State of emergency in Bahia The gubernatorial elections in Bahia, held in January 1924, pitted Arlindo Leoni and Góis Calmon, both of whom declared themselves winners, with a duality of
Legislative Assemblies. Calmon was originally a conciliation candidate chosen by governor J. J. Seabra, Peçanha's running mate in the 1922 presidential election. Under other circumstances, Seabra would have launched senator Muniz Sodré. The choice for Calmon, according to Eul-Soo Pang, was already an admission of defeat. But this was also a maneuver directed against Bernardes, as Calmon was the brother of the minister of agriculture and a friend of the president. The maneuver had no effect. It was said in Bahia that Bernardes approved the agreement between the two factions, the governor's Democratic Republican Party (PRD) and the opposition's Republican Concentration of Bahia (CRB). Conciliation was not actually achieved and Bernardes remained hostile to the PRD. The senatorial election in July resulted in two candidates declaring themselves as winners, as was customary. The
Federal Senate, guided by the Bernardes administration, swore in Pedro Lago, from the CRB, against Arlindo Leoni, from the PRD. The governor's party was convinced that it would not be saved by conciliation. Seabra questioned Bernardes about the information, received from deputy Medeiros Neto, that Calmon had promised the president that he would "eradicate
Seabrism". Bernardes did not deny it. On 27 November 1923, Seabra, faced with political suicide, withdrew his support for Calmon. His last-minute candidate, Arlindo Leoni, was nicknamed "dead cat", as Calmon had growing popularity and support from parts of the PRD. Minister Miguel Calmon and senator Lago sent a telegram to the state's Public Force and the countryside colonels to vote for Góis, and Bernardes asked Horácio de Matos for support. The election took place on 29 December. After contesting the results, Leoni filed a
habeas corpus petition with the Supreme Court to take office, and the opposition asked for federal intervention. The federal government transferred the 28th Battalion of
Caçadores from
Aracaju to
Salvador in December 1923. The commanders of this battalion and the 19th, from Salvador, were not trustworthy and were replaced. Additional reinforcements arrived in February: the 20th Battalion of
Caçadores, from
Maceió, the 3rd Heavy Machine Gun Company, from Rio de Janeiro, a battery from the 5th Mountain Artillery Group, from
Valença, the cruiser
Barroso, the auxiliary cruiser
José Bonifácio and the destroyer
Rio Grande do Norte. Army soldiers patrolled the streets and occupied public facilities such as the State Chamber, the Official Press, the Treasury and the Library. The Public Force was bribed to transfer its weapons to the 6th Military Region's HQ. Protected by federal weapons, Góis Calmon took office without resistance. Ironically, he had supported the bombing of Salvador in 1912, when federal forces overthrew the state government as part of the Salvations Policy (federal interventions). Bernardes' final act against his old enemies of 1922 was in the elections for senator in the Federal District. Only the results of the sections in which Mendes Tavares won were validated, canceling all the others and "beheading" the candidacy of Irineu Machado, one of those involved in the crisis of the fake letters. Peçanha died on 31 March. The reckoning with Republican Reaction was concluded, and all its former members were incorporated into the government base, "not as political partners, but as resigned losers". Bernardes imposed his will at the cost of gaining even more civilian and military enemies. The measures taken in Rio de Janeiro and Bahia have already been analysed as a moment of decadence or transformation of the "Governors' Policy", in which the federal government, in exchange for support in Congress, did not intervene in the internal politics of the states.
Rapprochement with the Church On 4 May, Bernardes and the entire ministry attended the golden jubilee of
D. Arcoverde, the
archbishop of Rio de Janeiro and first Brazilian cardinal — an unprecedented visit since the separation between the
Catholic Church and the Brazilian State and a public exhibition of their rapprochement, which had already begun under the previous government. Bernardes was personally distinguished by his Catholic religiosity, cemented by his secondary education at the Caraça School — although, according to him, he was no longer a practicing Catholic in 1925, and only later resumed his religion. The interests of both were not always compatible throughout Bernardes' presidency; After the revolt of July 1924, Bernardes criticized the Church's protection of political prisoners as excessive, and the following year his government silenced Catholic demands for the constitutional reform project. Even so, in 1925
Jornal do Commercio was able to state that "the national problems of
Indian education and catechesis have never had as much support from Catholic works as at this moment. And the government has always counted, absolutely, on the patriotic collaboration of the Episcopate and of the clergy in general". The president even proposed the candidacy of
