regiments were kept distinct from the European, and officered from among the wealthy members of their own class. The native Brazilians were treated even more favourably, and by the great decree of 1755 they were not only forbidden to sell themselves as slaves, but were made citizens in every respect, and allowed to receive their education at the University of Coimbra. The importance of the discovery of gold in the interior has been mentioned, and the revenue to the Portuguese Crown from the king’s fifth, in spite of much fraud, was estimated at £300,000 a year. The opening up of the interior led, about the year 1750, to the conquest of the Paulist Republic. This curious little state had been formed round the city of St. Paul about the commencement of the eighteenth century by fugitives from Brazil and from the more oppressive Spanish Governments of Chile and Peru. The town was originally founded far up in the heart of the virgin forests beyond the jurisdiction of the Portuguese and Spanish officials, where the inhabitants led a wild, romantic life, tempered only by lynch law. But by degrees the march of civilization brought them in contact with the Portuguese Government, and the discovery of diamonds in the vicinity led to the suppression of the little republic. This discovery of diamonds further increased the wealth of the Portuguese Crown, and in addition to the royal right to every diamond above twenty carats weight, the king was estimated to make an income of £100,000 a year by a contract entered into with a syndicate of English diamond buyers. Nor were other precious stones lacking, for rubies, emeralds, and topazes were all discovered in such large quantities in the latter half of the eighteenth century as to seriously lower their price. The great colony was ruled most wisely; only a few of the superior officers were sent from Portugal, and most offices were filled from among the settlers themselves. It was not even found necessary to send troops from Portugal, for a regular army of sixteen thousand men, and a militia of over twenty thousand were easily raised and paid in the country itself. The only troubles which beset the colony were caused by the indefiniteness of its boundaries, and Portugal found it necessary to yield much territory, which has since developed into wealthy and prosperous republics to the encroachments of Spain. Its importance was recognized by the title of Prince of Brazil granted to the eldest son of the King of Portugal since the days of John IV., and it became a safe refuge for the exiled royal family when events in Europe made it necessary for it to fly from Lisbon.