December, 1889 195.485:538$ „ 1894 367.358:625$ „ 1899 733.727:153$ „ 1904 673.739:908$ After the establishment of the Conversion Office a new element, convertible paper, was added: _Inconvertible_ _Convertible_ _Total_ 1907 643.531:727$ 100.032:700$ 743.564:427$ 1912 607.025:525$ 406.035:800$ 1.013.061:325$ 1914 822.496:018$ 157.786:930$ 980.282:948$ 1916 1.060.562:720$ 94.559:930$ 1.155.122:650$ Issues of paper money during war years greatly increased this currency, but against it the Government held, in 1921, nearly 63 million contos of gold, in the Treasury and Conversion Office. Besides this amount of paper there is the coin circulation of nickel, and of silver in half-milreis, milreis, and multiples. It is an excellent coinage, of good design, well made and convenient, that minted since the Republic bearing republican devices, the date of inauguration of the new administrative plan, etc. But now and again a handful of change contains a coin bearing the bearded head of Dom Pedro II, for it is but twenty-seven years since the Empire was ended. A curious superstition exists among some Brazilians with regard to these coins; received, they are never passed on, but carefully put away in some drawer: “it is not good to spend the Emperor,” they will tell you, handling his image with kindliness. The six million pounds sterling below which the gold reserves of the Conversion Office have not been allowed to sink, and to which it has been possible to add little, back the large amounts of convertible paper, and, although a greatly shrunken sum, it has its effect in steadying exchange: another factor in preventing farther breaks, in spite of the seventy per cent increase in inconvertible paper, is the earnestness with which the Federal Government and the people of Brazil are insisting upon a vigorous solution of the problem of the foreign debt. Individuals in Brazil show themselves no less interested than officials: letters bearing upon the situation are constantly printed in the public press, many personal sacrifices have been made of percentages of salaries by legislators, officials and civil servants, and it is clear that the ablest heads in Brazil are trying to find a way in which Brazil can meet her obligations. This sincerity of purpose may not create gold, but it does strengthen public credit and helps in a more or less direct manner in restoring confidence which is certainly not without its effect upon exchange.