Many precious stones are found in Brazil. Among them are amethysts, tourmalines, aquamarines, topaz—and, lastly, the diamond. India was the original source of diamonds. In 1728, almost two centuries ago, these precious stones were first discovered in Brazil. For a century and a half Brazil held the absolute supremacy in the production of diamonds, until the discovery of the South African fields transferred the centre of the diamond industry to that region. Although the number of diamonds of Brazil to-day is far less than those of South Africa, it is said by experts that the Brazilian diamonds have a far larger proportion of what are classed as the “first water,” those which have a tinge of bluish steel in them, than any other country, and the diamonds of that country bring the very highest market price. The centre of the diamond industry in Brazil is at Diamantina, in the state of Minas Geraes, although these precious stones are also found in the states of Motto Grosso, Bahia, Goyaz, and Paraná. Heretofore the methods of mining diamonds in Brazil have been of the very crudest sort, the same that have been used almost from the time of the first discovery. Just recently American capital has purchased the leading mines, and modern dredging machinery has been installed, as well as machinery for the separation of the gravel products from the diamonds. These machines are run by water power generated from the streams along which the diamonds are found. This will revolutionize the diamond industry in Brazil, and the possibilities are that the production of diamonds in that country will be greatly increased. There is, and has always been, a fascination about the diamond. Not only is it unrivalled for lustre, brilliancy and fire, but it is so hard that no known substance can cut it or make the slightest indentation save, another diamond. The popular saying that it takes a diamond to cut a diamond is literally true. Furthermore, it is composed of pure carbon, and is thus related to two of the commonest of substances, coal and graphite. The appearance of the diamond when first picked up is very different from its appearance after the skillful cutter and polisher have done their work, for it is very dull and the non-expert would probably not recognize it.