INTERNATIONAL LABOUR OFFICE STUDIES AND REPORTS Series B (Social and Economic Conditions) No. 25 Some Social Aspects of Present and Future Economic Development in Brazil By FERNAND MAURETTE Assistant Director of the International Labour Office GENEVA 1937 Published in the United Kingdom For the INTERNATIONAL LABOUR OFFICE (LEAGUE OF NATIONS) By P . S. K I N G & SON, Ltd. Orchard House, 14 Great Smith Street, Westminster, London, S.W. 1 P R I N T E D BY ATAR, GENEVA CONTENTS Page INTRODUCTION 5 PART ONE BASIC ECONOMIC PBOBLEMS CHAPTER I : Potentialities CHAPTER I I : Population of the Country 7 10 CHAPTER I I I : Agriculture in Brazil Agricultural Holdings Visits t o Agricultural Undertakings Development of Brazilian Agriculture 14 15 17 22 CHAPTER I V : Industry in Brazil Visits t o Undertakings Development of Brazilian Industry: Sâo Paulo. 31 31 37 CHAPTER V : Economic Conditions in Brazil and the Social Problems arising out of Jhem 42 PART TWO SOCIAL PBOBLEMS CHAPTERI: Conditions of Employment Conditions of Employment in Agriculture . . . . Conditions of Employment in Industry . . . . CHAPTER I I : Land Settlement Various Types of Settlement Present Problems of Land Settlement CHAPTER I I I : Immigration Importance of Immigration in Brazil Present Needs Principles of Present Policy Internal Migration Foreign Immigration Japanese Immigration CONCLUSIONS 45 45 53 57' 57 64 71 71 73: 75 79 81 9097 INTRODUCTION The present volume is simply a report submitted to the Governing Body of the International Labour Office as the outcome of a three weeks' visit to Brazil. Modest in bulk and cautious in tone though it is, it might seem pretentious after so short a time spent in so large a country had not that time been spent under very special conditions. I visited Brazil at the invitation of the Federal Government, and in particular of Mr. Macedo Soares, then Minister for Foreign Affairs. At the seat of the Federal Government I was in contact and had long and fruitful conversations with all those who were in a position to give me information and assistance in my investigations and conclusions. My all too brief journeys to certain parts of the country were carefully planned to avoid any possible loss of time; and thanks to the support of the Federal Goverment and to the intelligent assistance of local authorities and personalities, I was able to gather an ample supply of selected material, printed, written and oral. This is one reason which leads me to hope that this brief survey may be found to contain more matter than it would have been possible to assemble in the course of so short a journey without the intelligent assistance I actually received 1. 1 It would take several pages of this report to mention every individual and institution from whom I received active and valuable assistance. All of them will find in this report traces of what they told or showed the writer. I can only express my gratitude publicly here to those persons without whose support this study would never have seen the light of day: President VETULIO VARGAS; Mr. MACEDO SOARES, who, as I have said, was the deus ex machina of the journey; Mr. AGAMEMNON MAGALHAES, Minister of Labour; Mr. ODILON BRAGA, Minister of Agriculture; Mr. A. BANDEIRA DE MELLO, Director-General of Labour; Mr. D. PINHEIRO MACHADO, Director of Emigration; Mr. ALVARO VIANNA, Director of Agriculture; Mr. ARMANDO DE SALLES OLIVEIRA, Governor of the State of Säo Paulo; Mr. JORGE STREET, Director of Labour, and Mr. HENRIQUE DORIA, Director of Emigration of the same State. I should also like to mention those who were my guides and companions for part or all of the journey: Mr. ROBERTO MENDES GONÇALVÊS, a high official of the Ministry of Foreign Affairs, and Mr. TANCRÊDE DE SOUZA, correspondent of the International Labour Office. Although this list is far from complete, the many persons who gave me their assistance and who are not mentioned here may be assured that none of them have been forgotten. And lastly, my cordial thanks are also due to my collaborator, Dr. ENRIQUE SIEWERS, of the Unemployment, Employment and Migration Section of the International Labour Office, whose attentive, enlightened and loyal companionship I enjoyed throughout the whole of my journey. — 6 — The second reason is that, despite the many temptations assailing an inquisitive eye, an attentive ear and a hungry note-book in a country with so rich a variety of aspects, I deliberately held to my purpose, which was to elucidate as many as possible of the social aspects of present and probable future economic development in Brazil. Here again, I was unable to complete the whole of my task, but I pursued my investigations as far and as thoroughly as possible in a single direction along two parallel lines: investigation of the effects of the economic development of this great country on the conditions and possibilities of human labour, and investigation of the probable effects of the present conditions and possibilities of this labour on the economic development of future years. This report is therefore divided into two parts which are closely linked and interrelated. The first deals with some of the economic problems of the day and the social conditions which form their background, and the second with current social problems and the influence of economic conditions upon them. PART ONE BASIC ECONOMIC PROBLEMS CHAPTER I POTENTIALITIES OF THE COUNTRY There is no need to describe once again the vast and varied potentialities offered by Brazil, but a few facts may be recalled which have long been familiar and are confirmed by every fresh advance made by civilisation in that huge country. It will be remembered that the area of Brazil is over 8% million square kilometres, and that it measures about 4,300 kilometres at its widest part both from North to South and from East to West. The Brazilians like to point out that their country comprises one-twentieth of the whole land surface of the globe; that it covers a bigger area than the two next largest Latin American countries, the Argentine Republic and Mexico, together with the territories of France, Spain, Germany, Poland, Great Britain, Italy, and its mother-country Portugal. If it is also remembered that Brazil extends over more than 40 degrees of latitude from the equatorial to the temperate zone, that it comprises every variety of climate (except polar conditions) whether maritime or continental, and finally that its vast territory, which is comparable only to that of the U.S.S.R., China, the United States, Australia and Canada, comprises a far smaller area of desert than any of these other five countries, some idea will be obtained of the boundless potential riches of Brazil, as regards both quantity and variety of vegetable and animal production, including timber, plants of all kinds, various crops, and stock-raising. Owing to the natural wealth of the vegetation in the tropical and subtropical parts of Brazil, there was for a long time a tendency in most of the country to leave the task of feeding — 8 — the population entirely to nature without requiring any persistent effort of work or adaptation from the inhabitants themselves. It is often cited as an illustration of this that the many species of palms in the tropical zone supply the inhabitants with every possible kind of product, including food — bread, milk, vegetable fats, fruit, drinks — textile fibres, fuel, wood, and even practically ready-made vessels in the form of calabashes. It is not long since a Brazilian was able to say to Albert Thomas with a touch of irony but not without some show of reason: "Here we have the sun and bananas, and so the social question is solved." But this is a lazy half-truth to which day-by-day reality is more and more giving the lie in a country that is determined on action and on taking its place in the civilised world. Nevertheless it is true that this vast and wealthy land offers wide and varied scope for agricultural development. There is also scope for industrial development. Not only do a number of raw materials, and above all, textiles — cotton, wool, various fibres, oleaginous plants — figure among its vegetable and animal products in addition to foodstuffs, but Brazil also has large mineral resources: its wealth of precious ores, gold and precious stones will possibly be eclipsed within a few years by its production of useful minerals. The State of Minas Geraes is even now said to have the largest deposits of iron ore in the world, and the progress already made in industrial development in the State of Säo Paulo will be described later in this report. Thus the possibilities of production in Brazil are as varied as they are extensive. Their development depends, however, on certain definite conditions. These conditions are determined by the very vastness and richness of the land itself. The first is the conquest of distance. This is the problem which arises in all very large countries; it has confronted the United States and Canada in the past, and now faces Brazil, as well as China and the U.S.S.R. It is not enough that latent wealth should be available in the soil and underground; facilities are also necessary for removing if from where it lies and transporting it to those places within the country or abroad where it can be consumed. For this purpose roads are necessary, and above all railways. At the present time, however, Brazil has only some 33,000 kilometres of railways, representing rather — 9 — less than two-fifths of a kilometre per 100 square kilometres, as compared with 4.6 kilometres per 100 square kilometres in the United States, 9.8 in France, and 12 in Great Britain and Germany. The conquest of distance which has now been achieved in some of the States in the temperate zone such as Rio de Janeiro, Sào Paulo and Minas Geraes, and in the southern States, which are moreover smaller in extent, is still in its initial stages in the interior of the country and in the northern States, where, owing to the equatorial climate, the vast basin of the Amazon is covered with a tall, dense, and almost uninterrupted expanse of forest. But this conquest of space is useless, or practically so, unless it is consolidated and permanently maintained. In a country in which two-thirds of the land is at the mercy of luxuriant and all-invading vegetation, a road which is not regularly kept up, or an estate which is not regularly cultivated, is rapidly overwhelmed; if development is interrupted for a few years^ everything has to be begun again from the beginning. Further, although a settlement in the interior of the country may be endowed with the best possible economic equipment — being properly cleared, irrigated, and provided with good housing and local roads — its development will be difficult and precarious if it is cut off from the consumption or export centres by undeveloped territories. Continuous occupation and development of the country, in space as in time, is one of the primaryconditions for the economic exploitation of all these resources. This condition implies a further one: that of population,. dealt with in the following chapter. CHAPTER II POPULATION Compared with the area of the country, the population of Brazil is very small. The last general census, taken in 1920, gave the total population as only 31 million. Until 1935, the Federal authorities appear to have estimated the current size of the population on the basis of an annual increase of about 3 per cent. Estimated by this method, the population of Brazil in 1935 was over 45 million. But it is now generally Tecognised that this estimate is too high and that it should be reduced to not more than 42 million, or about the same as the population of France in an area fifteen times larger. The average density of the population is 5 persons per square kilometre, whereas of the five countries mentioned above as being comparable with Brazil in size, the density of the population in China is 41, in the United States 26, and in the U.S.S.R. 8. Only Canada and Australia have a still sparser population, but they also have a much smaller area of cultivable land than Brazil. No doubt the population of Brazil has grown considerably, especially during the past fifty years. Between 1830 and 1930 it increased seven or eightfold; but it must not be forgotten that during the same period the population of the United States had become 24 times larger. Since 1872 the population •of Brazil has increased as follows: 1872 1890 1900 1920 1930 1935 10,112,000 14,334,000 17,318,000 30,635,000 40,477,000 42,000,000 The figures show an advance which, though steady, is comparatively slow. The increase appears still more modest when it is remembered that it has benefited the different parts of Brazil very unequally, and when the real possibilities of settling the country are considered. — 11 — In the coastal States, from Pernambuco and Bahia to Rio Grande do Sul, the density of population varies from 11 to 45 persons per square kilometre, excluding the Federal District, .'which consists solely of the town of Rio de Janeiro and is therefore much more closely inhabited. In the States in the interior oí the country, on the contrary, the density of the population is nowhere higher than 4 persons per square kilometre and is as low as 1 person to every 4 square kilometres in the most westerly States. Nowhere is this unequal distribution of the population more evident than in the State of Säo Paulo, which will frequently be taken as an example throughout this report, since in many ways it illustrates the lines along which the other Brazilian States should develop. The number of immigrants landed at Santos, the port of Säo Paulo, from the beginning of the oversea immigration movement until 1930 represented 57 per cent. of all immigrants to Brazil. It is true that all the immigrants landed at Santos did not remain in the State of Säo Paulo, but that State nevertheless attracted the largest proportion of the newcomers. In 1872 the State of Säo Paulo contained 8.3 per cent, of the total population of Brazil, and in 1935 15.7 per cent., with an area of rather less than 3 per cent, of the whole of Brazil. The population of the capital of the State, the city of Säo Paulo, which in 1934 had 1,060,000 inhabitants, doubles every fifteen years. What is said here about Säo Paulo applies to a lesser extent [to the other Brazilian States bordering on or near the sea — Rio Grande do Sul, Santa Catharina, Paraná, Minas Geraes, Rio de Janeiro, and Espirito Santo — and even to the equatorial States extending to the mouth of the Amazon. The four regions in which industrial production has already iegun to develop — the Federal District, the States of Rio de Janeiro, Minas Geraes, and Säo Paulo — alone account for 43 per cent, of the whole population of Brazil, although they cover only a little more than 10 per cent, of its territory. But although this unequal density of the population throws the emptiness of the land in the interior into relief, it does not mean that even the coastal or semi-coastal States have a population large enough to exploit their resources to the full. No doubt it is an idle game to estimate, as Ratzel did in the nineteenth century and Fischer at the beginning of the twentieth, the population capacity of a country on the basis of its natural resources above and below ground without regard to the other — 12 — factors, such as means of communication, public works, credits, etc., necessary to ensure their development and consequently to allow the land to be adequately settled. These estimates are valueless unless compared with similar estimates for other countries. In this connection, it may be recalled that, according to Fischer, whereas Argentine could support a population of 150 million (its present population being 14 million), the U.S.S.R. 220 million (present population over 160 million), China 475 million (present population probably about 450 million) and the United States 500 million (present population 125 million), Brazil, which now has 42 million inhabitants, could support 900 million, or a population 21 times larger than its present one. These figures are mentioned merely to indicate the magnitude of the population capacity of Brazil as compared with other countries of similar size. It may indeed be said that of all the big Latin American countries, Brazil is, as regards either the inland States or even only the coastal States, that in which after fifty years of immigration there remain by far the largest vacant areas of fertile land and unexploited mineral resources. Thanks to the abundance of land capable of development, Brazil has been able during the past fifty years to admit and maintain millions of immigrants, as will be seen below. The same factors may also enable it to admit the further huge contingents of human beings necessary for the full exploitation of the country, if this is to be carried out rapidly. But before these prospects can be translated into fact, after a period in which immigration, at least from Europe, has been almost entirely suspended in consequence of the depression, and doubtless also of the nationalistic policy pursued by some European countries, the following two questions must be answered : (1) Does Brazil really wish to develop its economic potentialities rapidly, steadily and fully, by rapidly increasing its population through large-scale foreign immigration, or does it prefer to progress at a slower rate, drawing the necessary human labour solely from the excess of births over deaths and from internal migration from regions temporarily neglected to those selected for immediate development ? (2) If the first of these two methods is adopted, is Brazil willing and able to offer to its future immigrants the living — 13 — conditions which they will undoubtedly demand, since it is impossible to find to-day, at least in Europe, men or families ready to make long journeys with the sole prospect of satisfying their elementary needs of food and shelter, as they were still willing to do until about 1920 ? An attempt will be made to reply to these two questions in the second part of this study. CHAPTER III AGRICULTURE IN RRAZIL Agricultural production is the principal occupation in Brazil and is likely to remain so for a long time to come, if not for ever. The country's population represents about 2 per cent of the total population of the globe. Although its output of rice is only 1.2 per cent, of world production, and that of wheat 0.1 per cent., Brazil already supplies 4 per cent, of the cotton (and its cotton output is rising both absolutely and relatively from year to year), 4.5 per cent, of the maize and tobacco, 6 per cent, of the sugar cane (and this, like the cotton output, is steadily growing), 15 per cent, of the cocoa, 55 per cent, of the coffee, and 60 per cent, of the maté produced annually throughout the world. Some of these products are consumed wholly or almost wholly on the home market; these include maize, wheat, rice, and, for the time being, most of the maté, cotton, and sugar crops. As regards the last-mentioned products, however, Brazil aims at becoming a great exporting country; it already holds sixth place in the world production of cotton, after the United States, India, the U.S.S.R., China, and Egypt, and fifth place for sugar, after India, Cuba, the Netherlands Indies, and the Philippines. Other products are already produced for export on a large scale ; they include coffee, cocoa, citrus fruits, bananas, and tobacco. It is common knowledge that Brazil is far ahead of all other countries in the world production of coffee, the cultivation of which has been the greatest economic problem of Brazil during the past 40 years. Its output of cocoa is second only to that of the Gold Coast and higher than that of Nigeria. As regards oranges, its exports hold fourth place after the United States, Spain, and Italy, and seem likely to rise to first place in a very short space of time. The same applies to bananas, Brazilian exports of which are exceeded only by the Canary Islands and are already larger than those of Guatemala. And lastly, as regards the production of tobacco, Brazil is surpassed only by India and the United States. — 15 — It may be added that Brazil also grows certain specialities of its own, of which it has the exclusive monopoly. These are guaranà, which furnishes a drink used throughout South America; carnaùba, which yields wax; babassú and Brazil nuts, from which commercial oils are obtained. Other oleaginous plants, such as sesame, castor oil, and above all, the " t o u n g " , which has recently been introduced from the Far East, are beginning to be cultivated on a large scale in the subtropical region. Finally, the largest herds of cattle in the world,except for those in India, are to be found inBrazil, chiefly in the Southern States and on the high central plains ; these supply Brazil with draught and saddle animals and leather, and are beginning to furnish meat for the refrigerating plants and preserving factories of Santa Catharina and Rio Grande do Sul. I shall revert to some of these products later in order to enquire into the influence they may have on the demographic and social conditions which are the main concern of this report. All that I have tried to do here is to give some notion of the extent of agricultural production, both vegetable and animal^ in Brazil. AGRICULTURAL HOLDINGS Even to-day large agricultural estates predominate throughgut the cultivated part of the country.. It is easy to prove the truth of this statement, by taking as an example the State of Sào Paulo, which I studied with particular care. The choice of this example is not an arbitrary one. In the first place, Sao Paulo is the biggest agricultural State in Brazil, supplying as it does 17.5 per cent, of the sugar, 28.3 per cent, of the maize, 31 per cent of the cotton, 33.5 per cent, of the beans, 43 per cent of the oranges, 49.6 per cent, of the rice, and 65 per cent, of the coffee produced by the whole of Brazil. Above all, however, Sào Paulo is the most densely populated and advanced State in the Federation. If, in spite of the singularly dense population and high standard of living obtaining in this State, the proportion of large estates there remains high, this proportion is likely to be still higher in other States where a sparser population and a lower standard of living imply a priori a still more concentrated system of land tenure. In Brazil a holding of less than 60 hectares (25 alqueires) is regarded as a small holding, one of between 60 and 240 hectares as a medium-sized holding, and anything above 240 hectares — 16 — as a large estate. On this basis there is in the State of Säo Paulo a preponderance of small holdings (61 per cent.) in the immediate vicinity of the capital, these holdings being engaged in cultivating fruit and vegetables, cereals and maize, and raising dairy animals to supply the needs of the city. The proportion of small holdings is still fairly high, although much lower than in the Säo Paulo area, in the regions adjacent to the two railways running from Säo Paulo to Rio de Janeiro and to the north-west, and in the coastal plain surrounding the port of Santos, where the tropical heat and damp are favourable to the cultivation of bananas and rice, both products which can be grown on small or medium-sized holdings. In these three regions small holdings represent a proportion of 28.6, 33.2, and 37.9 per cent, respectively, and medium-sized holdings 28.6, 26.3, and 32.4 per cent. As soon as the interior of the tableland is reached, however, large estates again predominate. Even in the region around Campinas they represent 61.5 per cent, of all developed land, although there is a fairly high proportion of small and mediumsized holdings in the immediate vicinity of the town, which, with its 100,000 inhabitants, offers an important market for fruit and vegetable produce. The proportions are more or less similar in all parts of the interior; in the neighbourhood of Araraquara, Rio Preto, and Ribeirào Preto large estates form, according to the district, between 52 and 79 per cent, of all property. To find small or medium-sized holdings in any considerable numbers, or rather holdings without any fixed boundaries and limited only by the scarcity of the labour available to cultivate them, one must penetrate far inland to the borders of Paraná, where, except at certain spots, there are no properly equipped development schemes, no systematic settlement and no land survey, but only more or less isolated pioneers who carry on at the confines of the civilised zone the out-of-date tradition of the heroic age of immigration and settlement, when the State itself recognised occupation as a valid title to ownership. The persistent survival of large estates in Brazil is explained by the system on which the land was originally distributed. They are relics of the large domains or sesmarias granted to white settlers by the Portuguese Crown and developed with the aid of Indians, and especially of black slave labour imported from Africa. It was not until about fifty years ago that, owing to the — 17 — mass imimgration of European settlers, some of these domains began to be broken up, either for direct sale to the immigrants, or, more often, with a view to the establishment of settlements by private, and later public, enterprise. Generally speaking, the breaking-up of the land into medium-sized and shall holdings was promoted by the five factors given below in ascending order of importance : 1. Official settlement schemes, undertaken by the public authorities with a view to installing immigrants on small holdings ; 2. Private settlement schemes, oganised for the same purpose by companies; 3. The granting by some of the big estate owners of parcels of their land to cultivators, who were thus established close to the estates and furnished a ready supply of labour for seasonal work; 4. The organisation of chácaras or small market gardens for supplying a neighbouring town, such as Sao Paulo, Santos, Campinas, Rio de Janeiro, Petropolis, Bello Horizonte, etc.; 5. The decay of some of the big plantations or fazendas owing to the exhaustion of the soil which made it impossible to continue extensive cultivation, the reconditioning of the soil requiring care and the use of fertilisers beyond the scope of the management of a large estate. These, then, are the causes of the present developments. The rate of the latters' progress naturally depends on a number of conditions, prominent among which are the organisation of credit, the carrying out of public works and equipment work, and above all, a fresh influx of population. The system of land tenure in Brazil is, in short, evolving at the present time between the two poles of the large estate or fazenda and the small holding, which usually forms part of a settlement. A brief description of the examples of