The production of gold begins to decline …

Years: 1684 - 1827
The production of gold begins to decline about 1750 as the Minas Gerais society is solidifying and as the international situation is becoming more complicated.

The more the Portuguese squeeze and try to reduce the contraband in gold and diamonds, the more the divergence of interests grows.

In the 1770s, as less gold reaches royal coffers, the crown reacts by imposing a per capita tax (derrama) to make up the difference between the amounts expected and those received.

Meanwhile, competition from British, French, and Dutch colonies pushes the price of Brazilian sugar down lower on the Amsterdam market, reducing still more Portuguese revenues.

Moreover, the decline in available gold affects the contraband trade that the Brazilians have carried on with the Rio de la Plata area, where they exchange their illicit gold for Andean silver.

The Brazilians then used the silver to buy illegal British goods, which they smuggle back into the Spanish domains.

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