between the Portuguese and Spaniards, especially in exchanging gold for silver, by which both princes are defrauded of their fifths; and as Don Jose was deeply engaged in this prohibited commerce, in order to ingratiate himself with his Spanish correspondents, he treacherously dispatched an express to Buenos Ayres, where Pizarro then lay, with an account of our arrival, our strength, the number, of our ships, guns, men, and every circumstance he could suppose our enemy desirous of being acquainted with.

This much, and what we shall have to relate in the course of our own proceedings, may suffice as to the present state of St Catharines and the character of its governor.  But as the reader may wish to know the reasons for the late new modelling of this settlement, it will require, to explain this circumstance, to give a short account of the adjacent continent of Brazil, and of the wonderful discoveries which have been made within the last forty years, which, from a country of but mean estimation, has rendered it now perhaps the most considerable colony on the face of the earth.

This country was first discovered by Americus Vesputio, a Florentine, who had the good fortune to be honoured by giving his name to the immense continent found out some time before by Columbus.  As Vesputio was in the service of Portugal, this discovery was settled and planned by that nation, and afterwards devolved to the crown of Spain along with the rest of the Portuguese dominions.  During the long war between Spain and the states of Holland, the Dutch possessed themselves of the northermost parts of Brazil, and kept it for some years; but, when the Portuguese revolted from the Spanish government, this country took part in the revolt, and the Dutch were soon driven out of their acquisitions; since which time it has continued without interruption under the crown of Portugal.  Till the beginning of the present century, it was only productive of sugar and tobacco, and a few other commodities of very little importance; but has been lately discovered to abound in the two mineral productions, gold and diamonds, which mankind hold in the highest estimation, and which they exercise their utmost art and industry in acquiring.

Gold was first found in the mountains adjacent to the city of Rio Janeiro.  The occasion of its discovery is variously related, but the most common account is, that the Indians dwelling on the back of the Portuguese settlements were observed, by the soldiers employed in an expedition against them, to use this metal for fish-hooks; and, on enquiry into their manner of procuring this precious metal, it appeared that great quantities of it were annually washed from the hills, and left among the sand and gravel which remained in the vallies after the running off or evaporation of the water.  It is now [in 1740] little more than forty years since any quantities of gold, worth notice, have been imported from Brazil to Europe; but,