256 Lectures on Brazilian Affairs
crease of German trade on the Brazilian market, but com-
merce turned more and more to America. This was due to the
fact that Brazilian trade was in coffee and raw materials that
were needed in the United States and admitted free.
Brazil afforded preferential rates to a number of American
products. By a reciprocity agreement of 1891 certain articles
of American origin were imported free into Brazil and others
were granted a reduction of 25 per cent of the ordinary duty.
After some years the preferential treatment of American
imports was discontinued, but in 1904 it was renewed in
favor of certain goods such as wheat, flour, India rubber,
inks, colors, matches, etc. The idea was to keep up on the
American market compensation for coffee.1
Brazil was very much affected by the Great War, not only
because her chief purchasers were involved in the conflict
and had to alter the nature of their trade, but also on account
of the lack of shipping. Germany was lost for a time as a
customer. On the other hand, the different imports and ex-
ports were affected in several ways. Many supplies were
curtailed, such as coal, gasoline, iron, and codfish. Exports,
especially coffee, declined, though rubber and hides con-
sistently retained their importance. A special stimulus was
given to manganese. Brazil became rapidly an exporter of
staple food crops. Though artificial, that result showed that
Brazil was self-sufficient, and could easily enter the world
market as an exporter of foodstuffs.
After the war there was a boom in 1919-1920 and a cor-
responding increase in both exports and imports. In 1920
the balance of trade was clearly unfavorable to Brazil: the
buying to replenish exhausted stocks made imports much
higher, and the currency suffered a first depreciation, though
1Frank R. Rutter, Tarifi Systems of South American Countries (Department of
Commerce, Washington, D.C., 1916).