The Pardo controversy and its consequences show the extremes to which a weakened audiencia was reduced on occasion by a new governor who came to the Islands, armed with recent royal decrees instructing him to bring about peace and order. Curuzaelegui, assisted by the royal visitor, who bore instructions even more recent than those of the governor, imprisoned and exiled the oidores, confiscated their property and brought about their ruination and death. He then appointed another audiencia of his own choice. All these acts were strictly legal, and in accordance with his instructions. The governor’s conduct before the appointment of the visitor was more lenient and tolerant than afterwards. This shows that he realized the necessity of fulfilling the royal will, the policies of which were entrusted to Valdivia for execution, even at the expense of harmony with the local tribunal. Had he not been assured of the support of the church on the one hand, and of the royal approval on the other, as shown by the commission of Valdivia, it is improbable that he would have broken with the audiencia, or would have attempted to use his power so extensively. The presence of an audiencia was necessary to the government of Curuzaelegui. This is shown by his conciliatory attitude toward the tribunal of Vargas, until he knew that it was under the condemnation of the king, also by his own act in forming a new one. This controversy clearly illustrates the extent to which a governor might use his power, and it shows, on the other hand, the indispensable character of the audiencia, even at a time when it was least powerful. Curuzaelegui, in the name of the king, completely obliterated the legally constituted audiencia, appointing another to serve until it could be legalized by regular appointment.

Chronologically speaking, the next great struggle which throws light on the subject which we are considering, occurred during the administration of Governor Bustamante (1717–1719). The audiencia was reduced to a deplorable state of helplessness and inefficiency on this occasion, and the circumstances surrounding its relationship with the governor were in many ways similar to those which have been described. For a period of two and a half years antecedent to the coming of Bustamante, the government of the Philippines had been nominally in the hands of the audiencia, but in reality, under the control of the senior magistrate, Torralba. One of the first acts of Bustamante, after his arrival in the Islands, was to take the residencia of Torralba, and this investigation led him to make serious charges against the other magistrates. In the residencia which followed, the finances of the colony were found to be in bad condition, and all the officials of the civil government, as well as many of the churchmen, were discovered to be deeply interested in private trade, to the neglect of their duties and to the detriment of the government. Large amounts of money were found to have been smuggled without permission into the colony on the galleon from Mexico. The accounts of the treasury department were discovered to have been loosely kept, and many of the officials, including magistrates of the audiencia, were found to be serving without financial guarantees.[17]

Bustamante immediately took steps to re-organize the government and to place the finances of the colony on a sound footing. He put a stop to the smuggling, forced the merchants to pay the authorized duties, and imposed fines on those who had been guilty of negligence and misconduct. At the end of six months the efforts of Bustamante had netted a sum of 293,000 pesos to the royal treasury. His successful efforts towards clearing up the finances of the colony, making every person pay his just dues without regard to position, rank, or affiliation, and the seeming harshness of his methods incurred general hostility and contributed largely to his downfall.[18]

His investigation of the finances was said to have revealed a shortage of over 700,000 pesos, for which he held Torralba and the other magistrates responsible, putting, most of the blame, however, on Torralba. All but one of the magistrates were arrested and incarcerated in Fort Santiago. Before this was done, however, Bustamante asked the advice of the archbishop, the religious corporations, and the universities, as to what steps he should take in the matter. He recognized that he would be seriously embarrassed without an audiencia, but the investigations which he had made showed that all of the oidores were guilty of misappropriation of the government funds. Would he be justified in forming an audiencia of his own selection, composed of duly qualified lawyers, with one minister of royal designation remaining? It was his opinion that the presence of one regularly appointed magistrate would lend legality to the entire tribunal, so he asked advice as to which of the three oidores would be most suitable to retain. He cited as a precedent in favor of his reconstitution of the audiencia the action of Governor Curuzaelegui in 1687 and 1688 when he exiled and imprisoned the oidores and reformed the audiencia with his own appointees. Bustamante proposed to do exactly what Curuzaelegui had done, that is, to act as president himself, appointing the fiscal as oidor, and designating a duly qualified lawyer and an assistant fiscal to fill the other vacant places. Bustamante expressed an apparently sincere desire to do justice to all. He desired, particularly, that the administration of justice in the courts should be allowed to proceed without interruption and without that loss to the commonwealth which would come from the absence of a tribunal.[19]

