Paracatu is the principal village or town of a district of the same name, which lies about ninety leagues north-west of Tejuco, bordering on the _Capitania_ of Goyazes, from which it is separated by a chain of high mountains that take a northerly direction. The numerous rivers which rise on the eastern side of the mountains, and flow into the great river S. Francisco, are rich in gold. The population of the village is estimated at above a thousand souls, and will shortly be more numerous, as the reputed richness of some late discoveries has tempted many families to migrate thither. It has all the advantages of a high and healthy situation, in the midst of a most fertile country, and has considerable intercourse with Sabará and Villa Rica, where the gold procured in its vicinity is permuted. It is governed by a _Capitao Mor_, who is subordinate to the governor of the latter place, to whom all disputes of consequence are referred. To the southward is the rich _destacamento_ of Rio da Prata, a river that yields fine diamonds, and has been much frequented by many adventurers, who, when discovered and seized, are called _grimpeiros_ (smugglers). A strong guard of soldiers is stationed here to prevent the precious stones from being sought for clandestinely.
A few leagues to the north of the Rio Prata is the rivulet named Abaité, celebrated for having produced the largest diamond in the Prince’s possession, which was found about twelve years ago. Though this circumstance has been already briefly stated, it may be allowed me in this place to relate the particulars as they were detailed to me during my stay at Tejuco. Three intelligent men, having been found guilty of high crimes, were banished into the interior, and ordered not to approach any of the capital towns, or to remain in civilized society, on pain of perpetual imprisonment. Driven by this hard sentence into the most unfrequented part of the country, they endeavoured to explore new mines or new productions, in the hope that, sooner or later, they might have the good fortune to make some important discovery, which would obtain a reversal of their sentence, and enable them to regain their station in society. They wandered about in this neighbourhood, making frequent searches in its various rivers for more than six years, during which time they were exposed to a double risk, being continually liable to become the prey of the Anthropophagi, and in no less danger of being seized by the soldiers of Government. At length they by hazard made some trials in the river Abaité, at a time when its waters were so low, in consequence of a long season of drought, that a part of its bed was left exposed. Here, while searching and washing for gold, they had the good fortune to find a diamond nearly an ounce in weight. Elated by this providential discovery, which at first they could scarcely believe to be real, yet, hesitating between a dread of the rigorous laws relating to diamonds, and a hope of regaining their liberty, they consulted a clergyman, who advised them to trust to the mercy of the state, and accompanied them to Villa Rica, where he procured them access to the governor. They threw themselves at his feet, and delivered to him the invaluable gem on which their hopes rested, relating all the circumstances connected with it. The governor, astonished at its magnitude, could not trust the evidence of his senses, but called the officers of the establishment to decide whether it was a diamond, who set the matter beyond all doubt. Being thus, by the most strange and unforeseen accident, put in possession of the largest diamond ever found in America, he thought proper to suspend the sentence of the men as a reward for their having delivered it to him. The gem was sent to Rio de Janeiro, from whence a frigate was dispatched with it to Lisbon, whither the holy father was also sent to make the proper representations respecting it. The sovereign confirmed the pardon of the delinquents, and bestowed some preferment on the worthy sacerdote.