Show BRAZILS TROUBLES Not Politics but Money Grabbing is the Cause BANK OF ISSUE PRIVILEGES Granted Fonsecas First Associates Inconvertible Inconver-tible Paper Distributed Among the Dictators Friends Frends Special to THE HERALD Examiner Dispatch LONDON Nov 12The Times today Thursday prints the following special article Lisbon Nov nDa Fonsecas coup dotat or violent dissolution of the first congress of the republic and his contemptuous con-temptuous dismissal of the fathers of the constitution did not originate in political causes or financial difficulties Tho money grabbing proclivities of those who surround sur-round Da Fonseca are the real causes of late dictatorial revolution Paper moneymaking money-making has always been the greatest temptation temp-tation to South American dictators FONSECAS FIRSTASSOCIATES led by Ruy Barbosa could not escape this general rule They gave Mr Mayrinck theprivilege of a great bank of issue which sent out more than 24000000 contos of practically inconvertible paper which was distributed among the friends of the dictatorship dic-tatorship mostly for the purpose of launching launch-ing collossal foolish companies and for the most shameful money gambling over known The original amount of state paper in Brazil was 180000 contos which was at par thatis the milreis was worth 27 pence At present the milrois is only worth 13 pence which means a loss of more than 50 per cent By law the bank had to have onethird of the value of its notes in gold deposits out that gold was CARRIED AWAY FROM THE BANK BY BAR BOSA The chairman of the Banco da Repu blica Mayrinck and the present financial dictator dicta-tor is not yet satisfied and has forced Fonsecas government to allow him to issue is-sue more paper The minister of finance proposed 8 resolution raising the amount of paper money from 503000 contos to 000 000 contos but this measure raised a general gen-eral outcry in the press and congress by 1113 votes against 35 defeated it Mayrinck and his group were infuriated and it is well known that they had intended to issue nearly 100000 contos to save the Banco da Republics and its friends from imminent bankruptcy the money being intended to be Immediately lent to a few unscrupulous and penniless people who as was well known were owing colossal sums to the Banco da Repubhca The vote of the chamber produced a very good impression and exchange began to rise The Banco da Republica was now in hopeless difficulty It therefore dilculty concocted with Fonsecas adherents THE EXPULSION OF THE CONGRESS which scheme was carried out and May rinck now rules the lawmakers i not of the whole country at least of Rio The paper currency will now be increased as I Fonseca and Mayriaclc wish although some have expressed suspicion of the authority author-ity that would warrant the issuance of this I money and question that under which L Mayrinok issued money in the past The cable says the Brazilian government has leased the Central railway of Brazil L for thirtythree years so the second dictatorship dic-tatorship of Fonseca begins with tho alienation alien-ation of the most valuable state property Hal of the amount of the lease is to be paid immediately Thus not unlike Portugal Port-ugal Fonseca begins to deprive the creditors cred-itors of the country of their best guarantees guaran-tees Another financial achievement of Fonsecas second dictatorship is the repeal I of Barbosas law converting the international interna-tional 5 per cent loans which amount to an actual breach of national faith By a decree of Fonseca himseh a year ago the holders of the international 5 per cent paper bonds were allowed to convert their I bonds Into 4 per cent gold bonds Now I Fonseca repeals his own law and tells the 4 per cent bond holders that they must be satisfied with 5 per cent depreciated paper THE CABLE ALSO SPEAKS OF THE PECULATIONS PECULA-TIONS of the manager of the London and Brazilian bank A few weeks ago Lucona issued ta decree obliff hng all foreign associations working in thlscountr to have their charters and concessions renewed within sixty days This measure was directed only by May rinck against the English bank The manager man-ager of the London and Brazilian refused to ask for a new charter claiming that the charter his bank did buslnes under was a solemn decree of the Brazilian government granted thirty years ago and was irrevocable irrevoca-ble I the manager asked a renewal he claimed that he Would thereby recognize the right of Fonsoca to refuse a continua contnua tion of the charter I hear that the bank is supported in this action by the British legation which has advised the manager it would be much better for him to shut his doors than to recognize the dictators decree KOBODY CAN TELL WHAT THE FUTURE HOLDS for Brazil now under the rule of Fonseca and Mayrinck Certainly the late congress was composed of very indifferent men noisy insubordinate young officers ignorant igno-rant proteges of Fonseca lawyers without clients doctors without patients These formed a majority of the congress which submitted always to Fonseca and his military tary supporters Only a few days before the coup d etat congress was weak enough to refuse its authorization for a criminal suit against Captain Espiritos Santos who had been proved by the court guilty of i shameful outrages against morals Nevertheless Never-theless there is no doubt that congress by refusing re-fusing Fonseca permission to print anymore any-more paper acted rightly and patriotically even at the cost of its own existence |