The replies given by the orders on this occasion involve important laws and principles which underlie the nature of the audiencia and its relation to the governorship. The archbishop, in a subsequent report to the king on the government of Bustamante, stated that all the religious authorities in the colony advised the governor against the destruction of the audiencia, and questioned the authority of the prelate to constitute another.[20] It seems, however, from an investigation of the letters, that the Jesuits counseled the governor in favor of the proposed action. The reasoning of the Jesuit theologians was as follows: there should be retained in the Philippines, according to the Recopilación de Indias,[21] four oidores and a fiscal for the proper administration of justice, and if the fiscal were the only remaining member of the old audiencia he would become an oidor in case of a vacancy, by virtue of the recognized law.[22] Owing to the multitudinous duties of the oidores and to the great importance of the audiencia, great harm would arise if there were not enough magistrates. Since the governor’s jurisdiction extended to all departments of government, it was the opinion of the Jesuits that it was incumbent on him to take such steps as might seem necessary for the preservation of the government. This was specially imperative since it was his duty to see that there was no delay or neglect in the administration of justice. Inasmuch as the audiencia was indispensable to him as vicepatron in its jurisdiction over ecclesiastical affairs, and because of its consultative powers in all affairs of government and finance, the governor should have the right to create an audiencia, if one did not exist, or if the members who were regularly constituted by royal appointment were incapacitated from service.[23]

The opinion of the Dominicans of the University of Santo Tomás differed widely from that advanced by the Jesuits. Their advice coincided with that of the archbishop, being to the effect that it would not be convenient to qualify one of the ministers alone, but that all of them should be restored to the audiencia. This meant that Bustamante should recede from his position, remove all the oidores from prison, and accept them as an audiencia. If the three oidores deserved punishment it would be unfair to the remaining two magistrates to exempt one, and such action would lay the governor open to charges of inconsistency and favoritism. The Dominicans contended that only the king in council could suspend or remove oidores, and that such power was not given to any other authority, not even to a viceroy.[24] Though

in Sicily and Naples this right is granted, in the Indies the contrary is true, because only the king that appointed them may suspend them, and it is commanded that the viceroys must not interfere with or impede their jurisdiction.[25]

The Dominicans were of the opinion that the governor had authority to discipline the oidores, but in so doing he could not go so far as to remove them from the tribunal unless commanded to do so by the Council of the Indies. Whatever disciplinary action the governor might decide on, it should not be taken on his own authority, but in the execution of the orders of the Council of the Indies.

This opinion, the Dominicans alleged, was in accordance with the laws of the Indies.[26] They cited, in support of their argument, an instance in which the king reproved Gálvez, the Viceroy of New Spain, because, without the authority of the Council, Gálvez had suspended a magistrate of the Audiencia of Mexico, whom he should have honored and to “whom he should have accorded the treatment of a colleague.”[27] The Dominicans expressed the opinion that the prosperity of the Islands and the welfare of the government depended on the audiencia, and though it might be desirable to remove the oidores for personal guilt, it could not be done in this case without wrecking the entire government. The king, himself, had shown respect for the inviolability of the audiencia when, in 1710, he had judged all the ministers to be equally guilty of not having fulfilled the laws and ordinances on the occasion of the coming to the Islands of the Patriarch of Antioch,[28] satisfying himself with the removal of the decano only and allowing the other magistrates to remain.

Disregarding the advice of this learned body, turning a deaf ear to the protestations of the archbishop, and heeding only the counsel of the Jesuits, which was more favorable to his wishes, Bustamante proceeded to execute his own will in a manner which proved distasteful even to the order whose advice he was following.[29] He arrested and imprisoned the guilty magistrates and created a new tribunal out of his own clientele, leaving only Villa, a former magistrate, in office. The latter protested against the action of the governor, and retired to the convent of Guadalupe, near Pásig. Informed that there was a conspiracy against his life and needing the counsel of some person, or persons, on whom he could rely, Bustamante was well-nigh desperate. His government, as it then stood, lacked the complexity of legality which the presence of one oidor of royal nomination would have given it. In order to remedy this defect he released Torralba, the guiltiest of the former magistrates, and the man under arrest for the defalcation of 700,000 pesos of the king’s revenue. Torralba’s crimes had been notorious, and the act of Bustamante in associating himself with a person of the unsavory reputation and the unpopularity of Torralba not only divorced him from whatever popular sympathy he might have had among the residents of the colony, but it aroused the hostility and antagonism of the Jesuits who had been heretofore the governor’s friends. Aside from the unfortunate character of the act, it was also illegal, being contrary to the law which directed that in case an oidor were suspended from his place he should not be restored without the consent of the king and the Council of the Indies.[30]