nd a similar service with Portugal has
been successfully maintained for a number of years, notwithstanding
the difficulties interposed by customs regulations. National and
international money order systems are also in operation.

The constitution of Brazil provides that the coastwise trade shall be
carried on by national vessels, but this provision did not go into
effect until 1896. And even then, because of the insufficient number
of Brazilian vessels it was provided in the regulations that foreign
vessels could be enrolled in that trade by using the Brazilian flag
and employing a certain proportion of Brazilians on the crew. One of
the purposes of this restrictive provision was that of creating a
national merchant marine, but the disinclination of Brazilians for
maritime pursuits has been a serious obstacle to its realization. In
1901 the merchant navy included 228 steamers of 91,465 tons net, and
343 sailing vessels of 76,992 tons net. These vessels are all engaged
in the coasting and river trade of the country. Efforts have been
made, however, to engage in foreign trade, and subsidies were offered
for a passenger and freight service to the United States. On the 23rd
of February 1906 the government completed a new contract with the
Lloyd Brazileiro Company for its coastwise and river service, and
included clauses providing for a line to the United States. This
foreign service (monthly) began in August 1906.

Although the coast of Brazil shows a large number of bays and
tide-water river channels which are apparently suitable for commercial
ports, a close examination of them reduces the number of good ports to
less than a dozen. The others are either difficult of access, or are
rendered practically useless by dangerous reefs, sand bars and shoals.
Important improvements have been undertaken in some of these ports.
Those at Santos and Manaos, for example, have produced good results.
In many cases, as at Rio de Janeiro, Santos and Manaos, the cost and
maintenance of the new port-works are met by an additional tax on
merchandise, though the immediate expenditures are met by advances
from the national treasury, and at Rio de Janeiro by a foreign loan.

_Commerce._--The imports, exports and domestic trade of Brazil are
by reason of their magnitude and peculiar character the most important
in South America, though the _per capita_ aggregate is less than t