both these types which I was able to visit is given below. VISITS TO AGRICULTURAL UNDERTAKINGS I was able to pay detailed visits to three large plantations or fazendas, all in the State of Säo Paulo, and two settlements 2 — 18 — organised by the Federal authorities, one in the State of Rio de Janeiro, the other in the Federal District. Fazendas. — The fazendas I visited were those of Chapadäo, Itaquere, and Brejào. Each of these represents a special type of organisation among Brazilian plantations. The Chapadäo plantation is scarcely one kilometre from Campinas, a town of over 100,000 inhabitants which is one of the chief agricultural markets of Brazil and the seat of the Agronomic Institute of the State of Sào Paulo, to be described later. The fazenda is about 16,000 hectares in extent. The products grown are many and varied; they include coffee, the original source of the fortune of the owner's family, which introduced Sao Paulo coffee into Argentina and particularly to Buenos Aires; cotton and sugar cane, which are steadily gaining ground at the expense of coffee; and also fruit, including citrus fruits (oranges and lemons) and bananas, and vegetables, market gardens having been planted, together with some rice fields, in swampy areas by Japanese tenants for whom the plantation owner has nothing but praise. The variety of the produce grown is explained by the ease of communication with the capital (Sào Paulo and Campinas are linked by the principal railway and the best road in the State) and by the vicinity of Campinas, which is a big consuming market. All innovations and experiments can be essayed here at small risk, and the fazendeiro has not neglected his opportunities. Of all the fazendas and settlements I visited, this is the one on which mixed plantation has been most boldly introduced; this is doubtless due partly to the character of the owner, but conditions have also permitted and even encouraged him to give free rein to his tastes. The fazenda of Itaquere is situated much further inland on the plateau of Araraquara, two hours' journey by car from the railway station of the same name, which is itself twice as far from the capital of Säo Paulo as Campinas and offers a very small market. So far as position is concerned, the plantation therefore enjoys no special advantages for marketing its products ; it owes the whole of its very modern internal organisation to the enterprise of its founder and to the facilities afforded by the excellence of the soil, which is the fertile terra roxa. The founder of the fazenda was imbued with the pioner spirite. He fully realised the importance of roads of access and internal roads on an estate such as his which originally extended over as much — 19 — as 100,000 hectares, and he was one of the first to anticipate the risk to the country involved by reliance on a single crop. He therefore began by building a network of roads over his property, then sold a big stretch of it to an English company, making a large profit thanks to his road improvements, and this profit he used to finance the introduction of the most modern methods of development, based on mixed production, on the rest of his estate. Fruit and vegetable' produce is obviously of little value in this case, since the fazenda is far from the railway and from markets or export centres. The production of the estate is divided in unequal parts between coffee, sugar cane, and cotton, of which coffee no longer occupies more than two-sevenths of the whole estate, while sugar cane covers four-sevenths, and cotton one-seventh, although its domain is extending. The present owner, who is also fond of experiment and carefully follows the fluctuations of his markets, particularly favours the last two crops, because they are annuals and can consequently easily be reduced or extended according to the trend of world prices. At the present time the staple product of the plantation is no longer coffee, but sugar. The fazenda has a big up-to-date sugar mill, a refinery, and a distillery which produces alcohol for mixing with petrol to make the compulsory national motor spirit. The whole of the organisation of the fazenda is modern, including the owner's luxurious house. All the products grown, besides the ancillary industries, demand a large supply of labour, and the fazenda has a large and varied population consisting of white and coloured Brazilians, Italians, Germans, Japanese, etc. The rules and conditions of their employment will be examined later. The plantation of Brejao lies much deeper in the interior of the State of Säo Paulo than the two previously described. It is situated between the plateaux of Campinas and Ribeiräo Preto, and is reached by half a day's motor journey from Campinas or Araraquara through the agricultural market towns of Säo Carlos, Porto Ferreira and Palmeiras, lying right in the red or "coffee soil " district. This is one of the oldest fazendas in the region; it was founded more than fifty years ago and the owner's family is already in the fifth generation. The excellent quality of the soil led to the almost exclusive cultivation of coffee from the very outset. Until quite lately the isolation of the fazenda and the comparative difficulty of communications — 20 — have prevented experiments in mixed production. For a long time the plantation was obliged to be self-sufficient and to grow, besides its big commercial crop of coffee, all the products necessary to feed and meet the daily wants of the thousand persons who lived on it. This accounts for the compact organisation of this little world, which for many years was cut off from the outer world except for the export of its sole commercial product, coffee. Between the coffee bushes the workers are allowed to plant other crops (cereals, etc.) for their own use, and they may sell any small surplus remaining either to the plantation owner or to the neighbouring villages, at their own choice. There are large herds of cattle, comprising zebu stock for draught animals, Brazilian stock for meat, and Dutch stock for milk. The draught animals are distributed among the settlers; the others belong to the plantation owner, who sells the meat and dairy produce to the settlers. Mules are also raised as draught animals, and pigs and sheep for meat and manure. The plantation has its own sawing and carpentering sheds and workshops for ironworking and coachbuilding. The whole of this organisation centres in the vital crop of coffee. The big drying plants are near the owner's house. The settlers' village lies two kilometres away; it consists of 135 houses built on a piece of raised ground surrounding an old drained marsh where vegetables are grown for the use of the village, which has its little school, chapel, and hospital. For many years the situation of this fazenda made it necessary to continue to concentrate on the cultivation of a single crop. But the roads in the vicinity are multiplying, and the slump in the coffee trade goes on in spite of temporary recoveries, so that a dawning tendency towards change is now apparent. Eucalyptus trees are being planted on those parts of the estate where the soil is most exhausted after fifty years of coffee growing; cotton growing has also been initiated, and the introduction of oleaginous plants, such as sesame, castor oil, and sunflower, is also being contemplated. These three plantations visited may be taken as fair examples of the three types of large agricultural undertaking which are possible in Brazil to-day: the fazenda in the vicinity of a city, where it is both easy and necessary to cultivate a variety of products; the fazenda in an intermediate situation, which must confine itself to big export crops, but which is well advised to rely on several rather than on one and is enabled to — 21 — do so by its situation; and the comparatively isolated fazenda, on which the cultivation of varied products is necessary for internal consumption but is subordinated to one or more commercial crops. As the Brazilian towns grow and means of communication improve, the last type of fazenda will be more and more rapidly and extensively supplanted by the first. As will be seen below, Brazil is tending to change over to the system of mixed crops. It may be noted that the new crops, cotton, oil-bearing plants, and fruit, are among those which demand the most labour. Settlements. — I visited two settlements in the State of Rio de Janeiro, both of them official settlements established by the Federal authorities. One, that of Säo Bento, in the State of Rio de Janeiro, is still in its infancy; the other, that of Santa Cruz, in the Federal District, has already been in existence for some thirty years. The settlement of Sào Bento was founded in 1932, but the preparatory work took over two years and the settlement has been actually running only since the beginning of 1935. The land it occupies lies some thirty kilometres from Rio de Janeiro and covers a marsh or baracha, which was more or less open to the sea and had been drained of its brackish or salty waters and irrigated with fresh water to make it cultivable, and the somewhat stony hills surrounding the site of the former marsh. In July 1936 the population of the settlement consisted of 284 persons, of whom 165 were men and 119 women, principally Brazilians, but also including some Portuguese, Germans, Austrians, Spaniards, Lithuanians, and one Latvian. Of this number, 40 belong to the administrative staff: managers, engineers, agricultural experts, hospital staff, employees of the co-operative store. The settlement contained 84 holdings, of 10 hectares each. Owing to the vicinity oí Rio, the settlement proposes mainly to produce fruit for city consumption, including bananas, oranges, grape fruit, and melons. The promise which Säo Bento holds out for the future is already fulfilled by Santa Cruz, the older settlement, which has been established since 1906. This settlement too lies in the coastal region, 60 kilometres to the west of Rio de Janeiro, on marshland which was drained, irrigated, and cultivated by the Jesuits as early as the eighteenth century. Nearby lies the little town of Santa Cruz, with a population of 4,000, formerly fre- — 22 — quented by the emperors of Brazil. The settlement comprises 1,360 inhabitants, including 754 men and 606 women. Here again most of the settlers are Brazilians, but they also comprise Austrians, Portuguese, Germans, Poles, Rumanians, Italians, Czechs, Spaniards, Lithuanians, and one native of Lebanon. The present settlement has revived and extended the work of the Jesuits. The whole area is covered by irrigation channels branching from two main canals. Production is more varied than in the settlement of Säo Bento; it includes eucalyptus, sugar cane (there is a sugar mill at Santa Cruz), manioc and vegetables, and there is also some cattle-raising. Here again, however, the staple product is fruit — bananas, melons, and especially oranges — owing to the vicinity of Rio de Janeiro. There are two crops a year, purchased on the trees by professional pickers. All the competent persons with whom I discussed this matter agreed that the future of these settlements in the neighbourhood of Rio, as of those lying close to all the other big towns, lies mainly in fruit growing and market gardening. Market gardening in particular will require a large number of smallholders, but they must be carefully selected because the intensive cultivation of vegetables requires knowledge and training. DEVELOPMENT OF BRAZILIAN AGRICULTURE The present report does not aim at making a complete survey of Brazilian agriculture ; the writer has not the material, nor is it his purpose to do so. All that will be attempted is to point out certain features of this agriculture which may help to explain present social conditions in the country and the social trends of the immediate future. To-day the agricultural economy of Brazil is still based on the cultivation of coffee, and will probably continue to be so for many years to come. The export figures for the past 35 years show that coffee still retains the predominant place which it gained at the beginning of the twentieth century and the relative importance of which has risen since. This is indicated by the table on page 23: During the season of 1934 (in the northern hemisphere) or 1934-35 (in the southern hemisphere) Brazil exported 53.1 per cent, of total world exports of coffee, while the share of the other exporting countries of America was 33.2 per cent., that of Asiatic countries 7.5 per cent., and that of African countries 6.2 per cent. — 23 — PERCENTAGE OF VALUE OF COFFEE EXPORTS ON TOTAL EXPORTS OF BRAZIL Years (average) Percentage 1901-1904 1905-1908 1909-1912 1913-1916 1917-1920 1921-1924 1925-1928 1929-1932 1933 1934 54.34 51.34 54.76 58.12 46.30 66.96 72.05 68.42 73.03 60.77 The question of the potential dangers implied by this predominance of coffee in the Brazilian economy has been thrashed out to the full; they are the same dangers as threaten every «conomy founded on the more or less exclusive cultivation of a single product. Neither does anything remain to be said as to the origin of this situation; it lies in the existence of the excellent red soil which covers the lower slopes of the Brazilian tableland, lying behind the most hospitable part of the coast and having the climate best suited to European immigrants. The Brazilian planters found here every possible facility for prosperous settlement, including good land, the means of establishing large bodies of agricultural labour, and a product which was greatly sought after and in those days commanded a high price. Since that time concentration on the one product, overproduction, and the competition of new coffee-growing countries have damaged the market; exports have fallen below production and prices have dropped to an unprofitable level. This has led the Brazilian Government to take various measures (to raise prices, restrict plantations, etc.) recommended and planned by expert committees and, more recently, by the National Coffee Department in Rio de Janeiro, the statistical offices and research laboratories of which I visited. These measures should not be ignored and due value should be attached to their results, modest though they still are. During the coffee season of 1909-1910, Brazil produced 80.13 per cent, of the world coffee output; in 1919-1920 this proportion had fallen to. 49.40 per cent. ; in 1934-1935 it had risen again to 68.28 per cent. Thus coffee is and will probably remain for many years to come the chief product of Brazilian agriculture and one of its essential commercial crops. It may even be noted that — 24 — although originally coffee was grown exclusively on the plantations of the big estate owners, its cultivation has since attracted some of the smallholders who have recently settled in Brazil. The following significant figures are taken from a table of coffee production in Säo Paulo published by the Statistical Service of the State of Säo Paulo. Of the 86,451 holdings of land in this State which include a coffee plantation, 54.38 per cent, are owned by Brazilians, and as many as 45.62 per cent, belong to aliens, including 25.96 per cent, to Italians, 7.79 per cent, to Spaniards, 5.03 per cent, to Portuguese, and 4.79 per cent, to Japanese. Of the 927,737,310 coffee bushes comprised in the whole of these plantations, 61.68 per cent, belong to Brazilians, 21.45 per cent. to Italians, 5.92 per cent, to Spaniards, 4.47 per cent to Portuguese, and 2.94 per cent, to Japanese. Of the sum of 3,382,658,423 milreis representing the value of the produce of all coffee plantations in Säo Paulo in 1932-1933, 64.42 per cent. accrued to Brazilians, 19.55 per cent, to Italians, 5.12 per cent. to Spaniards, 4.15 per cent, to Portuguese, and 2.1 per cent, to Japanese. These three series of figures point to the conclusion that foreign immigrants coming to settle in the country as smallholders do not by any means despise the traditional crop. Full justice must therefore be done to coffee production in studying the economic conditions of Brazil, in which it is one of the fundamental factors. From the standpoint with which we are here concerned, two remarks are called for on this subject. 1. Of all the agricultural products of Brazil, coffee is one of those which require the most labour, involved by the repeated attention necessary throughout the year, and above all the picking of the crop, which has to be done very rapidly when the berries are ripe. But this labour is very unevenly distributed throughout the year. On the big plantations it implies the hiring of workers at picking time, who must find some other occupation during the rest of the year, while on the small ones other crops must be grown in addition to coffee. An efficient organisation of coffee production at a time when its sale is less profitable than in the past and allows no margin of waste in land or labour thus demand the cultivation of a variety of crops. 2. During the 1934-1935 season, 63.4 per cent, of the 17,366,000 sacks of coffee (each sack weighing 60 kilogrammes) produced by Brazil came from Säo Paulo, 19.7 per cent, from Minas Geraes, 7.7 per cent, from Espirito Santo, 5.1 per cent. — 25 — from Rio de Janeiro, and 1.5 per cent from Paraná. This means that five of the twenty States comprising the United States of Brazil control the country's staple agricultural product and that one of them, Säo Paulo, furnishes more than threefifths of the total output. Among the conclusions, both economic and social, to be drawn from this circumstance, the following may be specially mentioned. The coffee-growing Brazilian States have a special interest in a sound policy of coffee production; they, more than any of the other States, must envisage a prudent policy of compensation variety in production. As regards the other States, if they wish to develop agricultural settlement on their own lands, they must turn their attention to other crops even if their soil and climate favour the cultivation of coffee. This is indeed the line now being pursued by all the Brazilian States, both coffee-producing States and others; the watchword of all of them is the development of varied crops. Of the many products whose cultivation is spreading almost everywhere, some are mainly, if not wholly, intended for home consumption; these include manioc, wheat and maize^ rice, starchy products such as beans, potatoes and sweet potatoes, other vegetables, and maté. The future of these crops naturally depends on the enlargement of the home market, the narrowness of which was one of the reasons for the special severity and harmfulness of the recent depression in all the South American countries. That the future of the crops produced for home consumption is bound up with the growth of the population is therefore obvious. As regards products other than coffee, which is produced mainly for export, the most important are cotton, sugar cane, fruit — especially citrus fruits and bananas — cocoa, and tobacco. Cotton, which has always been cultivated in the equatorial and tropical northern States, is now one of the crops most commonly introduced to replace coffee in the central States as a result of the depression, particularly in the State of Säo Paulo. Between 1924 and 1934 Brazil's output of cotton more than doubled, having risen from 124,775 tons in 1924 to 271,250 in 1934. In the State of Säo Paulo, however, the cotton output increased 26 times in five years, from 3,934 tons in 1930 to 102,300 tons in 1934. In 1936, over 1,200,000 hectares were under cotton in this State alone, and the State authorities estimate that the output of textile fibres will probably rise to- — 26 — over 200,000 tons at some future date. As will be seen below, the cotton is scientifically selected with a view to obtaining longer fibres than in the equatorial States. It has already been noted that one of the advantages of cotton-growing from the planter's point of view is that the plant is an annual and its cultivation can be abandoned as rapidly as it was taken up in case of depression on the textile market. But I think it is none the less true that to-day, with cotton production steadily expanding and spreading to more and more of the countries in the tropical and subtropical zones, successful cotton growing depends in a very large measure on the introduction of a cotton industry in the producing country, so that it can itself absorb the greater part of its own output. As will be seen, this is now the case in Brazil, and especially in the State of Säo Paulo. In this way the risks of cotton-growing are reduced to a minimum; the cotton industry is, as it were, an insurance against the vicissitudes of the export trade. But the demographic consequences of the combination of cotton-growing and the cotton industry are even more important. In the first place, few of the crops grown in the tropical zone require as much labour as cotton; and in the second, every expansion of the ancillary industry will require additional labour. Here again, therefore, agricultural development postulates a solution of the population problem, both rural and urban. What has just been said of cotton applies almost equally to sugar cane. The tropical parts of Brazil have always produced sugar and cane spirit. What is new and significant is the spread of sugar-cane plantations and the sugar industry to the central States, which formerly grew coffee almost exclusively. Here again the development of Säo Paulo is especially striking; in 1900 this State produced rather less than 14,000 tons of sugar; in 1910 rather less than 24,000 tons; in 1920 slightly over 34,000 tons; and in 1930 81,285 tons. Since that date output has been rising practically year by year: 108,000 tons in 1931; 120,000 in 1932; 132,000 in 1933; and 126,000, representing a slight fall, in 1934. In 1934 output was 426 per cent, higher than in 1920, and 55 per cent, higher than in 1930. Side by side with this extension of production the sugar yield of the cane has also risen, from 796 kilogrammes of sugar per hectare planted in 1925 to 2,929 in 1930 and 4,066 in 1934. The position is the same throughout the sugarproducing regions of Brazil; to-day the sugar yield of a ton of — 27 — cane is 9.5 per cent, in the State of Säo Paulo, 9 per cent, in Rio de Janeiro, 8.9 per cent, in Pernambuco, and 8.5 per cent. in Alagoas and Sergipe. Here again is a crop the development of which depends on the growth of the population, both rural and industrial. It is not necessary to dwell on the cultivation of cocoa, «onfined to the tropical northern States, of tobacco, which flourishes mainly in the tropical and subtropical central States, of the various oil-yielding plants, and on cattle raising, which is especially active and capable of economic development in the south. All these types of agricultural production are developing normally; they will help, and in part are already helping, to confer on the agricultural and economic exports of Brazil that variety of staple products which they have long lacked. Something more may be said, however, owing to its special demographic and social importance, of one other branch of agricultural production which is already very important and promises to become still more so — fruit-growing, and in particular, the. cultivation of citrus fruits and bananas. Brazil is already an important exporter of tropical fruit. Between 1925 and 1934 its banana exports trebled, having exceeded 9,000,000 bunches in the latter year. Exports of oranges, which are gathered between May and November and which, thanks to the difference in the seasons between the two hemispheres, reach the European and American markets at a time when the supply from Spain, Palestine, and California is exhausted, are increasing steadily: 812,000 cases were exported in 1930, and 2,630,000 in 1934. The same applies to tangerines, the figures being 364,000 cases in 1933 and 834,000 in 1934, and to grape fruit: 5,600 cases in 1933 and 35,700 in 1934. Exports of pineapple, both fresh and canned, are also rising, 1,111 tons having been exported in 1933 and 1,755 in 1934. These products are following the same line of development as cotton and sugar cane. Their cultivation, both for the home market and for export, is spreading from the north to the north central and even to the south central regions. Here again the case of Säo Paulo is typical. Whereas in the north bananas are cultivated mainly for home consumption, this State produces for export over the whole of the low coastal plain stretching to either side of Santos. In 1906, when the total banana exports of Brazil amounted to 1,852,000 bunches, 231,000 bunches came from Säo Paulo. In 1934 the grand — 28 — total of banana exports from Brazil was 9,012,000 bunches, of which Säo Paulo exported 8,711,000. This means that Sao Paulo's share in the total banana exports of Brazil has risen in less than thirty years from 12.5 to 96.6 per cent. The same is true of citrus fruits. Sâo Paulo, which only began to cultivate grape fruit for export in 1930, was exporting 23,850 cases in 1930, or two thirds of the total export of Brazil, and doubled its export figures between 1934 and 1935, the figure for the latter year being 48,000 cases. As regards oranges, whereas in 1927 86.8 per cent, of Brazilian exports were shipped from Rio de Janeiro and only 11.7 per cent, from Santos, the port for the State of Säo Paulo, to-day the share of Rio in orange exports, which are now sixty times larger, is 55.2 per cent, and that of Santos 44.4 per cent. Special interest attaches to the development of the production and export of fruit from the demographic and social standpoints for two reasons. In the first place, the cultivation of fruit plantations, which demands more care than expert knowledge and ability, is within the powers of every family of workers, whatever its origin, whether national or alien. Secondly, fruit is not merely an export product but forms a most valuable contribution to the food supply of large cities, of which Brazil already has a certain number, including Rio de Janeiro, Säo Paulo, Campinas, Santos, Bello Horizonte, Curityba, Bahia, Porto Alegre, etc. Fruit growing may lead to the establishment of supply settlements near most of these cities, either on unused land cleared, prepared and irrigated for the purpose, or on large estates broken up into holdings. Moreover, the more these cities develop, either through the enlargement of agricultural markets or through the expansion of industries, the greater will be the opportunities for settlements of this type. Here again, home consumption will supplement, by stabilising them, the advantages which Brazil may expect to derive from increased exports. This rapid survey of Brazilian agriculture shows beyond a doubt that the trend of its development is towards the introduction of greater variety in production. The