The first industry was that of mining, gold having been dis covered in the river valleys on the southern slopes of the plateau, and diamonds on the head-waters of the Paraguay, about Dia mantino and in two or three other districts. Gold is found chiefly in placers, and in colonial times the output was large, but the industry is now comparatively unimportant. 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 forests include fine woods, rubber, ipecacuanha, sarsaparilla, jaborandi, vanilla and copaiba. There is little export, however, the only means of communication until recent years being down the Paraguay and Parana rivers by means of subsidized steamers. A railway has now been completed from S5.0 Paulo across the State to Corumba on the Paraguay river. The capital of the State is Cuyaba, whose population in 1930 est. 41,148 (including its municipal district), and the chief commercial town is Corumba, whose population (with the municipal district) in 1920 was 19,547, at the head of navigation for the larger river boats, and 1,986 m. from the mouth of the La Plata. Communication be
tween these two towns is maintained by a line of smaller boats, the distance being 517 miles.
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 Cuyaba, where rich placer mines had been found. At this time all this inland region was considered a part of Sao 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 Guapore river and was named Villa Bella da Santissima Trindade de Matto Grosso, but in 1820 the seat of Government was removed to Cuyabo. 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 186o-65.