The first discoverers of La Plata, as has been already observed, fixed themselves in Paraguay, and established the seat of their government at Assumption, the capital of that province. In his way up the river, Sabastian Cabot built a fort, called Sancti-Espiritu, at the junction of the Carcarãna with the Paranã; Ayolas, a few years after, built another not far from it, to which he gave the name of Corpus Christi; but these, like Mendoza's settlement at Buenos Ayres, were very soon destroyed by the warlike nations which then inhabited the whole of the right bank of the river; and, for the first half-century, with their views solely fixed on making a nearer approach to Peru, the Spaniards concerned themselves but little about the conquest of the poorer lands they had left behind them. The ships, which during that time continued to arrive in the River Plate, with fresh adventurers from Spain, with an inland navigation before them, to Assumption, requiring as much time as the whole voyage out from Europe, were entirely dependent for the refreshments they required on the accidental good will of the natives. Once in the Paranã, if any accident befell them, for nearly a thousand miles there was not a single Christian port in which they could take refuge.
It was under these circumstances that Don Juan de Garay, a Biscayan hidalgo (in 1573), who had already greatly distinguished himself amongst his companions at arms in those parts, solicited and obtained permission to make a sally from Assumption, to endeavour to re-establish Cabot's fort at the mouth of the Carcarãna, and to found other settlements upon the right bank of the Paranã.
The whole force he could muster for this enterprise, when ready, consisted only of eighty men, a small party wherewith to attempt to seize upon lands defended by a numerous and warlike people, already elated by former victories over the Spaniards, though probably as large a one as his own means would allow him to equip; for in those days the whole charge of such undertakings devolved upon the projectors:—they were obliged to raise the means as they could, and their ultimate success of course were mainly depended upon the extent of their personal credit.
De Garay landed, in the first instance, with his followers, thirty or forty miles to the north of the river Salado, and, finding the natives disposed to be friendly, and the aspect of the country inviting, he determined there to make his first settlement, naming it Santa Fé de la Vera-Cruz.
The site originally fixed upon was where Cayestá now stands, upon an inferior branch of the Paranã; but, at a subsequent period, the Santa Fecinos removed lower down to the banks of the Salado.
Whilst part of his people were employed upon the works, De Garay embarked with the rest in a small brig which attended him, and descending the Paranã entered the Salado, and opened a communication with the natives established upon its banks. There an adventure attended him, which he little looked for. Just as he flattered himself he had established a friendly understanding with the Indians, their conduct was observed suddenly to change:—a great stir took place amongst them, and they began to betake themselves, to their arms, and to gather together in such numbers that the Spaniards, alarmed, and expecting to be attacked by them, were glad to get on board their little vessel, and make the best preparations they could for defence. From the mast-head fires were seen lighting in every direction, the well-known signal for war; and the man placed there to look out gave notice that the savages were pouring down towards them in vast numbers, not only by land, but by the river, in their canoes, apparently to attack them in their ship.
De Garay, pent up in a little creek, into which he had run his vessel, and believing his situation desperate, was exhorting his people at any rate to defend themselves to the last, when suddenly the man called out that he saw a cavalier, presently another, and another, and then several more, charging the Indians in their rear; nor was it long before they saw the whole host dispersed, routed, and flying before a party of horsemen. The Spaniards were as much astonished at this unlooked-for encounter as the Indians, nor could they imagine to whom they were thus indebted for their preservation at the moment they expected to have been overwhelmed without a chance of succour, though that they were some of their countrymen they could not doubt after seeing the horses.
The strangers were not long in making themselves known; they were soldiers from Tucuman, who, under their leader Cabrera, having founded the city of Cordova on the same day that De Garay had commenced his settlement at Santa Fé, were then scouring the country to take possession of it as belonging to his jurisdiction; De Garay in vain resisted this pretension, and claimed it as belonging to Paraguay, in right of prior possession and settlement: the others insisting with a superior force, he had no alternative but to temporise, and submit himself to Cabrera's orders, trusting to the higher powers to order the matter differently.
Fortunately for the settlement of this question ere it led to more serious consequences, the Adelantado Zarate opportunely arrived from Spain with a grant from the King, explicitly including in his government all settlements, which might be founded on either shore of the river for the distance of 200 leagues: he not only confirmed De Garay in his command at Santa Fé but took him into such especial favour, that, dying soon afterwards, he left him guardian of his only daughter; she, by his advice, married Don Juan de Vera and Arragon, who in consequence succeeded to the Adelantasgo, which greatly increased the influence of De Garay, who was immediately appointed lieutenant over all the Rio de la Plata, and furnished with full authority to carry into effect his own plans for reducing the Indians to subjection upon its shores. Armed with these powers he conquered some of the most warlike of the native tribes, and established the fame and power of the Spaniards far and wide throughout all those regions:—the last of his deeds was the foundation, in 1580, of the present city of Buenos Ayres, as has been before stated. Alter passing three years in superintending the laying out of the future capital of all those provinces, upon his return to Assumption, going incautiously on shore one night to sleep, he was surprised and killed by the savages. Paraguay lost in him one of her wisest and most valiant captains, whose death was greatly lamented, by the poor especially, to whom his beneficence was unbounded.
The importance of the settlements he founded was soon apparent; and in 1620 they were formed into a government independent of that of Paraguay, under the name of the Government of La Plata; it comprised all south of the junction of the rivers Paranã and Paraguay. Santa Fé in consequence became a dependency of Buenos Ayres; an arrangement confirmed in every territorial settlement subsequently made by any competent authority.