Brazilians are no longer willing to put all their eggs in one basket, as the saying is. I say "no longer willing " intentionally, because this new agricultural policy is nothing if not deliberate. It is in accordance with this firm intention, and on the basis of the most modern data of agricultural and economic science, that — 29 — the Brazilians have been guiding their agricultural development along new lines for the past ten years. In proof of this I may mention the foundation of some remarkable agricultural institutes, such as that of Campinas, which I visited. This Institute was set up by the Government of the State of Säo Paulo. It has fine laboratories for the physical and chemical analysis of soils and the selection of suitable seeds and species. It also acts as a centre for linking up twelve experimental stations, varying between 300 and 500 hectares in area and scattered in various parts of the State, the Institute having its own experimental station attached. There I was shown the process of selecting coffee, oil-bearing plants, sugar-cane seed, and, above all, cotton seed. These seeds, all of which come from the Campinas Institute, are sold by the Government, which has the monopoly of them. A few years ago they produced a plant with fibres not more than 18 millimetres long, but thanks to persistent selection it has already been possible to produce a fibre of 35 millimetres, and progress will not stop there. For the 1936-1937 season, the Institute has had to prepare 600,000 sacks of seed, each weighing 30 kilogrammes, or a total of 18,000 tons, to meet the applications addressed to it. This Institute, like the National Coffee Department at Rio de Janeiro, illustrates the development which is taking place, not only in production, but in the methods of Brazilian agriculture. The age when private enterprise, whether that of the big plantation owners, the settlement companies or the pioneers adventuring into the wilds, reigned supreme seems now to be at an end. Agriculture planning has not indeed yet been introduced, even if it is ever likely to be so, but an era of agricultural control, advice, assistance, and organisation has now begun. This is characteristic of a country which has now reached its majority. Such a policy of control, advice, care, and organisation is legitimate and should be as fruitful in the demographic and social spheres as in that of agriculture. In concluding my remarks on this subject, I may point out that this policy has before it a wide and almost virgin field of action. What has been said in regard to the cultivation of coffee applies to all the products now cultivated or in course of development in Brazil. At present they have penetrated only to a depth of a few hundred kilometres inland from the Atlantic seaboard, this representing an area which would be considerable for a country of ordinary dimensions and possi- — 30 — bilities, but which is almost insignificant for one of the size of Brazil, which, as already stated, extends over some 4,000 kilometres in both directions. Behind the southern States, which are mainly devoted to stock-raising, and the central States, which at present are the principal site of the largescale cultivation of export crops, stretch the Goyaz and the Matto Grosso, where the area devoted to both these activities could easily be increased threefold. As regards the northern States, the greater part of which is covered by the forests of the Amazon, these play only a minor part in the Brazilian economy of to-day. Apart from the exploitation of some species of palms which provide food products and the raw materials already cited — guaranà, carnaùba, babassú — and of certain kinds of timber, tanning extracts and dyes, and apart from the cultivation of a certain amount of manioc and beans for the somewhat sparse population, all these activities being confined to the forest fringe near the Amazon River, the forest area is at present mainly rich in promise. Its possibilities are vast indeed, and during the past few years some fairly thorough attempts have been made to exploit them. Henry Ford has acquired a big concession in this area, and some German companies have obtained other smaller ones. A Japanese company had also acquired a concession of a million hectares in the State of Amazonas, but the Federal Senate, which has the final word in these matters, recently cancelled it. The principal object of all these schemes, both those in course of development and those which have miscarried, is the same; namely, to plant rubber plantations in order to restore this product to the position which it previously held in the economic life of Brazil when the rubber was gathered in the forests, and which it subsequently lost as a result of the competition of the young plantations in the British and Netherlands East Indies. The time will doubtless come, and perhaps in the not very distant future, when the Amazon country will play that part in the economic life of Brazil to which its natural resources appear to predestine it. It must be remembered, however, that the equatorial forest regions probably have less than one inhabitant to every 10 square kilometres. Can such a population provide an adequate supply of labour ? Adequate in quality it may be, but hardly in numbers. Here again, therefore, a population problem arises.. CHAPTER IV INDUSTRY IN BRAZIL What makes all pre-war books on economic conditions in Brazil obsolete, however great their historical interest, is the fact that, besides the evolution of agriculture towards a greater variety of crops, an industrial development is now in progress which did not exist twenty years ago. This industrialisation is not indeed general, nor is it comparable in importance to agriculture. Except for the leather and meat industries which are growing up in the southern States, following the example of the neighbouring countries of Uruguay and Argentina, for a few old sugar and cotton mills in the north, and for some undertakings for extracting precious ores, precious stones and gold in certain parts of the country, these new industries are concentrated in the prosperous central States, Rio de Janeiro, Minas Geraes (the mineral wealth of which gives promise of a brilliant future), and, above all, Säo Paulo. Moreover, unlike agriculture, Brazilian industry at present markets nearly all its products at home; what small quantities it exports go to other South American markets within a limited radius, such as Uruguay, Argentina, Paraguay, and Chile. Brazilian industry to-day is in fact more or less in the same position as the industry of North America about 1880. This is not the only connection in which the present state of economic development in Brazil could be compared with that of the United States over fifty years ago. V I S I T S TO U N D E R T A K I N G S Owing to lack of time I was unable, to my great regret, t o visit any of the industrial undertakings in Minas Geraes. It was only by hearsay and by consulting the written data that I was able to obtain some idea of the important part which the industries of this State — mining, metallurgy, textiles, etc. — — 32 — are beginning to play to-day, and the still more important future which lies before them. I did, however, visit several big firms in the Federal District and in the States of Rio de Janeiro and Säo Paulo. Federal District. — In Rio de Janeiro I visited two textile factories, one manufacturing wool and the other cotton. The first of these was the Aurora factory, belonging to a Belgian family which also owns other undertakings in Petropolis. This is an old firm with well-established traditions; the premises are old but spaciously built and airy; working methods are good, and the machinery is modern. This firm only weaves woollen cloth; it formerly imported the yarn from Belgium and France, but to-day obtains most of its supplies from Japan. It has an old-established reputation throughout Brazil and produces high-class goods. It employs 250 workers, including a few women. The average daily wage of a weaver is 20 milreis, or 3 gold francs, this being double the wage usually paid at Petropolis and Säo Paulo. The cotton firm I visited, America Fabril, is under Brazilian management. It carries out all the processes of manufacture — spinning, weaving, dyeing and printing, and finishing — using home-grown materials. Since 1924 it has even built and repaired its own machinery. The staff consists of 2,900 workers, half being men and half women; the sexes are equally represented in the spinning section; women predominate in the weaving section and commercial services, and men in the other departments. The wages paid are similar to those in the Aurora factory. These two undertakings visited may serve to give some idea of the part played by industry in the life of the Federal capital. Although its significance should not be ignored, neither on the other hand should it be exaggerated. It seems improbable that industry will ever grow up around this magnificent city to the same extent that it has developed or is likely to develop around the manufacturing centres of the three industrial States, at Petropolis, Bello Horizonte, and Säo Paulo. For one thing, the cost of living is higher in the Federal capital, and this requires the payment of much higher money wages than in the other three cities. In Rio a weaver is paid 20 milreis per day, whereas in Petropolis or Säo Paulo he can live just as well on a daily wage of 10 to 12 milreis. Again, in Rio, which is in — 33 — the tropical zone and at sea level, work is trying in the summer months between December and February, whereas it is much less so on the high tablelands on which the other three cities are situated. And lastly, even the damp sea-air of Rio is a handicap because it rusts machinery and thus involves constant and costly maintenance work. Rio will remain the political and administrative headquarters of an immense country, its chief intellectual, banking and commercial centre, and the gem of the Brazilian tourist trade. But its industrial future seems to be limited, except perhaps in the sphere of the luxury industries. Petropolis. — Petropolis, which lies at a distance of some 50 kilometres from Rio at a height of 1,000 metres, where the nights are cool even in summer, is an important summer resort which was created and developed under the patronage of Pedro II, the last Emperor of Brazil. In spite of its 100,000 inhabitants, this town, with its villas, wide cement roads, admirable situation and views on the sea, still retains its appearance of a summer resort for the wealthy families of Rio, a purpose for which it was originally founded and which it still largely fulfils. But a large number of factories, some of them very big ones, are hidden away in the valleys surrounding this attractive town, and Petropolis contains more than 20,000 workers. Originally founded by Germans (the first foreign settlements were formed by German Catholics from Bavaria, Westphalia, and the Moselle district and by Swiss Catholics from Fribourg), the industry of Petropolis has since taken on a more cosmopolitan character and is now mainly in Brazilian hands. In this district I visited a paper mill, a silk factory, and an embroidery and lace factory. The paper mill, which belongs to the Companhia e Fabrica de Papel, manufactures ordinary paper and wrapping paper. It has a powerful and up-to-date plant; the pulp is fed into two big machines which deliver the finished paper at the other end. The mill uses 4,000 cubic metres of water daily and 20 tons of aluminium sulphate per month, its monthly output of paper being 1,000 tons. The pulp is obtained from Finland and Sweden. This mill is highly mechanised and employs only 230 workers, both men and women. As in all the Brazilian factories which come under the Factory Inspection Service, an 8-hour 3 — 34 — day is worked with a weekly rest-day and a fortnight's annual holiday with pay (this applies to all the factories visited and is therefore not repeated in each case). The average daily wage is 10 milreis, or 1.50 gold francs, that is to say, half the wage paid to a textile worker in Rio. The silk factory of Werner & Co. produces both silk and rayon. The management is of German origin, and also some of the staff, which alone among those of all the firms visited includes no coloured workers. The factory confines its activities to weaving; the silk comes ready spun from Japan (competition in this branch would be impossible), and the cellulose for the rayon from Sweden. The buildings are either new or in excellent condition, built one above the other up the sides of a valley and dominated by the workers' houses. 500 workers are employed, including both men and women. No worker, whether male or female, minds more than two looms. Work is in two shifts; the average daily wage is between 12 and 14 milreis, or between 1.80 and 2.10 gold francs. The embroidery and lace factory visited was the Petropolis Fabrica, containing 250 looms and employing 150 workers, the vast majority of whom are women, especially girls between 16 and 25 years of age. In the embroidery section each worker is in charge of a group of 8 looms; in the lace section, where the work is more complicated, there is a worker to every loom. Two shifts are worked, and the wages are similar to those paid in the firm of "Werner & Co. Säo Paulo. — Säo Paulo is a big industrial city comparable in all respects to her sister towns in the United States and inferior to them neither in manufacturing capacity nor in the general organisation necessary in a big city with mechanised industry (transport, workers' housing, etc.). "Work is directly organised and controlled in Säo Paulo by the State Department of Labour, to be described later. Had time allowed, I could easily have visited several dozen large factories with profit, but I was obliged to limit and select my choice, and I finally visited a silk factory, a cotton factory, and a brewery. The silk factory visited belongs to the Italo Brasiliana Company. It weaves both silk and rayon textiles, the spinning and throwing mills being at Campinas. Some of the silk used is home-produced, silkworm breeding also being carried on at — 35 — Campinas, and the rest comes from Italy and Japan. The same company also has another silk-weaving factory at Campinas itself and a rayon factory in another part of the State. The Säo Paulo factory is up to date, well-equipped and airy, and its machinery is adequately protected. It employs 1,500 workers, including 1,200 women; few girls are employed, except in the warehouses. The staff is allowed an hour and a half's break for lunch ; there is no works canteen, for all the workers live nearby in small one-storeyed houses built in the old Portuguese style. The minimum daily wage is 12 milreis, or about 1.80 gold francs; the maximum, which is earned very seldom and only by the designers, who are real artists, is 800 milreis per month (120 gold francs). The principle of "equal pay for equal work " is scrupulously applied; women are paid at the same rates as men, and there are a number of forewomen. The cotton-cloth factory visited belongs to the well-known Italian industrialist Matarazzo, who owns 83 factories of all kinds and in all parts of Brazil. Every process of cotton manufacturing is carried on, including spinning, carding, weaving, washing, dyeing, printing, and selling. Rayon materials are also woven, the cellulose being produced in Brazil itself. Matarazzo owns three other factories of the same kind in the State of Säo Paulo; that visited is the largest, with a monthly output of nearly 2,500,000 metres of cloth, the three factories together producing 3,400,000 metres. At the time of my visit the factory was working to full capacity and had sufficient orders to provide it with five months' work. The whole of its output is sold to a few big traders in Sao Paulo itself and in Rio de Janeiro. The factory is 26 years old, but has rcently been installed in new buildings. The machine rooms are enormous; one of the spinning rooms is 147 metres long. All are well-ventillated and equipped with dust exhausters, and all the transmission belts run along the ceiling. The plant is good and up-to-date ; most of the spinning machinery is English, that for weaving Swiss, the printing machinery French (Alsatian) and Czech, and the finishing machinery German. The factory has 60,000 spindles and 2,000 looms. It employs 2,400 workers, 1,500 of whom are women. The minimum commencing wage is between 700 and 900 reis an hour, rising to 1,200, so that the daily wage varies between 5 % a n d 10 milreis, that is, about .825 to 1.50 gold francs, the latter rate applying only to skilled workers. — 36 — The brewery visited was the big Antarctic Brewery, said to have the third largest output of any brewery in the world (the first two being in Germany and Argentina respectively). The undertaking is of German origin. It manufactures not only various kinds of beer, but also aerated waters, lemonade, vermouth, and local drinks such as guaranà and agua tonica. In South America as in the Far East, beer has become a popular drink. In the summer the Antarctic Brewery sometimes washes and fills as many as 500,000 bottles of beer daily, and it has an average annual output of 110,000,000 bottles. It has a powerful plant, including German machines for making the beer, American machines for bottling it, workshops for manufacturing metal caps and cork stoppers, packing cases, nails, coachwork, etc. The firm owns 200 motor vehicles and 200 horses. The malt and hops come from Germany and Czechoslovakia, but the barley is beginning to be supplied by Brazil! The Antarctic Brewery employs 4,000 workers in the main works at Säo Paulo and in the branch factories at Rio, Bello Horizonte, Ouro Preto, etc. : 1,800 of these workers are employed in the Säo Paulo factory, all being men. The conditions of employment and wages are similar to those in the textile industry. These are the factories I visited during my stay in Brazil. Let me try to summarise the general impression derived from these visits before saying a few words about Brazilian industry as a whole. All have very fine premises, mostly with up-to-date equipment. The conditions of employment are very reasonable ; they include an 8, and sometimes even a 7 %-hour day, a weekly rest, and annual holidays with pay. Wages are low, but this statement needs some qualification, because, although they are low if converted into gold and compared with the wages paid in Western Europe and in the United States (they are little higher than wages in Japan), the real wages they represent more or less correspond to the general standard of living of the country, which is somewhat low, and are adequate to the mode of life dictated by natural conditions. It must be remembered, in fact, that owing to the warmth of the climate the item of heating is entirely absent from family budgets in Brazil, and that of clothing is also comparatively low. Moreover, except in Rio de Janeiro (where, as already stated, wages are higher), food is also fairly cheap, even in big cities like Säo Paulo. There is possibly room for improvement in the — 37 — popular diet in Brazil, as in many other countries, but this improvement can probably be obtained from education without requiring a much larger outlay. Further, the earnings of industrial workers, however low, are still much higher than those of agricultural workers, and the emoluments of civil servants and members of the liberal professions are also very moderate. My own impression is that in Brazil everyone lives simply. If the habits of the country change and new needs arise, if the general mode of life becomes more complicated, all earnings will rise and those of industrial workers with the rest. It is none the less true, however, that at the present time the low level of wages has probably been one of the factors, although no doubt, as will be seen below, not the principal factor, which have enabled Brazilian industry to develop and to sustain the competition of foreign imported goods. DEVELOPMENT OF BRAZILIAN INDUSTRY: SÂO PAULO I had the opportunity of making a detailed study of industriai development only in the State of Säo Paulo, but no doubt what I have to say on this point will provide the basis for a general judgment on Brazilian industry and its future prospects. Säo Paulo is indeed by far the foremost industrial State in Brazil to-day; it affords an accurate picture on a small scale of the present situation or future prospects of industry in the other States on the Atlantic seaboard of Brazil. The industrialisation of Säo Paulo is a recent phenomenon, having begun not more than twenty years ago. As in all the other extra-European countries, it received its first impetus during the world war, when the inability of the big exporters of Western and Central Europe to maintain supplies, and the deflection of practically the whole stream of North American exports to the belligerent States of Europe, forced their former customers to try to supply their own wants. Once this movement had begun, industry in Säo Paulo steadily developed during the subsequent boom years and even during the years of depression. The average annual value of industrial production in Säo Paulo during the successive five-year periods from 1910 to 1934 was as follows:1 1 Take n f r o m: SECRETARI A DA AGRI C ULTURA, I N DUSTRI A E COMMERCI O , DI R ECTORÍ A DE ESTATI S TI C A, I N DUSTRI A E COMMERCI O : Estatistica Industriai do Estado de Säo Paulo. Estado de Säo Anno de 1934. — 38 — Period 1910-1914 1915-1919 1920-1924 1925-1929 1930-1934 Average annual value of industrial production (in millions of milreis) 220 493 1,090 1,725 2,041 Thus in the course ol 20 years the value of the industrial production of Säo Paulo increased almost tenfold. It has already been stated that one of the causes which encouraged this rapid progress was the moderate rate of wages. The influence of this factor should not, however, be exaggerated. It can only be decisive if it lowers costs of production to a point enabling competition to be successfully sustained against importers on the home market or exporters on foreign markets. But although the wage factor helped to lower Brazilian costs of production, especially at the beginning of the period of industrialisation, other factors (e.g. the prices of raw materials, credits for the installation of plant, etc.) helped to raise these costs. Above all, however, the problem of competition ceased to play any part at a comparatively early stage. Except on a very small scale and to neighbouring countries only, Säo Paulo does not produce for export, and its home market has been safeguarded by a deliberate policy of protection. The protective tariff legislation now in force in Brazil does not merely impose fairly high duties on those types of imported goods which can be supplied by home manufacturers; it also seeks to hinder or even to prohibit entirely the importation of foreign machinery. This is admittedly a double-edged weapon, and it is possible that at the outset these import restrictions retarded the equipment and organisation of new factories. But on the other hand they provided an incentive for the creation of an engineering industry within the State. I received striking proof of this during my visit to the America Fabril factory in Rio de Janeiro; all the machines acquired prior to 1924 came from British engineering centres such as Manchester, Bolton and Bradford, whereas all those purchased after that date were home-produced. Similarly, the Antarctic Brewery at Säo Paulo does all possible repairs and even constructs its new equipment itself (e.g. it builds the coachwork of its own motor vehicles, only the chassis, which are not yet manufactured in Brazil, coming from abroad). It is no doubt true that the policy of protection has promoted — 39 — the development of industry in Säo Paulo and, together with the boldness of investors and the ingenuity and industry of the population, is one of the reasons for the great variety of its production, which is so astonishing to the visitor who reflects that its industrialisation is of recent date. The following table gives some idea of the variety of industrial production in Säo Paulo. In 1934 this production was turned out by 8,575 factories and involved investments of 2,911 million milreis. It employed 202,900 workers, used 232,000 h.p. of motive power, and represented a productive value of 2,346 million milreis, or more than four-fifths of the value of the invested capital. The table shows the proportion of the total number of factories, capital invested, number of workers employed, motive power used, and value of production accounted for by each of the groups of industries existing in Sào Paulo in 1934. COMPARATIVE TABLE OF VARIOUS GROUPS OF INDUSTRIES IN THE STATE OF SÂO PAULO E X P R E S S E D IN PERCENTAGES ( 1 9 3 4 ) 1 Percentage of total Industrial group Textiles : Spinning and weaving. . . Hides and leather Wood Metallurgy, construction of machinery, apparatus and equipment Pottery Manufacture of building materials Chemical products Food and drink Clothing and spun or woven goods Distribution of power and light, heating and refrigeration Unclassified industries . . . Total Number of factories Capital Workers Motive power Value of production 6.54 4.16 13.08 29.62 1.05 2.72 37.76 1.27 6.14 37.42 1.56 8.91 34.26 1.72 3.87 21.59 2.57 8.86 1.75 17.40 4.26 19.98 3.26 14.65 2.28 16.09 6.03 7.27 2.86 5.47 5.78 4.37 3.23 4.24 5.94 4.98 3.63 . 