After the downfall of Rodrigo de Contreras, his sons, Hernando and Pedro, the former a licentiate, and both held in high esteem among the colonists of Nicaragua, resolved to regain by force of arms the wealth and station of which they deemed themselves unjustly deprived. Of noble birth and reared in luxury, they found themselves in early manhood reduced to comparative poverty and their ancient name sullied by their sire's disgrace. They knew well that they had the sympathy of the greater portion of the settlers, and in the province were many exiles from Peru, veterans who having fought under Carbajal and Gonzalo Pizarro, were always ready for fresh enterprise, no matter how dangerous or treasonable, provided only that wealth were in prospect. Chief among them were Juan Bermejo and Rodrigo Salguero, whom Gasca had banished for attempting to raise an insurrection after the execution of Gonzalo. Bermejo was an old friend of the Contreras family, being a native of the same city in Spain, and it was at his instigation that the two brothers, who at first were bent only on recovering their father's rights and property in Nicaragua, now determined to attempt a feat the audacity of which has no parallel in the history of Spanish colonization. This was nothing less than the conquest of Tierra Firme and Peru. In the event of success Hernando was to be proclaimed monarch of the latter province, which was believed to contain more wealth than all the world besides. Preparations were made at Granada; men were secretly enlisted; arms and ammunition were procured; and when the news arrived that the sentence of the deposed governor was confirmed by the council of the Indies the conspirators removed to Leon, the younger brother remaining at his mother's residence in Granada to convey the impression that they had departed on some peaceful errand.

Hernando with his companions took a house in Leon, and thence messengers were despatched to invite those who were thought most likely to join them to a pretended merry-making. When all were assembled the youthful rebel pointed out how hard was their present condition in life, and how hopeless their chance of bettering it. He denounced the conduct of the audiencia, by whose ordinances those who had conquered and peopled the province were now well nigh reduced to beggary. He represented to them that he was entitled to the government of Peru, which province, he claimed, belonged to his family by certain rights inherited from his grandfather Pedrarias Dávila;[XVI‑1] and he concluded by inviting them to join him in an expedition by which wealth in abundance might fall to their lot if they had but the courage to grasp it. No further persuasion was needed, and all at once gave their assent, electing Hernando as their captain.

Bishop Valdivieso was the only man who was likely to offer serious opposition; and as a measure of prudence as well as to avenge the disgrace of Rodrigo de Contreras it was resolved that he should be put to death. The conspirators marched in a body to the episcopal residence. Some who held religious scruples tried to excuse themselves under pretence that they were without arms, but were compelled by their leader to accompany the rest.[XVI‑2] Hernando in company with an apostate friar, named Castañeda, entered the house, while one stood guard at the door, and the remainder of the band surrounded the building. The bishop's companion, Fray Alonso, who had noticed their approach, at once notified the prelate, but his fate was sealed. He endeavored to conceal himself, suspecting the intention of the intruders, but was discovered and instantly stabbed to death in the presence of his aged mother, the point of Hernando's dagger breaking off in the victim's breast.[XVI‑3] The dwelling was then plundered; several boxes containing gold and jewels were stolen, and the party marched to the plaza, where Hernando was proclaimed "captain general of liberty." A messenger was despatched to Pedro de Contreras to inform him of his brother's success, and the rebels proceeded to the treasury building at Leon, and breaking open the royal chest divided among themselves its contents.

The leaders of the revolt separated their forces into three companies; and it was decided that Salguero should be despatched with a small band to Nicoya to seize the ships and enlist all the men he could find there, while Hernando marched with the main body to Realejo for a similar purpose, and Bermejo with about thirty men returned to Granada to gather recruits and destroy all the vessels on Lake Nicaragua, thus preventing any tidings of the rebellion from reaching Tierra Firme by way of Nombre de Dios.

GRANADA TAKEN.

As soon as news of the conspiracy was known in Granada, a corps of one hundred and twenty men was hastily organized under Captain Luis Carrillo, and when Bermejo approached the city he found himself opposed by a greatly superior force; but so skilfully had young Pedro won over most of the settlers to his brother's cause, that many of the loyal party deserted their ranks and joined the revolutionists. After a brief contest, in which Carrillo and several of his men were killed and others wounded, Bermejo took possession of the city. All the shipping on the lake was destroyed, and the rebels marched to Realejo accompanied by Pedro, who, notwithstanding the entreaties of his mother, had resolved to join the expedition. Hernando, meanwhile, had captured there two vessels laden with merchandise for Peru, and impressed their crews into his service. Salguero had been equally fortunate at Nicoya, having entered the town without opposition and enlisted some sixty recruits. The forces of the revolutionists now mustered more than three hundred men.

Knowing that success depended on promptness of action, the rebel leaders determined to embark immediately for Tierra Firme, and at once arranged their plan of operations. From certain exiles recently arrived from Peru it was ascertained that the licentiate Gasca was then on his way to Spain with a large amount of treasure. To seize it was to be their first endeavor. If this were successful Gasca and the governor of Panamá were to be put to death. An army of at least six hundred men was to be levied at the Isthmus. Ships were to be fitted out and a squadron despatched to cruise off the coasts of Nicaragua and Guatemala and destroy all the vessels they could capture. The settlers who were unfit for military service were to be plundered of their goods and sent, together with all the women and children, to Cartagena. Panamá, Nombre de Dios, and Natá were then to be burned to the ground. The cattle were to be killed and the crops destroyed, so that if an army should be sent against them from Spain there should be found neither means of subsistence nor ships for transport. The expedition was then to sail for Peru, where Hernando was to be proclaimed king; and Spain was thus to lose the richest portion of her dominions in the New World.[XVI‑4]

Soon after the conspirators had taken their departure from Granada, the alcaldes ordered a bark to be built with the intention of sending news of the threatened invasion to Nombre de Dios; but alarmed by the threats of Doña María, who declared that her sons had information of their purpose, and were even now returning to destroy the city, they requested her to assure them that no tidings of the revolt should be sent to Castilla del Oro. Meanwhile the revolutionists, having completed their preparations, set sail from Nicoya for Punta de Higuera, in the district of Natá.

ENTRANCE INTO PANAMÁ.

On the 12th of March 1550 Gasca arrived at Panamá, and at once proceeded to land the royal treasure, which was valued at eleven million castellanos. He was bid to use all expedition in shipping it to Spain, for as he learned from his despatches it was sorely needed to defray the expenses of the emperor's European wars. His instructions were that he himself should remain at the Isthmus to await the arrival of the newly appointed viceroy, Mendoza. Though somewhat uneasy under his responsibility, vague rumors of the coming raid having already reached him, he had no great fear of being attacked, as he had with him a force of one hundred and fifty veterans, and the seamen on board the ships mustered about four hundred and fifty men. No fleet from Spain had yet arrived at Nombre de Dios, but nineteen trading-vessels, found at anchor off the town, were seized and provisioned, and armed with the artillery brought from Peru.[XVI‑5] Twelve hundred mule-loads of gold and silver were soon conveyed to the town of Cruces on the Chagre, there to be shipped in barges, under Gasca's charge, for transportation to the North Sea, and still a large amount of treasure awaited means of conveyance at Panamá.