of state for foreign affairs, a note touching the condition of the commercial relations between the United States and Brazil, showing the very large amount of export duty levied on the coffee of Brazil exported to the United States, (three-fifths of the whole Brazilian crop;) the exaggerated pauta and high import duties levied on articles imported into Brazil from the United States, whereby the great inequality of commercial movement (of products) between the United States and Brazil was increased, or at any rate prevented from finding its proper reciprocity, and a positive impediment was placed to the development of interchanges which it is the interest of both countries to promote. In that note I also called the attention of the minister of foreign affairs to the fact that the duty on coffee imported into the United States (3 cents per pound) has been abolished, and that the whole of the difference in price resulting had inured to the benefit of the producers of coffee (fazendeiros) in Brazil. In that note I also gave tables and statistics, showing, incontestably, the large receipts and financial advantages resulting to the imperial treasury from the duties (both import and export) levied on that commerce, and demonstrated the percentage of the imperial custoins-revenues levied on the commerce with the United States alone. I made these statements for the purpose of inviting the attention of the imperial government to those facts in view of the then proposed revision of the pauta and tariff on imports; and I would respectfully invite again, in connection with this communication, the attention of the minister of foreign affairs to that note of the 16th April, 1:73. The receipt of that note was acknowledged on the 29th of May, 1873, (D. G. 2060,) and it was stated that his excellency the Viscount de Rio Branco, minister of fazenda, to whom it had been sent, would take its statements into full consideration; but that Lo steps could be taken then, nor until the legislative body had fixed the bases of the projected reform in the custom-house tariff. Since then, at several interviews, his excellency the minister of foreign affairs has been good enough to say to me that the statements of that note (April 16, 1873) were receiving due attention; and that it was hoped that in the new tariff which would be promulgated after the report of the commission of review had been made, there would be such a satisfactory re-adjustment of duties on articles (the produce of the United States) imported into Brazil as would respond to the liberality of the United States in wholly abolishing the duty on the great Brazilian product. I have since seen, by a decree lately published, that the new tariff has been adopted on the report of the commission, and that it will go into effect on and after the 1st of July next. I had hoped, from what the minister of foreign affairs had stated to me, to find in this new tariff very large reductions, both in the pauta and in the rate of duty, upon articles the produce of the United States; but after reading the report and inspecting the proposed tariff I regret to be obliged to say that it appears there is to be no reduction of duty, except on one article, (kerosene ;) a large increase on another, (lard;) no change in all the rest; and that thus there will be no adequate response to the liberality of the United States tariff toward Brazilian products. If the report and project of law shows the duties to be levied on articles from the United States after the 1st July next, then the Government of the United States will be grievously disappointed in its just expectations, after the representations I have made to Washington, based on the assurances of his excellency the minister of foreign affairs to me. In order to show the small extent of the relief in one case and the aggravated duty in another to be expected under the new (proposed) tariff, I append a table showing the late, present, and proposed duties on six articles the produce of the United States, and which constitute the great bulk of imports from the United States into Brazil: Names of articles imported into Brazil chiefly of the produce of the United States. Flour, per kilogram... Equal to, per 10 gallons Lard, per kilogram Equal to, per pound. Rosin, per kilogram.. Equal, to per barrel. Turpentine, per kilogram Equal to, per 10 gallons Flour, per kilogram.. Equal to, per barrel.. Lumber, per square meter Equal to, per 1,000 feet... Kerosene, per kilogram Equal to, per 10 gallons.. Lard, per kilogram... Equal to, per pound.. Rosin, per kilogram.. Equal to, per barrel. Turpentine, per kilogram. Equal to, per 10 gallons.. Old duty, 1873, before the reduction of Present duty, 1874. after reduction of the extra percentage. percentages. From this table it thus appears: 1st. That in the articles of flour, lumber, rosin, and turpentine no change whatever in the rate or amount of duty is to take place; 2d. That in the article of lard there is, so far from benefit, on the contrary, an aggravation of or addition to the duty of 42 reis (equal to 4 of a cent per pound increase) per kilogram; and that on the single article of kerosene there is a proposed deduction of only 56 reis per kilogram, (equal to 1 cent per pound, or 40 cents per box containing 10 gallons, decrease) below the present duty; and that, the proposed new rate of duty on kerosene, (112 reis in all per kilogram, 80 reis+40%) is