3.05 7.85 7.52 9.62 3.18 7.24 1.98 10.04 1.97 11.08 33.11 5.60 5.10 8.99 1.17 11.17 6.32 8.44 100.00 100.00 100.00 100.00 100.00 1 SECRETARIA DA AGRICULTURA, INDUSTRIA E COMMERCIO, DTRECTORIA DE ESTATISTICA, INDUSTRIA E COMMERCIO. Estatistica Industriai do Estado de Säo Paulo, p. 29. Estado de Säo Paulo, Anno de 1934. This table shows that the most important industrial group in the State of Säo Paulo, as in the whole of Brazil, is that of the — 40 — textile industries, including the spinning and weaving of cotton, wool and jute, hosiery, silk spinning, rayon manufacture, weaving of all kinds of silk goods, trimmings, dyeing, manufacture of packing cloth, rope, etc. This group accounts for 37.8 per cent, of all the industrial workers in the State of Sao Paulo and for 34.3 per cent, of the value of its industrial production. Besides being the dominant industry, it is said on certain hands to be the only natural industry, the only one that could stand up to free competition. This point is referred to again below. Next in importance, with reference to the number of workers and the value of production, come the following groups: metallurgy and the construction of machinery, apparatus and equipment; clothing; food and drink; chemical products (pharmaceutical products, phosphorus products, soap, vegetable oils, perfumery, etc.); building (including the big cement industry); and lastly, miscellaneous industries, chief among which are paper making and the manufacture of rubber goods. An analysis of the production of the other industrial States of Brazil would probably have shown the same series of products in the same order, except in the case of Minas Geraes, where, as might be expected, the mining industry now occupies first place. Reference has already been made to an opinion advanced by certain leading figures in Brazil to the effect that the variety of industrial production in Säo Paulo is partly the result of artificial and not natural conditions, namely, the high cost of importing raw materials from abroad, low wages, and tariff protection, which lead to very high prices on the home market, representing a heavy tribute paid by the consumer to the industrial development of Säo Paulo. The writer is bound to record this opinion, since he actually heard it expressed, but he has neither the material nor the authority to pass judgment on its accuracy. Something has already been said on the question of wages and the part they play in determining costs. As regards tariff policy, without passing an opinion on its merits, it may be pointed out that the policy followed is that which has been or is still being pursued by many countries in process of developing new industries. As for the alleged artificial character of certain industries, which are obliged to obtain all their supplies — raw material and fuel — from outside the State, this accusation seems to apply only to a small number of the existing industries, at least so far as raw materials are concerned. Of the 73 groups of industries covered by the statistics of the State of Säo Paulo, — 41 — not more than eight obtain their raw materials, wholly or partly, from outside the State. These comprise five branches of the textile industry: jute weaving, silk spinning, rayon manufacture, silk weaving in general, and trimming manufacture; two branches of the clothing industry : men's and women's hats ; and lastly, among the miscellaneous industries, paper-making. These industries together account for only 10 per cent, of all the workers employed and 13.8 per cent, of the total value of production, so that the industries which can be described as wholly indigenous employ 90 per cent, of all the workers and represent 86.2 per cent, of the value of the total industrial production of Säo Paulo. Only in the textile group, where the jute and silk industries are fairly important, is the percentage of the nonindigenous industries somewhat higher; they employ 22.6 per cent, of all workers in the textile industry and produce 25.2 per cent, of the total value of textile production. It should be noted, however, that it is not to these industries in particular that objections are raised, but rather to small industries, the products of which are accused of being especially dear. It therefore seems justifiable to conclude that on the whole the industries of Säo Paulo are by no means artificial, especially when it is remembered that many of the big industrial countries buy a much larger proportion of their raw materials abroad than does the State of Säo Paulo, and that it already obtains its outside supplies, and will do so more and more in the future, from the other Brazilian States, so that in any case its industry is, and is likely to remain, national. CHAPTER V ECONOMIC CONDITIONS IN BRAZIL AND THE SOCIAL PROBLEMS ARISING OUT OF THEM This brief survey of the present economic situation of Brazil suggest the following conclusions. 1. The major part of the present population of Brazil is concentrated in a few States in the subtropical and temperate zones of the Atlantic seaboard. These States supply nearly all the agricultural exports products and harbour the whole of large-scale Brazilian industry, an industry which is of recent development, and the products of which are for the time being nearly all consumed on the home market. Vast tracts of land in the interior and northern part of the country, rich in boundless possibilities, are only awaiting human labour to begin producing. This situation is similar to that of the United States rather more than half a century ago. 2. Again like the United States towards 1880, Brazil is already a world power. Its interests are by no means limited to relations with a single continent or a single part of the world. Few people in Brazil claim that their country should look towards America alone, holding aloof from Europe and even more from Africa and Asia. A glance at the commercial statistics of Brazil is sufficient to give some notion of the universality of Brazilian interests. It is true that the United States alone receives 46.7 per cent. of all Brazilian exports (figure for 1933). But of the 16 countries which import the major part of these products, only 3 are American countries, whereas 11 are in Europe and 2 in Africa, and although the American countries received 52.5 per cent, of Brazilian exports in 1933, the second group imported 39.6 per cent, or nearly two-fifths, a proportion which is far from negligible and which Brazil cannot afford to ignore. Brazil is seeking to export, besides its coffee, increasing quantities of cotton, sugar, and fruit. It cannot find a market — 43 — for these products in the United States, which has its own cotton and fruit-producing areas, and which buys the sugar it needs over and above its own output from Cuba, Port Rico, and the Philippines. Undoubtedly Brazil's market for these new products lies in Europe and perhaps also in the Far East, especially Japan. 3. As a world commercial power, exporting mainly tropical products, Brazil is liable to meet, and has in fact already met, on the European markets with the competition of other tropical lands, most of which are European colonies. In the course of my visit I heard apprehensions and complaints which, though discreetly expressed, seemed to me legitimate, regarding the danger of this competition from colonial territories where the Native's conditions of employment are less favourable, and consequently less costly to the employer, than those usual in the producing and exporting States of Brazil. The economic development of Brazil therefore raises the question of conditions of employment in tropical lands. 4. There are vast resources in Brazil which are still untapped, and vast territories which have not yet been settled and developed. There is no doubt that all this latent wealth will be exploited at some future date. Two different methods of development may be contemplated, however. The first is the slow gradual process of development governed by the rate of the normal growth of the national population and of the national income. The second is a more rapid process of general and thorough development such as took place in the United States in the space of a few decades, and which would be perhaps even more rapid in Brazil, other things being equal, owing to modern methods of mechanisation and credit machinery. It was easy to observe that both these methods have their advocates in Brazil to-day. The application of the first, if indeed it is possible in its pure form, involves only internal problems; but as soon as the second is envisaged, implying recourse to outside resources, three social problems immediately arise: first, that of conditions of employment; secondly, that of land settlement; and thirdly, the problem of immigration These three problems will be examined in the second part of the present survey. PART TWO SOCIAL PROBLEMS CHAPTER I CONDITIONS OF EMPLOYMENT CONDITIONS OF E M P L O Y M E N T IN A G R I C U L T U R E The conditions of employment of agricultural labourers on the plantations may concern two categories of workers: agricultural labourers proper and colonos. Although the use of this latter term involves the danger of confusion between a worker established with his family on a plantation in the owner's service and a smallholder cultivating a plot of land on his own account, I am obliged to use it here because it is the current term. In this chapter, therefore, the term colono or settler is used to describe a man established on a plantation under a contract of employment with the owner. There is not much to be said concerning agricultural labourers. This type of employment is the most precarious of any to be found in Brazil. It is only the coffee plantations, where the work is varied but continuous, that engage workers under contract by the year; everywhere else agricultural labourers are employed merely by the day. Their earnings are naturally far from regular, and vary according to the area and season, and even according to the supply of labour available. Generally speaking the daily wage varies between 3 and 7 milreis in the north and 5 and 12 in the centre and the south, between Säo Paulo and Rio Grande do Sul. Very few of the immigrants from European countries take up or at least remain in this kind of employment, except for unsuccessful settlers, whose failure may be due to various causes, but who only remain in these precarious circumstances from dire necessity. — 46 - Those who deliberately remain in this kind of paid employment are almost exclusively of Brazilian nationality. Some of them are settled with their families on a strip of land which provides them with a miniumm, though steady, livelihood which they must supplement from other sources. Others come from the north — from the State of Bahia during drought years, for instance — and being able to live on a very low wage owing to the simplicity of their mode of life, they prefer not to be bound by any form of contract so as to be free to return to their own homes when conditions improve or simply when they feel so inclined. These are the free-lances, the irregulars or mobile wing of the army of agricultural workers. They are perhaps necessary in view of the present state of the labour market and the conditions under which the agricultural States are being developed. But with improved and rationalised development of the land the need for their existence may be reduced or even wholly removed, or at least confined to the pioneering belt in the interior. As regards the colonos, their situation can best be understood by following the course of their daily life from the time they enter the service of a planter. Let us take as an example a colono on a coffee plantation in the State of Säo Paulo, whose position may be regarded as typical, the conditions varying slightly according to the product cultivated and being somewhat less favourable in some of the other States than in Säo Paulo. As soon as the colono arrives, he is supplied with a house for himself and his family, very often one of a group of similar houses, which facilitates the provision of general services such as water, light, etc. On coffee plantations the family is regarded as a team of workers, the father being the head. The settler is placed in charge of a number of coffee shrubs which varies according to the number of adults and juveniles in his family on an average between 4,000 and 7,000. The work is continuous ; it includes weeding, clearing the soil, and sometimes tree-felling, and lastly and principally, picking the berries and packing them in sacks. In some cases the settler is unable to gather the whole crop of the coffee bushes in his charge with the sole help of his family. Sometimes, too, he and some members of his family may find time to do some extra work in addition to the care of the coffee bushes, such as road maintenance, washing and drying the coffee berries, and sorting them where several qualities are grown and the better-class berries have to be separated. — 47 — The earnings of the colono may therefore consist of three different items. In the first place there is the payment for the care of the coffee bushes for which he is responsible under his contract. This payment varies according as the settler and his family are responsible for gathering the harvest or not; in the latter case, the wage for looking after the coffee plants, which is the only profit he will make from them, is slightly higher than in the first, the average annual rate being from 100 to 500 milreis for every thousand plants. The second item in his remuneration consists of the sums he or the other members of his family may earn by outside work, the wage for this work being about 3 or 4 milreis a day. And lastly, he has a further source of profit in the gathering and packing of the crop; the rate of pay is between 3 and 4 milreis per sack according to the size. This is the sum total of the possible earnings of the colono, except for any profit he may make on the produce of the small vegetable garden which most of the settlers have, on the crops he is allowed to grow between the rows of the plantation for his own benefit, and on the few cattle, goats and pigs which he is allowed to graze on the planter's pasture land. These various items require the keeping of somewhat complicated accounts in the employment book or caderneta of each settler. In attempting to assess the total value it is difficult to give an average figure. It was told, however, and the information was confirmed by my own examination of a number of employment books on one plantation, that as a rule the settler is in debt during the first year of his employment, becomes solvent in the second, and is able to save 1 or 2 contos (1 conto = 1,000 milreis) in the third. Besides this form of contract binding the worker strictly to the planter, who retains full responsibility and initiative, various other forms of share-farming contract are also found. Share-farming may be more profitable, but it calls for powers of initiative and decision and for a knowledge of agricultural methods and local conditions which are by no means within the capacity of all settlers. Hence most of the settlers, especially immigrants from abroad, prefer the ordinary contract of employment, not without some justification, since although their potential profit is smaller, it is more secure. This profit, which in any case is small, only exists at all because the colono and his family live on a very modest scale. — 48 — Even on the most favourable hypothesis, the three items of earnings described above can only add up to a small sum, much lower than the earnings of a factory worker. No doubt the colono on a plantation has a safe livelihood, but the standard of this livelihood, even in the State of Säo Paulo, is not very high. The situation here described may appear at first sight to imply a paradox. The fact that the rural populations of Eastern Europe, for instance, or Japan, have a low standard of living is easily explained by the overcrowding of the rural districts, the large excess of births over deaths, and the unemployment which results from this and constitutes a chronic and endemic scourge. In Brazil, however, and especially in the State of Säo Paulo, there is a constant shortage of labour. This feature, to which I shall have occasion to revert later as one of the factors retarding economic progress, might at least be expected to serve the interests of social progress by enabling the workers to use the scarcity of labour as a bargaining weapon to obtain better remuneration for their work. This is not the case, however, and we may reasonably consider why. There are two main reasons ; one derives from the conditions under which the labour for the coffee plantation was recruited for fifty years, and the other from customs which grew up long before this recruiting started and will die out only gradually, since here, as everywhere, conservation is an inherent feature of rural life. Coffee-growing, introduced in the State of Säo Paulo nearly a century ago, has only been developing at a rapid rate for the past fifty years or so. It was about 1888 that the use of coffee began to spread rapidly in Europe and the United States, side by side with the growth of industry, since industrial workers appreciate this stimulating and refreshing drink; and that this product, which was still scarce and in ever-growing demand, began to be profitable. The cultivation of coffee was successfully extended on the red soil of the Brazilian plateau. But it was precisely at this time that the land in Brazil began to lose some of its traditional supply of labour owing to the abolition oí slavery, since the emancipated slaves flocked in large numbers to the towns. In many cases, where there had been ten workers before and a hundred would have been needed to meet the needs of the newly extended plantations, only five remained. In order to obtain labourers who had become scarce, and to retain those who were leaving the plantations — 49 now that they had been emancipated, the planters were faced with the possibility of having to vie with each other in increasing wages, thus probably raising their costs and diminishing their profits. But the plantation owners, who were the most powerful political factor in the State, preferred to suggest another method to the authorities — that of attracting, by means of assisted immigration, a large supply of foreign labour. This was the course actually followed, and between 1889 and 1902 the State of Sao Paulo alone admitted nearly a million immigrants, the exact figure being 990,025, three-quarters of whom were assisted Arriving in the country without any resources and saddled with the burden oí the debt incurred on their installation which they would have to repay sooner or later, these immigrants were at the mercy of the State and of their future employers. They were also numerous enough to meet the immediate needs of the large-scale production of coffee which was then growing up; and thus the "risk" of a "rise in the value of labour " which had been feared was removed. Hence the original rates of wages could be fixed extremely low. These rates were satisfactory to the employers, who, it must not be forgotten, had been served entirely by slave labour a few years earlier. It was difficult to instil the notion of a fair wage into the head of the former slave-owner. However good his intentions, he inevitably tended to regard his duty as stopping short at the provision of a livelihood-for the men working on his land The first planters and the leaders of Government they controlled were therefore naturally inclined to pay low wages. It was different for the newcomers to resist this tendency even had it occurred to them to do so. They were set down in the wilds under the traditionally absolute authority of the plantation owner, who was entirely free to fix, at his own discretion, both the piece rates of his workers and the fines which might be imposed. Moreover, they were surrounded by natives who had just been emancipated from slavery and were accordingly naturally inclined to submit to the plantation owners' conditions (the more independentlyminded having already fled to the towns) and to regard their present lot as comparing very favourably with that which had preceded it. The original rates of wages were therefore very low. They have indeed been raised somewhat since, but not very much, -r — 50 - and during the depression wages again fell to 30 per cent, of the 1928 rates Quite apart from the difficulty that a mixed and scattered population of workers would have found in organising resistance, even had they been so minded, account must also be taken of a fact which the planters themselves did not fail to impress upon the Government, namely that the low level of wages, involving low costs of production, contributed very largely to the successful competition of Säo Paulo coffee on world markets. The resultant large fortunes made by the planters placed a large volume of purchasing power in their hands for the benefit of the local industries which were just then growing up, so that in the beginning the nascent industries reaped an indirect advantage from the low level of agricultural wages, which were a source of wealth for their only possible clients at the time. Now, however, that these industries have expanded on a large scale and are capable of mass production at low cost, they would no doubt derive greater benefit from an increase in the purchasing power of the rural workers through the raising of their wages. I met many people who supported this view, which appears indeed to be a reasonable one. It is possible that once the country has recovered trom the effects of the depression, the Government may adopt a policy of wage revision which will support the social policy on behalf of agricultural workers initiated by it some twenty-five years ago. Although it is true to say that the problem of agricultural wages is still awaiting the solution which economic conditions in Säo Paulo and Brazil in general demand, this is the only problem relating to agricultural labour that the State, in the absence of a trade union organisation which would be difficult if not impossible to establish, has not yet solved In all the other departments of the rural workers' conditions of life it has effectively intervened by a series of decisions culminating in 1911 with the establishment of the Patronato Agricola This institution is the outcome of the Government's desire to put a stop to a state of affairs which, owing to the very natural inability of agricultural workers to organise, left them entirely at the mercy of their employers, some of whom took advantage of the situation to such an extent as to damage the State's reputation abroad and to prejudice its chances of recruiting immigrants in Europe. The abuses took various forms; for instance, it was common knowledge that when — Ol — business was bad some plantation owners omitted to pay their settlers the wages due to them, and that in the event of their bankruptcy wage claims were always the last to be paid, if indeed they could be paid at all. It was against this practice that the Government first took action. Under a Decree of 27 March 1907, wages were declared to have a prior claim to payment over all the other debts of agricultural undertakings, at least in respect of the products of the crop or crops which the workers concerned had helped to produce. The Decree also made compulsory the use of the caderneta, a kind of individual employment book issued to each worker, containing the terms of his contract and his accounts with the employer. The 1907 Decree was a first attempt to give a legal status to the work of the agricultural labourer. But the law is one thing and its application quite a different one, especially in the field of agricultural employment, since the workers are scattered over vast areas where supervision is as difficult as it is necessary. Accordingly the Government of the State of Sâo Paulo set up in 1911 the Patronato Agricola, an institution having various duties, the principal being to take and conduct all proceedings for the recovery of wages due, by providing legal aid, to secure the observance of contracts, to see that the accounts in the cadernetas are properly kept, and to bring to the notice of the competent authorities any complaints made by the workers as to injury to their property, to their rights or to their own or their family's persons. Complaints might be addressed to the Patronato by any agricultural worker, either verbally or by letter. If the employer was convicted, he was required to pay the full cost of the proceedings taken in pursuance of the claim ; and if the claim failed, the worker was only required to bear a quarter of the costs, the remainder being borne by the State. This institution did not become really effective, however, until it was equipped with a staff adequate in numbers and in quality. This happened when the Patronato was attached to the regional Department of Labour. I was able to observe for myself that it is now an admirable piece of fully operative administrative machinery. The responsible officials are not only competent, but appear to be fully conscious of the importance and delicate nature of the social duties entrusted to them. Legal aid, which is nearly always preceded by an attempt at conciliation, is at present in the charge of a chief advocate with eight assistants, assisted by a large staff including — 52 — some interpreters, who are especially necessary owing to the varied origin of the agricultural workers. In each of the 200 or so municipal districts within the State the Department is represented by promotores, or public attorneys, whose duty it is to receive complaints or demands from the workers and to forward them to the Department within five days. At present the workers to whom legal aid is given are exempted from all legal costs and fees, whatever the outcome of the proceedings, and if it is necessary for them to appear in person, their travelling expenses are paid by the Department. Under a Decree of 19 April 1934, regulating legal aid, associations for the protection of immigrants are permitted to assist the workers whom they brought into the country, as also are the consular representatives of the worker's country of origin. The Department's labour inspectors collaborate with the legal aid service when inspecting the plantations ; this is only natural since the protection of the interests of agricultural workers is, to a very great extent, a question of inspection. The impression left by even a superficial study of this organisation is definitely favourable. There is, of course, room for improvement, as in all other human institutions; in particular, special courts might be set up to deal with the disputes which may arise between agricultural employers and workers in connection with living and working conditions. Such courts could apply a more summary and reliable form of procedure and their creation would merely mean extending to the field of agriculture the principle of special courts for the investigation and settlement of disputes arising out of the relations between employers and workers in industry, which is being generally adopted to-day. Such is the action taken by the Government of Säo Paulo during the past twenty-five years to secure better living conditions and more stable and secure working conditions for agricultural workers. It would be unfair to neglect the activities which private enterprise has also initiated parallel to this effective official action. The generation of plantation owners who had grown up familiar with the slave system and whose traditions could not be changed overnight by the decree of emancipation has long disappeared, and their successors are naturally men of varying character and holding diverse views. The present legislation and administrative machinery may be sufficient to bring home to those employers, probably few in — 53 — number, who might tend to ignore it a true conception of the needs of the times. But to the great majority of the plantation owners it offers support in their personal efforts to improve the