Under these favorable auspices Ponce made known his desire to see the places where the chiefs obtained the yellow metal for the disks which, as a distinctive of their rank, they wore as medals round their neck. Guaybána responded with alacrity to his Spanish brother's wish, and accompanied him on what modern gold-seekers would call "a prospecting tour" to the interior. The Indian took pride in showing him the rivers Manatuabón, Manatí, Sibucó, and others, and in having their sands washed in the presence of his white friends, little dreaming that by so doing he was sealing the doom of himself and people.

Ponce was satisfied with the result of his exploration, and returned to la Española in the first months of 1509, taking with him the samples of gold collected, and leaving behind some of his companions, who probably then commenced to lay the foundations of Capárra. It is believed that Guaybána accompanied him to see and admire the wonders of the Spanish settlement. The gold was smelted and assayed, and found to be 450 maravedis per peso fine, which was not as fine as the gold obtained in la Española, but sufficiently so for the king of Spain's purposes, for he wrote to Ponce in November, 1509: "I have seen your letter of August 16th. Be very diligent in searching for gold mines in the island of San Juan; take out as much as possible, and after smelting it in la Española, send it immediately."

On August 14th of the same year Don Fernando had already written to the captain thanking him for his diligence in the settlement of the island and appointing him governor ad interim.

Ponce returned to San Juan in July or the beginning of August, after the arrival in la Española of Diego, the son of Christopher Columbus, with his family and a new group of followers, as Viceroy and Admiral. The Admiral, aware of the part which Ponce had taken in the insurrection of Roldán against his father's authority, bore him no good-will, notwithstanding the king's favorable disposition toward the captain, as manifested in the instructions which he received from Ferdinand before his departure from Spain (May 13, 1509), in which his Highness referred to Juan Ponce de Leon as being by his special grace and good-will authorized to settle the island of San Juan Bautista, requesting the Admiral to make no innovations in the arrangement, and charging him to assist and favor the captain in his undertaking.

After Don Diego's arrival in la Española he received a letter from the king, dated September 15, 1509, saying, "Ovando wrote that Juan Ponce had not gone to settle the island of San Juan for want of stores; now that they have been provided in abundance, let it be done."

But the Admiral purposely ignored these instructions. He deposed Ponce and appointed Juan Ceron as governor in his place, with a certain Miguel Diaz as High Constable, and Diego Morales for the office next in importance. His reason for thus proceeding in open defiance of the king's orders, independent of his resentment against Ponce, was the maintenance of the prerogatives of his rank as conceded to his father, of which the appointment of governors and mayors over any or all the islands discovered by him was one.

Ceron and his two companions, with more than two hundred Spaniards, sailed for San Juan in 1509, and were well received by Guaybána and his Indians, among whom they took up their residence and at once commenced the search for gold. In the meantime Ponce, in his capacity as governor ad interim, continued his correspondence with the king, who, March 2, 1510, signed his appointment as permanent governor.[9] This conferred upon him the power to sentence in civil and criminal affairs, to appoint and remove alcaldes, constables, etc., subject to appeal to the government of la Española. Armed with his new authority, and feeling himself strong in the protection of his king, Ponce now proceeded to arrest Ceron and his two fellow officials, and sent them to Spain in a vessel that happened to call at the island, confiscating all their property.

Diego Columbus, on hearing of Ponce's highhanded proceedings, retaliated by the confiscation of all the captain's property in la Española.

These events did not reach the king's ears till September, 1510. He comprehended at once that his protégé had acted precipitately, and gave orders that the three prisoners should be set at liberty immediately after their arrival in Spain and proceed to the Court to appear before the Council of Indies. He next ordered Ponce (November 26, 1510) to place the confiscated properties and Indians of Ceron and his companions at the disposal of the persons they should designate for that purpose. Finally, after due investigation and recognition of the violence of Ponce's proceedings, the king wrote to him June 6, 1511: "Because it has been resolved in the Council of Indies that the government of this and the other islands discovered by his father belongs to the Admiral and his successors, it is necessary to return to Ceron, Diaz, and Morales their staffs of office. You will come to where I am, leaving your property in good security, and We will see wherein we can employ you in recompense of your good services."

Ceron and his companions received instructions not to molest Ponce nor any of his officers, nor demand an account of their acts, and they were recommended to endeavor to gain their good-will and assistance. The reinstated officers returned to San Juan in the latter part of 1511. Ponce, in obedience to the king's commands, quietly delivered the staff of office to Ceron, and withdrew to his residence in Capárra. He had already collected considerable wealth, which was soon to serve him in other adventurous enterprises.