^* I would like to thank the National Endowment for the Humanities for a university teacher’s fellowship in 1990–1991 which made this article possible.

¹ Quote from Aristides Lobo, cited in de Murilo Carvalho, José, Os bestializados (São Paulo: Com-panhia das Letras, 1987), p. 9.Google Scholar When I presented an earlier version of this essay at UNICAMP in 1989 I was advised to change the title of my talk from “The Republican Revolution” to the “Proclamation of the Republic,” because the only revolutions that students would recognize would be 1930 or 1964.

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⁴ Viscount of Taunay, , O Encilhamento (1894; São Paulo: Itatiaia, 1971);Google Scholar Viscount of Preto, Ouro, Decada republicana, 2 vols (1899 rpt., Brasilia: University of Brasilia Press, 1986).Google Scholar

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⁶ Bastos, Humberto, O pensamento industrial no Brasil (São Paulo: Livraria Martins, 1952);Google Scholar Fishlow, Albert, “Origens e consequências da substituição de importações no Brasil” Estudos Econômicos 2 (1972), pp. 7–75.Google Scholar Luz, Nícia Villela, A luta pela industrialização do Brasil (São Paulo:Alfa-Omega, 1975);Google Scholar Sodré, Nelson Werneck, História da burguesía brasileira, (Rio: Civilização Brasileira, 1976);Google Scholar Stein, Stanley, The Brazilian Cotton Manufacture (Cambridge: Harvard University Press, 1957).CrossRefGoogle Scholar Also see, Villela, Anníbal and Suzigan, Wilson, Política do governo e crescimento econômico no Brasil (Rio: IPEA/INPES, 1973).Google Scholar

⁷ de Aguiar, Pinto, Rui e a economia brasileira (Rio: Fundação Casa de Rui Barbosa, 1973);Google Scholar Bastos, Humberto, Rui Barbosa, ministro de indepêndencia econômica do Brasil (Rio: Casa Rui Barbosa, 1949);Google Scholar Dantas, San Tiago, Dois momentos de Rui Barbosa (Rio: Casa de Rui Barbosa, 1949).Google Scholar

⁸ Colson, Frank, “On Expectations—Perspectives on the Crisis of 1889,” Journal of Latin American Studies, 13(1981);CrossRefGoogle Scholar Franco, Gustavo H.B., Reforma monetária e instabilidade durante a transição republicana (Rio: BNDES, 1983);Google Scholar Levy, Barbara, “O Encilhamento” in Neuhaus, Paulo, ed., Economia brasileira: Urna visão histórica (Rio: Editora Campus, 1980), pp. 191–256;Google Scholar Lobo, Eulália, Rio de Janeiro, do capital comercial a capital industriai e financeiro, 2 vols.(Rio: IBMEC, 1978);Google Scholar Tannini, Luíz Antônio, O Encilhamento (São Paulo: HUCITEC, 1981).Google Scholar

⁹ Departmento de Estatística, Nacional, Armário estatístico, 1939–1940 (Rio: Imp. Nacional, 1940), pp. 46, 86, 87.Google Scholar Suzigan, Wilson, Industria brasileira (São Paulo: Brasiliense, 1986), pp. 123–146.Google Scholar

¹⁰ DGE, Anuário estatístico, 1939–40, p. 68.

¹¹ Centro Industrial do Brasil, O Brasil, Suas riquezas naturaes. Suas indústrias, vol. 1 (Rio: M. Orosco & C, 1907), pp. 260, 261.

¹² Lewis, W. Arthur, Growth and Fluctuations, 1870–1913 (London: George Allen and Unwin, 1978), p. 178.Google Scholar

¹³ Revue des Deux Mondes, Jan. 1, 1889, p. 239; Maréchal, Carlos, A Century of Debt Crisis in Latin America, From Independence to the Great Depression, 1820–1930 (Princeton: Princeton University Press, 1989), p. 127.Google Scholar

¹⁴ Quoted in Maréchal, p. 145.