living conditions of the workers in their employment. The attempts made on many plantations to improve the health conditions of the colonos and their families deserve special mention; many of them now have a regular medical service, each family paying a monthly contribution of 3 or 4 milreis for ordinary medical attention, while on other plantations cooperative societies for medical attention and the supply of medicines have been formed on the owners' inititative. The living conditions of the agricultural worker and especially of the colono, who is the most frequent and characteristic representative of this class, are improving in every respect, from the contract of employment to housing conditions and even diet, although the latter does not always conform to the standards of modern medical science. It would be idle to deny that these improvements would probably be more rapid if there were an organisation for agricultural workers capable of supporting their claims and, in particular, of securing a fair adjustment of wages to the economic yield of the plantations. Trade organisation among agricultural workers has always been a slow and laborious process, however, even in countries with a uniform population and an advanced standard of civilisation. The difficulties are naturally still greater in a country like Brazil, where the agricultural workers belong to different nationalities and races and, for the most part, lack not only experience but even the consciousness of their collective interests. The Federal Government and some of the State Governments, foremost among which is that of Säo Paulo, would be quite prepared to promote the organisation of agricultural workers, but it is the inertia and ignorance of the workers themselves which are the stumbling-block. The importance attaching to official efforts to improve the lot of the workers is, therefore, all the greater on this account. CONDITIONS OF EMPLOYMENT IN INDUSTRY Labour legislation in Brazil is enacted by the Federal authorities and its application is regulated and supervised under the direction of the Federal Ministry of Labour. The Under-Secretaries' offices and Departments of Labour of the — 54 — various States collaborate in this task and may even initiate their own local activities, as in the case of Säo Paulo, where, as has already been seen, industry already plays an important part. But the incentive and the guiding principles come from the central authorities, who are also primarily responsible for inspection. The labour legislation governing industrial employment in Brazil has reached a high standard. It is enough to recall here that it provides for a 48-hour week, a weekly rest, and holidays with pay. The employment of women is subject to regulation. The employment of children and young persons under 14 years of age is prohibited, and those between 14 and 18 years of age may only be employed if they are already proficient in reading, writing and arithmetic. Social insurance is not yet fully organised, but it already covers a large number of trades in respect of accidents, old age, invalidity and death. In general, it may be said that the legal protection afforded to industrial workers is fairly thorough. Does this imply that the protective legislation is equally strictly applied everywhere ? This is hardly the case. There is an excellent Federal labour inspection service, but the number of inspectors is limited and the territory of Brazil is vast. I had the opportunity of meeting some of the inspectors who had just returned from their tour of inspection. One of them had just come back from Amazonas, a State so huge and so distant and where the industrial centres are so few and lie so far apart that an inspector from the Central Department can hardly be expected to visit it more than once a year. It is therefore inevitable that the conditions on distant and isolated undertakings should be less regularly inspected than those in the establishments in or near the Federal District. It may confidently be expected that the present state of affairs, under which all are already doing their best, will improve when the number of Federal inspectors is increased, and especially when all the States follow the example set by some of their number, in particular Sâo Paulo, of instituting a State inspection service side by side with the Federal one. But there is another reason why, in spite of the best of intentions, the labour legislation of Brazil cannot be fully applied at present. Two examples from industrial conditions in Sao Paulo will make this point clear. Here is the first example. The law provides that, under - 55 - certain conditions, every industrial worker shall be allowed a fortnight's holiday with pay. During his holiday the worker naturally may not work for an undertaking other than that by which he is normally employed. In Säo Paulo, however, the custom tolerated both by the administration and by the trade unions is that, in defiance of the law, many workers go to work for another employer during their holiday, thus receiving double payment to the detriment of any other workers who might be engaged to do this extra work. The reason is that there are no other workers available, and that unless those who are on paid holiday came to the rescue the work would not get done at all. Thus it is the shortage of labour which leads to this infringement of labour legislation, with the assent of the authorities and the interested parties. Here is another and perhaps even more striking case. As already mentioned, the law prohibits industrial employment for children under 14 and only allows if for young persons between 14 and 18 years of age if they can read, write, and do arithmetic. At the present time, however, the shortage of workers has led to such a demand for labour in the State of Säo Paulo that this provision has had to be interpreted in the broadest possible way, although it is true that detailed arrangements have been made to give satisfaction to the employers and the workers' families without prejudicing the ducation of the young people themselves. When an employer engages a youth or girl between 14 and 18 years of age, he must submit to the Department of Labour (1) the written assent of the parents; (2) a health certificate; and (3) a certificate stating that the young person concerned can read, write, and do arithmetic. If the third certificate cannot be furnished, the young worker is given a temporary permit, first for a month and then for six months, on condition that he attends special evening classes organised for the purpose of teaching reading, writing, and arithmetic during this period. At the end of six months the worker sits for an examination at the Department of Labour, a service, which I saw in operation, being organised for the purpose. If the examination shows that the boy or girl has made progress, the temporary permit is renewed. If, on the contrary, no progress is found to have been made or if the pupil is found to have missed a number of the evening classes, the temporary permit is not renewed, and the young person concerned is sent to day-school. Every six months — 56 — he is re-examined to ascertain whether he can again be employed temporarily, subject to attendance at evening school. Finally, when he has passed the examination, the young worker obtains a permanent employment permit. This permit is, of course, issued at the age of 18 years, even if the worker is still illiterate. The system is strict and very well organised. But, at the same time, an 8-hour working day (usually from 6 to 10 a.m. and from 11 to 3 p.m.) followed by evening school from 7 to 8 is undoubtedly too tiring for children of 14 years of age who cannot yet read or write. So great is the demand for labour, however, especially in the city of Sao Paulo, that the authorities have been obliged to adopt this system in agreement with the workers. This is a further example of the unfortunate results of the shortage of labour. This shortage is undoubtedly due to the inadequate supply of immigrants, either from within the Federation or from abroad, in the States which are widely cultivated and more or less industrialised, a question which will be examined later. In spite of its swift and steady development, Brazilian industry, and even that of Säo Paulo, does not seem likely to be able to absorb a large number of foreign immigrants. Although there are no employment statistics in Brazil, the labour available to industrial undertakings, except in the city of Säo Paulo, may be regarded as practically adequate in quantity and even in quality. Moreover, from the latter point of view in particular, even supposing that there is already an inadequate supply of labour in some places and that a revival of world trade in the future were to lead to a fresh expansion of industry and increased demand for labour owing to its effects on Brazilian production for export, the country's industrialisits, even those of foreign nationality, would no doubt prefer to employ Brazilians, who are both able and willing to learn and make excellent workers. But they could only do this to the detriment of the peopling and settlement of the land, where the population is already inadequate to meet the needs of an expansion of production in the areas already under cultivation, and an extension of the cultivated areas into the interior. Thus, directly or indirectly, both the present scarcity of labour, industrial and agricultural, in the economically advanced States and the shortage which may be expected to arise in the near future in those which are still on the threshold of development again raise the question of settlement and immigration. CHAPTER II LAND SETTLEMENT V A R I O U S T Y P E S OF S E T T L E M E N T Hitherto land settlement in Brazil has proceeded under three forms, differing considerably from each other : settlement by the public authorities; settlement by private agencies with commercial aims; and spontaneous or "advance-guard " settlement by pioneers. Settlement by the public authorities may be carried out by the Federal or State Governments ; that is to say that one or other of these authorities founds a settlement and grants holdings of the land which it owns to members of the settlement under certain conditions. The Federal settlements are scattered over the territory of 14 States, although in very unequal proportions, 12 out of the total of 31 settlements being in the State of Paraná. The settlement activities of the Federal Government were very much more vigorous before the war than they have been since. Between 1907 and 1913 25 settlements were founded, and after 1920 only 6 new ones were added. The total population of all the settlements is about 50,000. As regards the origin of the settlers, it would seem that before the war many of the members of the Federal settlements came directly from abroad. In the stettlements founded since the war, however, most of such settlers as were not Brazilian nationals seem to have spent some time in the country before finaly establishing themselves. This applies to the settlers in the two Federal settlements in the plain of Rio, Sao Bento and Santa Cruz, both of which I visited. In the two comparatively recently founded settlements, Candido de Abreu and Marquez de Abrantes, the high proportion of Poles (especially in the first settlement, where they represent over half the total population) points to the conclusion that direct immigration played some part in this case. Data consulted concerning 12 Federal settlement centres, with a population of — 58 — 35,903 persons, gave the following figures for the distribution of the population by nationalities: Brazilians Poles Germans Spaniards Italians Japanese Austrians Portuguese Russians Others 66.4 per cent. 14.3 10.2 2.4 1.8 1.5 1.3 0.6 0.4 1.1 Thus, practically two-thirds of the inhabitants of the Federal settlements are Brazilians and one-third of other nationalities. In view of the very moderate scale on which Federal settlement is being carried out at present, it does not appear to offer much scope for foreign immigration in the immediate future. But the adoption of a more vigorous policy might revolutionise the situation, provided that land were available for this form of settlement. At present not more than 500 holdings are available in the existing Federal settlements. These holdings average 10 hectares in size. The system of allotment and payment, as I saw it in operation in the settlement of Santa Cruz, is as follows: the settler receives his holding of 10 hectares from the Administration^ with a house provided with the necessary services (water supply, sanitary arrangements, etc.), but unfurnished. The total charge is 18 contos (1 conto = 1,000 muréis), 10 for the land and 8 for the house. The first instalment on the debt is not due until three years after the settler enters into possession and the whole is payable in ten equal annual instalments. The settler thus has at least 13 years to pay off the 18 contos of his original debt and the time-limit may be extended under special circumstances; for instance, at Santa Cruz, following floods which destroyed part of the settlement in 1935, the repayment period was extended by three years and tax exemptions were also allowed for the same period. Seed is provided free of charge by the settlement. The Santa Cruz settler therefore has a debt of 18 contos to discharge within 16 years. Is this too much ? At Santa Cruz I visited three settlers. One of them, a white Brazilian, has already been offered 35 contos for his holding and had refused on good grounds. The second, a particularly energetic and intelligent Austrian, said that he would hold on to his land whatever - 59 — happened. The third, a coloured Brazilian with a family of eight children, including a son of 25 years of age and a son-in-law, is more concerned with the problem of how to acquire a new holding than with that of selling the one he has. A settler may obtain possession of a new holding when he has put the whole of his original holding under cultivation. As a rule he cannot to this unless he has a large family, like the coloured Brazilian just mentioned, without having recourse to paid labour. The settler usually engages his labourers by the year. Some of them live on the holding itself in primitive huts made of clay and bamboo, while others come from the neighbouring town or village every day. What has been said about the Federal settlements also applies to the settlements founded by the different States. The official settlement activities of the States have been very unequal. The State of Rio Grande do Sul, for instance, no longer grants land for settlement to individuals or settlement companies; since 1926 it has reserved the residue of its lands for official settlements. Even before this date the public authorities had done much more than private agencies in the way of settlement in this State. In 1926, the State's record was 2,700,000 hectares, with a population of 600,000, and that of private agencies 1,286,000 hectares, with a population of 330,000. In the State of Säo Paulo, on the contrary, settlement by the public authorities has never been carried on very energetically. No doubt the Government, being committed to a costly policy of assisted immigration intended to supply labour for the plantations, regarded it as inconsistent to found large official settlements, the first effect of which would be to deprive the plantations of many of the workers, and probably the best.who had been brought into the country for them at great expense. This does not mean that the State of Säo Paulo has no settlement policy at all. Not only has it encouraged private settlement, for reasons to be explained below; it has also had a theory of public land settlement. Thus, although a Decree of 1913, most of the provisions of which are still applicable to settlement by the State authorities, authoritises the direct establishment of immigrants in State settlements, that of 5 July 1935, setting up the Department of Immigration, Land and Settlement in the State of Säo Paulo, reserves any holdings still available in the settlements to immigrants who have already worked for at least two years on a plantation. Herein lies the principle and guiding spirit of official settlement policy in Säo Paulo. Its object is not to undertake largescale settlement schemes at State expense, but to create, as it were, a sort of official model settlements to serve as an example to private settlement agencies and even to plantation owners, and to this end it selects the cream of the workers from private plantations. This appears indeed to be the purpose which presided over the organisation of some of the public settlements in Säo Paulo, such as that of Barao de Antonina, on which I collected some particulars. The settlers in this colony, which covers 14,000 hectares, belong to 16 nationalities, about half being Brazilians. Medical aid, technical agricultural assistance, the teaching of hygiene, the rationalisation of agricultural work, the standardisation of products, the industrial working-up of suitable products, experimental farms, free distribution of plants and seeds, elementary schools, clubs for young people — all the features of a model settlement seem to be present here. It must be concluded that settlement by the public authorities, whether Federal or State, is a factor which cannot be ignored in the general scheme of land settlement, both past and present, in Brazil. But the importance of this factor lies mainly in its quality. The quantitative factor lies, as it has done in the past and will do in the future, elsewhere — in settlement by private agencies, under certain conditions which remain to be described later. Private land settlement has always played a leading part in Brazil. At present the private settlement companies are comparatively few in number. Those which are referred to most often are the big Japanese Company, which will be described in detail later in connection with Japanese immigration, and the Norte-Panama Company which is admitted by all who have visited the sites of its schemes to have obtained remarkable results both in the economic and in the social fields. Under present economic conditions in Brazil these private land settlement activities appear to be essential. The competent authorities of the State of Säo Paulo are fully aware, for instance, that if it is desired to attract a further large supply of immigrants from Europe, this can be done only by offering the best of them better living conditions and prospects of success than they are likely to have on the plantations. It is also realised that side by side with the large-scale and more or less uniform production — 61 — of the plantations, even the most progressive ones, settlements, being a collection of smallholdings, are the best means of promoting that variety of crops which is so necessary to the economic development of Brazil, and in particular of extending the cultivation of vegetables, dairy produce, and the food industries connected with it, which would be so useful to the big Brazilian cities. So far as I could ascertain, the Government of Säo Paulo is prepared to do everything possible to encourage private settlement. What in fact are the main difficulties ? Whether the settlers come from the northern parts of Brazil or from abroad, and especially in the latter case (it will be seen later where the preference of the Säo Paulo authorities lies), the main difficulty is the cost of transport and of installing single immigrants or families without means. Even where the would-be settlers are workers who have already spent two or three years on the plantations, as is usually the case in Säo Paulo, so that the cost of transport does not have to be taken into account, there is still the cost of establishment and of the land to be granted, which represents a large outlay for the company responsible for the scheme. A sound settlement scheme implies that the responsible settlement agency shall not try to obtain the major part of its profits by exploiting the settler — that is to say, by demanding payments which are too high and spread over too short a period, by failing to equip him well enough to ensure his success, and by subsequently turning him out after a time and beginning all over again with another. It also implies State assistance to the settlement agency, carrying with it as a natural condition the right of State supervision. The State of Säo Paulo still possesses vacant and undeveloped lands in regions which are sparsely populated and suitable for mixed plantation and stock-raising. This also applies to some of the large private estates which contain, besides wellcultivated areas, large stretches of undeveloped land. But even within the cultivated part of the country some of these big estates seem to be ripe for breaking up into holdings which could probably be obtained at a moderate cost, either because the soil is exhausted by long years of coffee-growing and needs a change and rotation of crops, such as can be introduced on smallholdings, to recover its strength, or because paid agricultural labour is scarce in regions where independent settlers would be quite willing to establish themselves, or for any other — 62 — reason obliging the landowners to sell up. And lastly, there is still a certain amount of idle land in the immediate vicinity of the big towns, suitable for growing vegetables or fruit and for dairy farming, although these lands are admittedly becoming scarce. Of all these different kinds of land, the most numerous and attractive are the lands of the big estates which have already been developed. They naturally cost less than the vacant land near the towns, and the fact that they have been developed in the past implies the proximity of means of communication and facilities for marketing the products, an essential condition for the success of any well-organised settlement scheme. It is in this field that the best prospects of successful settlement in the immediate future would seem to lie in an advanced State like Sâo Paulo. The Säo Paulo Railway Company has recently founded a settlement agency in collaboration with the State Government with the object of buying up old plantations and organising settlements on them. What has been done on Säo Paulo should or could be done equally well in the other States which are at the same stage of agricultural development, from Minas Geraes and Rio de Janeiro to Rio Grande do Sul. The question of the price of the land doubtless needs careful consideration in view of the low purchasing power of the settler, who will ultimately have to bear the cost of acquiring, and preparing the holding and installing himself on it, plus a certain percentage representing the company's profit. The. price of land varies considerably from one region to another. Data furnished by the Federal Ministry of Agriculture show that although in the Matto Grosso, that is in the interior, the price of land per hectare varies from 2 to 120 millreis in the country districts, and from 150 to 300 near the capital in Goyaz, still in the interior, from 2 to 350 and 400 to 600 ; in Paraná from 40 to 600, and in Santa Catharina, from 50 to 600, the prices rise to 100 and 1,000 milreis (one conto) in Rio Grande do Sul. In Minas Geraes, although in the rural districts land can still be bought for between 20 and 80 milreis per hectare, the prices range from 1 to 500 milreis near the towns ; while in Säo Paulo prices, even in the rural districts, vary from 50 milreis to one conto, rising to as much as 2 to 10 contos near the towns. Except perhaps in the vicinity of the cities in the two last-mentioned States, these prices are not prohibitive even without financial aid from the State, and well-organised companies should be able to meet them. If, however, the other costs involved are — 63 — also taken into account (travelling expenses of the settlers, equipment of the settlement, etc.), it is clear that in the majority of cases private settlement schemes will require assistance out of public funds, especially where it is proposed to organise smallholdings for vegetable-growing or dairy-farming near the towns. Finally, there is also in Brazil a movement towards spontaneous settlement. These settlers are the advance-guard of civilisation. There are larger areas of undeveloped but cultivable lands belonging to the State (terras devolutas) in Brazil than in any of the other Latin American States. Lands of this type still exist in the more advanced States such as Säo Paulo, Rio de Janeiro, Minas Geraes, Bahia, Pernambuco; there are many more in Paraná, Matto Grosso, Goyaz, Espirito Santo, and in the northern States in the interior, such as Piauhy, Maranhâo, Para, and Alazomas. The local Governments often concede a large stretch of these lands to applicants in return for the cost of measuring and surveying it ; in other cases they farm them out or sell them for small annual instalments. More often, however, on these distant territories with no roads other than natural or semi-natural communications such as rivers or paths through the bush or forests, the land is occupied either by the native adventurers known as caboclos — semi-nomads with no local attachments who are found principally in the north — or by the more daring type of settlers known as pioneers. This kind of settlement is neither extensive nor organised, but it very often prepares the way for ordered development on a larger scale. It is to the interest of the State not to prohibit it, and even to legalise it subsequently if the settlers are successful. This is now the usual practice sanctioned by the law where the occupier is of Brazilian nationality. Section 125 of the new Brazilian Constitution lays down that any Brazilian not already owning rural or urban property who occupies, inhabits, and cultivates a stretch of land without opposition for 10 consecutive years shall acquire possession thereof, provided that it does not exceed 10 hectares in extent, by means of a mere legal declaration duly registered. Spontaneous settlement by pioneers has led in certain cases to remarkable results. By way of example I may mention the district of Manila in the State of Sâo Paulo. In 1920 this territory consisted of virgin forest. To-day it has over 71,000 inhabitants, nearly 58,000 of whom live on the land. — 64 — PRESENT PROBLEMS OF LAND SETTLEMENT Agricultural settlement has rendered and will continue to render the greatest possible services to the economic development of Brazil, which is indeed inconceivable without it. But in order that it may proceed in the right proportions and along the desired lines, certain.problems will first have to be solved. A survey of the chief of these problems is given below. The first is the problem of finance. To-day this can no longer be left to chance, as it so often was in the