# A Treatise on Diamonds, and Precious Stones/Chapter 1/Section 7

SECT. VII.
Commercial History of Rough Diamonds.
With the circumstances that led to the discovery of Diamonds in India, we are totally unacquainted; but in regard to the discovery of this gem in Brazil, the following account, which I have heard related by individuals in the country, to whom it had descended by tradition from the first adventurers, will be found generally correct.
About a century ago, that part of Brazil, called Serro do Frio, (meaning a lofty ridge where the climate is cold), was explored for gold; and in searching for this precious metal some singular substances, resembling pebbles, were occasionally met with, in rerular geometric forms. The peculiar hue and lustre of some ​particular specimens attracted the notice of the negroes, who shewed them to their masters, as pretty shining pebbles. They were preserved apart when met with, and gradually came into fashion as counters in playing at cards. The people were wholly ignorant of their value, though their striking appearance, and their regularity of form created a general interest in them, similar to that which induces persons to collect pebbles and shells on the beach at Scarborough, &c.
In this state the gems remained for some time, until an officer arrived, who had been in India, and was reputed to be a mathematician. At the social parties which he visited, these pretty counters attracted his notice. Having obtained some, he examined them more minutely when alone, and was particularly struck with their geometrical symmetry of form. He compared them with common pebbles of the same bulk, which he purposely ​gathered; but he could not find any that at all resembled them in regularity. After some time the number of these stones augmented, and all persons in the habit of amusing themselves with cards, possessed a larger or smaller number, which circulated among them without exciting the least surmise as to their real worth.
The currency of the country was gold dust, in various quantities, as an eighth of an ounce, half an ounce, &c., and of course, small scales were in very general use. The officer already mentioned, conceived the idea of weighing one of these counters against a pebble of equal size; and having done so, he found that the weight of the one considerably exceeded the weight of the other. He then tried to make an impression upon one of these counters, by rubbing it on a stone with water; but it resisted all his efforts, while a plane was produced on the pebble by the ​labor of a few minutes. When an opportunity presented itself, he sent a handful of the counters by a friend to Lisbon, for the purpose of having them examined; these were given to lapidaries (who never work diamonds, and perhaps had never seen one in its native state): they could only say, the stones were too hard for their tools. At length, by mere accident, the Dutch consul saw them; and gave his opinion that they were Diamonds. Some were immediately forwarded to Holland, where they were manufactured into brilliants, and pronounced to be diamonds, equal in quality to those from Golconda, or any other part of India. The returning fleet carried this favorable news, to Rio de Janeiro, whence it was rapidly communicated to the interior, and fortunate was the man who could procure a large share of these hitherto pretty pebbles—but now Diamonds. They were quickly bought up; and the counters, which had for a year or two been so carelessly handed about, became ​the property of three or four individuals, in as many days.
In consequence of this favorable report, diamonds were now sought for, with the greatest avidity. Extensive speculations took place, and the diamonds arrived in Europe in such abundance, as to excite an apprehension, that these valuable gems would be greatly depreciated. To counteract this, a report was industriously circulated, that the Brazillian diamonds were decidedly inferior to the Oriental. Others, interested in the trade of diamonds, denied that these newly introduced gems were the produce of America, and declared them to be the refuse of the Indian mines, sent from Hindostan to Goa, and thence transmitted to Rio de Janeiro, on their passage to Lisbon. These misrepresentations excited throughout Europe a great prejudice against Brazillian diamonds. They soon fell however into the hands of a few persons, who ​knew better how to manage the business— Foreseeing that their government would not long remain indifferent to so splendid a prize, they bought all that were offered, and devised the following ingenious expedient for counteracting the prejudices, which had been so insidiously raised. They secretly transmitted the Brazillian Diamonds to Goa, and thence to Bengal, where they were baptized legitimate Oriental Diamonds (Rocca Velha) bought at high prices, made up in bolsas of a certain weight, and transmitted to England; whence they were disseminated over Europe. They were every where received by the consignees, merchants, and manufacturers of brilliants, as genuine East Indian Diamonds.—Thus brought into fair competition, they were found not at all inferior to the finest gems from Golconda, The former prejudice was soon abandoned by the trade; but it made a lasting impression on persons little acquainted with diamonds, and it still subsists. Pur​chasers will sometimes speak with contempt of a Brazil brilliant, and this delusion gives the vender a favorable opportunity for selling what he will call a real Golconda Diamond at a much higher price. The actual, or supposed native country of a diamond, is not at all considered in estimating its commercial value.