¹⁵ South American Journal, March 9, 1889 in The Council of Foreign Bond Holders (CFBH), “Guild Hall Newspaper Cutting Files,” vol. 6, microfilm, Financial Times, March 9,1889 in CFBH “Cutting Files.” Barão Ibira-Mirim to Min. de Relações Exteriores, London, Jan. 29, 1890 in Itamaratí archive, Consul Geral do Brasil em Londres, 254/3/10.

¹⁶ Pemambuco and Minas Gérais also sought European loans, South American Journal, March 2, 1889 and August 17, 1889; London Times, August 30, 1889 in CFBH, “Cutting Files,” vol. 6 and CFHB “Cutting Files,” vol. 4, p. 124; Brazilian Minister of Finance to Rothschilds, Rio, undated 1888, N.M. Rothschilds archive, London, XI-65-78.

¹⁷ Cited in Consul Geral do Brasil em Londres, Itamaratí, 254/3/10, 1889–1891.

¹⁸ South American Journal, December 1, 1888 in CFBH, “CF.” vol. 6.

¹⁹ CFBH Clipping Service, microfilm, vol. 6, passim. The Viscount of Ouro Preto calculated in A Década Republicana, vol. 1, p. 52 that private companies borrowed 59,288 contos of foreign capital and Europeans purchased Brazilian companies worth 28,000 contos in the Empires last year and a half.

²⁰ South American Journal, March 2, 1889 and Money Market Review, November 28, 1888 in CFBH, “CF.,” vol. 6.

²¹ Financial News, October 5, 1889 in CFBH, “CF.,” vol. 6.

²² South American Journal, March 2, 1889, Aprii 22 and August 31, 1889, London Times, August 30, 1889 in CFBH, “CF.,” vol. 6.

²³ Graham, Richard, Britain and the Onset of Modernization in Brazil, 1850–1914 (Cambridge: Cambridge University Press, 1969), p. 152;Google Scholar Financial News, Sept. 6, 1888 and Statist, May 19, 1888 in CFBH, “CF.,” vol. 6; Companie Generale de Chemin de Fer Brésilien prospectus, March 24, 1894 in “Correspondance Politique,” Brésil, vol. 26; “Chemin de Fer,” Minister d’Affaires Etrangers archive (MAE), Paris.

²⁴ Congresso Agrícola, coleção de documentos (Rio: 1878), p. 134.

²⁵ Balmori, Diana, Voss, Stuart F. and Wortman, Miles, Notable Family Networks in Latin America (Chicago: University of Chicago Press, 1984), pp. 19, 203, 220.Google Scholar Sweigart, Joseph, “Financing and Marketing Brazilian Export Agriculture: The Coffee Factors of Rio de Janeiro, 1850–1888,” Ph.D. Dissertation, University of Texas Austin, 1973, p. 227.Google Scholar Vaz, Alisson Mascarenhos, “Cia. de Fiação e Tecidos Cedro e Cachoeira,” Ph.D. Dissertation, Université de Paris X, 1973, p. 45;Google Scholar Levi, Darrell E., The Prados of São Paulo Brazil (Athens: University of Georgia Press, 1987), p. 83;Google Scholar de Mello, Zélía Cardoso, Metamorfoses de riqueza: São Paulo, 1845–1895 (São Paulo: Hucitec, 1985), p. 150.Google Scholar

²⁶ Levi, , The Prados, p.83.Google Scholar

²⁷ Namier, Louis noted in The Structure of Politics at the Accession of George III (London: Macmillan, 1961), p.46 Google Scholar that even in laissez faire Great Britain, before the rise of joint stock companies, financiers profited mostly from close ties to the state. Bergeron, Louis in Les capitalistes en France, (1780–1914) (Paris: Editions Gallimard, 1978), pp. 37–43 Google Scholar has shown the same for France.

