_State_ _External Debt_ Alagôas £ 500,000 Amazonas 3,000,000 Bahia 3,875,000 Ceará 600,000 Espirito Santo 1,160,000 Maranhão 720,000 Minas Geraes 6,800,000 Pará 2,040,000 Paraná 2,200,000 Pernambuco 2,370,000 Rio de Janeiro 3,000,000 Rio Grande do Norte 350,000 Santa Catharina 220,000 São Paulo 20,350,000 The States of Goyaz, Matto Grosso, Parahyba, Piauhy, Rio Grande do Sul and Sergipe have no external debts. The Funding Loan arranged by the State of Pará adds another £1,070,000 to her debt; the Funding Loan of Minas Geraes adds £600,000 and that of Amazonas, £850,000. The external debts of Brazilian municipalities, also borrowers from Europe, are about as follows, round numbers again being used: Federal District of Rio de Janeiro £4,395,000 Manáos (Amazonas) 214,000 Belem do Pará 750,000 plus Funding Loan 88,500 Recife (Pernambuco) 400,000 Bahia 2,000,000 São Paulo 750,000 Santos 1,000,000 plus Funding Loan 118,000 Other municipalities in S. Paulo State 685,000 Porto Alegre (Rio Grande do Sul) 600,000 Pelotas (Rio Grande do Sul) 600,000 Bello Horizonte 216,000 _Federal Debts_ On the outbreak of war in Europe in August, 1914, the foreign debts of the Federal Government of the United States of Brazil amounted to something over £102,000,000. President Wencesláo Braz inherited obligations which had been enhanced by about £30,000,000 during the previous four-year régime of Marechal Hermes da Fonseca. Brazil’s reputation as a good world customer had long permitted her to borrow freely, often paying old debts or interest with new loans, and piling up deficits as the most facile solution of economic complications.