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An inquiry into the nature and causes of the wealth of nations / by Adam Smith
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THE WEALTH OE NATIONS.

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After the settlements of the Spaniards, that of the Portu-guese in Brazil is the oldest of any European nation in Ame-rica . But as for a long time after the first discovery, neithergold nor silver mines were found in it, and as it afforded,uiion that account, little or no revenue to the crown, it wasfor a long time in a great measure neglected; and duringthis state of neglect, it grew up to be a great and powerfulcolony. While Portugal was under the dominion of Spain, ,Brazil was attacked by the Dutch , who .got possession ofseven of the fourteen provinces into which it is divided. Theyexpected soon to conquer the other seven, when Portugal re-covered its independency by the elevation of the family ofBraganza to the throne. The Dutch then, as enemies to theSpaniards, became friends to the Portuguese , who were like-wise the enemies of the Spaniards. They agreed, therefore,to leave that part of Brazil , whiqh they had not conquered,to the king of Portugal , who agreed to leave that part whichthey had conquered to them, as a matter not worth disputingabout with such good allies. But the Dutch government soonbegan to oppress the Portuguese colonists, who, instead ofamusing themselves with complaints, took arms against theirnew masters, and by their own valour and resolution, withthe connivance, indeed, but without any avowed assistancefrom the mother country, drove them out of Brazil . TheDutch , therefore, finding it impossible to keep any part of thecountry to themselves, were contented that it should be en-tirely restored to the crown of Portugal . In this colony thereare said to be more than six hundred thousand people, eitherPortuguese, or descended from Portuguese , creoles, mulat-toes, and a mixed race between Portuguese and Brazilians .JNo one colony in America is supposed to contain so great anumber of people of European extraction.

Towards the end of the fifteenth, and during the greaterpart of the sixteenth century, Spain and Portugal were the twogreat naval powers upon the ocean ; for though the commerce'of Venice extended to every part of Europe , its fleet hadscarce ever sailed beyond the Mediterranean. The Spa-niards, in virtue of the first discovery, claimed all America as their own; and though they could not hinder so great anaval power as that of Portugal from settling in Brazil , suchWas, at that time, the terror of their name, that the greaterPart of the other nations of Europe were afraid to establishthemselves in any other part of that great continent. The

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