²⁸ Van Delden Laeme, C.F., Brazil and Java: Report on Coffee-Culture in America, Asia, and Africa to H.E. the Minister of the Colonies (London: W.H. Allen, 1885), p. 212.Google Scholar

²⁹ Topik, S. “Francisco de Paula Mayrink, A Bourgeois Aristocrat” in Beezley, William and Ewell, Judith, (eds), The Human Tradition in Latin America, The Nineteenth Century (Wilmington: Scholarly Resources, 1989);Google Scholar Pang, Eul-Soo, In Pursuit of Honor and Power (Tuscaloosa: University of Alabama Press, 1988), pp. 120, 250.Google Scholar In the Almanak Laemmert Mayrink was listed as “capitalist.”

³⁰ de Paula Mayrink, Francisco, O Cambio, p. 23;Google Scholar Jornal do Commércio, August 25, 1889, p.l; Schantz, Moritz, Das Heutige Brasilien (Hamburg:W Maukesódhne, 1893), p. 305.Google Scholar de Carvalho, José Murilo, “Elite and State-Building in Imperial Brazil,” Ph.D. Dissertation, Stanford University, 1975, vol. 1, p. 386.Google Scholar Pang, , Power and Patronage, p. 182.Google Scholar

³¹ Jornal do Commércio, September 8, 1889 in FCRB “Recortes, 1889,” vol. 6.

³² Considering that according to the Província de São Paulo, October 23, 1889, São Paulo’s entire agricultural debt was approximately 160,000 contos, the public loan program was of enormous proportions.

³³ Undated memorandum of Francisco de Paula Mayrink, Pasta Banco do Brasil, Fundação Casa Rui Barbosa (FCRB); Brasil, Banco do, Relatório, 1890, p. 14;Google Scholar Fazenda, Ministerio da, Auxilios a lavoura (Rio: Imprensa Nacional, 1889), p. 53.Google Scholar

³⁴ According to the Banco do Brasil’s 1888 Relatório, p. 18, as late as 1888, 61 percent of the bank’s mortgages were secured by slaves.The Diário Popular observed on November 30, 1889 that the aid to agriculture did not help those who really needed it: “The thousands of contos already delivered [by the government] have served primarily to consolidate the accounts of these establishments [banks] and to help them liquidate delinquent debts.”

³⁵ Jornal do Commércio, September 8, 1889, found in the FCRB “Recortes” file. A Nação, cited in the Jornal do Commércio of August 30, 1889 made a similar comment.

³⁶ Jornal do Commércio, December, 1889 in “Recortes” FCRB; Juca Faro to Quintino Bocayuva, Rio, Jan. 4, 1892 in Quintino Bocayuva archive, CPDOC, Rio, QB 891.03.31 cp; Banco Hypotecário to Floriano Peixoto, Rio, Oct. 18, 1893 in Floriano Peixoto archive, Arquivo Nacional, Caixa 8L, Pacote 5; Almanak Laemmert, 1890, passim,

³⁷ Financial News, November 26, 1889, FCRB, “Recortes, 1890.”

³⁸ Gazeta de Noticias, June 9, 1889, FCRB, “Recortes, 1889;” Franco, , Reforma monetária, pp. 84, 85.Google Scholar

³⁹ Almanak Laemmert, 1889, passim; Banco da República, Relatório, 1892, p. 22. Colson, “On Expectations,” p. 285.

⁴⁰ Revue des Deux Mondes, Sept. 15, 1889, p. 480; Schantz, , Das Heutige Brésilien, p. 349;Google Scholar South American Journal, July 3, 1889 in CFBH “CF.,” vol. 6.

⁴¹ Schantz, , Das Heutige Brésilien, p. 341;Google Scholar Cattapan Reuter, Elizabeth, “O Encilhamento au Brésil,” Thése de 3e cycle, Université de Paris X, 1973, pp. 186, 188 ;Google Scholar Gérard to Min. d’Affaires Etrangers, Rio de Janeiro, March 12, 1893, Correspondance Comerciale, vol. 25, MAE.

