The story of the military operations belongs to the history of Paraguay, and only those events which bore a direct relation to internal affairs in Brazil will be mentioned here. The successful naval battle of Riachuelo, on the Parana, just below the southern end of Paraguayan territory, in June, 1865, aroused great enthusiasm in Brazil. National feeling was hardly cooled by the news which soon followed of a Paraguayan invasion of Rio Grande, and rose again with the defeat of that invasion. Brazil's regular army numbered less than fifteen thousand men before the war, but at the Emperor's call fifty-seven battalions of volunteers were organised in the fall of 1865. A loan of five million pounds was arranged in London, and no expense was spared in fitting out the army and in strengthening the fleet. By the end of the war Brazil had eighty-five ships, not counting transports, of which thirteen were ironclads. The voyage from Rio de Janeiro to Paraguay takes a month, and the transportation of men and material was tedious and extremely expensive. The government resorted to the issue of paper money, and outraged the feelings of the financial world by compelling the Bank of Brazil to give up the reserve it was maintaining for the redemption of its note issues. The premium on gold rose and the currency fluctuated wildly, although general trade continued to boom. In September, 1865, the Paraguayan army which had invaded Rio Grande was captured in a body, and peace was confidently expected. Lopez, however, decided to fight it out to the bitter end, and it was April, 1866, before the allies could gain a foothold on Paraguayan soil. For the next six months Brazil was sickened with accounts of desperately bloody and indecisive battles, of which the last was an awful repulse before Curupayty. For more than a year thereafter the allies lay motionless in their camps in the south-western corner of Paraguay, while the cholera carried off thousands.