past during the heroic age of settlement, without running the risk of wasting funds which are not unlimited. Everything I heard during my journey about settlement schemes which had definitely failed or were doing badly because they were set on foot without sufficient preparation points to the conclusion that, even in a country as rich as Brazil, where nature responds with a colossal return to every human effort, preparation, and especially financial preparation, is essential. It is true that the price of land itself is low almost everywhere except in the vicinity of the towns. The figures given in an earlier part of this volume show that land is much cheaper in Brazil than in some of the other Latin American States, especially Argentina, and that in the pioneering belt land may be obtained for nothing or next to nothing. But the cost of the land is not the only item; the expenses also include the organisation of the scheme, the cost of installing the settlers, of housing, equipment, and road-building, to mention only the chief items in a budget which is bound to include a great many, and very large ones. The settler's success depends on the advances he is granted under all these heads, and on the length of the period for which they are granted, since the average settler must be presumed to be a man of small means. The question therefore arises whether private settlement companies can normally be expected to commit themselves to all this expenditure and undertake the responsibility for such vast long-term credit operations without any outside help. In the case of some especially wealthy companies this is perhaps possible, and also in that of charitable organisations whose funds are derived from voluntary contributions and which are not seeking a profit. But I doubt if it is possible for most of the companies which spring up and set their schemes on foot haphazard, except in two cases. — 65 — The first exception is only mentioned to be rejected, and fortunately for the honour of land settlement agencies it is extremely rare. I refer to those speculative companies which have appeared from time to time, which lay out large sums and require the settler to repay them within a fairly short term, so that after a few years he is obliged to give up his land and leave the instalments he has already paid in the hands of the company; the latter then begins again with a fresh outlay and a new settler. In this way a batch of holdings may be made to yield profits for the company as high as they are immoral, but the system cannot be regarded as anything but a swindle. Fortunately, as already stated, such cases are rare. The other exception is more frequent and less dishonourable, but it is useless for the settlement of persons of small means. It is that of companies which do not grudge the necessary outlay on installing the settlements, and add to it the sometimes high expenses of a noisy advertisement campaign designed to attract settlers from comparatively wealthy countries who can afford to give high prices for their holdings and to pay for them within a fairly short time, two conditions which exclude poor immigrants from the poorer countries. On all these grounds I believe that the best method of carrying out a sound settlement policy, both in those parts of the Brazilian States that have already been opened up and even in the empty spaces, designed to attract agricultural workers from the poorer regions (whether from other parts of the Federation or from abroad; this is a question which will be dealt with later in connection with immigration) is to have recourse to official or semi-official bodies which, without seeking to make large profits, would increase the price of the holdings only by an amount sufficient to recover the initial expenses over a long term, to secure a fair profit for the private capital invested, and to constitute a small reserve fund. Bodies of this kind, inspired by social aims and organised on a sound technical and financial basis, would undoubtedly receive from the State in which they carried out their settlement schemes support in various forms, such as the grant of land free or at very low cost, contributions to the cost of building means of communication, temporary exemption from taxes, assistance in organising social services, etc. The second problem is that of the settlers' standard of living. Here I must revert again in another form to a point already — 66 — referred to in connection with the living conditions of agricultural wage earners. The new settlers cannot expect to enjoy at the outset a standard of living equivalent to that which they would have had in their country of origin, at least if they come from Western Europe or from some of the countries of Central Europe, Denmark, Germany or Switzerland. A settler who establishes himself right in the country, and still more one who settles in the pioneering regions, lives in a closed economic system; he must be self-sufficient for the fairly long period which must elapse until the development of the settlement's production and the organisation of communications and the machinery of exchange enable it to take its place in the commercial network of the country. But here, as in many other countries, discrepancies between different standards of living are to some extent compensated by the different mode of life dictated by natural conditions. In Brazil, the problem of heating does not arise and that of clothing is solved in the simplest of ways, while the abundance of timber helps to settle the question of housing at small expense. The food problem may be solved by supplying the settler with a small poultry yard, a few head of cattle, and a small field in which he can grow a little manioc, maize, vegetables, fruit and sugar cane. The staple items in this diet are obviously better suited to native Brazilians and settlers of Mediterranean or Japanese origin than to those from Central or Northern Europe, but the latter's needs can equally well be satisfied by varying the crops grown. But it is true nevertheless that a sound settlement policy should also aim at improving every aspect of the settlers' standard of living, including that of intellectual and social facilities. All the authorities I consulted on this point were unanimous in their opinion that land settlement cannot be successful unless the settler's family takes root in the soil and merges into its environment. The old saying: Ubi bene, ibi patria, is still true; the pleasanter his life there, the sooner will the settler become a true citizen of his new country. Here the demographic and the economic interests of Brazil march together. It is vital to the country that it should be able some day to rely, not merely on its export trade for its prosperity, but on a wider home market; and improving the settler's standard of living means increasing his purchasing power. All the manufacturers with whom I discussed the matter in Säo Paulo were unanimous on this point; the settlers must be able — 67 — to buy some at least of the goods that are manufactured with the aid of the surplus raw materials they have helped to produce. The principal items in the settler's standard of life which this policy should aim at improving are health conditions, housing, and diet. In none of these three fields will it be necessary to start from rock bottom. As an example of sanitary organisation, I visited with interest the hospitals established in the Federal settlements of Sao Bento and Santa Cruz, where they are engaged in exterminating malaria in the marshlands of the plain of Rio de Janeiro. The housing conditions of the settlers also seem satisfactory on the whole as regards space, water supply, and essential sanitary arrangements. But it is obvious that however adequate this organisation may be for settlements at the outset of their career, it must improve if it is to keep pace with their economic development. I was told that it is the settlers' diet which probably offers the greatest scope for improvement. The committees on workers' nutrition which have been working for over a year in connection with the League of Nations and the International Labour Organisation could doubtless play a most useful and effective part in this field, and the same applies to the Conference on Health and Rural Housing for the Latin American countries which is on the programme of the Health Committee of the League of Nations. A third problem which is of regional interest only, affecting the settlements in the vicinity of towns, is that of preventing the rural exodus. This difficulty does not arise for the first generation so much as for the second. A settler transplanted from the north to the central or southern States, and still more one who has come from Europe or Asia to Brazil, values the land which he has had such difficulty in acquiring and his life's one ambition is to make a success of it, especially as he would be lost, penniless, and out of his element among the population of the town. But for his children, who are practically assimilated or at least acclimatised, the attraction of city life is a very real danger. The best method of averting it is to raise the standard of living in the suburban settlements in order that the settlers' family may not only make a profit but enjoy some at least of the social and intellectual amenities expected of city life. Another regional problem is that of settlement in the equatorial north. In some parts of Amazonia a need is beginning to be felt for imported labour. Big undertakings such as that set on foot by Henry Ford and others of German origin already employ a — 68 — large number of indigenous workers whose standard of living has admittedly been considerably improved. But if these undertakings prosper and multiply, and if cotton-growing, originally introduced in the State of Bahia, is encouraged to extend by the development of the textile industry in the central States, recourse will have to be had to settlers from elsewhere. In the north, however, both the natural conditions, especially the climate and conditions of employment, and the low rate of wages in particular, practically exclude the possibility of settling Brazilians from the central or southern States, still more Europeans. This difficulty may be met in two different ways, which are not mutually exclusive but complementary. The first is to begin by opening up the cultivable parts of northern Brazil with the help of the local population, a suggestion which raises the question whether it would not be better to retain this population in the north and to discourage, instead of encouraging, the migration movement to the centre and the south which is already in progress. This is a problem of internal migration which will be considered later. The second solution lies in bringing into this region the only kind of immigrants who appear to be possible in this case. Europeans are out of the question because of the climate, and Africans because of the sparseness of the black population of Africa, so that the only remaining alternative are the Asiatic peoples, and in particular the Japanese. Here, however, another problem arises — that of the nationality of immigrants. This problem too will be dealt with later. But the following table, showing the distribution of agricultural property in Säo Paulo between the various nationalities, according to returns made five years ago, may perhaps appropriately be inserted here in order to give some idea of the contribution each of the races admitted to Brazil has made to land settlement. This table is instructive. There is nothing surprising in the fact that most agricultural holdings (over seven-tenths of the developed land) belong to Brazilians and that Italians hold the second place, in view of the large numbers of Italians who entered Brazil during the first fifteen years of this century. It is also natural that the other Mediterranean peoples — the Portuguese, who first opened up the country, and the Spaniards — should come next in order. What is more surprising is that the Japanese are already ahead of the Germans, British, Syrians, French, Austrians and Poles as regards the area of cultivated — 69 — DISTRIBUTION OF AGRICULTURAL P R O P E R T Y IN THE STATE OF SÄO PAULO BY NATIONALITIES (NUMBER, AREA AND VALUE), 1931-1932 ! Number of holdings Percentage Brazilians. . Italians . . Portuguese . Spaniards. . Japanese . . Germans . . British . . . Syrians. . . French . . Austrians. . Miscellaneous Negligible fractions . . . . . . . . . . . 133,275 32,709 11,228 10,517 10,235 2,589 145 1,206 123 402 1,766 . — Area Total (Hectares) Value Percentage Total (milreis) 65.26 11,558,125 70.37 3,506,370,390 16.01 2,264,682 13.78 958,717,831 5.49 643,546 3.91 275,332,185 5.15 514,678 3.12 243,137,546 5.01 326.637 1.98 129.162.169 1.26 302,558 1.84 52,900,568 0.07 223,269 1.35 95,594,126 0.59 190,812 0.20 67,029,651 0.06 33,306 1.16 8,867,250 0.19 25,550 0.15 8,531,650 0.86 341,653 2.08 56,734,317 0.05 — 0.06 — Percentage 64.90 17.74 5.09 4.50 2.39 0.97 1.76 1.24 0.16 0.15 1.05 0.05 Total . . 204,195 100.00 16,424,816 100.00 5,402,377,683 100.00 1 The order in which the nationalities are given is that of the area of their holdings. land; although they still own slightly under 21 per cent, of the cultivated land and their holdings represent only slightly over 2 per cent, of its value, they already account for 5 per cent, of all holdings, which means that they have gone in for smallholding much more than any of the other nationalities have done. And it is with smallholding that the future lies. An estimate of the average size of the holdings of landowners of each nationality gives the following figures : Nationality British French Syrians Germans Brazilians Italians Austrians Portuguese Spaniards Japanese Average size of holdings (hectares) 1,540.0 270.8 158.2 116.8 86.7 69.2 63.5 57.3 48.9 31.9 This shows that smallholding is most common among Brazilians and, as far as aliens are concerned, among the Medi- — 70 — terranean settlers, the Austrians, and still more the Japanese. Now smallholding implies that the settlers are grouped together in settlements, and this again usually implies a concentration of separate nationalities. This question of settlement by groups of the same nationality is one of the most serious and widely debated problems in Brazil to-day. It forms, in fact, one of the most thorny aspects of the present problem of immigration, as the following chapter will show. CHAPTER III IMMIGRATION IMPORTANCE O F IMMIGRATION I N B R A Z I L It is not my present purpose to describe here the very important part played by immigration in the economic development of Brazil since the beginning of the nineteenth century. But without minimising the qualities of the native population, the first white settlers, and the coloured labour imported under the slave system and subsequently emancipated, it may safely be said that if there had been no immigration the country's resources would have been less extensively, less thoroughly, and less rapidly developed. Figures are available to substantiate this statement. Between 1820 and 1930 nearly 4 % million immigrants entered Brazil, that is, probably more than were admitted by any other Latin American country except Argentina. Of this number 2,624,000, representing 58.3 per cent, or nearly three-fifths of the whole, settled in the State of Säo Paulo, which is precisely the most economically advanced of all the Brazilian States. The immigrants came from a large number of European countries, and more recently from Asia also. The 4*4 million immigrants who landed in Brazil within the above period of 110 years were distributed by nationalities as follows: Per cent. Italians Portuguese Spaniards Germans Miscellaneous *. 34.5 30.0 12.2 3.5 19.8 In the State of Säo Paulo, which never received a very large influx of Germans, who preferred the cooler States of the south, but which has recently attracted nearly all the Japanese immigrants to Brazil, the percentages are slightly different: Per cent. Italians Portuguese Spaniards Japanese Miscellaneous 36.0 16.0 15.0 4.5 28.5 — 72 — Generally speaking, this immigration was not spontaneous as it was in the United States during the heroic age of land settlement in the interior. In many cases the immigrants were recruited and assisted. In the State of Säo Paulo, for instance, 42 per cent, of the immigrants were settled with State aid, the Government having spent 182,306 contos in establishment expenses, or an average of over 3 % million milreis a year, between 1881 and 1930. From this it may be inferred that Brazilians fully and, until recently at least, unanimously realised the advantages their country would derive from a steady influx of new blood. One consequence of this large inflow of foreign immigrants must be noted. While it is true that a very large number of them, by far the majority, have become Brazilian subjects, this immigration has nevertheless led in the past, and is still leading, to the presence of an exceptionally large number of aliens in the country. As the last official census taken in Brazil dates from 1920, it is impossible to illustrate this point by figures as recent as are available for other countries, but it is improbable that the proportion of aliens has diminished since that date, as a result, for instance, of the pursuance of a more liberal naturalisation policy by Brazil or of a keener desire for naturalisation on the part of foreign immigrants, in view of the very nationalistic complexion of the present Government of Brazil and the equally nationalistic spirit dominating some of the countries from which the immigrants are drawn. In 1920, when the population of Brazil formed only 1.7 per cent, of the total population of the world, 6.7 per cent, of all aliens returned as resident outside their own countries were in Brazil. Whereas aliens returned outside their own country represented an average of about 1.4 per cent, of the world population, those resident in Brazil (about 1,566,000 persons) formed 5.1 per cent, of the country's population. This exceptionally high proportion of aliens does not seem to have disturbed public opinion much in the past. But I am obliged to record that it was put forward as one argument against mass immigration by some of those who are opposed to the continuance of such immigration in future. It may be useful give here the number of members of the principal nationalities represented among the foreign population of Brazil in 1920, together with the proportion they formed of all aliens. — 73 — Number of aliens Percentage of all aliens 52,870 26,354 219,142 558,405 32,299 433,577 28,941 3.4 1.7 14.0 35.7 2.0 27.7 1.8 50,251 39,926 3.2 2.6 T o t a l . . . . 1,441,765 America: South Americans 84,077 Other Americans 6,074 92.1 Nationality Europe: Germans Austrians Spaniards . Italians Poles Portuguese Russians Turks (including Asiatic Turks) Miscellaneous Total. . . 5.4 0.3 90,151 5.7 27,976 1.8 6,069 0.4 1,565,961 100.0 Asia : Japanese Oceania Grand total . . . . PRESENT NEEDS In most of the Brazilian States there is still a great demand, not only for settlers to develop land still lying idle or to introduce smallholding methods on the big estates formerly engaged in large-scale plantation, but also for agricultural labourers. This need is greatest in the States in the central and southern part of the Atlantic belt where development is in full swing, from Rio Grande do Sul to Espirito Santo, and so far as I was able to ascertain, especially in Minas Geraes and Sào Paulo. This is not surprising in the case of Minas Geraes, since for a long time no immigrants entered this State except adventurers prospecting in precious metals or precious stones, and to-day agricultural development is in full swing, especially fruit and vegetable growing near the towns and cotton-growing on the land, which could give employment to thousands of workers who are not available. It is more unexpected in the case of Säo Paulo, considering the enormous proportion of immigrants to Brazil who have drifted into that State, but its continuous need for labour can be explained on two grounds. The first is that Säo Paulo is developing not only agriculturally but industrially. It is true that, rapidly though its industry is expanding, it has no need to call on the services of — 74 — workers from outside its own boundaries. Even if, as may be expected, industrial development continues, and at a rapid rate, the necessary labour can be found within the State itself among the rural population, which, here as elsewhere, gravitates towards the towns, while in exceptional cases it can be obtained from the other States. Technicians are the only kind of workers who may have to be obtained from abroad. But this drain on the rural population by the towns has had and will continue to have the result of reducing still further a supply of agricultural workers, whether settlers or wage earners, which is already inadequate. On this point the complaints I heard in Sao Paulo were unanimous. I was informed that a great many plantation owners do not plant the whole of their land for fear of being unable to obtain sufficient labour for the harvest. During the season of 1935-1936, although 51,000 workers were brought into the State under Government auspices and 30,000 more came of their own accord from the neighbouring States, wheatgrowing and coffee-planting declined to the advantage of cotton, which is indeed a more profitable crop at the moment but which could have been expanded without any restriction of the other crops if sufficient labour had been available. The second cause of this comparative shortage of labour is no doubt the large number of departures, which partly cancels out the effect of immigration. So far as the Brazilians who come to Säo Paulo from other States are concerned, the high rate of re-emigration is due to an instability rooted in the customs of the population. This will be discussed later; suffice it to say at present that between 1908 and 1935, of the 100,000 Brazilians who entered Sao Paulo from the other Brazilian States, less than one-fifth (19.3 per cent.) remained, the rest having left the State subsequently. As regards foreign immigrants, the rate of re-emigration is lower, but is also due mainly to the habits recently acquired by the immigrants of certain nationalities (another point which is dealt with in greater detail below), for although the earnings and living conditions of agricultural workers are low and considerably inferior to these obtaining in Western Europe, they are not appreciably worse than those of the eastern or central European countries from which most of the immigrants are drawn. Hence a certain proportion of re-emigration must always be reckoned with. If too many vacancies remain, the remedy, as I was told, is to admit more immigrants to the country. According to — 75 — the highest authorities in Sao Paulo, the State could at present absorb 300,000 immigrants annually. PRINCIPLES OF PRESENT POLICY The Quota System. — The immigration policy of the Federal Government is definitely restrictive, in accordance with the provisions of the Constitution itself. Article 121 of the Constitution in fact lays down that not more than 2 per cent, of the number of immigrants of each nationality who settled in Brazil during the past 50 years may be admitted every year. This highly restrictive provision is inspired by the similar legislation introduced earlier in the United States. If it is applied without modification, its effects will clearly be more serious than in the northern Federation. On the one hand the quotas will be assessed on immigration figures which were much lower in Brazil than in the United States during the past half century, while on the other the few immigrants whom they still allow through will enter a country much less densely populated, Brazil having 42 million inhabitants as compared with 127 million in the United States and 5 inhabitants per square kilometre as compared with 16. The Federal Ministry of Labour seems to have grasped this difficulty. It has in fact fixed the immigration quotas for each nationality, not according to the strict letter of the Constitution, on the basis of the number of immigrants of that nationality, who settled in the country during the past 50 years, but on the basis of those who entered the country, without regard to departures, which in certain cases were very numerous. Had the Constitution been strictly applied, only about 46,000 immigrants would have been allowed to enter each year; liberally interpreted, it allows the entry of some 84,000, or nearly twice as many 1. But this figure is a maximum which is never reached, since, as will be seen below, some countries, including those with 1 The following are the annual quotas provisionally fixed for the nationalities to whom the system applies by the Decree of 16 April 1936: Argentinans, 369; Austrians, 1,679; Belgians, 117; British, 417; Czechoslovaks, 174; Estonians, 123; French, 606; Germans, 3,118; Hungarians, 236; Italians, 27,475; Japanese, 3,480; Lebanese, 266; Lithuanians, 1,573; Netherlanders, 151; North Americans, 221; Poles, 2,035; Portuguese, 22,991; Rumanians, 773; Russians, 2,146; Spaniards, 11,962; Swiss, 148; Syrians, 405; Turks, 1,584; Uruguayans, 161; Yugoslavs, 997; total, 82,807. Those nationalities which supplied practically no immigrants in the past are allowed a maximum annual quota of 100. — 76 — the largest quotas, are very far from using the whole of the quota allowed to them, a practice which incidentally diminishes this quota from year to year, it being reassessed annually on the basis of the past 50 years, which naturally include the year just elapsed when the number of immigrants actually admitted did not come up to the full quota. This is perhaps to take rather too gloomy a view of future prospects, but it is at least certain that although 84,000 immigrants may enter the country each year, a much smaller number actually do so. Moreover, many of those people with whom I discussed this question in Brazil, belonging to the most varied circles, consider that even if the quota of 84,000 were entirely filled, it would be wholly inadequate to the country's real need; as already stated, the State of Säo Paulo alone could absorb 300,000 persons annually. The False Analogy of the United States. — Some of the advocates of a liberal immigration policy contest the very principle of restriction on the ground that the alleged analogy with the United States on which it is based is a false one. They argue that the principal ground on which the United States restricted immigration was the opposition of the trade unions, who were afraid that the competition ot immigrant labour, not only that of Asiatic immigrants, but also of immigrants from Central and Eastern Europe, would drag down the wage level and lower the standard of