⁴² See, for example, Silva, Hélio, O Poder Civil, (Porto Alegre: L&PM Editores, 1985), p. 5 Google Scholar and da Costa’s, Emilia Viotti analysis of the historiography of the Empire’s fall in Da Monarquia à Répub-lica, momentos decisivos (São Paulo: Livraria Editora Ciências Humanas, 1979), p. 295.Google Scholar

⁴³ Sodré, Nelson Werneck, História militar do Brasil (Rio: Civlização Brasileira, 1965), p. 165;Google Scholar Bastos, , Rui Barbosa, ministro da independencia; Carlos Manuel Pelaez and Wilson Suzigan, História monetaria do Brasil (Rio: IPEA/INPES, 1976), p. 179;Google Scholar Silva, Hélio, A República não esperou o aman-heçer (Rio: Civilização Brasileira, 1972), p. 73.Google Scholar

⁴⁴ Sklar, Martin J., The Corporate Reconstruction of American Capitalism, 1890–1916 (New York: Cambridge University Press, 1988), pp. 67, 438, 441.CrossRefGoogle Scholar

⁴⁵ Undated manifesto to Deodoro, Rothschilds archive, London, XI-65–78. Levy, B., “Encilhamento,” p. 209.Google Scholar

⁴⁶ Quoted in Silva, , A República não esperou o amanhecer, pp. 88, 89.Google Scholar For Barbosa’s attack on Ouro Preto’s “fictitious prosperity” see Report to the Chief of the Provisional Government, Rio, Dec. 28, 1889 in Rothschilds archive, XI-65-78.

⁴⁷ Whyndam to Salisbury, Rio, March 12, 1890, Public Record Office, London (hereafter PRO), FO 13 666; Blondel 1 to Min. Affaires Etrangers, Rio, March 12, 1890, Bresil, Correspondance Politique, vol. 34; MAE.

⁴⁸ da Fazenda, Ministério, Relatório, 1890, p. 46 Google Scholar and de Abranches, Dunshee, O golpe de Estado: Atas e atos do Governo Lucena, (Rio: Jornal do Brasil, 1954)Google Scholar Whyndam to Salisbury, Rio, Jan. 27, 1890 and May 14, 1890, PRO, FO 13 666.

⁴⁹ Banco do Brasil, Relatório, 1890, p. 14; Cámara Syndical dos Corretores de Fundos Públicos da Capital Federal, Relatório, 1895, p. 25.

⁵⁰ N.M. Rothschild to Minister of Finance, London, November 14, 1890, Letter Agency Book 4, Rothschilds archive; Wileman, J.P., Brazilian Currency: The Study of an Inconvertible Currency (1896 rpt.; New York: Greenwood Press, 1969), pp. 247, 253.Google Scholar

⁵¹ Pang, , Power and Patronage, p. 269.Google Scholar

⁵² Luz, , Auta pela industrializaçao, p. 106.Google Scholar

⁵³ Mail and Express, June 7, 1890, FCRB, “Recortes 1890.”

⁵⁴ da Fazenda, Ministerio, Relatório, 1890, p. 15.Google Scholar The BEUB itself held some 21,540 contos in twenty-four companies by August of 1890 and the Banco do Brasil held 11, 133 contos in stocks in 1891, see: F.P. Mayrink to R. Barbosa, Rio, Aug. 22, 1890, pasta “BEUB,” FCRB and Viana, Vitor, O Banco do Brasil (Rio: Jornal do Commercio, 1926), p. 609.Google Scholar

⁵⁵ de Paula Mayrink, Francisco, Finanças do Brasil (Rio: Comp. Impressora, 1891), p. 42.Google Scholar

⁵⁶ Ceasar Zama in Camara dos Deputados, Anais, 1896, vol. 6, pp. 331, 332.

⁵⁷ R. Barbosa to F. Mayrink, Rio, June 16, 1891, CRB 913(1) 16, 06.91; Barbosa to Mayrink, Rio, April 4, 1892, CRB 913 (9); F. Mayrink to Barbosa, Barbacena, May 31, 1893, CRB 913 (13) and F. Mayrink to Barbosa, Rio? Aug. 29, 1893, CRB 913 (14) in FCRB. Bandeira, Carlos Viana, Lado a lado de Rui (Rio: MEC, 1960), pp. 41, 49, 50Google Scholar; Almanak Laemmert, 1891, p. 1261; Magalhaes, Raimundo Junior, Rui, pp. 71–80 Google Scholar; Schulz, John, “The Brazilian Army and Politics: 1850–1895,” Ph.D. Dissertation, Princeton University, 1973, p. 209;Google Scholar Cattapan-Reuter, “Encilhamento,” p. 240.Google Scholar

