BANKING. There are no banks of issue in Brazil, for the reason that the currency has been inflated to such an extent by previous excessive issues of paper money that the Government has its hands full in trying to reduce the existing volume of paper money without thinking of new issues. The first hank established in Brazil, the 'Banco do Brasil.' was founded in 1808. It led a precarious existence until 18•9. Modern banking- dates from 1853, when the new 'Bane() do Brasil' was established with a capital of :-1:3.000.000 milreis as a bank of issue. In 1890 three more banks of issue were established. the `regional' banks for north. central, and southern Brazil, with a total capital of 450.000.000 milreis, which was to be invested in five per cent. Govern ment bonds. The banks were given other privi leges. the most important of which was the ex emption from import duties of all goods brought in by them. This secured for them an absolute commercial monopoly, which naturally led to great dissatisfaction among the business inter ests. In the meantime the issue of paper money by the three banks, the national bank, and a. number of other banks which had also been authorized to issue paper money, swelled the total amount of it in circulation to over 700,000, 000 milreis, resulting in the usual disastrous consequences of inflation. More than 100.000, 000 milreis of paper money was destroyed by the Government in 1900, lint the amount in cir culation still remained at the high figure of over 699.000.000 milreis. Gold is supposed to he the monetary standard. although it has been driven ant of circulation by paper.
I;ovEttxmENr. Brazil is a republic, comprising twenty :states and a Federal District under a con stitution adopted February 24. 1S91. The legis lative power is vested in the President of the Republic, and a national Congress, consisting of a Senate and a House of Representatives. The Senate is composed of three members from each State and from the Federal District, elected di rectly by the people for a period of nine years, one-third of the number being renewed every three years. The House of Representatives consists of 2.12 deputies elected by popular vote for three years upon the basis of one representative to every 70,000 of the population; no State. how ever, may have less than four representatives in the Lower House. The franchise is granted to all male citizens above the age of twenty-one— with the exception of beggars, illiterates, soldiers, and members of religious associations. The executive authority is exercised by a President elected by direct popular vote for a term of four years. He is assisted by a Cabinet of six ministers, who preside over the following depart ments: finance; war; industry, railways, and public works; foreign affairs; navy; interior; and justice. They are not responsible to Congress nor can they participate in the debates of either House, but they may appear in their official capacity before the Congressional The President possesses the veto power on legisla tion. but his veto may be overruled by a two
thirds vote of both Chambers. The power iz vested in a Federal Supreme l'ourt consisting of fifteen members appointed for life by the President with the approval of the Senate.
'flit' omst it ut ion of Brazil was modeled after that of the United Stales, but differs from it in tin complete autonomy which it leaves to the individual States, an automany amounting alitn)st to decentralization. The States are governed by their own legislatures mill governors, and pos sess own judicial systems. The Federal Govermnent may intervene in local affairs only for the purpose of repelling foreign invasion, or of preserving a republican fora I if government, or of enforcing the exeeution of Federal laws. The public domains within the boundaries of any State are the possession of that State and under its control. A State may subdivide its territory at pleasure or consolidate with another State. Though the einitrol of foreign affairs is delegated to the Federal Government, single States have frequently sent abroad dowed with all the powers of fully accredited plenipotentiaries, for the purpose of negotiating important eommereial treaties and despatching public business. In general there is a disposition on the part of the Slates to reduce the Federal authority to a minimum, and this tendency is more pronounced in those States that are far removed from the seat of the central Govern ment.
fhe States are divided into 1023 municipali ties whose affairs are controlled by a council and a prefect. The term municipality does not bear the usual meaning of a civic corporation, but denotes rather a district, or territorial division. for we had that included within these 1023 municipalities are 225 cities, 468 village,, and 1;84 communes. In Rio Janeiro the municipal I cad is appointed by the President of the Re public.
Justice is administered in the first instance by justices of the peace (elected by the municipali ties) in civil disputes. and by the commissioner of police in criminal eases. Appeals are made to courts of second instance. which are composed of trained jurists, and from them to the courts of appeal. of which there is one in the capital of each State. The criminal code has been re vised very recently (1893-1, but the main body of civil law is still identical with the old Por tuguese Code.
.1rniy.—The standing army is recruited by voluntary enrollment, but conscription by lot is resorted to whenever the established quota can not be obtained through enlistment. All Brazil ian citizens are bound to take up arms for the defense of the nation. Wars of aggression are forbidden by the Constitution.
For further details as to military equip ment. see section Modern Armies, under ARMIES, and section Modern :Varies. under NAVIES.
'Weights and Ileagures.—The metric system has been in vogue since 1862. The gold milreis is worth 54.6 cents; the paper milreis about one fourth of that.