1880s coffee cycle
The coffee cycle that started in the 1880s ran for more than a century and contributed to the decline of slavery in favor of free labor, and unlike other exports such as brazilwood, sugar and gold, the coffee exports greatly contributed to the industrialization. The growing coffee industry attracted millions of immigrants to the southeast and transformed São Paulo from a small town to the largest industrial center in the developing world.The city had about 30,000 inhabitants in the 1850s, this number grew from 70,000 in 1890 to 240,000 in 1900. With one million inhabitants in the 1930s São Paulo surpassed Rio de Janeiro as the country's most populous city and most important industrial center.
1906 revaluation
The February 1906 "valorisation" is a clear example of the high impact on the federal policy of the State of São Paulo won from coffee production. The large selection of coffee, the price of coffee on the international market and even less money coming into the hands of growers. In view of the coffee industry and the interests of the local coffee elite, the government an average of determining the exchange rate to protect and prevent the rise and had a rich harvest to buy and then sell on the international market for a better opportunity. Once the price was about seven cents per pound, the first state to sell its surplus.The scheme led to a temporary increase in the price and encouraged the further expansion of coffee production sectors improvement scheme has been successful from the perspective of the planters and the Brazilian government, but led to a global oversupply and exacerbated the impact of the inevitable bust.
The February 1906 "valorisation" is a clear example of the high impact on the federal policy of the State of São Paulo won from coffee production. The large selection of coffee, the price of coffee on the international market and even less money coming into the hands of growers. In view of the coffee industry and the interests of the local coffee elite, the government an average of determining the exchange rate to protect and prevent the rise and had a rich harvest to buy and then sell on the international market for a better opportunity. Once the price was about seven cents per pound, the first state to sell its surplus.The scheme led to a temporary increase in the price and encouraged the further expansion of coffee production sectors improvement scheme has been successful from the perspective of the planters and the Brazilian government, but led to a global oversupply and exacerbated the impact of the inevitable bust.