⁵⁸ CF. Adams to Sanderson, Petropolis, Feb. 4, 1891, British Foreign Office, R.G. 13. Deodoro da Fonseca to Lucena, Rio, July 3, 1891 in Arquivo Publico de Pernambuco, Estadual, Arguivo do Bardo de Lucena: Catalogo (Recife: Braz, 1956), p. 101.Google Scholar Correspondence between Honorio Ribeiro and Lucena, Jan. 17, 1895 and March 23, 1895, raises the possibility that Mayrink also gave Lucena a house in fashionable Botafogo, p. 133.

⁵⁹ de Lucena, Barão, Exposição de motivos sobre a situação financeira e ideias de reforma (Rio: Imprensa Nacional, 1891), pp. 11, 12;Google Scholar Cámara dos Deputados, Anais, 1892, vol. 3, p. 134; de Ouro Preto, Visconde, “Finanças” in Decada republicana, pp. 92, 94, 215;Google Scholar Gazeta de Noticias, March 16, 1892.

⁶⁰ L.H. Haggard to N. Rothschild, Platford, Andover, Sept. 22, 1891, Brazilian Government file, XI-65-8A, N.M. Rothschilds archive.

⁶¹ Gazeta de Comércio e Finanças, Dec. 5, 1895, p. 2. Schantz, , Das Heutige Brésilien, p. 350;Google Scholar Rio News, Jan. 13, 1891.

⁶² Pan American Bulletin, July 1895, pp. 13, 14; F.P. Mayrink to R. Barbosa, Rio, Aug. 22, 1890, pasta BEUB, FCRB; Freiré, Felisbello, História do Banco do Brasil (Rio: Typ. d’O Economista Brasileira, 1907), p. 171 Google Scholar; Vianna, , Banco do Brasil, pp. 603, 604Google Scholar; de Veiga Filho, João Pedro, Estudo econômico e financeiro sobre o estado de São Paulo (SP: Typ. do Diario Oficial, 1896), p. 25;Google Scholar Franco, , Reforma monetária, p. 122;Google Scholar Versiani, Flávio Rabelo, “Industrialização e economia de exportação, a experiéncia brasileira antes de 1914,” Revista Brasileira de Economia 34 (1980), p. 10.Google Scholar Cámara dos Deputados, Anais, 1892, vol. 3, p. 140; Levy, Maria Barbara, História da bolsa de valores (Rio: IBMEC, 1979), p. 175 Google Scholar and “O Encilhamento.”

⁶³ Mascarenhas Vaz, “A Fiação de Tecidos.”

⁶⁴ Ribot to Min. Affaires Etrangers, Rio, March 29, 1891, Brésil, Correspondance Commerciale, vol. 22, MAE. Magalhaes Vaz, “Cia. de Fiação,” 1982.

⁶⁵ Almanak Laemmert, 1891, p. 1462; “Brazilian Government” file, N.M. Rothschilds, XI-65-78; Mayrink Lessa, Mayrink, passim. Also see Topik, “Francisco de Paula Mayrink.”

⁶⁶ Graham, Richard, Britain and the Onset of Modernization, p. 199.Google Scholar

⁶⁷ Paço d’Arco to Conde de Valbom, Jan. 7, 1892, p. 127; Levy, , “Encilhamento,” p. 219,Google Scholar Siqueira, Edmundo, Resumo histórico de The Leopoldina Railway Co. Ltd. (Rio: Grafica Editora Carioca, 1938), p. 15;Google Scholar Lucena, , Motivos, pp. 18, 19.Google Scholar

⁶⁸ Almeida, Rufino Porfirio, “Um aspecto da economia de Santa Catarina: A indústria ervateira, O estudo da Companhia Industrial,” M.A. thesis, Universidade Federal de Santa Catarina, 1979, p. 31;Google Scholar Paço d’Arco, p. 168; Graham, , Onset of Modernization, p. 199.;Google Scholar Pernici, Gadiel, A república das usinas (Rio: Paz e Terra, 1978), p. 75.Google Scholar de Azevedo, Thaïes, História do Banco da Bahia, p. 187;Google Scholar Evanligny Deville to Min. Affaires Etrangers, Rio, Nov. 1, 1893, Brésil, Correspondance Commerciale, Rio de Janeiro, vol. 25, MAE.

