No. 72.
Mr. Partridge to Mr. Fish.
Rio de Janeiro, April 19, 1875. (Received May 21.)
Sir: The condition of the agricultural interest here is occupying much attention.
In the course of the debates in the chambers, it is declared that the cultivation of sugar will have to cease unless the heavy export duty can be largely reduced or entirely abolished. In the province of Bahia, this duty amounts to 15 per cent, ad valorem, (9 per cent, to the imperial and 6 per cent, to the provincial treasuries,) while on other articles, (Brazil-wood, 17 per cent.; India rubber, 22 per cent.,) this duty is still heavier.
In fact, this imposition is so onerous, that many sugar-planters in the northern provinces have given up the sugar cultivation, and many of them send their slaves to be sold in this and the neighboring province of St. Paul’s to be engaged in coffee-planting, the higher price of which enables it to withstand the effect of the export duty.
This ministry has proposed to reduce the export duty from 9 to 7 per [Page 111] cent, on cotton, sugar, and hides, but this does not at all satisfy the cultivators, who cry aloud for a larger reduction.
The difficulty is to find other revenue to replace this to be lost by the reduction. They fear the effect of a proposal to tax land directly, yet this seems to be the great measure needed in Brazil. A direct tax on land would prevent the continued holding of immense tracts which are unproductive, yet capable of immense returns if thrown open to occupation, cultivation, and ownership. Proprietors would soon grow weary of paying taxes on large tracts, (many square leagues in extent,) and would be forced to sell or to lease those portions most available for production. As these same proprietors, however, are in fact the political power in the country, no ministry has yet found the courage required to propose this tax on land for the relief of industry and productive labor.
It is also proposed to establish, in the sugar-provinces, central sugar works and refineries, and to assure these by a government guarantee of 7 per cent, interest on the capital invested.
It is very likely that something like this will be done, for some measure of relief must be had.
I am, &c.,