AHC: More successful Baron of Mauá

Taunay

Taunay

The Baron of Mauá was an industrialist who promoted industrialization during the Brazilian Empire. He started many businesses and was essential in guaranteeing some money for the Imperial government in the 1860s and 1870s. In fact, in 1867 his wealth was bigger than the budget of the Empire itself (according to Wikipedia). He was also a proponent of abolishing slavery and industrializing the Empire. However, the Baron suffered many failures and died poorer and with many of his companies being bankrupt.
One of his major failures was not managing to attract foreign capital for the construction of a railway linking the Paulista cities of Santos and Jundiaí (the construction of which only happened decades after, and was essential in helping to industrialize São Paulo). Another was the Silva Ferraz 1860 tariff act, which reduced tariffs on the importation of machines and industrial products. Finally, this tariff and its consequences had the negative impact of reducing his companies's profits and leading to the bankruptcy of the Mauá Bank in 1875.
With a POD of 1852 (the year tha Banco Mauá was founded) have Irineu Evangelista de Sousa (his name) be more successful in his industrial endeavors, with bonus points if you can make his dream of an abolitionist and industrialized Empire of Brazil become reality.
 

Vinization

I think avoiding the Silva Ferraz tariff should be enough to keep the Baron's industrial businesses afloat. He also had major investments in shipbuilding (he owned a shipyard in Niterói that built 72 vessels - including warships - during its existence), but I don't know if the shipyard went under because of the end of protectionism or some other law the imperial government enacted during this period.

I've often wondered about the possibility of Irineu becoming a Brazilian version of Alfred Krupp under the right conditions, though that would probably be a step too far.

Taunay said:
bonus points if you can make his dream of an abolitionist and industrialized Empire of Brazil become reality.
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As for this, the abolition of slavery definitely could've been handled better. If this doctoral thesis is any indication, the idea of distributing land to the former enslaved was a topic supported by many in the Liberal Party, which had a huge majority in the legislature by the time the empire ended. Keep Deodoro from launching the coup, and the Viscount of Ouro Preto might enact something on that front.

Here's a thread I made discussing a better (and earlier, even if only by a couple of years) end to Brazilian slavery.
 

davvasconcelos

Taunay said:
What caused the Silva Ferraz tariff in the first place?
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I can't say that there was an event that "caused" the Silva Ferraz tariff, but I can tell you what happened until its creation.
In the mid-1850s, the Brazilian Empire followed the so-called conciliation policy, which sought to unite conservative and liberal aspects in the same government, in order to pacify the liberal party, which in a certain way supported many previous revolts. The Marquis of Paraná created this policy during his government to bring stability that the Empire needed so much and Dom Pedro II believed that this would work, which is why he insisted on maintaining it even after the death of the Marquis of Paraná.
During the years of conciliation there were several liberal economic policies that according to their enthusiasts would improve the economy as a whole. One of the goals was to abandon the gold standard and adopt a fiat currency standard.
During the Olinda Cabinet (1857-1858), there was an economy minister Souza Franco went further allowing banks and companies to issue paper money to increase the country's surrounding environment in order to make investments and credit supply more flexible, but everything went wrong due to the Panic of 1857.
Banks went bankrupt and the economy went from bad to worse. This led to the fall of the Olinda Cabinet and its replacement by the Abaeté Cabinet, which had a Minister of Economy with a more orthodox economic policy, Torres Homem. He was a fervent critic of Souza Franco's economic policy and during his ministry he initiated a counter-reform of all economic measures taken by the Conciliatory governments, in order to combat the Panic of 1857. Torres Homem was unsuccessful and the recession continued.
In 1859 another cabinet was appointed and this time with Silva Ferraz as prime minister and minister of economy. He continued the work of Torres Homem, and was more successful in his measures to recover the country from the crisis.
One of the measures was the Ferraz Tariff, which replaced the old Alves Branco Tariff.
 
Taunay

Taunay

davvasconcelos said:
I can't say that there was an event that "caused" the Silva Ferraz tariff, but I can tell you what happened until its creation.
In the mid-1850s, the Brazilian Empire followed the so-called conciliation policy, which sought to unite conservative and liberal aspects in the same government, in order to pacify the liberal party, which in a certain way supported many previous revolts. The Marquis of Paraná created this policy during his government to bring stability that the Empire needed so much and Dom Pedro II believed that this would work, which is why he insisted on maintaining it even after the death of the Marquis of Paraná.
During the years of conciliation there were several liberal economic policies that according to their enthusiasts would improve the economy as a whole. One of the goals was to abandon the gold standard and adopt a fiat currency standard.
During the Olinda Cabinet (1857-1858), there was an economy minister Souza Franco went further allowing banks and companies to issue paper money to increase the country's surrounding environment in order to make investments and credit supply more flexible, but everything went wrong due to the Panic of 1857.
Banks went bankrupt and the economy went from bad to worse. This led to the fall of the Olinda Cabinet and its replacement by the Abaeté Cabinet, which had a Minister of Economy with a more orthodox economic policy, Torres Homem. He was a fervent critic of Souza Franco's economic policy and during his ministry he initiated a counter-reform of all economic measures taken by the Conciliatory governments, in order to combat the Panic of 1857. Torres Homem was unsuccessful and the recession continued.
In 1859 another cabinet was appointed and this time with Silva Ferraz as prime minister and minister of economy. He continued the work of Torres Homem, and was more successful in his measures to recover the country from the crisis.
One of the measures was the Ferraz Tariff, which replaced the old Alves Branco Tariff.
Click to expand...
So the POD could be Souza Franco never becoming Minister of Economy
 

davvasconcelos

Taunay said:
So the POD could be Souza Franco never becoming Minister of Economy
Click to expand...
The ideal is not to allow Souza Franco to be economy minister in 1857 and for a more orthodox minister to be chosen. Perhaps the Marquês de Itaboraí, who was president of Banco do Brasil or the Viscount of Rio Branco, who was later responsible for protectionist economic reforms and also the Free Womb Law.
I believe that to ensure that there is no measure with the Silva Ferraz tariff, Mauá himself should become minister of economy in 1859 and be responsible for the economic recovery caused by the panic of 1857.
One way to allow him to become a choice for the ministry is for him to be elected senator, that was one of his dreams.
As economy minister he will certainly take measures that help capitalists create a basic industry strong enough to start industrialization sooner.
 
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