The far famed, and much extolled diamond-mines of Golconda, are said to be nearly exhausted. The thousands of inhabitants composing its entire population, who were for so many years employed in washing the earth for these gems, have drained all the riches from this once distinguished territory, and the mines are now abandoned.
A company, chiefly English, raised a capital of £30,000, and with the assistance of the native Rajah, engaged the poor inhabitants in their former occupation; but, after a lapse of three-years, finding their capital in a rapid ​decline, they were obliged to relinquish the undertaking, and retired with a loss of one third of their funds.
From the best accounts that I have been able to procure, it appears that for some ages the native princes of India had employed from thirty to fifty thousand, or more, of their vassals, in the washing and search for Diamonds. Solong as they collected as many as would cover the expenses incurred, the labor was continued. It would not be difficult to form a rude estimate of the amount of money thus acquired; and it is matter of great astonishment, that, in so many centuries, so few large Diamonds should have been found. In India, Diamonds of great size, as I have already observed, are never sold by the Rajahs, or persons of rank, but are preserved in families, from generation to generation, with religious care.
​At one period, it was the practice to let out pieces of ground, of a certain number of square yards, at a fixed sum per diem, (according to the reputation of the soil), for each man employed in searching for Diamonds. If any were found, they were immediately weighed, and offered for sale on the spot to agents, who were sent from Madras, &c. for that purpose.
In the Diamond washings of India, sapphires, rubies, topazes, and aqua-marines, have been frequently met with.
The Diamonds from Borneo are found in ​the manner described in treating of those of Brazil. A lot, or bolsa, always contains a larger proportion of bad, and a smaller quantity of good Diamonds, than is found in an equal lot from Brazil. They have also, generally, great exterior lustre, which is by no means a favorable symptom; many are quite dark brown, and of very high polish.
It may with truth be asserted, that Europe is almost wholly dependant on Brazil, for its supplies of Diamonds.
This lucrative commerce was formerly in the hands of the Dutch. On the discovery of Diamonds in Brazil, the consul of that nation, after the Portuguese government had taken the mines into their own hands, contracted for all that should be disposed of. The Dutch, by means of their agents, were equally alert in India; and thus they succeeded in obtaining a valuable branch of trade, while they secured ​to their own workmen the profitable employment of cutting and polishing Diamonds.—They also became possessed of the most valuable colored stones, and thus rendered the sovereign princes and most opulent individuals in Europe, tributary to them for the rarest and most valued of all precious substances.
Besides the annual importation of Diamonds into Europe through the ordinary channels, there have been, in the course of the last eighty or ninety years, two remarkable influxes, which require to be noticed. The first was that which took place from Brazil, before the trade was monopolized and regulated by the Portuguese government. The second occurred at the epoch of the French revolution, when the nobles and other emigrants, who took refuge in England, brought with them large quantities of diamonds, which, from the pressure of necessity, were soon brought to market, and were generally disposed of, at a low ​sum, to the jewellers. The prices given had a relation rather to the exigencies of the sellers, than to the value of the article; for the regular sale price did not on this account suffer the smallest abatement.
Though commerce of every kind has been, and ever will be, subject to fluctuation, yet that of diamonds is of all others least liable to it, so far as concerns what may be termed saleable stones, by which is meant those that are not remarkably large. Diamonds of considerable size are so rare as to render their value in many cases arbitrary. Few persons can afford to enter into competition in the purchase of first rate gems, and hence they will probably always continue to be slow of sale in Europe. The political state of the continent for the last twenty years, has been deemed peculiarly unfavorable for the disposal of such diamonds as demand for their purchase ​an expenditure of perhaps forty or fifty thousand pounds.
As a very large property, both in this kingdom and in other countries of Europe, is vested in diamonds, it may be interesting to be informed, that not only the price of these gems has for several years been, upon the whole, gradually rising, but that it is likely to continue on the advance. At the present time, indeed, and for the last few years, there has been a dull sale of Diamonds in England, nor did the coronation occasion a demand worth notice; but on the continent the trade has been steady, and rough diamonds have been constantly rising in price. That this advance will be progressive, may be presumed from the faet, that the best diamond ground now known, the Serro do Frio, in Brazil, has assuredly passed the zenith of its prosperity. I went over the greater part of what is yet reserved, ​and still remains to be worked, and I conceive that there would be no difficulty in calculating the length of time in which the present number of workmen may reduce it to a state of exhaustion, like that of the far-famed Golconda. The average annual produce of future years may be estimated on the ratio of the amount obtained from that portion which has been already worked. Brazil may be said to furnish Europe with 25,000 or 30,000 carats per annum, of rough diamonds, which, if reduced to brilliants, may make an influx into the market, of 8,000 or 9,000 carats annually.
