This trade and commerce is so great and profitable, and easy to control—for it only lasts three months in the year, from the time of the arrival of the ships with their merchandise, until those vessels that go to Nueva España take that merchandise—that the Spaniards do not apply themselves to, or engage in, any other industry. Consequently, there is no husbandry or field-labor worthy of consideration. Neither do the Spaniards work the gold mines or placers, which are numerous. They do not engage in many other industries that they could turn to with great profit, if the Chinese trade should fail them. That trade has been very hurtful and prejudicial in this respect, as well as for the occupations and farm industries in which the natives used to engage. Now the latter are abandoning and forgetting those labors. Besides, there is the great harm and loss resulting from the immense amount of silver that passes annually by this way [of the trade], into the possession of infidels, which can never, by any way, return into the possession of the Spaniards.

His Majesty's agents for the government and justice, and the royal officials for the management of his Majesty's revenue, are as follows: First, the governor and captain-general of all the islands, who is at the same time president of the royal Audiencia of Manila. He has a salary of eight thousand pesos de minas per year for all his offices. [414] He possesses his own body-guard of twelve halberdiers, whose captain receives three hundred pesos per year. The governor alone provides and regulates all that pertains to war and government, with the advice of the auditors of the Audiencia in difficult matters. He tries in the first instance the criminal cases of the regular soldiers, and any appeals from his decisions go to the Audiencia. [415] The governor appoints many alcaldes-mayor, corregidors, deputies, and other magistrates, throughout the islands and their provinces, for carrying on the government and justice, and for military matters. These appointments are made before a government chief scrivener appointed by his Majesty, who helps the governor.

The governor likewise takes part with the royal Audiencia, as its president, in whatever pertains to its duties. The Audiencia consists of four auditors and one fiscal—each of whom receives an annual salary of two thousand pesos de minas [416]—one reporter, one court scrivener, one alguacil-mayor, with his assistants, one governor of the prison of the court, one chancellor, one registrar, two bailiffs, one chaplain and sacristan, one executioner, attorneys, and receivers. The Audiencia tries all causes, civil and criminal, taken to it from all the provinces of its district. [417] These include the Filipinas Islands and the mainland of China, already discovered or to be discovered. The Audiencia has the same authority as the chancillerías of Valladolid and Granada in España. At the same time, the Audiencia provides whatever is advisable for the proper and systematic management of the royal exchequer.

His Majesty's revenues in the Filipinas Islands are in charge of and their tribunal consists of three royal officials. They are appointed by his Majesty, and consist of a factor, an accountant, and a treasurer. They each receive an annual salary of five hundred and ten thousand maravedis. They have their clerk of mines, and registrars of the royal revenues, and their executive and other officials, all of whom reside in Manila. From that city they manage and attend to everything pertaining to the royal revenues throughout the islands.

His Majesty has a number of encomiendas apportioned to his royal crown throughout the provinces of the Filipinas Islands. The tributes of those encomiendas are collected for his royal treasury by his royal officials and the collectors engaged for that purpose by the royal officials. From year to year these amount to thirty thousand pesos, after deducting costs and expenses. They collect, from one year to another, eight thousand pesos in tributes from the Sangleys—both Christians and infidels. [418]

They also collect the fifth of all gold dug in the islands. By special concession for a limited period, the tenth is collected instead of the fifth. There is a declaration concerning it, to the effect that the natives shall pay no fifths or other duties on the jewels and gold inherited by them from their ancestors before his Majesty owned the country. Sufficient measures have been taken for the clear understanding of this concession and its investigation, for that on which the tenth has once been paid, and the steps to be taken in the matter. From one year to another they collect ten thousand pesos from these fifths, for much is concealed. [419]

The assignment of two reals from each tributario inures to the royal treasury and is paid into it, for the pay of the soldiers and the stipend of the prebendaries. These are collected from the encomenderos, in proportion to, and on the account of, their tributes, and amount annually to thirty-four thousand pesos.

The fines and expenses of justice are committed to the care of the treasurer of the royal revenues, and are kept in the treasury. They amount annually to three thousand pesos.

The three per cent duties on the Chinese merchandise of the Sangley vessels average forty thousand pesos annually. [420]

The two per cent duties paid by the Spaniards for exporting merchandise to Nueva España amount annually to twenty thousand pesos. On the merchandise and money sent from Nueva España to the Filipinas, result eight thousand pesos more. Consequently, in these things and in other dues of less importance that belong to the royal treasury, his Majesty receives about one hundred and fifty thousand pesos, or thereabout, annually in the Filipinas. [421]