Coup of 1937 The fears of Vargas carrying out a self-coup were amplified by the authoritarian and pro-German military perceptions of his two top generals,
Pedro Aurélio de Góis Monteiro and
Minister of War Eurico Gaspar Dutra. He was becoming increasingly dependent on the military for support, and political attention now turned to the 1938 presidential elections. Now, Vargas's opposition turned to supporting Armando Salles de Oliveira, a member of the
paulista elite who, Skidmore says, "were now trying to gain through the vote what they had failed to gain by arms in 1932." While Vargas government supported writer and minor politician from the Northeast Jose Americo de Almeida, the
paulistas were now confident as they sought and received support from those against Vargas. All the while, Vargas's power was loosening. Political debates allowed for repressive measures to be unfastened; 300 people were let out of prison by order of the
Minister of Justice. Vargas and his government did not trust any of the three candidates, and one government observer even believed Brazil was at risk of becoming another Spain, that is, torn apart by civil war. Leading up to the coup which would place Vargas as dictator, he was a somewhat depressed man, and he never seemed to admit to himself he enjoyed his power. However, after a meeting with Monteiro and J. S. Maciel Filho, the president became reenergized, as evident by his following journal entries, though he was still saddened by the upcoming elections. One week before the coup, Vargas celebrated the seventh anniversary of his rise to power, devoting the evening to a "long" conversation with Monteiro. The pretext for the coup was enunciated in the form of the
Cohen Plan, a document discovered in September 1937 at the Ministry of War detailing plans for a violent communist uprising. In actuality, the document was a blatant falsification. After the Cohen Plan's revelation, on 10 November 1937, the coup was executed. All but one cabinet member signed the constitution per Vargas's request; military troops surrounded the National Congress and refused entry to congressmen; and the 1937 Constitution, corporatist and totalitarian, was now in force. The 1938 presidential elections were canceled, and Brazil became a dictatorship called the
Estado Novo, or New State, led by Vargas. The National Congress acquiesced after some congressmen were imprisoned, and eighty legislators went to see Vargas in a show of support on 13 November. Meanwhile, life went on as usual in Brazil as the population took the transition calmly.
Establishment of the dictatorship Vargas's most prominent opponents were either arrested or exiled. As censorship concealed the media and the police were given increased powers, the public fell silent. Like when he took office, Vargas effectively ruled by decree. The Integralists were initially supportive of the coup and the transition toward
right-wing politics, anticipating their fellow Integralista Plínio Salgado to be offered a cabinet position, specifically the Minister of Education. The opposite ensued; Vargas's government enforced new restrictions on the movement's activities. In retaliation, a band of Integralists tried to overthrow the federal government themselves. From 10 through 11 May 1938, armed Integralists and disloyal palace guards attacked the presidential palace in an effort to depose him. They began firing at the building, where Vargas was sleeping, entering into a multihour-long siege with Vargas and Alzira. Federal reinforcements arrived at Vargas's aid; four attackers were killed with the rest being imprisoned. Salgado sought exile in Portugal, meanwhile. The result of the incident was a temporary chill on German-Brazilian relations. Most of the constitution was produced by a single man, anti-liberal and anti-communist
Francisco Campos, future Minister of Justice for Vargas. The new constitution was highly detailed and comprehensive, even more so since Campos was working in a rush. Article II stated that there shall be only one flag, hymn, and motto throughout the country, for instance. Campos would later hold a press conference and publicize the establishment of the National Press Council, created for the intention of "perfect coordination with the government in the control of the news and of political and doctrinal material." In general, the new era incorporated components from European fascism, though the president relied on the army for support rather than political parties.