⁶⁹ Brazil, Cámara dos Deputados, Anais, 1892, vol. 3, pp. 142–147; F. Mayrink to R. Barbosa, Aug. 22, 1890, “BEUB” FCRB; Ana Maria Ferreira da Costa Monteiro, “Empreendedores e investidores em indùstria textil no Rio de Janeiro, 1878–1895,” M.A. thesis, Universidade Federal Fluminense, 1985, pp. 13, 41, 76, 150, 166, 320; Levy, , “Encilhamento,” p. 234;Google Scholar Lobo, , Rio de Janeiro, v. 2, p. 463;Google Scholar Vaz, Magalhaes, “Cia. de Fiação,” p. 182;Google Scholar Elisabeth von der Weid and Rodrigues Bastos, Ana Marta, O Fio da meada, estratégia de expansáo de uma industria têxtil (Rio: Fundação Casa Rui Barbosa, 1986), pp. 59, 165.Google Scholar

⁷⁰ Paço d’Arco to Minister Ayres de Gouveia, Rio, June 8, 1892 in Paco d’Arco, p. 158. The cost of living rose rapidly from Bahia to Rio Grande do Sul, see Burke to Secretary of State, Salvador Bahia, June 21, 1891, “Dispatches from U.S. Consuls in Bahia,” National Archives, R.G. 56 and Wileman, , Brazilian Exchange, p. 172.Google Scholar

⁷¹ Barbosa Lima, Alexandre José, Discursos parlamentares (Brasilia: Cámara dos Deputados, 1963), p. 121;Google Scholar Also see for Jacobin sentiment: A Metralha, Rio, Dec. 5, 1893, p. 2; O Operário, Jan. 30, 1893.

⁷² Paço d’Arco to Conde Valbom, Rio Nov. 12, 1891, Paço d’Arco, pp. 104, 105. On Oct. 4, 1891, a month before the coup, Paço d’Arco had written to Balbom that a group of Portuguese bankers tied to the Banco da República were hoping that Deodoro would lead a “golpe” to protect the bank.

⁷³ Schantz, , Das Heutige Brésilien, p. 327;Google Scholar Paço d’Arco to Minister of Foreign Relations, Rio, Feb. 9, 1892, p. 134.

⁷⁴ Juca to Quintino Bocayuva, Rio, Oct. 9,1890 in pasta 5, folio 1 QB 889.11.16, Quintino Bocayuva archive, CPDOC, Rio; Memorandum, Banco do Brasil to Rui Barbosa, no date, pasta Banco do Brasil, FCRB; Freiré, Felisbello, História da Revolta de 6 de Setembro de 1893 (Rio: Cunha & Irmáo, 1896), pp. 12,Google Scholar 13, 57; Reuter, , “Encilhamento,” pp. 236, 239, 240.Google Scholar

⁷⁵ Gerard to Ribot, Rio, Feb. 4, 1893, Correspondance Commerciale, Rio de Janeiro, vol. 24, MAE; Brazil, Cámara dos Deputados, Documentos Parlamentares: Meio circulante, 1893–1894 (Rio: Imprensa Nacional, 1914), p. 261; Paço d’Arco to Conde de Valbom, Jan. 7, 1892, and Paço d’Arco to Min. Ayres de Gouveia, June 8, 1892, Paço d’Arco, pp. 126–127 and 15–16; João Pandiá Calógeras, A Política monetária.

⁷⁶ For example Luz, , “Papel das classes médias,” p. 20.Google Scholar

⁷⁷ Suzigan, , Industria brasileira, pp. 139–141.Google Scholar