D. Leme for the Senate, representing the state of Rio de Janeiro, against the candidacy of Raul Fernandes.
Montagu Report The Montagu Mission left the country on 4 March, shortly after delivering the provisional version of its report to the Brazilian government. The most difficult thing was getting Bernardes to agree to the sale of government shares in the Bank of Brazil, 52% of the total. This would guarantee the bank's independence, but Montagu wanted the shares to be sold to British bankers to ensure compliance with the agreement. The
London bankers themselves, in correspondence with Montagu, thought it more prudent to recommend that the Brazilian government sell its shares to its own citizens. Montagu insisted on his position, which was, according to him, his only certainty when leaving London. The only guarantee of a wise financial policy in Brazil would be "with some foreign element, that is, British, in the financial system". The other recommendations included abandoning federal subsidies for the protection of coffee, changing the procedures for preparing the federal budget, reducing public spending, especially with the dismissal of civil servants, reducing the external debt of states and municipalities, exempting some foreign investors from taxes, privatize some public companies, such as
Lloyd Brasileiro and
Central do Brasil, and temporarily suspend the construction project of a steel plant. This plant was part of the government programme, but Montagu argued that it would be an excessive burden on public spending. Sampaio Vidal got a promise from Montagu to finance the project in the future. The Brazilians accepted most of the demands, and Bernardes personally guaranteed that he would not take loans from other creditors. In May, at the opening of legislative work, Bernardes proposed a constitutional reform with points that referred to British demands. In the following months, the government's allied base reformed the Chamber of Deputies and Senate regulations to facilitate constitutional review. The mission's final report was published in
Jornal do Commercio on 29 June 1924, to the praise of the pro-Bernardes British and Brazilian press.
La Nación, from
Buenos Aires, and
El Mercurio, from Santiago, noted the good reception of the report in the trading of Brazilian bonds on the
London and
New York stock exchanges. Oppositionists were outraged: the proposals would humiliate Brazil or even transform it into a British colony, with Bernardes as a puppet of foreign interests. Later, the manifesto of the rebellious leader João Francisco Pereira de Souza directly attacked the report, in addition to the increase given to congressmen's salaries while the army suffered cuts. Before the sale of Bank of Brazil shares reached Congress, the British government restricted external loans, making months of negotiations futile. The Brazilian authorities now needed to look for a new solution, without depending on the loan. Even so, some of the report's proposals ended up being adopted in the reforms for the remainder of Bernardes' presidency.
The battle of São Paulo Informed of the outbreak of an uprising by elements of the army and Public Force in the city of
São Paulo, Bernardes declared a state of emergency in the Federal District and the states of Rio de Janeiro and São Paulo on 5 July 1924, on the anniversary of the Copacabana Fort revolt. Planned as a rapid blow, which would occupy the city in a few hours and then march to Rio de Janeiro, the uprising degenerated into
urban combat in central São Paulo, with scenes reminiscent of the
First World War. Loyalist reinforcements immediately rushed to the city, but some of them defected to the rebel side. In the countryside, the government assured control of the
Paraíba Valley, the
Itararé branch and the
Baixada Santista. On 9 July, the leader of the revolt, general
Isidoro Dias Lopes, proclaimed himself as head of a "Provisional Government". The revolutionary manifestos clarified that the movement was national in scope, not regional, accused Bernardes of despotism, and called for his resignation. The political programme in the
tenentist movement, vaguely nationalist in character, demanded freedom of the press, secret ballots and overcoming the old political oligarchies, considering itself as a revolutionary movement to overthrow a corrupt and backward regime. The situation was deteriorating in São Paulo. Revolutionary columns
occupied municipalities in the countryside, factories stopped and hungry mobs looted stores. The São Paulo metropolis had a history of labour conflicts and the government feared that the revolt would degenerate into a popular insurrection, culminating in a
Bolshevik-style revolution. In the second fortnight, the government forces, under the command of general Eduardo Sócrates, reached 15 thousand men from the army and
state forces — among them, the Military Brigade of Rio Grande do Sul, in a gesture of rapprochement with Borges de Medeiros. Loyalist artillery
indiscriminately shelled rebel territory, killing civilians, destroying factories and homes, and creating hundreds of thousands of refugees. At the end of the conflict, the city council counted 503 dead and 4,846 injured, of which two thirds were civilians. Requests to halt the bombing on humanitarian grounds were refused by the government. Loyalist pressure expelled the rebels from São Paulo on 27 July, but in the following months thousands of rebels moved to western Paraná, where they
prolonged the fight.