Antiliberalism was also very apparent. Vargas outlawed all political parties on 2 December 1937. A plebiscite to approve the new regime was abandoned, the proposed congress never convened, and Vargas's term of office was prolonged by six years. Personally, Vargas told foreign reporters the
Estado Novo was democratic at heart but promoted authoritarianism at home. When Alzira asked him about the plebiscite, Vargas replied, "The whole purpose of the coup of November 10 was to avoid any electoral action which could prejudice us at this time; and yet you ask me questions about the plebiscite?" Industrial expansion was performed and support for coffee was diminished. Campos had suggested a totalitarian party and the Minister of Education requested a fascist youth program, both of which Vargas demonstrated little enthusiasm for and buried. "Brasilidade" led to a reform of Portuguese spelling and the closure of foreign language schools and newspapers with the main targets being German and Italian communities. In regard to fundamental issues, Vargas's personal power was the deciding factor; trust between the president and his ministers increased, and between March 1938 and June 1941 there was not a change in ministers.
Nationalism and domestic policy as dictator According to historian
Teresa Meade, "Because the major social reforms of the
Estado Novo were enactment of a minimum-wage law and the codification of all labor reforms since 1930 into a single labor act, Vargas was able to win to his party the devotion of the urban workers." Such labor laws were also centered around corporatism. Vargas's image as the "workers' guardian" took hold in ceremonies, such as the
May Day celebration, where masses would gather. He used the radio to communicate and bring workers and the government together, and the labor minister gave weekly radio speeches. From 1930 until 1938, the wage index rose from 230 to 315 points; this contrasted with the cost of living, however, from 290 to 490 points, with the cost of living doubling in Rio de Janeiro and nearly tripling in São Paulo. However, in respect to the Great Depression, Brazil reemerged from the economic crisis sooner than the United Kingdom or the United States, a comeback sustained by World War II production, American technology, and Brazilians turning to Brazilian producers when shipping was interrupted. Beginning in 1935, industrialists became interested in establishing oil refineries in the country, such as
Standard Oil (1936) and
Texaco (1938) amongst others who established "huge" refineries in Brazil, though they would be nationalized in Brazilian hands in April 1938 via decree-law. The president also decided to stop paying the national debt right after the coup, too, proclaiming that Brazil could either modernize its armed forces and transportation or pay the debt. , 16 March 1943 Popular culture was also an important aspect of Vargas's dictatorship. In 1941, his government created the National Sport Council, and, as Skidmore concludes, "Vargas was one of the first politicians to appreciate the political payoff from supporting it." Another example was the
Rio Carnival: Vargas's government was the first (on the federal level) to support
samba schools and Rio parades, both of which had become a universal symbol of Brazilian culture. Two achievements resulted: an economic benefit (tourism) and a greater national identity. Moreover, Vargas's government launched an elaborate campaign of restoring historic and religious architecture, sculpture, and painting. In
Petrópolis, the
Imperial Museum of Brazil was restored, and the Ministry of Education and Culture building in Rio de Janeiro which was designed by Brazilian architect Oscar Niemeyer (construction began in 1936 and finished in 1943). A darker side to the Vargas-sponsored work with a national identity was to protect the country from those who were deemed "un-Brazilian", such as
Japanese Brazilians or
Jewish Brazilians. Official and unofficial discrimination was performed, limited mainly to closing "foreign" newspapers, schools, and organizations, but it never reached the magnitude of Nazi Germany.
