The depression of the 1930s had a severe impact on Brazil's exports the value of which fell from $445.9 million in 1929 to $180.6 million in 1932. The price of coffee in 1931 dropped to a third of its average price during 1925-1929 and the country's terms of trade fell by 50%. In addition to the decline of export receipts, the entrance of foreign capital came to an almost complete halt by 1932. The decline of earnings, the growing demand for foreign financing which increased the country's external debt (amounting to over $1.3 billion in 1931), added to the remittances of the profits of private entities, created a very difficult situation that forced the government to take severe actions. Thus, in August 1931, the Brazilian government suspended
