ABSTRACT
Sources: Rio de Janeiro: SAY [1839], pp. 297-300 (1808-1837); Jornal de Commercio, Rio de Janeiro (1821-1897); Camara Syndical dos Corretores de Fundos Públicos da Capital Federal (ed.), Relatorio da Camara Syndical dos Corretores de Fundos Públicos da Capital Federal …, vols. 1897/981914/15, Rio de Janeiro 1898-1915 (1898-1914). Bahia and Pernambuco: The Course of Exchange, London (1847-1849); The Economist, London (1850-1881/82). Concordance: WdW VII, pp. 129-194, 203-209
Currency: Brazil’s unit of payment and account was the milréis at 1,000 réis, which was meant to correspond to 25.50 grammes of fine silver or 10/11 of the Portuguese milréis silver according to the Portuguese decree of August 7th 1747, but it was not actually minted (cf. MCCUSKER [1978], p. 301). In contrast to colonial times, the money circulation within Brazil was determined by gold coins to a great extent as this precious metal did not have to be imported from Peru, as did silver. After the Portuguese court had moved to Brazil in 1807, the resulting financial distress of the government brought about the issue of paper money by a newly founded bank in Rio de Janeiro in 1808 and the debasement of the copper coins as well as the issue of undervalued silver coins in 1811. These coins, the socalled patacãos, Spanish pesos bought in Peru, had a value of about 750-800 réis but were reminted and fixed at 960 réis so that they corresponded to 2 new silver crusados at 480 réis or 3 patacas at 320 réis. From 1818/19 the currency devaluation became generally more and more noticeable, but effects on the exchange rate arose only with a certain delay (SCHNEIDER [1975], p. 480). This development was dramatically intensified when new financial gaps arose in the 1820s, owing to political implications such as the imminent war with Portugal, revolts in the northern provinces and the war with Buenos Aires concerning Uruguay. The aim was to get these financial gaps under control by constantly new issues of paper money and undervalued copper coins. When the government changed the unredeemed notes of the bank of Rio de Janeiro into irredeemable government notes in 1829, the paper money, already exposed to high fluctuations against hard coins since 1818, became the main currency of the country. After 1829 all exchange rates are given in milréis paper money until the end of the period of documentation.
