The taking of these measures it received the name from ' ' encilhamento' ' , that it is the act to harness the horse, preparing it for the race. Rui Barbosa, that if pledged in substituting the old established agrarian structure in the coffee exportation, looked for to promote industrialization and with this, to stimulate the economic growth. It was based on the North American banking system that beyond the inspiration, and the meeting of its ' ' ideals liberais' ' , it decreed the banking law of 17 of January of 1890, that it established the banking emissions on a ballast consisting of headings of the public debt. The minister launches the bases of one national industrial politics, supporting, with legal measures, the emergency of society for action. Some credit facilities for productive investments and in stock exchange had confided and had increased very the bank ofs issue, making with that it grew in surplus offers monetary, without was worried about the ballast-gold, causing, thus, inflation and the known phenomenon as currency-rotten (or monetary depreciation).
Beyond the high inflation I occasion, it speculative in the stock exchange culminated with the closing of some companies and, therefore, a contraction in the economy, beyond the fiscal tax evasion, acquisition of loans for other ends – generally of personal interest – and sales of action of the company-ghosts (that they had not been opened in the requested capital). The authorized agents for the government acted freely in this market and without any official monitoring, armed of one me the faith. Instead of financing the industry and the development, the economic depression provoked one of the most important inflationary surtos of the country and consequent financial speculation in the stock exchange. It are of the initial intention, the money was deviated for all luck business-oriented, while the Brazilian economy suffered violent collapse. In 20 of January of 1891, Rui Barbosa loses the position of first-minister of the Farm of Brazil, in which it was remained for 14 months.