The government of Portugal now issued a decree, declaring all diamonds a monopoly of the crown. For a length of time it was considered that diamonds were confined solely to the district of Serro Frio. But this is an error; they are found in almost every part of the empire, particularly in the remote provinces of Goyazes and Matto Grosso, where there exist several districtos diamantescos. These gems have been even found on the tops of the highest mountains; indeed, it is the opinion of the Brazilian mineralogists that the original diamond formations are in the mountains, and that they will one day or other be discovered in such quantities, as to render them objects of comparatively small value. The largest diamond in the world was found in the river Abaite; about ninety-two leagues to N.W. of Serro do Frio. The history of its discovery is romantic:--three Brazilians, Ant. de Souza, Jose Felix Gomes, and Thomas de Souza, were sentenced, for some supposed misdemeanour, to perpetual banishment in the wildest part of the interior. Their sentence was a cruel one; but the region of their exile was the richest in the world; every river rolled over a bed of gold, every valley contained inexhaustible mines of diamonds. A suspicion of this kind enabled these unfortunate men to support the horrors of their fate; they were constantly sustained by the golden hope of discovering some rich mine, that would produce a reversion of their hard sentence. Thus they wandered about for nearly six years, in quest of mines; but fortune was at last propitious. An excessive draught had laid dry the bed of the river Abaite, and here, while working for gold, they discovered a diamond of nearly an ounce in weight. Overwhelmed with joy at this providential discovery, they resolved to proceed, at all hazards, to Villa Rica, and trust to the mercy of the crown. The governor, on beholding the magnitude and lustre of the gem, could scarcely credit the evidence of his senses. He immediately appointed a commission of the officers of the Diamond District to report on its nature; and on their pronouncing it a real diamond, it was immediately dispatched to Lisbon. It is needless to add that the sentence of the three "condemnados" was immediately reversed. This celebrated diamond has been estimated by Romé de l'Isle at the enormous sum of three hundred millions sterling. It is uncut, but the late King of Portugal, who had a passion for precious stones, had a hole bored through it, in order to wear it suspended about his neck on gala days. No sovereign possessed so fine a collection of diamonds as this prince.--_Monthly Mag_. * * * * * NOTES OF A READER. AMERICAN LIFE. Mrs. Trollope's amusing book has furnished us with still another page or two of scenes and sketches: _Crocodiles on the Mississippi_.