Holders of Brazilian Loans have passed through a rather trying fortnight. Alarmist cables from Rio suggesting that something in the nature of a suspension of 'payment was contemplated by the authorities, occasioned an almost sensa- tional fall in Brazilian securities. Reassuring cables during the last few days, and semi-official statements that the Govern- ment had no intention of departing from the latest arrangement with the bondholders, occasioned a very considerable rally, but there must have been a good many timid bondholders who were seared out of their holdings by the original cables. That the exchange difficulties of Brazil have been increased lately by the scant purchases of coffee by Germany, Italy and other countries, is of course generally recognized, but on the other hand evidence is lacking of inability on the part of Brazil to keep faith with its bondholders. And in so far as may be judged the authorities in Brazil have every intention of adhering to the existing contract, and are fidly conscious of the extent to which their credit ,would be affected by any departure from the existing arrangement under which the bondholders have already suffered considerable inconvenience. On the other hand' in Brazil and elsewhere there are political forces opposed to the present Government, and it is from such quarters that the rumours are believed to have emanated.