At the same time the manufacturing section is not confined to S. Paulo; it is notably active in Minas and Rio, especially where electric power derived from waterfalls is employed, and in Bahia and Pernambuco where tobacco and sugar create legitimate home industries, and where there is a sufficiency of native and negro labour, the latter an inheritance from slavery days. The total value of the products of Brazilian factories is about 2,000,000 contos of reis, equal at twelve pence exchange to £100,000,000 or in U. S. currency, $500,000,000 _mais ou menos_. This is a larger sum than the value of Brazil’s exported agricultural and forestal products, which was about 1,811,000 contos in 1919, and 1,464,000 contos in 1920. This calculation, however, is not quite fair because it does not take into consideration the agricultural produce consumed in the country; there are no figures available on this subject. In a review of commerce published in May, 1916, the _Jornal do Commercio_ said that out of the ninety-four classes of Brazilian manufacture, eighty were free from internal taxes (the “imposto do consumo”) while fourteen were subject to tax, as well as to foreign competition. It was demonstrated that in these fourteen classes Brazilian manufactures fell below fifty per cent of the total consumption in only one instance, that of pharmaceutical specialties. The most important items are these, in round numbers: _Brazilian-made_ _Imported_ Woven fabrics (chiefly cotton, but 450,000 contos 47,300 contos 82 some silk and wool) Beverages (mineral waters, beer, 101,300 contos 47,640 contos 68 wine, spirits) Footwear (leather shoes and boots, 150,225 contos 2,425 contos 97 and _alpagartas_) Prepared tobacco, cigarettes and 39,000 contos 1,565 contos 96 cigars Hats 29,000 contos 3,800 contos 86 Matches 18,000 contos 4 contos 99.9 Conserves 13,300 contos 9,800 contos 58 Pharmaceutical specialties 11,700 contos 15,780 contos 43 In 1921 the number of home-made goods paying imposts rose to 21, and the value to well over one million contos, and includes, besides those detailed above, vinegar, walking sticks, salt, candles, perfumeries (of which Brazil makes sixty per cent of the consumption) and playing-cards. Among the large class of manufactures free from internal taxes are the important items of cotton thread, jute products (rope, cord and coffee bags) the products of ironworks, potteries, furniture factories; goldsmiths and jewel-workers, soap makers, paper and paper-bag factories, biscuit and bottle, shirt, mirror, trunk, ink, pipe, pin, and window-glass makers; but all of these pay a contribution to their State or municipality or both, appearing in revenue lists under “_Industrias e Profissões_.”