This view was that of the agriculturist who sees a menace to labour supplies in the growing manufactures of Brazil: I give it for what it is worth, as an interesting view point with force in some of the argument. But there are industries in Brazil which the agriculturist will admit to be legitimate in themselves and helpful to himself in that they tend to raise prices for his raw products. Of this class the most shining example is the list of cotton mills. They are already so active that the national supply of raw cotton is not sufficient for their needs, demand being so acute in 1919 that the price in Brazil rose to forty cents a pound. The output is sold in Brazil, supplying over eighty per cent of the fabrics used, with a surplus for export since 1918.

It is not generally recognized to what extent Brazilian manufactures have developed. The great industrial region is Rio de Janeiro. Her industrial advance has been made possible in this direction, as in agriculture, by the influx of sturdy Italians, Portuguese and Spanish workers.

At the same time the manufacturing section is not confined to S. Paulo; it is notably active in Minas and Rio, especially where electric power derived from waterfalls is employed, and in Bahia and Pernambuco where tobacco and sugar create legitimate home industries, and where there is a sufficiency of native and negro labour, the latter an inheritance from slavery days.

The total value of the products of Brazilian factories is about 2,000,000 contos of reis, equal at twelve pence exchange to £100,000,000 or in U. S. currency, $500,000,000 mais ou menos. This is a larger sum than the value of Brazil’s exported agricultural and forestal products, which was about 1,811,000 contos in 1919, and 1,464,000 contos in 1920.

This calculation, however, is not quite fair because it does not take into consideration the agricultural produce consumed in the country; there are no figures available on this subject.

In a review of commerce published in May, 1916, the Jornal do Commercio said that out of the ninety-four classes of Brazilian manufacture, eighty were free from internal taxes (the “imposto do consumo”) while fourteen were subject to tax, as well as to foreign competition.

It was demonstrated that in these fourteen classes Brazilian manufactures fell below fifty per cent of the total consumption in only one instance, that of pharmaceutical specialties. The most important items are these, in round numbers:

In 1921 the number of home-made goods paying imposts rose to 21, and the value to well over one million contos, and includes, besides those detailed above, vinegar, walking sticks, salt, candles, perfumeries (of which Brazil makes sixty per cent of the consumption) and playing-cards.

Among the large class of manufactures free from internal taxes are the important items of cotton thread, jute products (rope, cord and coffee bags) the products of ironworks, potteries, furniture factories; goldsmiths and jewel-workers, soap makers, paper and paper-bag factories, biscuit and bottle, shirt, mirror, trunk, ink, pipe, pin, and window-glass makers; but all of these pay a contribution to their State or municipality or both, appearing in revenue lists under “Industrias e Profissões.”

In the city of São Paulo this tax upon industries and professions, the latter list embracing bankers, lawyers, barbers, shoe-shiners, hotel-keepers, doctors, newspaper sellers and so on with true democratic impartiality, brings in over forty per cent of the municipal income; it is now worth some three thousand five hundred contos a year, or let us say nine hundred thousand dollars, the cotton factories paying the biggest item, twelve thousand dollars, while shoe factories, jute mills, potteries, jewellers, furniture makers and metal works each pay about eight thousand dollars.

It is plain that manufacturers do not have things all their own way in Brazil, and must be prepared for fairly heavy taxes, but one does not hear the same complaints about petty taxation for every trifle as in the Argentine; on the other hand, the mill owner has not to face cut-throat competition as in older manufacturing countries, is able to get an excellent price for his products, is able to buy land at inexpensive rates and to obtain comparatively cheap labour. As soon as a district becomes thickly sown with factory chimneys prices of land and labour automatically rise, of course; this natural law has operated already in the now densely populated and built over suburbs of São Paulo, Braz and Moóca, and is, under one’s eyes, transforming the windy upland flats of Ypiranga. A year or two ago much of this area was red clay swamp, with a cottage here and there and a few Italian market gardens producing vegetables for the city dwellers, and land could have been bought for ten milreis an acre or less; today it is worth from two hundred to five hundred milreis; the wet lands have been filled in, an enormous undertaking, rows of workmen’s houses extend for miles to the crest of the hill where the Monument stands commemorating the Grito da Independencia, and from its summit one has a view that is mottled with factory smoke and punctuated with tall chimneys. To see this and to watch the crowds of pretty chattering Italian girls pouring out of Braz and Moóca factories at noon or evening is to obtain a revelation of the newer South America. It is no longer a land of sugar and brazil-wood only and although the agriculturist may shake his head over the lack of hands on the farm, manufacture in Brazil is a live, energetic phase of her modern development. São Paulo City was employing, by the end of 1921, over twenty-five thousand horsepower of electrical energy in her factories.