Revolutionary wave The permanent revolutionary threat hovered over the country. The "1924 civil war" had two major fronts: one from São Paulo to Paraná and the other in the
Amazon basin. Military revolts spread across the country: in
Bela Vista,
Mato Grosso, on
the 12th;
Aracaju, in
Sergipe, on
the 13th;
Manaus, in
Amazonas, on the 23rd; and
Belém, in
Pará, on the 26th. In the cases of
Northern and
Northeastern Brazil, the very battalions that were supposed to board for the
Southeast rebelled by the initiative of the lower officialdom. The military high command was forced to cancel the deployment of other battalions to quell the revolts. Sergipe and Amazonas had ephemeral revolutionary governments, lasting 21 and 30 days respectively. In the latter, the rebels controlled most of the Amazonas Flotilla and Fort Óbidos, in the most strategic stretch of the
Amazon River. However, the failure of the revolt in Belém trapped them in their territory in the Amazon. General
João de Deus Mena Barreto went up the river with a loyalist detachment from the Army and Navy. The Óbidos garrison abandoned the city after a brief air raid and the government in Manaus surrendered to the authorities. Power was not returned to the deposed governor, César do Rego Monteiro, but handed over to a federal intervener. The arguments of senator Barbosa Lima's intervention bill were the same as those of the rebels regarding the authoritarianism of the deposed government and delays in payments to civil servants.
The loyalist support base Parallel to the battles in São Paulo and other cities, the new state of emergency was more repressive than previous periods. News about the revolts were censored. Mass arrests without investigation filled Rio's prisons. The prisoners were journalists, workers sympathetic to the revolution, especially
anarchists, but also beggars, unemployed people and others captured in "canoes": sweeps of certain streets at specific times. Political prisoners shared prison cells with common criminals. Conditions could be very precarious, and due to lack of space, many remained in the holds of prison ships or on islands in
Guanabara Bay. Arrests and torture of rebels, supporters, suspects and their relatives were repeated throughout the country. Many conspiracies were discovered by political police before they materialized. Bomb attacks occurred in September, and on 20 October the police arrested Protógenes Guimarães, head of a revolutionary movement in the navy. On 4 November, rebels took control of the battleship
São Paulo, which, however, was almost out of ammunition as a precautionary measure, and could do nothing other than head into exile in
Montevideo. The government's biggest concern was in Rio Grande do Sul, where a
new revolt broke out at the end of October. On one side, the
tenentists and the opposition from Rio Grande do Sul, and on the other, the state and federal governments. This revolt failed to threaten the state's largest military hub,
Santa Maria. In western Paraná, the remnants of the revolt in São Paulo resisted in a long trench war against general
Cândido Rondon, who commanded a force of 12 thousand men. On 15 November, the anniversary of the
Proclamation of the Republic and the second anniversary of Bernardes' term, there were many tributes to the president at the Catete Palace. Security measures were strict: only ministers and high-ranking figures were allowed to park in the garden's avenues, and even people passing by tram in front of the palace were searched. State governors made their loyalty clear. In July, the top brass of the Armed Forces also confirmed their support for the government. The
tenentists could have the urban middle classes on their side, but they were completely abandoned by the political class, which closed ranks in defence of order, fearful of popular unrest. The federal and state governments, the rural and urban oligarchies and a large part of the army formed a
status quo united front. Empowered by the state of emergency, they were willing to sacrifice political liberalism to crush their enemies.
