The Financial Crisis

Rui Barbosa was the main editor of the Great Letter. According to Nassif (2005), it is important to notice that, beyond bigger jurist of its time, Rui Barbosa it had economic knowledge surprising, as if it can confer in the document ' ' Organization of the Republicanas&#039 Finances; ' , presented in November of 1890 in the National Congress. Not but it dominated the main theories economic as it had a minute knowledge of the main institucional aspects of the economy and the North American federalism. The justifications had taken that it to stimulate the monetary expansion had theoretical bedding. It supported who if could not mere evaluate the monetary politics by means of the sum of money in circulation, since he has left of it was empoado. He had the necessity, then, to inject in the economy currency that circulated. At the time, the monetary emissions obeyed the standard-gold; if it only could emit having the corresponding gold ballast. Rui faced this ortodoxia and authorizeed the emission lastreada in public headings, with the objective to finance the production and to help to esterilizar the public debt. This theoretical position brought innumerable admirers to it, between which Stolen Celso, for who the speculation of the economic depression was an event to the part, without relation with the economic policy of Rui Barbosa. Beyond acts of Deodoro ministry, and of periodicals of the time, two recent workmanships are excellent to reevaluate the paper of Rui Barbosa in the period: ' ' The Economic depression, Anatomy of a Brasileira&#039 Bubble; ' , of Ney Oak (former-president of the Stock exchange of Rio De Janeiro), that esmia the used financial tools in the economic depression, and ' ' The Financial Crisis of the Abolio' ' , of the brasilianista John Schultz, who advanced in direction to the identity of the foreign capitals in the country, greater has left of which: ' ' Brazilian capital clandestino' '.