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e 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 Laurenco da Viega, arrived. [Note 14: When the Historia da Provincia de Sancta Cruz, by Pero Magalha[=e]s de Gadano, was printed, 1575, they were still separate; but Southey's MS. of 1578 says they had been re-united.] 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
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