20th, St. Sebastian's day, the Indians and French were attacked in their strongest hold, then called Uraçumiri, and having obtained a decisive victory, the French embarked in the four ships they still possessed, and fled to the coast of Pernambuco, where they attempted to form a settlement at Recife, but were dislodged by the Portuguese of Olinda.

Mem de Sa now founded the city of St. Sebastian, more commonly called the city of Rio; and for its security the Jesuits, with their Indians, fortified both sides of the entrance to the harbour, which is about four miles distant from the city across the bay. Before these works, however, or the walls of the town were completed, the French made a vigorous effort to disturb the rising colony; but it ended in their defeat, and their guns were made use of to fortify the mouth of the harbour.

Driven from Rio, the French attempted to form a settlement at Paraiba the next year; but the Indians, with the Jesuits at their head, and a very few troops, under the commander Martim Leytam, expelled them.

Under Mem de Sa the state had been so prosperous, that though he had been Captain-general far beyond the term of his original appointment, Don Sebastian, on assuming the crown, continued him in office for two years longer, and then named Luiz de Vasconcellos to succeed him. That nobleman never reached Brazil. With him sailed a fleet of seven ships, bearing, besides the governor, sixty-nine Jesuit missionaries, and a number of orphan girls, whose parents had died of the plague, and whom the government was sending out to settle in Brazil. The fleet, in different divisions, fell in with French and English ships, and the Jesuits, save one, to use their own expression, received the crown of martyrdom, and the new governor was killed in action off Tercera. As soon as his death was known at Lisbon, Luiz de Brito de Almeida was appointed to his vacant office; and Mem de Sa just lived long enough to witness the arrival of his successor. Nobrega, who had begun that system, on which the singular government of the Jesuits in Paraguay was conducted, had died a few months before, so that Brazil was deprived nearly at once of the two ablest men that had yet been concerned in its government.

But Luiz de Brito did not succeed to the government of all Brazil. It was judged proper to divide the colony into two captaincies, Rio de Janeiro being the capital of the southern division, which included Porto Seguro and every thing to the south of it; while Bahia remained the capital of the northern districts. There Luiz de Brito fixed his residence, and Doctor Antonio Salerna was appointed governor of the south. But this division was soon found inconvenient, and the two parts were re-united[14] about 1578, the year in which a new governor, Diego Laurenço da Viega, arrived.

This was the year when the loss of Don Sebastian in Africa threw Portugal into the hands of Spain. King Philip, eager to annex that kingdom for ever to his crown, offered Brazil, with the title of King, to Braganza if he would give up his claim to the crown of Portugal. But it was reserved for his descendant to achieve the independence of Brazil, and he refused it.

The colony was at this period most flourishing, though not altogether able to do without occasional supplies from the mother country. But already the original mud-cottages, supported by frame-work and thatched with palm-leaves, of the first settlers, had given way to well built and handsome houses of stone and brick, covered with tiles as in Europe. The reconcave of Bahia had sixty-two churches, and upwards of seventy sugar-works: the land was well stocked with cattle, all the kinds of orange and lime trees introduced by Europeans had flourished. The country abounded in excellent native fruits, and the mandioc furnished never-failing stores of bread. Olinda partook of all these advantages, and was itself the best built and most populous town in Brazil. Rio de Janeiro had become a place only inferior in importance to the other two, its natural advantages being still greater, and the climate milder; nor were the other captaincies less prosperous.

But the transfer of the crown into foreign hands changed the aspect of affairs in Brazil. Inferior to the Spanish American countries in mines, it was considered only of consequence as being occupied by Spanish subjects, and so forming a barrier against the intrusion of other nations.

By this time the English had begun to trade on the coast of Brazil, and in 1577 Drake had passed through the Straits of Magellan in his memorable voyage round the world. His appearance in the southern seas alarmed Philip the Second, now King of Portugal as well as of Spain, and consequently Lord of Brazil. He attempted to form a colony and maintain a fort in the Straits, in order to prevent future navigators from passing; but of it nothing is left but the name, Port Famine, which attests the miserable fate of the colonists. The English commerce was also cut off in Brazil. Some vessels trading peaceably at San Vincente were attacked in the harbour by the Spaniards in superior force; one of the latter was sunk, and the English escaped next day. In 1686, the Earl of Cumberland fitted out an expedition, in which Raleigh served and Witherington was admiral, which entered the reconcave of Bahia and plundered it, remaining there six weeks, the city being only saved by the Indian archers. Baretto, the governor of Brazil, died the next year, and was succeeded by D. Antonio Barreiros the bishop, and Christovam de Barros as joint governors; and they were soon superseded by Francisco Giraldes: he, however, never arrived in the country, and Don Francisco de Souza was appointed in his stead.

During his captaincy some search was made after mines by a descendant of Caramuru, who offered to discover where he had found the silver of which he had services in his house and chapel, on condition of receiving the title of Marques. This Philip refused to grant, and the secret, if indeed the man had one, died with him.

Meantime the celebrated Cavendish had made one voyage round the world, and had committed such ravages on the coast of Spanish America, as not even the atrocious habits of naval warfare in those days can excuse. In 1591, he embarked in a second expedition, arrived in December on the coast of Brazil, and took Santos and burned San Vincente. The ships then sailed for the Straits, but were baffled in their attempt to pass, and returned to the coast of Brazil to obtain provisions. Cavendish, who had many great and good qualities, and who might certainly think it allowable to supply himself on an enemy's coast, made an attempt on Espiritu Santo, but by a mistake in executing his orders it failed, and he sailed for England, but died of a broken heart on the passage.

The most remarkable expedition of the English to the coast of Brazil was that of Sir James Lancaster to Pernambuco. He had the command of three small vessels of 240, 120, and 60 tons. At Cape Blanco he learned that a rich carrack from India had been wrecked near Olinda, and that her cargo was safely stowed at Recife. He therefore fitted five out of near thirty small prizes to accompany him, and built a galley frigate to land with. He was also reinforced by Captain Vernon with two ships, a pinnace, and a prize, and then sailed direct for Recife, where they arrived in March, 1595. On Good Friday of that year the town was taken with little resistance, and Lancaster permitted not the slightest disorder after the place was taken. He fortified the sandy isthmus which connects Recife with Olinda, and then proceeded at leisure to stow his ships with the goods found in the town, and hired the Dutch vessels lying in the port as store-ships. Some French privateers coming in, he also hired them with part of the booty to assist in the defence of the place, till the lading of the