Umberto of Savoy's visit Salvador, Bahia, received official visits from prince
Umberto of Savoy, heir to the
Italian throne, on 26–30 July and 9–18 September. The Italian diplomatic mission visited Brazil and three other South American countries, Argentina, Chile and Uruguay, to represent
Benito Mussolini's regime to the respective governments and the
diaspora. The prince wanted to visit São Paulo, a logical destination due to the large concentration of
Italian immigrants, but the ongoing revolt ruled out this option. Rio de Janeiro was also excluded, as it was still considered unstable. Bahia, on the other hand, was safe and the Calmon government enjoyed the confidence of the president. The foreign minister, aboard the battleship
São Paulo, represented the Brazilian government on the second visit. Despite advertising to attract more immigrants, Italian immigration to São Paulo decreased significantly between 1925 and 1929.
Pietro Badoglio, the Italian ambassador to Brazil, was not pleased with the transfer of the prince's trip and much less so with the government's bombing of São Paulo, which heavily hit Italian neighbourhoods:
Mooca and
Brás. Foreign consulates in Brazil received criticism and requests for neutrality from their citizens during the 1924 revolt, often without response. The destruction of British property and the censorship of American journalists completed the damage caused by the revolts on Brazil's image abroad. The country's image was eroded by the contrast between internal authoritarianism and active participation in the League of Nations, where Brazilian diplomats worked on issues such as the distribution of passports to refugees and ethnic minorities. In 1924 Brazil became the first country to operate a legation with embassy status in Geneva.
Deflationary adjustment Direction of the country's economic policy took a turn at the end of 1924: in November the federal government abandoned the defence of coffee, leaving the task to the states (especially São Paulo), and on 27 December Sampaio Vidal and Cincinato Braga were dismissed and replaced by Aníbal Freire, from Pernambuco, at the Ministry of Finance, and James Darcy, from Rio Grande do Sul, at the Bank of Brazil. The immediate pretext was the criticism received by the contract between the federal government and the Bank of Brazil in the Chamber of Deputies' Finance and Justice Committee, on the 17th. Deputy Aníbal Freire pointed out that several provisions of the contract were not based on the decree that established it. Sampaio Vidal and Cincinato Braga, who had already been questioned by the president about money issuance, asked for dismissal. The government broke with São Paulo on the economy, without losing them as allies in politics, as Minas Gerais and São Paulo shared immediate interests. The appointments and the abandonment of the federal defence of coffee were complementary. Coffee prices were rising and the crop was smaller, but coffee growers, with little liquidity and waiting for stocks to be released, wanted a new valuation method. At the same time, the government was failing to meet its economic goals. Inflation continued to rise, and food prices were worrying. The growth in exports was offset by the parallel rise in imports. The Bank of Brazil's issuances reached 400 billion réis in June, although not directly for the payment of coffee notes. Spending on military revolts exceeded the legal limit (600 billion) and circulation reached 753 billion at the beginning of October. Bernardes began to disagree with the defenders of money issuance in the old debate about coffee valuation. The Bank of Brazil's behaviour was condemned by defenders of orthodox economics, including deputy Antônio Carlos. In January, Antônio Carlos revealed to Montagu that Bernardes disapproved of the coffee valuation scheme and blamed money issuance for the devaluation of the exchange rate. The Montagu Mission agreed with the criticisms of the defence of coffee, as it subjected the money in circulation to strong and random pressures. Letting the Bank of Brazil continue to issue would prevent a future reopening of negotiations with the British. Without informing Sampaio Vidal and Cincinato Braga, Bernardes and orthodox politicians planned deflationary measures. The support received from the political class after the military revolts gave the president room to implement unpopular policies. The new economic policy was strongly recessive. The Bank of Brazil raised the interest rate on lending operations to other banks and reduced their amount. Treasury bills were withdrawn from circulation. Surplus money was incinerated. A monetary contraction on that scale had not been seen since
Joaquim Murtinho's tenure as Finance Minister, at the turn of the century. Monetary restrictions were accompanied by a reinforced tightening against budget deficit. In January 1925, most public works projects were suspended. Eight federal coffee warehouses were sold to the state of São Paulo, which founded the São Paulo Institute for Permanent Coffee Defence. From December 1925, agreements between the states defined the product's shipment quotas. The federal government would still participate in coffee operations through a National Fund, financed by a road tax, to support state programmes. == 1925 ==