The first industry was that of mining, gold having been discovered in the river valleys on the southern slopes of the plateau, and diamonds on the head-waters of the Paraguay, about Diamantino and in two or three other districts. Gold is found chiefly in placers, and in colonial times the output was large, but the deposits were long ago exhausted and the industry is now comparatively unimportant. As to other minerals little is definitely known. Agriculture exists only for the supply of local needs, though tobacco of a superior quality is grown. Cattle-raising, however, has received some attention and is the principal industry of the landowners. The forest products of the state include fine woods, rubber, ipecacuanha, sarsaparilla, jaborandi, vanilla and copaiba. There is little export, however, the only means of communication being down the Paraguay and Paraná rivers by means of subsidized steamers. The capital of the state is Cuyabá, and the chief commercial town is Corumbá at the head of navigation for the larger river boats, and 1986 m. from the mouth of the La Plata. Communication between these two towns is maintained by a line of smaller boats, the distance being 517 m. The first permanent settlements in Matto Grosso seem to have been made in 1718 and 1719, in the first year at Forquilha and in the second at or near the site of Cuyabá, where rich placer mines had been found. At this time all this inland region was considered a part of São Paulo, but in 1748 it was made a separate _capitania_ and was named Matto Grosso ("great woods"). In 1752 its capital was situated on the right bank of the Guaporé river and was named Villa Bella da Santissima Trindade de Matto Grosso, but in 1820 the seat of government was removed to Cuyabá and Villa Bella has fallen into decay. In 1822 Matto Grosso became a province of the empire and in 1889 a republican state. It was invaded by the Paraguayans in the war of 1860-65.