V. In order that the President and members of our Council of the Indies may be free to devote themselves to the affairs of the government of those parts we decree and command that they shall abstain, as far as possible, from dealing with any private business, for it is with that aim that we have arranged and ordered all that touches the said Audiencias and the affairs with which they have to deal. And though the reviewing of residencias is a matter that it seems might properly be conducted by the Council, yet, in order that its work of governing may be the more efficient, and that the Council may devote greater attention to public affairs and meet with less interference from other business—taking into account, too, the great distance to be traversed in reaching those Realms—we order that there shall be brought before our said Council of the Indies only those residencias and inquiries that may be held in respect of the Judges and officials of the Audiencias, and of our Governors throughout the Indies, and we allow and direct all the others to be heard, adjudged, and determined by the said Audiencias, each one in its own district and jurisdiction. As our principal intention and will has always been to preserve and augment the numbers of the Indians, and that they may be instructed and taught the articles of our holy catholic faith, and be well treated as free men and our subjects, as in fact they are, we charge and command our said Council always to give great attention and special care to the conservancy, good government, and good treatment of the said Indians, and to ascertain how our Ordinances are complied with and executed, especially those We have issued and shall issue for the good government of our Indies, and the administration of justice in them, and to see that these are observed, complied with, and put into execution without any remission, fault or neglect.

VI. We charge and order those of our said Council of the Indies to sometimes think over and discuss and learn in what ways we may be justly served and derive advantage in the affairs of the Indies. As observance and compliance with what is enacted or may hereafter be enacted for the good government and welfare of the Indies is of great importance to our service and to the discharge of our conscience, we order our Procurador Fiscal,[164] who is or may hereafter be a Member of our Council, always to take great care and be very vigilant in inquiring and learning how the laws are being observed and complied with in those parts, and to report the same in our said Council, taking steps against those who do not comply, so as to enforce obedience to what is enacted, and he is to give us notice when this is not done.

VII. We order and command that, in the provinces and Realms of Peru, there shall reside a Viceroy and a Royal Audiencia consisting of four learned Judges, the said Viceroy presiding over the said Audiencia, which shall be established in the city of The Kings, that being the most convenient position, for henceforward there will be no Audiencia in Panamá.

We order that a Royal Audiencia shall be established on the confines of Guatemala and Nicaragua, consisting of four learned Judges, one of them being President, as may be appointed by Us, and at present we order that the President shall be the Licentiate Maldonado (who is a judge in the Audiencia at Mexico), and that this Audiencia shall have charge of the government of the said provinces, and their dependencies, in which provinces there will not be Governors, unless We should otherwise order, and these Audiencias, like those established in Santo Domingo, are to observe the following rules:—

Firstly, we will, decree, and command that all the criminal cases of whatever quality or importance which are pending, and that may arise hereafter before any of the four Royal Audiencias[165] of the Indies, may be considered, adjudged upon, and decided by our said Audiencias, by trial and revision, and the judgments thus given shall be executed and carried into due effect without any further appeal, petition, recourse, or other remedy whatsoever.

In order to avoid the delay which would occur and the great injury, charges, and expense to the litigants, which would ensue should they come to our Council of the Indies following on any suit or civil action on which appeal was made from our said Audiencias, and in order that justice may be done more quickly and with less loss, we enact and command that in all civil suits which may be brought and which are brought, and are under the consideration of our said Audiencias and our said Presidents and Judges who have been or may be appointed, these same shall try them and pass judgment and decide them by trial and revision; and the judgment given on revision may be carried out without there being any further step by appeal, petition, or any other recourse whatever, unless the suit be of such nature and importance that the value of the property in question be ten thousand pesos de oro or upwards, in which case we will that they may appeal a second time before our Royal Presence, provided the suitor making the said second appeal do present it before us within one year from the time that the revised judgment is notified to him or to his Attorney.

But we will and command that, notwithstanding the said second appeal, the judgment which the Judges of our said Audiencias shall have given on revision be carried out, the suitor, in whose favour it is given, first of all furnishing sufficient security and proof that, if the said judgment be revoked, he will restore and pay whatever he shall have been and will be awarded and granted by that [judgment], according to the decision which shall be given by the persons to whom the matter was by us intrusted. However, if the judgment on revision given in our said Audiencias should be on a question of real estate, we declare and command that the second appeal shall not lie, but that the said revised judgment, notwithstanding it be not in accord with the judgment on [first] trial, shall be carried out.

We decree and command that the Judges to whom we may commit such a suit on second appeal, do examine and decide the suit by the same procedure as would have been followed in our said Audiencia, without admitting new evidence or new charges, in conformity with the laws of our kingdoms touching a second appeal.

And in order that our said Audiencias may possess the necessary authority, and that what is decreed and ordained by them may be better obeyed and executed, we will and command that the letters, writs and other instruments decreed by them, be issued and delivered in our name and under our royal seal; and let the same be obeyed and complied with like our own letters and writs signed with our Royal Name.

As in each of our said Audiencias there are to be four Judges, we decree that all four shall sit in suits for five hundred pesos de oro and upwards, and for the settlement of such a suit three votes must be in agreement; but if the suit be for less than five hundred pesos, we decree that two votes in complete agreement shall suffice, the other two votes differing from one another. Up to the said sum of five hundred pesos, in order to expedite business, two of our said Judges may try, hear, and give judgment if they are in agreement.