The crash of the New York stock market of 1929 had a devastating impact on Brazil's economy- the price of coffee fell from $200,000 a bushel to $21,000 in 1930. The Brazilian government was overprotective towards coffee producers- the government would buy excessive amount and destroy it in order to regulate prices. Nevertheless, most states in Brazil were dissatisfied with these privileges reserved to the coffee producers (ibid).
From his position as state governor, Vargas campaigned unsuccessfully as a candidate for presidency in 1930. In October of the same year, Vargas led a revolution, organized by his friends, which overthrew the oligarchical republic. Thus, Getúlio Vargas took office and his rise marked the fall of the Old Republic.
From his position as state governor, Vargas campaigned unsuccessfully as a candidate for presidency in 1930. In October of the same year, Vargas led a revolution, organized by his friends, which overthrew the oligarchical republic. Thus, Getúlio Vargas took office and his rise marked the fall of the Old Republic.