In 1765 the situado was 50992 dollars, and in 1646 it was only 28280.
Whilst the Spaniards held Valdivia the resources of its government were very limited. Being a close port all foreign commerce was prohibited, and the few taxes collected in the whole province, including the diesmo, never exceeded 500 dollars.
In the city there is a parish church, another belonging to the Franciscan convent of missionaries, formerly of the Jesuits, and a chapel appertaining to the hospital of San Juan de Dios. The ecclesiastical department was dependent on the see of Conception, but the conventual was a branch of the establishment at Chillan, subject to the provincialate of Santiago de Chile.
Valdivia was a place of exile, presidio, to which convicts were sent from Peru and Chile. Their number was but small, and they were employed in the public works.
The province of Valdivia extends from the river Tolten in 38° to the Bueno in 40° 37´ south, and from the Andes to the Pacific, being about 52 leagues long and 45 wide. The three principal rivers in this province are Tolten, Bueno and Valdivia. Their origin is in three separate lakes of the Cordillera, from whence they run in a westerly direction, receiving in their progress several smaller streams and emptying themselves into the sea. Valdivia river enters the harbour of the same name, which is the only one in the province. This river, after uniting its waters to those of San Josef, Cayumapu, Ayenaguem, Putabla, Quaqua and Angachi, besides a great number of rivulets and estuaries, becomes navigable for canoes of 200 quintals or 20 tons burthen. Between the fort Cruces and Valdivia several small but beautiful islands are found: the principal are Realexo, Del Almuerso, Balensuela, El Islote, De Mota, San Francisco, De Ramon, De Don Jaime and Del Rey, which is the largest, being about seven leagues in circumference. There are besides a great number of smaller ones. In all the streams and ravines in the neighbourhood of the city and port are to be seen the vestiges of gold washings, labaderos, which are at present totally neglected. After heavy rains grains of gold as large as peas are often found, but there are no accounts in the treasury of the working of any mines since the year 1599, when the first revolution of the indians took place, and the city fell into their hands. At Valdivia I saw two chalices made of the gold thus accidentally collected.
"Tolten el Bajo is the northernmost mission. Situated between the rivers Tolten and Chaqui, it extends about four miles along the sea coast, and is one of the largest missions, reducciones, in the province, containing about 800 indians. The Tolten rises in the lake Villarica. It has no port, but is navigable with canoes; being too deep to be fordable, it has a bridge, which gives the indians the command of the road between Valdivia and Conception. Horned cattle and sheep are not scarce here; and maize, peas, beans, potatoes, barley, and a small quantity of wheat are cultivated; but in general the soil is not very fertile. Though the indians are more submissive than those of some other missions, they are equally prone to the common vices of drunkenness and indolence. Their commerce consists in bartering coarse ponchos for indigo, glass beads, and other trifles. At the annual visit of the comisario a kind of market is held for such traffic: at this visit the indians renew the parlamento, or promise of fidelity to the King of Spain. The comisario assures them, in a set speech, of the spiritual and temporal advantages which they will derive from remaining faithful to their King; and the Cacique, having in a formal harangue acknowledged his conviction of the truth of this assurance, the indians, being on horseback, make a skirmish with their lances and wooden swords, macanas, and, riding up to the comisario, alight, and point their arms to the ground, in sign of peace, which is all they ever promise. They worship Pillian, and their ceremonies are the same as those of the rest of the Araucanian nation: for although they call themselves Christians, their religion is reduced to the ceremony of attending at mass, &c.
"Querli extends from Purulacu to the river Meguin, being about 18 miles, and containing 70 indians. Their commerce is an exchange of coarse ponchos, sheep and hogs, for indigo, beads, &c.
"Chanchan, which extends about 12 miles, contains 40 indians, produces maize, peas, beans, barley, and a little wheat. Owing to the vicinity of the fort de Cruces the indians are more docile and domesticated.
"Mariquina is about 54 miles in circumference, and contains 110 indians. The soil is good, and there is an abundance of apples, some pears and cherries.