equal to nearly 75 per cent. ad valorem on its cost in the United States. I am persuaded that his excellency the minister of foreign affairs will agree to the assertion that these proposed new duties do not exhibit the liberal spirit toward the products of the United States which that Government, after its own course with regard to coffee, had a fair right to expect. By the abolition of the duty on coffee the United States gave up a very large revenue, (nine millions of dollars,) nearly eighteen thousand contos of reis. The result was, as might have been expected in every case of such reduction, a very large increase in the consumption of coffee, and especially of the coffee of Brazil. And it cannot be doubted that, in like manner, a liberal reduction of duty in Brazil on the produce of the United States would result in a very large increase in their consumption here, so that, while the duty was lessened, the movement and imports would be so largely increased that the imperial treasury would receive still larger sums from lower rates of duty. It is hardly necessary for me to do more than present this table for the consideration of the imperial government. Nor is there any necessity for me to speak of the advantages which must result to both countries from a just and liberal reciprocity in their respective tariff's toward the products of the other. These things are now well understood, and, the advantages being admitted, the question with every government is, how far the condition of the country and the results to its treasury will admit of the application of a principle which will be followed by acknowledged benefits. Of its own necessities and policy, of course, the imperial government is the best judge; and it rests with that government alone to say what shall be the measure and amount of the duties it proposes to levy on its imports. But the wonderful progress which has been made in Brazil in these late years, and the enlightened and liberal policy which the imperial government has pursned in the removal of the additional percentages, in the abolition of vexatious delays in entering, loading, and clearing the mail-steamers, and in the removal of many obstacles to prompt dispatch, and with such manifest advantage and increase to the commerce of the empire-all these things easily induce every well-wisher of Brazil to believe that the imperial government is willing to continue to adopt all such liberal proceedings as may cause its still further development and increase. These considerations had given rise to what I have called the just expectations of the Government of the United States, in view of the proposed re-adjustment of its tariff by Brazil; and that Government entertained certainly a reasonable expectation that, in view of what had taken place, such a reduction in the duties on the articles named would be accorded by the imperial government in acknowledgment and return for the entire abolition in the United States of the duty on coffee. Yet it has been shown by the table above given that on four of the principal articles (flour, lumber, rosin, turpentine) which come from the United States no change whatever has taken place; on one important article (lard) a very heavy addition has been made to the present duty, and that on one article alone (kerosene) a reduction has been accorded, which yet leaves the proposed new duty equal to three-fourths or more of the prime cost. The hope is still entertained, since the new tariff does not begin until the 1st of July next, that the imperial government may yet be induced to lower the duties on all these articles. It is understood, of course, that the imperial government has the power to modify its own decree; and since it certainly was in its power to adopt, alter, or reject any portion of the recommendations of the commission of review, it appears equally competent to make now any further alteration or modification which it may think well to establish. I trust that his excellency the minister of foreign affairs will agree with me that so excellent an opportunity of responding to the liberality of the Government of the United States ought not to be allowed to pass without such action on the part of the imperial government as could not fail to assure the United States of the desire of Brazil to further, in every just and practicable way, the most important commerce which this country holds with any other one nation; and which could not fail also to strengthen and make lasting the very friendly relations and commercial alliance between the two principal powers on the American continent. It will be easily understood, of course, that I do not ask that this reduction shall be made expressly, as of duties upon articles because the produce of the United States, since, if that were done, by that name, it might give rise to exigencies of other countries asking for themselves (without any such reason as exists in the case of the United States) an equal reduction on other articles because the products of their respective countries, when those countries had not only not abolished and reduced, but have actually increased, their duties on Brazilian products. To avoid all such inconvenience it is respectfully suggested-in case the imperial government still has the disposition to respond to the liberality of Brazil's largest customer, and it be still in the power of this government to modify its own decree-that |