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Graciosa's discovery date is uncertain although it probably took place as the result of the activity of seafarers from nearby Terceira island. We can be sure of the fact that it received cattle by order of Prince Henry the Navigator and that it already had settlers by the middle of the 15th century.
The pioneer and land-clearer of the island was Vasco Gil Sodra, a native of Montemor-o-Velho in Portugal, who was accompanied by his family and servants. He built his house at Carapacho, where he first landed. In spite of the efforts made by Vasco Gil Sodra to become the island's donee and the fact that he built a custom-house on it, the captaincy of the northern part was given to Pedro Correia da Cunha, married to the sister of Cristopher Columbus's wife, and the southern part to Duarte de Barreto.
The growin population (originating, according to some historians, in the Beiras and Minho regions of Portugal and also in Flanders) and prosperity of the island led to town charters being granted to Santa Cruz in 1486 and Praia in 1546. The names of the great families who contributed to the settlement and growth of the island are still to be found among its inhabitants. Devoting its energies to agriculture and viniculture from the very outset, Graciosa was already exporting wheat, barley, wine and brandy in the 16th century.
With a predominantly agricultural economy, carrying on all its trade with Terceira, which had a port frequented by large ships and which was the economic and administrative centre, Graciosa suffered from attacks and pillaging by corsairs in the 16lh and 17th centuries.
Several historical figures have visited Graciosa over the centuries. The first was Father Antonio Vieira, the famous 17th century Portuguese writer. When the ship on which he was sailing from Lisbon was wrecked, he was picked up by a Dutch privateer which put him ashore on Graciosa, where he stayed for two months. He was followed by Chateaubriand, who visited the island when he was heading towards America, fleeing from the French Revolution; the well-known French author mentions his stay there in several of his works. Almeida Garrett, who introduced Romanticism in Portugal: lived there for some time in 1814 when, at the age of 15, he visited an uncle of his who was judge there; the young man wrote verses on the island that already reveal his talent as a poet; Finally, in 1879 Prince Albert of Monaco, who was outstanding for his hydrographical work and studies of marine life, called at Graciosa on his yacht Hiroudelle and visited the cavern called Furna da Caldeira.
Concentrating on agriculture, livestock raising and the dairy industry, Graciosa has preserved its characteristics as a quiet rural island while accompanying and participating in the progress of the Azores.
A "sermon" delivered by Garrett. A new priest was saying his first mass in the parish church of Santa Cruz da Graciosa. The church was crowded with faithful. In the middle of the ceremony, an unknown young man, wrapped in a black cape, climbed up to the pulpit and made a brilliant speech on the duties of the priesthood and the importance of the act they were all witnessing.
When he left the pulpit he was recognised by his uncle who, enraged, scolded him severely and wanted to punish him with the full strictness of the law. The young man in question was Aimeida Garrett who at the age of 15 was demonstrating his abilities as a future orator.
