NEWS OF THE WEEK.
OUR suggestion as to the cause of the new revolution in Brazil appears to have been correct. According to the latest information, after the fall of the Monarchy, paper was largely over-issued, in order to support the speculative schemes which have followed the setting-free of labour by the emancipa- tion of slaves ; and the proportion of gold formerly deposited as a basis was either not increased, or, according to one account, was seized under a Treasury order. The consequent fall in exchange alarmed Congress, which accepted a Bill restricting the issue of paper; and it was to prevent the passing of this Bill that the President, who had also been provoked by an impeachment law, was induced to suspend the Constitution and declare himself Dictator. What has happened since has been studiously concealed; but it appears to be true that the great Southern Province of Rio Grande do Sul, which is full of Germans and Spaniards, has declared itself inde- pendent. It is reported also that Par& in the North, a vast province much larger than France, and Bahia in the centre, with a million and a half of people, have followed the same course ; and if this is true, Brazil is. in process of de- composition ; but the latter rumours still require confirmation. We see no ground for the stories of a Restoration, though there exists a monarchical party so strong, that if it were joined by either the Army or- Navy, it might seize the government.