The fabric-weaving factories in all Brazil, including cloths of cotton, jute, linen, silk and wool, were 303 in number in 1914, employing 75,000 workpeople and capital totalling over 368,000 contos of reis; in 1920 they had increased to 328 including 242 cotton mills which alone employed 109,000 hands. The premier producer of cotton cloth in 1920, in values, was Rio de Janeiro (Federal District) with an output worth 102,000 contos; next came S. Paulo State, 92,000 contos; then Minas Geraes, 91,000; Rio de Janeiro State, 46,000; Bahia, 32,000; Pernambuco, 21,000; Alagôas, 16,000; Sergipe, 12,000; Maranhão, 11,000; Rio Grande do Sul, 9,000; Ceará, 3,000; and Piauhy, Rio Grande do Norte, Paraná, Parahyba and Espirito Santo, about 1,200 contos each. The States absent from cloth manufacturing returns are the great forestal territories of the extreme north, and those of the vast interior uplands, where conditions are not greatly changed from the time prior to the Portuguese discovery so far as development is concerned.

In numbers of mills São Paulo again comes first with seventy-eight mills making cloths: fifty-five of these weave cotton alone, leaving a higher proportion of fabrics made from other materials than in sister States; generally speaking cotton cloths occupy the greatest share of capital and labour, as for example in Minas, where sixty fabricas de tecidos operate, and out of the total value of the production, 23,500 contos, cotton accounts for over 22,600 contos. With a larger number of cotton-cloth mills at work than S. Paulo, but with production worth not much more than one-fourth, it is clear that factories are very much smaller in the interior State; nevertheless, she is able to pride herself upon a thriving industry, occupying nearly nine thousand people, twenty-five thousand contos of capital, and using ten thousand tons of raw cotton. In common with the other weaver States of the Brazilian Union, Minas ships her cloths to less industrially developed regions: in this connection some light is shed upon the ramifications of finance cum industry by the President of the Sociedade Mineira da Agricultura (Minas Society of Agriculture), Dr. Daniel de Carvalho, in an address at the Cotton Conference held in Rio in June, 1916. Stating that the Minas export of cotton cloth (to other States) was nearly 28,000,000 metres in 1915, he showed that, at an average price of four hundred reis (eight cents) a metre, the total value was more than eleven thousand contos: but in the official statistics the value of exported cotton cloth appeared as only 3,893 contos. “This anomaly is an example of the regimen of fiction in which we live, from the taxation point of view. The Minas legislator votes for high and sometimes excessive taxes,—and the Government in a fatherly manner corrects the excess in calculations of ad valorem percentages, accepting a benign interpretation of merchandise values. Instead of products appearing with exaggerated values we find on the contrary that most estimates are well below the real amount, as in the case of manganese....” The cure for this deliberate lessening of values, which certainly does Brazil poor service, would be, said Dr. Carvalho, an all-round diminution of tribute, together with a rigorous application of the law.

In the Federal District the number of weaving mills is thirty-five, several clustering in the mountain valleys of Petropolis and deriving power from waterfalls; the State of Rio has twenty-seven; Santo Catharina, fifteen; Bahia and Maranhão have thirteen each; Rio Grande do Sul, twelve; Ceará and Alagôas, ten each; Pernambuco, nine; Paraná and Sergipe, eight each; Espirito Santo, three; Rio Grande do Norte, Piauhy and Parahyba, one each.

The largest employer of labour in weaving mills is S. Paulo, with (1920) over thirty thousand hands; the next is the Federal District with about twelve thousand; third comes Minas with over eight thousand. São Paulo is also the greatest consumer of raw cotton, using thirteen thousand tons; the Federal District uses eleven thousand tons and the State of Rio nearly six thousand tons, Minas using, as we saw above, about five thousand.

At the end of 1915 when, in spite of great demands upon the national mills consequent upon checked importations of cotton cloth several had to reduce their staff on account of shortage of raw cotton, the Centro Industrial addressed a letter to the President of the Republic in which the plight of the manufacturers was displayed. A cotton famine in the North had reduced the national supply, and raised the price beyond precedent, while importations are always minute in Brazil owing to the heavy duty of about six cents per pound against it. The signatories of the letter explain that the cotton cloth industry never calls for less than forty-five thousand tons^[15] of raw cotton produced on national soil, and that this amount was made up in 1913 into cloth worth over 162,000 contos; that, with the exception of aniline dyes, which cost about 2,000 contos a year, no other prime material enters into the Brazilian cotton Industry.

