BRAZILIAN PUNDLNG ScnamE.
The market had been so fully prepared for the scheme for funding the Brazilian Debt that the announcement. of the details at the beginning of this week had the effect of raising rather than depressing quotations for Brazilian stocks. Apart from the Brazilian Federal 5 per cent. Funding Loan of 1898, the 5 per cent. Funding Loan of 1914 and the 71 per cent. 1922 Coffee Security Bonds all the Brazilian Federal Loans are now to be paid- for the time being in new 5 per cent. Funding Bonds, the maximum period of the funding arrangements being three years. The Brazilian Government, however, promises to review the situation from time to time with the object of resuming the cash payments at an earlier date if circumstances permit, and in the meantime- the full service of the original loan is to be acknowledged through the accumulation in Brazil of milreis—based, however, on a fixed exchange of 6d.—so that given a turn in the world depression and a rise in Brazil's principal commodities, there should be a substantial fund. available for remittance later on as soon as the exchange becomes more favourable and the facilities for exchange remittance have increased.
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