living of American workers. This argument cannot however apply to Brazil, since the standard of living of agricultural workers there is nearly as low as in Eastern Europe or in the Far East. A second reason for the introduction of the quota system in the United States was the fear of a further increase in unemployment, which at one time affected 13 million workers and probably still affects 10 million. To this the Brazilians reply that there is no unemployment in agriculture in Brazil, but on the contrary a shortage of labour. Thirdly, the United States Government was alarmed by the low birth rate of its own population. Whereas in the United States the annual excess of birth over deaths was 89 per thousand among the Italians, 78 among the Jews from Eastern Europe, between 33 and 24 among the Germans, Irish, English and Scottish, among the old North American stock there was a slight annual excess of deaths over births of 0.8 per thousand. In — 77 — Brazil, however, the rate of increase among the old-established population is as high as among the newcomers. Finally, in the United States there is also the question of race prejudice, the desire to keep a sufficient place for the representatives of the old American culture. The Brazilian answer to this argument is that there is no race prejudice in Brazil, a statement which was strictly true until an anti-Japanese movement began to spring up, which is, however, still weak and sporadic; it will be discussed more fully later. In Brazil there is a uniform culture stretching from the native population and the negro through a series of cross-breeds to the white settler, and Brazilian civilisation has proved itself capable of absorbing the most diverse and allegedly refractory elements. In support of this view I was told that there are families of Japanese settlers (although it is true these are isolated cases) in which the children speak nothing but Portuguese, and I myself saw similar cases among Italians. Proposed Mitigation of Restrictive Policy. — Vigorous protests against the quota system, even when liberally interpreted as it has been by the Federal Ministry of Labour, have been made in several States, such as Minas Geraes, Espirito Santo, and, still more, Säo Paulo. I was able to consult a recent memorandum of the Immigration Department of the latter State, enumerating all the points on which a reform of the present system is necessary to prevent its damaging the interests of the State. As regards those aspects of the matter with which we are here concerned, the memorandum recommends that the quota system should apply only to "free " immigration, and not to those immigrants whom any individual Brazilian State should see fit to introduce into its territory to meet its economic needs, by its own efforts and at its own expense. Another point is that at present a maximum annual quota of 100 immigrants is allowed to those countries which supplied a negligible number in the past and whose quota would therefore be practically nil. The memorandum recommends that this maximum should be raised. Here again the United States legislation, which sought in this way to raise a colour bar against the Asiatics, seems to have been taken as the model. In Brazil, however, this bar does not operate against the Japanese, whose statutory quota is nearly 3,500, whereas it may operate to the disadvantage of other nationalities against which there is no prejudice. — 78 — Other Principles. — Among the other principles governing immigration in Brazil, mention must first be made of the principle of equality of treatment for national and foreign workers, both under ordinary law and in respect of conditions of employment. The observance of this principle is highly necessary; not only does it reassure the Brazilian worker as to the maintenance of his standard of living, which is already low enough, but it also tends to prevent the kind of inferiority complex to which the immigrant is only too often prone. Another principle which is excellent in intention but seems to have caused some disappointment in application, at least according to the memorandum cited above, is the provision that no immigrant may enter the country unless he is in possession of a contract of employment. Agricultural workers from the poorer countries of Eastern Europe, for instance, who as free emigrants find it difficult enough to pay the cost of their passage, are unable to bear the extra expense of obtaining a contract. It is said that in these cases there is a danger that a practice already met with occasionnally may become general where free emigration is concerned. I refer to the illegal traffic in fictitious agricultural contracts of employment, which are sold by middlemen at exorbitant prices to so-called agricultural workers who are in reality urban workers and who, on arriving in Brazil, are a nuisance to the cities, where they are a drag on the market, and are no use to the agricultural districts, where on the contrary labour is urgently required. In order to prevent this topsy-turvy form of selection, which is an unforeseen result of the compulsory requirement of a contract, the memorandum recommends that this requirement should be abolished, in favour of the establishment of an efficient service for the selection of applicants in the emigration countries, so that only genuine agricultural workers would be allowed to emigrate, even on their own account, to countries which are known to have only agricultural employment to offer. Finally, there is one more principle, also laid down in Article 121 of the Constitution, the application of which may have far-reaching consequences on the settlement of immigrants in Brazil. Paragraph 7 of this Article prohibits the concentration of immigrants at any given point in the territory of Brazil, and provides that the localisation, selection and assimilation of aliens shall be regulated by law. This provision is inspired by the desire, no doubt legitimate and in any case unanimous, to — 79 — promote the rapid assimiliation of immigrants. For the time being no statutory measures have been enacted to give effect to the constitutional principle. A preliminary draft proposes, however, that the teaching of Portuguese by Brazilian-born teachers should be compulsory in all settlements — a measure which is hardly open to reasonable objection — and would also prohibit the founding of any settlement in future, whether official or private, with immigrants of a single nationality, but would require a certain proportion of Brazilian nationals to be included in every case. There is nothing new in these last provisions so far as the official settlements are concerned; it has always been the practice to mix the nationalities and to include a large Brazilian element, as examples already given have shown. As regards settlement by private agencies operating commercially, these provisions do not seem likely to create any difficulties, since there is nothing to prevent the companies concerned from recruiting their settlers from among all nationalities. There remain the settlement agencies with social aims, formed to promote the settlement of special classes of persons (i.e. persons of a certain nationality, race, or even religion). Can such agencies be required, without endangering their success, to devote part of their funds, which are often donated under specified conditions, to the establishment of Brazilian settlers ? This does not seem to be impossible, but it doubtless implies the condition that the State Government concerned should offer some return in the form of a grant of land on specially favourable terms, tax exemptions, or other facilities. INTERNAL MIGRATION Interstate migration, especially from the northern States to the rapidly developing central ones, has always been very active in Brazil, and especially so since the Federal Constitution prescribed the quota system for foreign immigration. At present most of these Brazilian immigrants go to Säo Paulo. As already stated, this State is capable of absorbing 300,000 immigrants a year, whereas its official quota for foreign immigrants is only 32,000. Hence it is obliged to have recourse to workers from the other parts of Brazil. It receives immigrants from Bahia and Ceara (especially in years of drought), and even from Minas Geraes and the southern States, although these are in the full tide of development and have for many years themselves ad- — 80 — mitted foreign immigrants. During the first half of 1936, for instance, 400 emigrants came to Säo Paulo from Rio Grande do Sul. A few Italians also came from Argentina, which may be regarded in a sense as a source of internal migration. Generally speaking, however, the nothern States are the principal sources of supply. The subsidies to foreign immigration were suspended from 1927 to 1935, when they were resumed, but at the same time the recruiting of workers from the other Brazilian States had to be intensified. Four private companies supported by the State undertook the recruiting, transportation, and feeding of the immigrants during the journey, and their accomodation in camps pending their departure for the plantations. In 1935 these companies brought 50,000 workers into the State at Government expense. The cost naturally varies with the distance covered; it is 100 milreis for a worker from Minas Geraes, 170 from Bahia, and 260 from Ceara. In the eyes of many people in Säo Paulo this immigration from the north is admittedly a makeshift, and they look forward to a system which will enable them to replace it by increased immigration from abroad. They argue that although the workers from the north have the twofold advantage of being already in the country, and thus immediately available, and of being Brazilians, that is to say, needing no assimiliation, at least theoretically, this is only half true in practice. For although, in the case of northern Brazilians, there is none of the danger of the formation of national groups which is feared in the case of some European or Asiatic immigrants, it is none the less true that the northern Brazilians will never become assimilated to the population of Säo Paulo to the extent of adopting the latter's industrious ways. According to the standards of Säo Paulo the output of the northern Brazilian is poor; he has few needs, and he prefers to work little and earn little rather than to increase his earnings by working harder. Moreover, this type of labour is unstable. As already stated, these workers refuse to enter into any contract, even for the moderate term of a year; they wish to remain free to return home at the earliest favourable opportunity (for instance, in the case of migrants from Ceara, when the drought is over in their own State) or as soon as they feel so inclined. Moreover, they take full advantage of this freedom; it is estimated that practically four-fifths of the workers who have entered Säo Paulo from other States have returned home again within a comparatively short space of time. The most — 81 — important standard for judging the qualities of a group of migrants in Säo Paulo is the rate of permanent settlement among them, and it is precisely among the migrants from other States that the rate of permanent settlement is lowest. Lastly, a twofold final argument is drawn from the demographic position, not in Säo Paulo itself but in the home States of the migrants. These States are sparsely populated and are beginning to call on foreign immigration to assist their own development. Is this the proper time to take from them some of their already inadequate supply of labour ? Rightly or wrongly, there seems to be some apprehension in certain Government and political circles in Brazil concerning the mass immigration of Japanese settlers. As the Japanese settle for preference in the hot northern regions, it is hardly good policy to drain these regions of their native labour and thus to render the admittance of these immigrants, whose arrival seems to be so much dreaded, desirable even to the authorities of the States concerned. Thus even the question of interstate migration raises the wider problem of foreign immigration in general and Japanese immigration in particular. FOREIGN IMMIGRATION Under this head I propose to describe foreign immigration under the present quota system and the problems which it raises for Brazilians. Recruiting. — In most of the central and southern States foreign immigration is encouraged, assisted, and even subsidised within the limits permitted by the Constitution. The procedure in Säo Paulo, for instance, is as follows. The 1936 budget provided a credit of 10,000 contos (10 million milreis) for the introduction of European immigrants; of this sum, 3,000 contos were spent during the first half of the year (I visited Säo Paulo in July). The recruiting of immigrants in European countries and their transportation to the port of Santos, where they are taken ever by the Brazilian authorities, has been entrusted to two companies, one of which organises recruiting in the countries served by the North Sea and Baltic shipping lines, and the other in those served by the Atlantic and Mediterranean lines. Their operations are supervised by two State inspectors, responsible for the northern and southern 6 — 82 — zones respectively. As a rule the agents of the shipping companies responsible for transporting the immigrants submit a full and detailed list to the competent inspector, as furnished by the immigration company; the inspector examines the list and grants or refuses his approval. In many cases he inspects the applicants, convened for the purpose on a specified date, and superintends their embarkation. I was able to examine the charter of one of these immigration companies, which specifies that all the immigrants must be agricultural workers. Unless they enter the country in response to an invitation from relatives already established in Brazil, they must come in family groups including at least three persons fit for agricultural work and between the ages of 12 (14 for girls) and 50 years. This reflects the Brazilian Government's desire to attract those immigrants who will be most likely to settle in the country. The State Government refunds the cost of the immigrants' fares to the immigration companies, which have already paid the shipping companies. In 1935 the fares averaged £17 for each adult, half of this sum for children between 7 and 12 years, and a quarter for children between 3 and 7, children under 3 years travelling free. The company is responsible for the transport of the immigrants' luggage, which must travel on the same ship ; it is liable for compensation for any piece of luggage lost at the rate of 100 milreis, or of the actual value if declared. The authorities of Säo Paulo expressed their regret that collaboration between their representatives (inspectors and companies) and the authorities of the emigration countries has not yet been organised everywhere as closely as they would have wished. They are doing everything in their power to remedy this. Thus the charters of the companies provide that they shall comply strictly with the laws and regulations of the countries in which they operate, that they shall not begin recruiting without formal permission from the Government of the country, and that they shall not issue misleading propaganda; for instance, the only leaflets or information which may be distributed are those previously approved by the Secretary for Agriculture of Säo Paulo describing living and working conditions in that State. Such are the safeguards adopted by the immigration country to protect the immigrant. Let us now consider the measures it has taken for its own protection, in accordance with the Decrees — 83 — of 9 and 16 May 1934, issued shortly before the Constitution was adopted. If the immigrant has no capital which he intends to invest in the country, he must fulfil one of the two following conditions : he must either hold a letter of invitation (carta de chamada) issued either by relatives already settled in the State or by the State Government in the interests "of the demand for agricultural labour ", and in this case he need not hold a contract of employment; or he may be applied for by an agricultural undertaking or an individual plantation owner, and in this case he must be in possession of a contract of employment concluded for a term of three years if the employer is an undertaking, and one year if he is a plantation owner. In both cases the contract must cover a group containing not less than two persons between 12 and 60 years of age. As regards non-agricultural immigrants, provision is made for the admittance of two classes ; technicians, and persons with no special qualifications. Technicians may be admitted provided they hold a contract with an industrial employer for the term specified in the contract, which may be prolonged. Other persons must be in possession of a minimum sum of 6 contos or, in the case of a family group, 3 contos for every person over 12 years of age and 2 contos for every child below that age. Further, a reliable permanent resident in Brazil must guarantee their maintenance and their repatriation, if necessary, for a period of five years. Distribution and Placing. — Once the immigrant disembarks at Santos or at any other Brazilian port, he passes out of the charge of the immigration company into that of the State immigration authorities. After passing the inspection of the port services the immigrants are taken to the State immigrants' hostel. I visited two of these hostels: that at Rio de Janeiro in the wonderful setting of the gardens of the Isla de Flores, and that at Säo Paulo, which, although in a less romantic setting, is equally comfortable. Both these institutions deserve unstinted admiration and they do the greatest credit to the spirit of social progress which animates the immigration authorities of Brazil. The dining rooms, dormitories, sanitary arrangements, and medical services are faultless. Each of the hostels also has a full set of data concerning immigration and settlement, including maps, statistics, agricultural leaflets containing practical advice, 6a — 84 — posters and propaganda, health hints, etc. At the Säo Paulo hostel I was shown models of the settlers' houses, shops, schools and church in the famous settlement of Baräo de Antonina, which I was unfortunately unable to visit. These then are the hostels in which immigrants and their families are temporarily accommodated. Let us now follow the fate of one of these immigrants' families in the hostel of Säo Paulo. The fact that this immigrant is in the hostel at all means that he had no fixed destination and did not come in response to an application from a relative or from a company or plantation owner with whom he is under contract. Ho is one of the immigrants recruited by application from the Government either to enter an official settlement or to take employment on a plantation which is short of labour. As already stated, the present tendency is to require the immigrant to work on a plantation for several years so that he may become acclimatised and prove his mettle. On entering the hostel he is given a medical examination and any medical attention he may need; he is inoculated against typhus and dysentery, vaccination against smallpox having already been performed in his own country before departure. The authorities then look for a suitable opening for him. The Department of Immigration has a card index, kept constantly up to date, of all applications for immigrants addressed to it from the interior of the country, and giving any particulars of the applicant furnished by himself or obtained from the State Department of Labour concerning the number of workers employed, the age required, occupations specified, and conditions of employment offered. As there are always more applications than immigrants, the first to be met are those from employers who offer the best living and working conditions. This leads to a certain spirit of competition among the plantation owners who are short of labour, and the scarcity of labour thus has at least the advantage of improving conditions of employment. The "Rural Association of Brazil ", which comprises most of the plantation owners, has realised this and is conducting a campaign among its members with a view to improving sanitary conditions on the land and safeguarding the workers' health. The Department of Immigration at Säo Paulo is also drafting a Bill, which proposes to give the administrative authorities power to withhold certain State facilities of a financial, economic or sanitary nature from unsatisfactory undertakings. — 85 — The immigrant and his family are then sent on to the selected plantation, provided with the caderna containing their contract of employment, or in exceptional cases to an official settlement. In the first case, if there is any doubt as to the living and working conditions of the plantation, an official of the Immigration Department accompanies the immigrant in order to inspect these conditions on the spot. On arrival at their destination the immigrant and his family become workers or settlers as the case may be, and enter on the life which has already been described above 1. Arguments for and against Foreign Immigration. — Such is the system at present in operation. It must be admitted, however, that it does not yet operate on a large scale; from 1 January to 30 June 1936 the records of the competent services of Sao Paulo showed that 500 aliens had been placed in employment in the agricultural undertakings of the State.as compared with 10,000 Brazilians. This shortage of immigrants is very generally, if not unanimously, deplored in Säo Paulo, and there is a general demand, if not that the Constitution should be amended, at least that the quotas should be increased. But there is also a body of opinion, especially in the north, in favour of still severer restrictions. In short, the question of whether foreign immigration should be increased, kept within narrow limits, or further restricted is a public issue in Brazil to-day. It would be both impertinent and presumptuous on my part to attempt to settle this question either one way or the other, but I can at least try to summarise the arguments I heard put forward by the supporters and the opponents of foreign immigration without overstepping the bounds of my competence and knowledge. Arguments in Favour of Foreign Immigration. — It is stated in favour of foreign immigration that it would aid the rapid growth of a population whose sparseness is retarding the development of the enormous resources of Brazil. This would also result in increasing the purchasing power of the home market, the restricted scope of which was one of the main causes of the particular severity of the depression in Brazil during the recent world slump, and also prevents the introduction of that greater 1 See Second Part, Chapters I and II. — 86 — variety in agricultural production which is both possible and desirable in Brazil. If it were only a question of providing more workers for the coffee, sugar and cotton plantation in the States now in course of development, interstate migration might be sufficient, at least so far as its quality is concerned, although it would fall far short of the necessary quantity. But Brazil also needs technicians, market gardeners, and peasants who are used to dairy farming and its ancillary industries, and these cannot be found in the northern States. Further, Brazil has benefited greatly in the past from the mixture of races which have settled in its territory, each contributing its special characteristics and merging with the rest to found a new and original culture. Why be afraid of the introduction of new elements ? It is obvious that a larger influx of European immigrants would be the best check to mass immigration by the Japanese, which is apparently viewed with apprehension in certain quarters. It is quite right that every possible precaution should be taken to select the immigrants before departure and to attach them to the soil once they have entered the country, so that their families may become Brazilians within one or two generations with no desire to return to their country of origin. But these measures do not exclude the possibility of large-scale immigration. Arguments against Foreign Immigration. — It is argued against foreign immigration that before admitting aliens to the country the livelihood of all Brazilians should be secured. This is not the case in the north-eastern parts of Brazil at present and the inhabitants of this region must therefore be given the first opportunity of going to seek a living in the centre and the south. Another argument is that the workers' standard of living is already very low in Brazil. To open wide the doors to immigration would mean increasing the supply of labour to such an extent that its remuneration would fall to a lower level. Moreover, subsidised immigration is expensive when the immigrants are brought long distances and public funds are none too plentiful. And, leastly, whatever may be said to the contrary, too large an influx of aliens will endanger the national culture, especially — 87 — if settlements of immigrants of the same nationality are formed, in which the few Brazilians would be submerged, a course which would have to be followed willy-nilly in the event of extensive immigration. This danger would be all the greater in that the immigrants of some nationalities are much more liable to settle permanently than the interstate migrants, who, as already stated, are extremely unstable. To attach foreign immigrants to the land always involves the risk that one day they will come to predominate over the true Brazilians and become masters of the land on which they have settled. It is better to adopt the policy of a slower but truly national development of the resources of Brazil. Nationality of Immigrants and Rate of Permanent Settlement. — The foregoing arguments for and against foreign immigration raise certain points which must be considered in greater detail. Some of these relate to the nationality of the immigrants, others to their occupation, and especially to the proportion engaged in agriculture, which is the branch where labour is most needed in Brazil, and finally, others to the coefficient of permanent settlement of each nationality. 