“The time is long past when cotton yarns were imported on a great scale for weaving. Now, our numerous factories have created in their vast and modern mills a perfect industrial cycle from spinning to printing,” so that the present import of yarns is worth only 1,800 contos, and the value of cotton cloths brought from abroad less than 17,000 contos (1914 figures).

At the same time Brazil’s export of raw cotton from the Northern States of fine long staple, usually practically all sent to England, diminished until returns for 1915 show only 5,223 tons against over 37,000 tons in 1913 and 30,000 in 1914, but this restriction did not make up the shortage following the drought. The Centro Industrial asked for a governmental enquiry into cotton conditions; in the middle of 1916 the Conference was held in Rio, samples of cotton, etc., displayed, and, after a collection of facts by a questionnaire sent to all weaving mills, expositions of the highest interest were made by officials of the government, technical experts, and cotton growers. Reference is made to this valuable conference under “Cotton,” but the manufacturing notes of these pages may include the name of Miguel Calmon, Chemical Director of the Companhia Industrial do Brasil, popularly known as the “Bangú” factory, who gave an address on the use of native vegetable dyes; optimistic as regards tints drawn from Brazilian forests, Senhor Calmon spoke with appreciation of the “urucú,” a dye producing hues ranging from yellow to deep red, as well as many other better known colouring matters. There is already a very busy dye factory in Minas, the Fabrica de Tinta Machado, using native vegetable bases, and much is expected in S. Paulo from dyes made by the use of “Inglotina,” obtained from mangrove leaves: a factory has recently been established at Cubatão.

It was at the same conference that Dr. Costa Pinto gave details of the threads spun in Brazil; counting in English measurement, Brazilian mills spin from No. 2 to No. 100 thread. From No. 30 upward a long staple cotton is needed, and only a small proportion of native-grown fibres are suitable, although there is plenty of short fibre for the coarser weaves.

Brazilian manufacturing already depends considerably upon the water power accessible, especially in São Paulo, Rio de Janeiro, and Minas. There is enough hydraulic force available in Brazil to turn the wheels of the world but the majority of these wonderful cascades are scarcely known by name, and many were not charted in the interior of Matto Grosso and Amazonas until the work of the Rondon Commission opened great tracts of those unknown lands. It is not possible here to do more than mention one or two of the most important falls. The Maribondo, in the Triangulo Mineiro, has an estimated force of six hundred thousand horse power; Urubupunga, on the Paraná river, has some 450,000 horse power; Iguassú has 14,000,000, four times as much as Niagara; and the force of the Sete Quedas, or Guayra Falls, on the Paraná near the Paraguay boundary, is calculated at 80,000,000 horse power. The Light and Power companies of Rio, São Paulo, Campinas, Petropolis, and other cities obtain their force from falls, hundreds of little townships in the central interior sparkle with electric lights, run factories and public utilities as a result of a nearby source of water power.

Allusion has before been made to the variety of Brazilian soils and climates which result in her possession of several important and utterly diverse industries; the list is so long that many interesting embryo industries, or others of local or internal importance only, can only claim space for passing mention. Among these is the wine-making industry of the far south, where European colonists cultivate grapes and have created quite a notable business in the production of fairly light red wines. These are shipped to many other parts of the country, are sold inexpensively in Rio and other cities, and while they lack the mellow tone of imported wines, they are sound, good, and popular.

Salt extraction in Rio Grande do Norte is another busy industry, and here is the chief source of Brazil’s native salt; it is exported from the ports of Macáu and Mossoró. Also in the north are the famous lace-makers, whose yards of fine rendas, made on a pillow with scores of bobbins, would not disgrace Malta; the big, thickly woven white hammocks of Ceará are justly prized all over Brazil, and both lace and hammocks should form the base of an export business. In Maranhão, where the babassú palm grows luxuriantly, a local industry extracts the fine oil from the kernel hidden in a stony shell, and experimental exports have occurred during the past year; the babassú is but one of the valuable nuts of the Brazilian north. One, the “Brazil nut”^[16] of commerce, has of course been exported from the Amazon for nearly a century, and is a considerable revenue yielder to Pará and Amazonas states, but the sapucaia, of the same family but larger and sweeter, is rarer, less known, and fetches much higher prices in sophisticated world markets.

In Parahyba State there is at least one considerable coconut oil extracting factory, on a sandy spit south of Parahyba city; several thousand people are said to be employed in this industry and the product is shipped as far south as Rio: in spite of the immense quantity of coconuts on the littoral of the northern promontory there is no copra or fibre industry yet established, apparently because the native consumption of the nut leaves little surplus for the one, and interest is lacking in the other.