The Diamond mines in Brazil belong to the Crown; and any trade whatever in these gems, even the possession of one, is declared contraband, and is visited with the severest punishment. Yet they are not unfrequently offered for sale by private individuals who contrive to pass the guards, and convey them from the ​interior to Rio de Janeiro, &c, The government Diamonds, however, form far the greater part of the trade. The district of Serro do Frio, where they are found, is of small extent, and the number of negroes constantly employed in washing for them, does not exceed two thousand. No one is allowed to enter this district without special permission; and if travellers are obliged to pass through it, they are always escorted by a soldier, and not allowed to make any stay. The principal town where the intendants and officers reside, is called Tejuco, but the mines or washings are at some distance from it. The Diamonds collected in the various parts of the district, are taken to the town, and secured in the treasury, in the presence of all, or at least three of the principal officers. They are annually sent to ​Rio de Janeiro in the charge of a captain of cavalry, with a sufficient convoy, and are delivered to the treasurer and officers of government at that capital. Here the gems remain until it is determined to send them to Europe. During the last fifteen years they have been transmitted to England, but they will now probably revert to their former channel, and go to Lisbon. It was customary for the monarchs of Portugal to make choice of any rough Diamonds which pleased them, above the weight of twenty carats: and thus has been accumulated that costly suit now belonging to the present king of Portugal.
Before I conclude this section, it may be proper briefly to describe the manner in which the diamond-merchant proceeds to make his estimate in buying a bolsa or lot of Diamonds, whether of fifty carats, or five thousand. He first places them in a good light, on a sheet of white paper laid on a table, and then divides ​or separates them into various sets according to their size. Those stones which are bad colored, yeiny, and round, are laid apart; then the large stones are separated, weighed, and carefully examined. Each of the lots is then weighed, and lastly the inferior stones. He calculates the separate value of each large ​stone, and afterwards the value of the various parcels. His next object is to estimate the expense of making them into brilliants &c. the loss of weight in cutting, and the price they will probably sell for, when manufactured, and estimates their value accordingly.
It may here be observed that the commerce of rough Diamonds, is almost exclusively in the hands of respectable Jews; and, to the credit of that people, it should be added, that their dealings in them are liberal; they estimate the real value of the article. and offer the fair trade price; and I may state from my own experience in numerous transactions with them, that they rarely make any alteration in price, either in purchasing or selling.
Small lots of rough Diamonds are frequently brought by gentlemen from Brazil or India, and are offered by them to jewellers, who seldom venture to purchase, except at very in​ferior prices. The following fact came under my own observation. A lot of sixty carats was offered for sale to a jeweller, who requested they might be left for examination, that their value might be ascertained. When the gentleman called again, he was informed that the Diamonds had been estimated by a workman at thirty-two shillings per carat. The owner, having given much more for them, appeared a little disappointed; some explanatory remarks were then thrown out respecting their inferiority, and a higher offer was made, which was declined. The same diamonds were afterwards disposed of at forty-eight shillings per carat!
* ↑ The Rajah of Mattan, in Borneo, is possessed of a rude Diamond, said to weigh above 300 carats. A friend of mine, captain of an Indiaman, was permitted to see it, but was requested not to touch it; this gem was brought in on a gold salver, and was about the size of a common walnut; it had a blueish metallic lustre.
* ↑ See Travels in Brazil.
* ↑ When the lot is large, for the purpose of more easily separating the greater stones from the smaller, the merchant has small sieves or boxes of tin, with numerous holes punched in them. One sieve, for instance, will suffer all Diamonds to pass through, which do not weigh two carats, retaining stones of that weight and larger. Another sieve, will suffer those to pass which are below a carat and a half, or a carat, and so of the rest. Thus the whole bolsa is divided into sets of stones which are nearly of equal weight. A bolsa of Diamonds rarely contains any individual stones above four carats; all that exceed that weight being generally sold alone. Such lots may, on the average, be estimated at from forty to fifty shillings per carat. If they contain many stones not fit for manufacturing, (technically called turn out), they may be worth the lowest of the above-mentioned prices; and if very fine, they may sell for a few shillings above the higher price.