1. As regards the first point, the following observations may be made. Generally speaking, the stream of immigration from the Latin countries, which was the most important before the war, has shrunk considerably since, whereas that from Eastern Europe has increased in volume, and a new stream, which is steadily growing, has also appeared from Japan. As regards the Latin peoples, Italian immigrants, who numbered over 187,000 persons between 1906 and 1915, fell to slightly over 88,000 between 1916 and 1925 and to 51,000 between 1926 and 1935. The corresponding figures for Spanish immigrants are 214,000, 87,000 and 37,000. Only among the Portuguese has immigration remained at the former level, the figures being 203,000 between 1916 and 1925, and 207,000 between 1926 and 1935. As regards immigrants from Eastern Europe, between the periods 1916-1925 and 1926-1935 the number of Poles increased from about 7,000 to about 34,000 ; that of immigrants from the Baltic States (Estonians, Latvians, and Lithuanians) from 4,000 to 29,000; that of Rumanians from 16,000 to 22,000. Yugoslav immigration fell from 15,000 to 7,500, but it must be remembered — 88 — that there was practically no immigration from this source to Brazil before the war. The same might almost be said of the Japanese before the war. Between 1916 and 1925, however, over 25,000 Japanese entered Brazil, and between 1926 and 1935 nearly 133,000, this being the largest immigration figure for any nationality except the Portuguese, who migrate naturally and spontaneously to Brazil as to a sister country. 2. Which of these various nationalities furnish the most agricultural workers to Brazil ? No figures are available for the whole of Brazil, but the statistics for the State of Säo Paulo show the proportion of agriculturists belonging to each nationality among all the immigrants landed at Santos between 1908 and 1933. The figures are given in the following table, the nationalities being classified in order of the proportion of agriculturists. PROPORTION OF AGRICULTURISTS AMONG IMMIGRANTS LANDED AT SANTOS BETWEEN 1908 AND 1933 Nationality Japanese Yugoslavs . . Lithuanians. . Rumanians. . Spaniards . . Austrians Hungarians. . Italians Russians . . . Portuguese . . Poles Germans Syrians Turks Miscellaneous . . . . . . . . . . . . . . . Total 1 Per cent. of all immigrants Total number of immigrants Number of agriculturists 139,199 21,088 20,214 23,001 207,326 14,652 5,092 199,201 10,359 265,751 12,261 39,524 16,732 26,242 28,493 137,584 19,768 17,848 20,143 164,306 9,069 3,116 100,553 5,200 129,027 5,410 13,145 4,923 2,937 14,205 98.84 ! 93.74 * 88.29 ! 87.57 1 79.25 ! 61.83 61.80 50.48 50.20 48.5 44.1 33.3 25.6 11.2 49.8 1,029,135 647,234 62.9 Above the average. Thus, the Japanese, the immigrants from Eastern Europe (except the Poles), and the Spaniards furnish the highest proportion of agriculturists — it might in fact be said that the highest proportion is found among the newcomers (except for the Spaniards) save for the curious exception of the Poles. It — 89 — is admittedly hard to give a satisfactory explanation of this anomaly, but it may be the result of an exceptionally heavy demand for labour in the industry of Säo Paulo which was being founded and developed during the twenty-five years covered. To-day, however, it seems true to say that the vast majority of Poles immigrate with a view to agricultural work or land settlement. In the case of the Japanese this has been true from the outset. 3. Those who are in favour of foreign immigration advocate the immigration of family groups who will settle permanently in the country, this factor of permanency being an essential condition for their assimilation and for the advantages they will bring to the Brazilian economy. The two following tables give the rate of permanent settlement among immigrants of each nationality for all immigrants and for immigrants intending to enter agriculture ; the figures relate to all immigrants landed at Santos during the same years as are covered by the previous table. COEFFICIENT OF PERMANENT SETTLEMENT AMONG ALL IMMIGRANTS EMBARKED OR DISEMBARKED AT SANTOS B E T W E E N 1 9 0 8 AND 1 9 3 3 Nationality Lithuanians. Japanese. . Yugoslavs . Rumanians. Hungarians. Syrians. . . Turks . . . Austrians. . Poles . . . Spaniards . Portuguese . Germans . . Italians . . Russians. . Miscellaneous . . . . . . . . . . . . . . . Total Coefficient ot permanent settlement (per cent.) Entries Departures Balance ot immigration 20,214 139,199 21,088 23,001 5,092 16,732 26,242 14,652 12,261 207,326 265,751 39,524 199,201 10,359 28,493 1,072 9,445 4,828 5,863 1,853 7,198 12,227 6,869 5,805 100,128 154,156 31,666 173,663 9,183 23,342 19,142 129,754 16,260 17,138 3,239 9,534 14,015 7,783 6,456 107,198 111,595 7,858 25,538 1,176 5,151 94.7 93.2 77.1 74.5 63.6 57.0 53.2 53.1 52.6 51.1 42.0 19.9 12.8 11.4 18.0 1,029,135 547,298 481,837 46.8 — 90 — C O E F F I C I E N T OF PERMANENT SETTLEMENT AMONG AGRICULTURAL IMMIGRANTS EMBARKED OR DISEMBARKED AT SANTOS B E T W E E N 1 9 0 8 AND 1 9 3 3 Nationality Lithuanians. Syrians Hungarians Yugoslavs . Rumanians. Japanese Poles Portuguese. Austrians Spaniards . Germans Turks Russians. . Italians Miscellaneous . . . Entries Balance Departures of immigration Coefficient of permanent settlement (per cent.) . . - 17,848 4,923 3,116 19,768 20,143 137,584 5,410 129,027 9,069 164,306 13,145 2,937 5,200 100,553 14,205 183 93 66 422 491 5,141 373 9,639 783 27,407 2,350 1,201 2,726 59,038 1,611 17,665 4,830 3,090 19,346 19,652 132,443 5,037 119,388 8,286 136,899 10,795 1,736 2,474 41,515 12,594 99.0 98.1 97.9 97.8 97.1 96.3 93.1 92.5 91.3 83.3 2 82.1 59.1 2 47.6 2 41.3 22 88.6 Total. . 647,234 111,524 535,710 82.8 . . . . . . . . . . . , . . , . . . 1 Above the average. - Below the average. The chief conclusions to be drawn from these two tables are as follows. The immigrants with the highest rate of permanent settlement are those from Spain and Portugal, Eastern Europe and Western Asia, and lastly Japan. It will be noted, however, that apart from the Portuguese and Spaniards, whose high rate of settlement cannot cause the slightest alarm to the most scrupulous defenders of the national spirit and culture of Brazil, the Japanese are the people who have settled in Brazil in far larger numbers than the immigrants from Eastern Europe and Western Asia during the past twenty-five years; they alone represent a contingent 46 per cent, higher than that of the Hungarians, Yugoslavs, Rumanians, Poles, Lithuanians, Syrians, and Turks together. It is therefore only natural that Japanese immigration should be a matter of special concern to everyone in Brazil, whether they are in favour of or opposed to foreign immigration. JAPANESE IMMIGRATION Japanese immigration in Brazil is of quite recent date. Its primary causes must doubtless be sought in the over-population — 91 — of Japan and the very severe restrictions placed on Asiatic immigration by the United States Government from the beginning of the present century. It was in 1908, as a result of the favourable enquiry made by the authorities of Säo Paulo in the Hawaiian Islands and in Peru, where Japanese immigrants were admitted, that a first contingent of Japanese was allowed to enter Brazil. This beginning was made on a very small scale, since in 1908 78 Japanese were admitted to Säo Paulo, their immigration having been organised by a private Japanese emigration company; and Japanese immigration continued at about the same annual rate until September 1923, when the great earthquake took place in Japan. In order to mitigate the distress caused by this catastrophe, the Japanese Government decided to undertake a systematic organisation of emigration to selected countries which were willing to admit Japanese, and where the latter would find suitable climatic, working, and living conditions. Brazil was one of the foremost of these selected countries, as the following figures show. In 1927, 9,625, or 60.1 per cent., of the 16,041 emigrants who left Japan went to Brazil, and in 1933, 23,299, or 85.3 per cent., out of a total of 27,317. In 1934 the Japanese statistics showed that 872,814 Japanese were settled in foreign countries, Brazil holding second place, after Manchuria and before the Hawaiian Islands and the United States, with 173,500 persons, or 19.8 per cent, (nearly one-fifth) of all the Japanese living out of the country. As regards the provenance of these Japanese settlers in Brazil, the Japanese Consul at Säo Paulo has investigated the origin of 89,205 of the Japanese settled in the territory of that State. He found that 50,355, or over five-ninths, came from the south of Japan; 20,240, or two-ninths, from the centre; and the rest from the north and from some of the less important islands. This is no doubt due to the combined facts that the density of the population is greatest in the centre and south, that the climate of Säo Paulo is best suited to the southern Japanese, that the latter show the most enterprising spirit, and lastly, that the south of Japan is less highly industrialised than the centre. Organisation of Japanese Immigration to Brazil. — Whatever may be the opinion of a number of Biazilians as to the utility of Japanese immigration to Brazil (a question to which I will revert later), it must be admitted that its organisation might serve as a model for other similar movements which have been — 92 — or may be set on foot in Europe. The agency responsible for Japanese emigration and settlement is the Kaigai Kogyo Kaisha or "International Development Company ", but it operates with the support and under the control of the Japanese Government. Since 1923, the Japanese Government has in fact included in its budget a substantial item for "the protection and promotion of emigration and settlement ", and there is a special body of officials to help in the recruiting of suitable emigrants by means of enquiries, lectures, propaganda films and broadcast talks, while the Ministry for Oversea Affairs includes an advisory service for emigrants. Emigrants are entitled to reduced fares on Japanese railways and ships. Emigration agents are not allowed to ask for any fees from intending emigrants to Brazil, the Government granting them an indemnity. In 1928 the Government set up an Emigrant Training Institute at Kobe, where the emigrants stay for ten days prior to their departure and are given a rudimentary knowledge of the language, customs, and agricultural crops of Brazil. Emigrant ships are under the supervision of Government inspectors, and in Brazil itself the Japanese Government subsidies the establishment or upkeep of schools, hospitals, and pharmacies wherever Japanese nationals are to be found. The chief of the private companies which operate under these Government auspices is the Kaigai Kogyo Kaisha, which from its foundation in 1917 to the end of 1933 had introduced over 113,000 Japanese into Brazil. It also does eveiything in its power to ensure that the emigrants are properly recruited and trained; its activities include the organisation of travelling cinemas in the rural districts of Japan, press communiqués and lectures, interviewing of applicants for emigration by agents of the Company, etc. It is the Company which receives the applications of plantation owners for Japanese immigrants. In spite of the alarm shown in certain Brazilian circles, the supply of Japanese immigrants is far from sufficient to meet these demands in full; in 1933, for instance, applications were received for 8,200 families to work on the plantations and only 3,800 families actually came from Japan. The emigration Company has now extended its activities to land settlement. A brief description of the most important of its settlements will be given later. The official and semi-official activities of Japan do not stop here however; the Japanese immigrant continues to receive — 93 — assistance once he has been brought into the country and settled there. To give an instance, the Kaigai Kogyo Kaisha set up in 1931 in the State of Sâo Paulo a laboratory for agricultural experiments with an experimental farm of 250,000 hectares ; here fifty young Japanese receive a technical training reaching a fairly high standard, either immediately on their arrival from Japan or when they are already established on the plantations or in settlements. There is a similar laboratory with an experimental farm of 1,500 hectares in Amazonas, mainly for the study of the most suitable crops and plantations for cultivation in the Amazon forests. The Japanese in Brazil. — In the past, Japanese immigrants to Brazil have gone by preference to the State of Säo Paulo. In 1935, 150,000 of the total of 173,500 Japanese in Brazil, or over six-sevenths, were to be found in this State. The Japanese in Säo Paulo form four groups, each fulfilling a different function which may be said to mark one of the stages in the process of Japanese settlement in Brazil. The first group is to be found in the old coffee-growing belt of Paulista and Mogyana, from Araraquara to Ribeiräo Preto and Rio Grande. In this region they are nearly all paid labourers in the employment of the plantation owners, brought to the plantations in response to their demand for Asiatic workers one or two years previously by the chief Japanese company. Most of them are merely serving their apprenticeship to the Brazilian climate, customs, and methods of work. They also begin to earn a little money, pay their debts, and put something by. Then, when they have acquired some experience and a measure of economic independence, the majority go elsewhere to become smallholders or settlers. The second group, which to-day is the largest, is that in the region of the city of Säo Paulo. There are no less than 3,400 Japanese in the immediate vicinity of this city. Nearly all of them are market gardeners growing vegetables and potatoes principally for the Säo Paulo market; most of them began their careers as wage earners in the manner described above. The third group is found further in the interior of the country, in the more recently developed region of Alta Paulista, Alta Sorocabana and Novo Este. They own small plantations on which they grow coffee, maize, cotton, and tea. The fourth and last group consists of the Japanese living on — 94 — the coastal plain from Santos westward to the frontier of Paraná. In this region the Japanese is a settler; it is the site of the Kaigai Kogyo Kaisha's large settlement. This settlement was founded by the Kaigai Kogyo Kaisha around Iguape and Registro in 1912 under a contract between the Government of Säo Paulo and a financial group in Japan, which ceded its rights to the Company in 1917. The latter has invested 2 million yen in this colony, which to-day covers 75,000 hectares of land. At the end of 1935 it contained 767 families, or 4,873 Japanese, in addition to 3,590 Brazilians. Every family admitted must include at least three persons of working age and ability and must deposit a sum of 950 yen, or over 6 contos (6,000 milreis), as security for the advances made by the Company to ensure the family's maintenance during the first year and the purchase of a holding. The holdings contain about 25 hectares of land and cost 1,000 yen (over 6,300 milreis) repayable in seven annual instalments. The Company has organised various facilities to assist the settlers and help them to market their products; these include a laboratory for agricultural experiments, a stock-breeding farm, premises for husking rice and sorting coffee. Lastly, it also acts as the settlers' agent in marketing the products. The average annual value of the settlement's production is about 500,000 yen, or nearly 3,200 contos. As already stated, most of the Japanese immigrants enter the country as agriculturists and remain in agriculture. The statistics show that the Japanese population of Brazil, which numbers 173,000 persons, includes 36,838 occupied persons, distributed by occupation as follows : Agriculture Commerce Industry Public services and liberal professions. . . Communications and transport Domestic service Miscellaneous Total 33,285 1,279 884 422 355 245 368 3M38 Of the 33,285 members of the occupied population who are engaged in agriculture, 19,499, or 58.5 per cent., are already owners of land. It has already been seen that according to the statistics for the State of Säo Paulo, the Japanese are the immigrants among whom the smallholding system is the most common. — 95 — The introduction of smallholdings, coupled with the methodical and enterprising character of the Japanese, has enabled them to play an important part in developing mixed farming in Brazil and in introducing a number of new crops. During the season of 1931-32, when there were fewer Japanese in the State of Sào Paulo than there are to-day, Japanese holdings accounted for the following proportion of the production of some of the products of this State : Percentage Tea Vegetables Silkworm cocoons Cotton Potatoes Bananas Rice Coffee Beans Maize 75 70 57 46.4 14 11.3 8 5 4.6 4 Japan has now fresh plans for settlement in the North of Brazil, where the climate suits the southern Japanese who, as already seen, form the majority of the immigrants. A Japanese settlement company, the Nambei Takushoke Kaisha, has two settlements in the State of Para, one at Acara and the other at Monte Alegre. At present these two settlements do not contain more than 1,500 persons. In the State of Amazonas, negotiations and plans begun in 1929 and 1930 ultimately led to the conclusion of a contract between the State Government and the Japanese for the concession of one million hectares of land. But it was not until 30 September 1935 that the Legislative Assembly of Amazonas authorised the Government to ask the Federal Senate to approve the contract, as required by Article 130 of the Brazilian Constitution. This approval was refused after a long debate in October 1936, so that the contract has been cancelled. This is one among many other signs of the hostility with which Japanese immigration is regarded in some Brazilian circles. The arguments put forward against it are the same as those summarised earlier in this study in connection with foreign immigration in general, but in this case they are more imperious and the emphasis is laid on the threat to the physical and moral integrity of the nation, and even, as is alleged in certain quarters, to its independence, which this immigration implies. Accuracy compels me to add that I heard these objec- — 96 — tions to Japanese immigration put forward by persons who would never have entertained them in the case of European immigrants. These persons were all the more anxious to encourage the latter as the best means of reducing the extent and relative importance of Japanese immigration. On the other hand, many persons in Säo Paulo assured me that in their opinion the Japanese peril was non-existent in Säo Paulo, the population of which is so large and energetic that it is bound to assimilate the Japanese immigrants, if not in the first generation, at least in the second, and that even though they represented a real danger in the North, where the population is so much sparser, this would only be an additional reason against draining that part of the country of its native population by allowing internal migration to continue on the large and uncontrolled scale on which it occurs at present. The gist of the discussion is in fact substantially the same as regards both foreign immigration in general and Japanese immigration in particular, the arguments merely being slightly changed or more vigorously expressed. It must be admitted, however, that, of the two, Japanese immigration has fewer friends and rather more enemies. It is not the present writer's business to take sides on this question, but I can at least safely say that so far as the methods and procedure of migration and settlement are concerned, European migration movements might well take the Japanese example as a model in many respects if they were to revive one day on a large scale. CONCLUSIONS From this rapid survey of some of the social aspects of economic development in Brazil, certain facts stand out clearly and definitely, while others raise problems which are beyond the scope of this study and can be solved only by the Brazilian people themselves. Upon one of the most obvious facts all those who have visited Brazil, even if only on an aeroplane trip, are unanimously agreed — namely, the abundance and variety of the animal, vegetable, and mineral resources of the country. This abundance, though perhaps not the variety, stops short at the final resource necessary to develop all the others, man-power. Here it is not quality which is lacking, but the quantity, which is inadequate for rapid and thorough development. Those resources which are most widely and thoroughly exploited at present are the vegetable and animal wealth of the country. Brazil has remained predominantly a country of plantation products and crops and, to a lesser extent, of stockbreeding. Agriculture, the chief source of Brazil's wealth, was long confined to a few staple crops, and even to a single crop — coffee—so far as the export trade was concerned. To-day there is a deliberate trend towards mixed farming and the development of sugar cane, cotton, and oleaginous plants, vegetables, fruit, dairyfarming, and dairy-farming industries. This development again raises the problem of population, since all these newly extended or new forms of production require a great deal of labour. Some of them also involve the smallholding system, which cannot be widely introduced unless more applicants for holdings are available. And a higher purchasing power than at present obtains is required on the home market to dispose of the resultant products. Finally, Brazil has now become an industrial country. The mining and transforming industries of Minas Geraes, the meat and leather industries of the south, and above all the varied, concentrated, and organised industries of Säo Paulo, have given a new complexion to the classic notion of Brazil as a country of adventurers. Here again the question of population arises. It is not that the industry of Brazil, and even that of Säo Paulo, cannot draw the necessary supply of labour, and even of skilled labour, from the rural areas, except for some technicians and a few skilled trades. But this can only be done by draining a — 98 — rural population of agricultural workers and settlers which is already inadequate and thus aggravating the shortage due to the expanding needs of agriculture itself. If, therefore, Brazil wishes to develop its resources rapidly and fully, a new influx of population is necessary. The question is whether it really wishes to do so, or whether it prefers to proceed more slowly, depending mainly on the normal natural increase of its own population. This is a problem which only the Brazilians themselves can decide. Supposing, as seems possible, that the first alternative is adopted, i.e. that a more liberal immigration quota policy than the present one is introduced in the near future, what further problems will this raise for Brazil ? Some of these, too, will be for Brazil itself to solve; for instance, those relating to the number of immigrants to be admitted, the countries from which they are to be drawn, and the conditions as to occupational, economic, political or cultural qualifications required for their admission. The days are past when countries were willing to admit anybody coming from anywhere at all to their vacant territories without any conditions. Economic planning is now the order of the day; there is talk of a planned nutrition policy for the workers, and immigration and land settlement will also be planned to the benefit both of the immigration and of the emigration countries, but also of the migrants. The right which Brazil, like every other immigration country, possesses of taking its own decisions as to the number of aliens it can admit and absorb creates a parallel obligation. The days are also past when the immigrants admitted to a country could settle down haphazard without the country of immigration doing anything to help them. Workers would no longer be willing to emigrate under such conditions in these days of improving standards of living, assistance to the unemployed, and labour legislation. We have seen that the Federal Government of Brazil as well as the State Governments have realised this, and that Sao Paulo, for instance, protects and assists the immigrant and future settler from the moment he leaves his own country until he settles in Brazil, and even beyond that stage, by its employment and inspection services. Some of the other Brazilian States have perhaps not yet attained this advanced stage of organisation, but there is little doubt that they will one day achieve it, especially if Brazil decides on a large- — 99 scale immigration policy, as is hoped both in Sao Paulo and elsewhere, since otherwise the immigrants would neglect them in favour of the better organised States. But there is another problem which already arises in Brazil, as a country of immigration and land settlement, and which will continue in the future: the problem of finance. It is true that in most parts of Brazil the price of land is not exorbitant, and a .credit institution which advanced the cost of land to be resold to a settlement company could expect to obtain a fair return on its money, leaving an honest profit for the company without forcing the settler to pay too heavy a price and within too short a time. But there is still the problem of finding the funds ; these are not available in Brazil alone, or even in most of the emigration countries, so that third parties must be brought into the arrangement. Hence the question of immigration and land settlement, though national in its origins and objects, becomes international in virtue of its financial aspects. But it is not only the financial aspects of the immigration problem which make it a matter of international concern. Collaboration between the country of immigration and the country of emigration is in fact essential to ensure that the immigrants actually fulfil the occupational, economic, and legal conditions fixed by the immigration country, and that the country of origin accepts the political and other conditions imposed. Thus, in order to solve the problems raised by any large-scale immigration policy which Brazil may adopt in the future, a bipartite or tripartite, or even a wider organisation will be necessary, but in any case one of an international character. During my visit to Brazil I put forward this view, which was always favourably received. In the present age of nationalism and autarky Brazil is one of the least nationalistic and autarkic of the big Powers. So far its population has been freely formed by an amalgamation of the most diverse elements, all of which have been welcomed on equal terms, and, as already stated, in this country, which has representatives of races of four colours on its territory, there is no race problem. Economically speaking, Brazil has based its livelihood and prosperity (perhaps too exclusively during a certain period) on its export trade — that is, on its international relations. It is not likely to be discouraged, disconcerted or antagonised by the international aspects of the social and economic problems confronting it to-day.