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the factory house, made of wood, on the banks of Ipanema, and treating the iron in two small refining forges. Currently there are still three Swedish masters, who have raised the production of the factory they founded to four thousand arrobas.

The Swedish system is used for pump and foundry work. However, the lack of blast furnaces, as well as the difficulty of transporting the metal in large pieces and the orders for ready-made instruments, led the administration to produce horseshoes, nails, hardware, locks, etc. The Swedish workers have sought to teach the office to the indispensable black and mulatto auxiliaries, and are very pleased with their practical ability; However, their indolence and irregularity in service are constant causes of discontent for these good Swedes, who, even in the abundance of life without restlessness in the southern climate, cannot forget their homeland; and as they imagine that they will someday have to be in danger, as had happened to their dead companions, they are effected by the bitterest longing. Under the rule of the Count of Palma, one of the industry's most enlightened promoters, the plan for a larger and more lasting iron factory was drawn up; and its accomplishment was entrusted to our patrician, Mr. Lieutenant Colonel Varnhagen. The great and important work, which cost 300,000 crusados, had just been completed when we arrived in Ipanema, but nothing had yet started there because the necessary blast furnace smelter was expected from Germany for the job.

The factory's new buildings are built with taste and durability, with the crumbly yellow gneiss found here. The plant consists of two blast furnaces and several refiners; the bellows are powered by water. In order to deposit charcoal and store the ready-made instruments, very suitable spacious warehouses were erected, which, through a walled channel, arranged with dams, receives the necessary water from the Ipanema River. Also for the sick workers, the factory has a hospital, where the nurses assist two surgeons. Regarding the processing of the gneiss here, doubts predominated at the time of our stay, because they had not yet tried to do it. A difficulty that will be opposed to the expansion of production is the lack of good firewood, because although the valley's lowlands, the banks of the slopes and Aracoiaba's own iron mountain are covered with woods, they will soon be exhausted, with continuous work of the factory. The administration, in fact, has ordered that every resident of this region must supply the factory with an amount of coal corresponding to the size of the land it cultivates; but this arrangement, without regular reforestation and careful cutting down of existing trees, will not prevent the need for firewood in the future. In planting a