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| Rio de Janeiro, was discovered on January (Janeiro) 1, 1502 by Portuguese explorers who mistook the entrance of Guanabara Bay for the mouth of a river (Rio). Native Americans from the Tupí family occupied the area at the time of European contact. By 1555 French traders in search of pau-brasil (Brazil wood) had established a Calvinist settlement. After 2 years of bloody conflict the French were expelled in 1567. The Portuguese established the city of Sao Sebastiao do Rio de Janeiro, and settlers began to cultivate the surrounding fertile lands. At the beginning of the 18th century the city's importance and population increased immensely. The completion in 1704 of a road from Rio de Janeiro to the gold mines of the neighboring state of Minas Gerais made Rio de Janeiro the main shipping port and a major center of transportation, commerce, and wealth. Rio de Janeiro was captured by the French in 1710 and the Portuguese paid a substantial ransom for its return. The city's fortunes rose in 1763 when the capital of colonial Brazil was moved to Rio from Salvador, a port city in northeastern Brazil known at the time as Bahia. In 1808, as Napoleon's armies began the invasion of Portugal, the decision was made to transfer the monarch and his court to Rio de Janeiro, where he would remain until 1821. During this time Brazil was elevated in status from a colony to United Kingdom with Portugal. The city grew dramatically and took on a decidedly European flavor. In 1822 Rio de Janeiro became the capital of the independent Brazilian Empire. With the overthrow of the monarchy in 1889, Rio de Janeiro was made the capital of the Brazilian republic. The city prospered economically, and by 1891 it had a population of over 500,000 inhabitants ranking it one of the largest cities in the world. Beginning in the late 1800s and continuing well into the middle of the 1900s, coffee cultivation expanded widely in the mountainous terrain surrounding Rio de Janeiro, fueling a commercial boom that enriched the city and its residents. By 1900 Rio de Janeiro's population had grown to about 800,000. The global economic depression of the 1930s and World War II (1939-1945) drastically reduced the flow of manufactured goods into Brazil, encouraging the development of national industries; many of these were based in Rio de Janeiro.
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