At this juncture, the Inca Indian Manco came in gorgeous fashion to Pizarro and proposed an alliance. He claimed to be the rightful war-chief, and desired that the Spaniards recognize him as such. His proposition was gladly accepted.
Moving onward, the Spaniards were again ambushed in a defile, but beat off their assailants; and at last entered Cuzco November 15, 1533. It was the largest Indian "city" in the western hemisphere, though not greatly larger than the pueblo of Mexico; and its superior buildings and furnishings filled the Spaniards with wonder. A great deal of gold was found in caves and other hiding-places. In one spot were several large gold vases, gold and silver images of llamas and human beings, and cloths adorned with gold and silver beads. Among other treasures Pedro Pizarro, an eye-witness and chronicler, mentions ten rude "planks" of silver twenty feet long, a foot wide, and two inches thick. The total treasure secured footed up 580,200 pesos de oro and 215,000 marks of silver, or an equivalent of about $7,600,000.
Pizarro now formally crowned Manco as "ruler" of Peru, and the natives seemed very well pleased. Good Father Valverde was made bishop of Cuzco; a cathedral was founded; and the devoted Spanish missionaries began actively the work of educating and converting the heathen,—a work which they continued with their usual effectiveness.
Quizquiz, one of Atahualpa's subordinate war-captains and a leader of no small prowess, still kept the field. Almagro with a few cavalry, and Manco with his native followers, were sent out and routed the hostiles; but Quizquiz held out until put to death by his own men.
In March, 1534, Pedro de Alvarado, Cortez's gallant lieutenant, who had been rewarded for his services in Mexico by being made governor of Guatemala, landed and marched on Quito, only to discover that it was in Pizarro's territory. A compromise was made between him and Pizarro; Alvarado received a compensation for his fruitless expedition, and went back to Guatemala.
Pizarro was now very busy in developing the new country he had conquered, and in laying the cornerstone of a nation. January 6, 1535, he founded the Ciudad de los Reyes, the City of the Kings, in the lovely valley of Rimac. The name was soon changed to Lima; and Lima, the capital of Peru, remains to this day. The remarkable conqueror was now showing another side of his character,—his genius as an organizer and administrator of affairs. He addressed himself to the task of upbuilding Lima with energy, and his direction of all the affairs of his young government showed great foresight and wisdom.
Meantime Hernando, his brother, had been sent to Spain with the treasure for the Crown, arriving there in January, 1534. Besides the "royal fifth" he carried half a million pesos de oro belonging to those adventurers who had decided to enjoy their money at home. Hernando made a great impression in Spain. The Crown fully confirmed all former grants to Pizarro, and extended his territory seventy leagues to the south; while Almagro was empowered to conquer Chile (then called New Toledo), beginning at the south end of Pizarro's domain and running south two hundred leagues. Hernando was knighted, and given command of an expedition,—one of the largest and best equipped that had sailed from Spain. He and his followers had a terrible time in getting back to Peru, and many perished on the way.