In 20 of January of 1891, prime minister of the Farm of Brazil left the position, after 14 months of its mandate. In 23 of November of the same year the president resigned and the republican vice-president Floriana Peixoto assumed the presidency. Some economists, when analyzing the adopted measures, reveal contrary they. According to Abreu, the 1891 crisis can be explained as resulted of the exchange collapse and the monetary expansion, provoked for the reforms in the monetary system, introduced for Rui Barbosa in 1890. This crisis had repercussion up to 1898.
(Abreu: Sheep ET AL., 1989). It was stopped responsibility of the country in dreadful additions and was played with the credit, the name and the future of the nation (Taunay, s.d., PP.19-20). For Taunay, Country had much substance cousin, its climate was propitious, lacked to only initiatives and spirit of association. With the speculation of the Stock market, the republicans believed that the country would progress. According to Axe (2002), Rui Barbosa, described with sarcastic irony, for its attitudes ' ' contraditrias' ' ; however it adopted the banking unit, however the plurality and he did not accept that attitudes were charged it coherent.
The industry was the target of the moment, and because of the inflationary flow diverse companies were created whom they appealed being able to them public. If you are not convinced, visit Enterprise Access Network. Contrary to the interpretation of Taunay, some economists as Albert Fishlow and Wilson Pipe had looked for to show that this economic policy contributed for the development of the industry. For Pipe, the expansion of the banking system in Brazil would really gain expression from the Banking Reformation, in 1890, that beyond granting to the banks the emission privilege, still the exercise of the activities authorized them extra-bank clerks, as for example, of commerce, of the industry, settling, construction of roads etc (…). However, where it weighs the extreme number of economically inexecutable companies, the monetary expansion generated by this stage did not mean only one mirabolante wave inflationary.