In the 1690s, during the final years of King Peter II's reign, precious resources were discovered in Brazil, namely vast gold and diamond deposits. However, exploitation of the resources primarily began in John's reign, with the establishment of mining companies, taxation systems, and a mercantilist supply chain, which ushered in a period known as the Brazilian Gold Rush. The royal fifth was instituted as a form of taxation on mining activities, requiring a fifth of all gold to go directly to the King's treasury. In an effort to consolidate royal authority while promoting efficient governance, John took control of the Captaincy of São Vicente (in 1709) and the Captaincy of Pernambuco (in 1716), establishing direct royal governance in the two most valuable provinces of Brazil. In 1721, John ordered the separation of the region of intense mining from the rest of the Captaincy of São Vicente, into the autonomous captaincy of Minas Gerais (General Mines), allowing for the colonial administration to collect taxation more effectively.
In the 1690s, during the final years of King Peter II's reign, precious resources were discovered in Brazil, namely vast gold and diamond deposits. However, exploitation of the resources primarily began in John's reign, with the establishment of mining companies, taxation systems, and a mercantilist supply chain, which ushered in a period known as the Brazilian Gold Rush. The royal fifth was instituted as a form of taxation on mining activities, requiring a fifth of all gold to go directly to the King's treasury. In an effort to consolidate royal authority while promoting efficient governance, John took control of the Captaincy of São Vicente (in 1709) and the Captaincy of Pernambuco (in 1716), establishing direct royal governance in the two most valuable provinces of Brazil. In 1721, John ordered the separation of the region of intense mining from the rest of the Captaincy of São Vicente, into the autonomous captaincy of Minas Gerais (General Mines), allowing for the colonial administration to collect taxation more effectively.