Pre-war foreign policy In Europe, Nazi Germany viewed Brazil as a key trading partner. From 1933 to 1938 (a time period encompassing parts of all three periods of Vargas's first presidency), German-Brazilian trade magnified. Principally, Germany bought Brazilian cotton in return for German industrial goods, all the while the United Kingdom being the main loser. Germany hoped to lure Brazil into the German politico-military sphere. They sold weapons to Brazil and offered technical training, and the 1937 coup was praised in Germany and Italy. The U.K. did have a major role in aiding Vargas's police and intelligence forces, though. British agents provided information on foreign threats and assisted the country during the 1935 communist uprising. Meanwhile, in the aftermath of the 1937 coup, the United States immediately asked for an explanation from Brazil's ambassador Aranha. The U.S. recognized Brazil's strategic position on the
Atlantic coast and the potential of it playing a vital role in dominating air and sea traffic. The
American military worried the coup would bring Brazil closer to Nazi Germany, aware of Vargas' advisers', specifically Dutra's and Monteiro's, beliefs. They had been struggling to influence Brazil, and the existence of a large German-speaking population in Brazil's South strengthened American fears of the Vargas dictatorship. Under U.S. President
Franklin D. Roosevelt, the United States began the
Good Neighbor policy toward Latin America in what Bourne describes as a modern
Monroe Doctrine. Similar to pre-World War I, the U.S. State Department also denounced the German trade policy. The military tried to counter German offers of arms and training, but they failed. Vargas had, in fact, tried to negotiate to obtain U.S. military equipment first, but the isolationist
United States Congress refused, even outlawed, foreign arms sales. In 1937, Vargas offered U.S. president Franklin D. Roosevelt the use of Brazilian coastal bases, but the offer was refused. This was most likely because Roosevelt was either to follow the U.S. Congress or abandon them, for if he did accept the offer it would have looked like he was preparing for war. In 1939, at the beginning of the Second World War, Vargas and Roosevelt both remained neutral, though Vargas continued to foster relations with the Axis powers. By 1941, however, Vargas still left his options open, approving a plan to modernize North and Northeast airports by
Pan American Airways under a contract by the U.S. army.
World War II , U.S. ambassador to Brazil. Seated on the left is Harry Hopkins. When
Japan attacked Pearl Harbor on 7 December 1941 and the leader of Germany,
Adolf Hitler, declared war on the United States on 11 December, it became apparent that Brazil's military odds were in favor of the
Allies of World War II. This was reinforced with the disastrous
invasion of the Soviet Union by Germany and their losses in the Atlantic. In addition, the U.S. was already forging alliances with Brazil; an important commercial deal in 1939 and the sale of ninety six-inch (152 mm) surplus guns to Brazil in March 1940, followed by a visit from Monteiro to the United States in October, centered foreign policy with the U.S. With this, Brazil declared war on Italy and Germany, following torpedo attacks on Brazilian ships and the sinking of a Brazilian submarine that year, on 21 August 1942, providing the allies with raw materials and Brazil's strategic coastline. The siding with the Allies led to Monteiro and Dutra both turning in their resignations, which the president rejected. Moreover, Vargas struck an "attractive" deal; in exchange for raw materials, the U.S. military provided equipment, technical assistance, and financing for a
Brazilian steel mill, at
Volta Redonda, finalized in July 1940. Vargas hoped to identify Brazil with the Allied cause. He offered three Brazilian army divisions to fight the Germans in the
Mediterranean with the purpose of dramatizing Brazil's role in the war and to uplift Brazilian pride at home. Additionally, a contingent of the army fought crucial battles in the
Italian campaign in 1944 and further reinforced war pride and antifascism. Vargas insisted every state be represented, whatever the quality of local recruits. His government now held even more power as the need to ration essentials increased, and centralization persisted yet again in Brazil.
Fall from power Though abroad the government defended democracy, there was increasing discontent at home when World War II finished due to the authoritarian policies by Vargas and his government. Growing political movements and democratic demonstrations forced Vargas to abolish censorship in 1945, release numerous political prisoners, and allow for the reformation of political parties, including the Brazilian Communist Party, which supported Vargas after direction from Moscow. University students began to mobilize in 1943 against Vargas; strikes, which were banned, began to re-emerge thanks to war inflation, and even Aranha was in favor of a democratic shift. Vargas himself built support after establishing the
Brazilian Labour Party (and his aforementioned support from urban workers) and also found help from the left when it applied. With that, Vargas added the Additional Act to the constitution, which, among other things, provided for a 90-day period during which a time and date for elections would be designated. Precisely ninety days afterward, the new electoral code was issued, established 2 December 1945 for the election of the president and a (new) constituent assembly, and state elections on 6 May 1946. Furthermore, Vargas promulgated his intention not to run for president. The military feared that Vargas was about to seize absolute power (after a detrimental move on 25 October 1945, removing João Alberto from chief of police of the Federal District and replacing him with Vargas's brother
Benjamim), so they forced his resignation and deposed him on 29 October, ending his first presidency. == Between presidencies (1945–1951) ==