oldier, was
tried and executed, but he was apparently ignorant of the persons who
procured his services. Three other men implicated in the conspiracy were
subsequently sentenced to imprisonment for a term of thirty years. The
remainder of the presidency of Dr Moraes was uneventful; and on the 15th
of November 1898 he was succeeded by Dr Campos Salles, who had
previously been governor of the state of Sao Paulo. President Salles
publicly promised political reform, economy in the administration, and
absolute respect for civil rights, and speedily made efforts to fulfil
these pledges.

Reform under President Campos Salles.

The difficulties in the reorganization of the finances of the state,
which Dr Campos Salles had to face on his accession to power, were very
great. The heavy cost involved in the suppression of internal disorders,
maladministration, and the hindrances placed in the way of economical
development by the semi-independence of the federal states had seriously
depreciated the national credit. The president-elect accordingly
undertook with the full approval of Dr Moraes, who was still in office,
the task of visiting Europe with the object of endeavouring to make an
arrangement with the creditors of the state for a temporary suspension
of payments. He was successful in his object, and an agreement was made
by which bonds should be issued instead of interest payments from the
1st of July 1898, the promise being given that every effort should be
made for the resumption of cash payments in 1901. President Campos
Salles entered upon his tenure of office on the 15th of November 1898,
and at once proceeded to initiate fiscal legislation for the purpose of
reducing expenditure and increasing the revenue. He had to face
opposition from sectional interests and from the jealousy of
interference with their rights on the part of provincial
administrations, but he was able to achieve a considerable measure of
success and to lay the foundation of a sounder system under which the
financial position of the republic has made steady progress. The chief
feature of the administration of Dr Campos Salles was the statesmanlike
ability with which various disputes with foreign powers on boundary
questions were seriously taken in hand and brought to a satisfactory and
pacific settlement. There had for a long period been difficulties with
France with regard to the territory which lay between the mouth of the
Amazon and Cayenne or F