The new administration devoted itself to the finances. Since 1871 the deficits had been continuous; one sarcastic statesman said amid applause that "the empire is the deficit." The issue of paper money had been excessive. Better times began in 1886. A loan of six millions sterling was contracted for on favourable terms; from forty per cent. below par the currency rose to par in the succeeding three years; imports and exports increased by leaps and bounds; and the revenue grew seventy-five per cent. in a single year. The production of coffee in Sao Paulo, and of rubber in Para and Amazonas reached unprecedented figures; foreign immigration was subsidised and a systematic propaganda to secure it undertaken. From thirty thousand it ran up to one hundred thousand a year, and the apprehensions that emancipation would cause a dearth of labour were largely quieted. Government subsidies had kept up the building of railroads during the years when the treasury was most embarrassed, and naturally went on more rapidly when prosperity came. When the Paraguayan war ended there were only 450 miles of railroad in the country. In the decade that followed 1450 were built, while from 1880 to 1889 five hundred miles a year were constructed. The Conservative Prime Minister, Baron Cotegipe, struggled hard through 1886 and 1887 to save the remnants of slavery, but intelligent and unprejudiced opinion was nearly unanimous for the entire abolition of the disgraceful and barbarous institution. Project after project was presented, each one more radical than the last. The slaves began to flee from the plantations. The army refused to aid the police in capturing them. The poor old Emperor had gone abroad, sick and failing, leaving Isabel as regent. Her advisers, mostly priests and foreigners, told her that the delay was endangering the dynasty. Cotegipe resigned and John Alfredo was made Prime Minister for the especial purpose of passing an emancipation act. When Congress met in May, 1888, the speech from the throne announced that the imperial programme was absolute, immediate, and uncompensated emancipation. The prestige of the Crown was sufficient to hush nearly all opposition. Within eight days the law had passed both Houses and been signed by the princess. The votes against it were hardly numerous enough to be worth counting. Only Cotegipe and a few devoted monarchists stood in their places and read aloud the handwriting on the wall, prophesying the sure and speedy overthrow of a monarchy which had thus cast off its surest and most natural supporters. [Illustration: EMPEROR DOM PEDRO IN 1889.] CHAPTER XXI THE REVOLUTION--THE DICTATORSHIP--THE ESTABLISHMENT OF THE REPUBLIC