These contests were carried on chiefly between the inhabitants of the American provinces themselves. Bra zil, from its distance, and a received opinion of its strength, was not generally the object of those naval wars which, during the eighteenth century, were waged with such activity between the European nations. In 1711, however, the war of the succession, which had produced such formidable convulsions throughout all Europe, was felt in this remote region. Portugal hay ing espoused the cause of England and Austria, became thus the enemy of France ; and the celebrated Admiral Duguay Trouin formed the design of obtaining posses sion of Rio Janeiro. With the most daring valour, he led his fleet through all the range of batteries which de fended it, and carried the place by storm. In the peace, however, which was soon after concluded, Rio Janeiro was restored to Portugal.
All these wars, however, were of petty importance, and did not materially affect the interest and prosperity of Brasil. She was much more deeply affected by the commercial arrangements adopted by the mother coun try, for the regulation of her colonial intercourse. At the time of the first discovery of the new world, and for the greater part of the period which has since elapsed, the European nations were attached to a system of the most rigid commercial restriction. An ignorance of the true principles on which the prosperity of trade de pends, made it be imagined, that the more minutely and carefully all its movements were regulated by govern ment, the more beneficial was it likely to prove. The suspicious character, besides, of the states of the penin sula, and the concealment and mystery in which they delighted to wrap themselves, made them solicitous that colonial intercourse should be confined within as narrow limits as possible. These motives led to the introduction of the flota system, by which the inter course between the mother country and the colonies was permitted to be kept up only from certain ports, and at certain seasons of the year. This system was adopt ed by Portugal as well as Spain, but on a considerably more liberal footing. Annual fleets were allowed to sail, both from Lisbon and Oporto ; and as these cities, from their advantageous situation, engrossed almost all the commerce of Portugal, and were almost exclusively qualified for carrying on distant commercial enterprizes, the restriction probably was not so severely felt. The ports in the colony which were allowed to hold inter course with the mother country, were, in like manner, limited to four, Olinda, St Salvador, Paraiba, and Rio Janeiro. To these the same remark may be applied, though not, perhaps, to the same extent. The regula tion which prevented the fleets from sailing oftener than once in the year, was probably much more inju rious. However, in consequence of the inferior regard which was paid to Brasil, she was happily exempted from that complicated system of restraint and monopoly, under which the Spanish settlements groaned. To this circumstance, perhaps, she was mainly indebted for that measure of prosperity to which she silently attained. As soon, however, as, by the discovery of gold and dia monds, Brasil began to be regarded as an immense source of wealth to the crown, the fortunate indiffer ence with which it had before been regarded, entirely ceased. Rigid regulations, as we have seen, were enacted, in order to secure to the crown the ample re venues arising from these valuable productions; and in order to render these regulations effectual, it became necessary to establish a general system of restraint, which cramped the growing prosperity of the colony. About the middle of the last century, under the admi nistration of the Marquis of Pombal, Portugal exhibited the singular and melancholy spectacle, of a nation be ginning to adopt an exploded system, at the very mo ment when every other people was abandoning it, and studying to remedy the evils which it had occasioned. This system was that of exclusive companies, which Pombal carried to such an extent, as to subject to them even port wine, the staple commodity of the kingdom. Extending it to Brasil, he subjected to an exclusive company the trade of the northern provinces of Marag nan, Para, and Fernambuco. The regulations of thi,
company were, in some respects, of a nature peculiarly preposterous. Ignorant of the limits which bound the authority of sovereigns in commercial affairs, the court of Lisbon ordained, that the shares in this company's stock should bear a certain price ; and, in order to en force this regulation it was decreed, that they should be a legal tender of payment. To such of our reader as are at all conversant with political economy, it is needless to point out the impossibility, that such an or dinance should ever be executed. The preposterous attempt, however, must no doubt have lowered the credit of the company, and embarrassed its transactions. This cause, and the radical defects of such an establish ment, soon induced a material diminution in the com merce of these provinces. The number of vessels em ployed, sunk from thirteen or fourteen, to four or five. The ministry, therefore, who succeeded Pombal, being of themselves unfavourably disposed to measures pur sued by their predecessor, hesitated not to reject one so unpopular and injurious. The old arrangement was then restored, though, there is reason to believe, with some abatement of the rigour of the flota system. Upon the whole, the system of commerce between Portugal and Brasil has been on a much more liberal footing than that between Spain and her colonies, and the pro ductions of other European countries more easily ad mitted. This was owing, in a good measure, to the intimate connection of the mother country with Eng land. Portugal, from its position with regard to Spain, and its inferior magnitude, was in constant danger of being swallowed up by a more powerful neighbour ; and from the establishment of the Bourbon dynasty on the Spanish throne, no aid was to be hoped from France in maintaining her independence. She looked, there fore, to England as her natural protector ; and, in order to cement the alliance with that power, was willing to grant some commercial privileges which her colonial possessions rendered peculiarly valuable. On the 20th December 1703, a treaty was concluded between the two powers, by which the manufactures of England were allowed to be imported into Portugal on terms more ad vantageous than those of any other European country. England made a similar stipulation in favour of the wines of Portugal ; so that it seemed to remain doubt ful, even according to the ideas then prevalent, on which side the balance of advantage lay. The article in the treaty, however, which excited the exultation of Eng land, and the envy of Europe, was rather understood than expressed. It was fixed, that an English packet boat should sail weekly from Lisbon to London. As this vessel belonged to government, it was exempted from search ; and an opportunity was thereby afforded, of eluding those strict penalties, which were imposed on the exportation of gold It was soon complained, that all the gold of Brasil took the road of the Thames. Sounder views, which have since opened, have shewn, that this envied advantage was wholly chimerical ; that all the gold necessary for our circulation, would, of itself, have found its way into this country ; and that, even if Portugal could have rendered her prohibition effective, the injury would have been on her side, not on ours. The free introduction of British manufactures, however, was a mutual advantage to bath nations ; and it rendered the supply of many ol the comforts and conveniences of life more copious in Brazil, than in most of the Spanish colonies. They were often supplied, on still easier terms, by means of contraband trade. British vessels, un their way to the East Indies or to the South Sea, have been accustomed to touch at the friendly ports of Brasil ; and there they often found means to introduce European commodities at a cheaper rate than they could be sent from Portugal. Previous to the late emigration, however, the court had adopted very strict measures for preventing this irregularity. No trade of any kind was allowed between the natives and British ; though, as the persons who were employed to enforce this regu lation, found often their interest in violating it, the in tercourse could not be entirely stopt.