It must be remembered that when a country is experiencing
difficulties in obtaining -remittances to cover its, external obligations, there is often soinethirig like a clashing of interests between the Government, which is responsible for making payments on the external National Debt, and outside traders who are also wanting' exchange to effect payments for goods acquired abroad. It will readily be seen therefore that were the Government to throw up the sponge in the matter of making payments abroad on external debts a greater volume of exchange becomes available for the trader. Hence prob- ably arises the controversy between political parties on this question of meeting external obligations. In the ease of Brazil, however, there seems no reason why exchange remit- tances should not be sufficient to meet the ordinary needs of the importer and those of the Brazilian Government, and the Government in maintaining the credit of Brazil is in the long run protecting the interests of the Brazilian community.
A. W. E.