By a clause of the ordinance establishing the Audiencia there, it is provided that its president and two auditors at the beginning of every year audit the accounts of the officials of my royal exchequer, and settle them in the course of two months, for this allowing each auditor twenty-five thousand maravedís. This was done also in the time of the previous Audiencia, and an accountant was appointed who received another fifty thousand maravedis. I have learned that afterward Governor Gomez Perez Dasmarinas, without any orders, created for that purpose a position of accountant-in-ordinary, with a salary of five hundred pesos, and a secretary with two hundred and fifty pesos. This could have have been avoided by pursuing the former method, with no other expense than the said hundred thousand maravedis. It has seemed best to me to refer this matter to you, as I do, in order that you may examine it and apply such remedy as you think best. You will inform me of the steps you take in the matter.

I understand that the office of clerk of the regimiento in Manila has been filled by the secretaries of the governors, and that on this account justice is no longer sought for certain injuries inflicted not only on the Chinese but on the citizens. I also learn that it would be best to sell this office to a person who is not a servant or a relative of the governors. Since it is not befitting that this office should be filled by any secretary or follower of yours, or of an auditor or an official of the Audiencia, you will not allow any such appointment. You will nominate three from deserving men of those islands, who in your estimation possess the necessary qualifications for the office, and will send me their names, in order that I may elect the one who seems best to me. In the meantime you will make arrangements for the suitable performance of the duties of that office, and so that no difficulties will arise. With this I shall order to be sent you copies of two clauses of a letter, in which are proposed two expedients which may benefit my exchequer in recompense for the expenses which are incurred by it in those islands. One of these relates to the cloves which could be obtained from the Malucas, carrying thither the produce of the island of Panay in exchange; and then bringing the said cloves to Nueva España on my account. The other proposal suggests that a monopoly be established in the raw silk brought from China—allowing each ship to carry only a certain quantity of it, and that to be carried to Nueva España on my account and not for any other, as you will understand more fully from the said clauses of a letter, which I have thought best to send you. Thus after you have discussed the matter with my royal Audiencia, and heard the opinion of my royal officials and of such persons of experience and intelligence as you think best, you can ascertain what can be done in the matter, the benefit and advantage which may result from the said measures, and the difficulty or facility which they offer. You will send me a detailed account of all, with your opinion.

I have understood that, by way of remedy for the illegal acts committed by the magistrates, and the wrongs which the Indians suffer, it would be of great importance to have the official inspection of affairs in those islands—which according to the ordinances constituting the Audiencia there, and to my orders, the auditors ought to make in turn. The latter have refused to do so, on acount of the expenses and danger which they incur. Since it is necessary that the said inspection be made, I charge and command you to cause it to be made in the land which has been pacified, and where there is no obstacle; and that in this inspection the auditor who is selected in turn, conformably to the said ordinances, be accompanied by no soldiers or other people who might prove to be burdensome or injurious to the Indians. You will endeavor to make the said inspection bring about the good results for which it is intended; and will give the auditor to whose lot it falls a vessel of fair size with which to sail from those islands of Luzon to the others, at the expense of my treasury. As for the additional pay or gratuity which should be allowed to the said auditors beyond their salary, and beyond what is granted them by the ordinances and decrees, you will send me a report, with your opinion.

I have heard that the said islands contain many poor and needy persons, to whom on account of their services and those of their fathers a remuneration is due out of the profits of the land and appointments to offices; but that as these sources of revenue are so few, and the governors confer them on their relatives, servants, and followers, as I have heard they have done, the others have remained without anything. It is not just that there should be opportunity for such appointments; therefore I order you to observe and fulfil in this matter exactly what is enjoined by the decrees, provisions, and instructions sent to the governors, preferring the most deserving and the older inhabitants of the land, who have best and most served the country without having been yet rewarded.

I have been informed that the ships which go to those islands from Nueva España carry each year, without a merchandise register, a large quantity of money from that country and Pirú—which is not found on reaching the port, on account of the care with which they hide it; and that it was necessary to make investigations and inspect the said ships before their reaching port. Since I understand that there is some foundation in this, and that many irregularities occur in this respect, I charge and command you to prevent and correct this evil in a fitting manner; and to see that the fiscal shall go with the officials of my exchequer to inspect those ships, at such place as they find convenient. Let the penalty be rigorously enforced in connection with what is found and discovered to be brought without register and against orders, adjudging to the informer the share which may seem to be best to my royal Audiencia of those islands.

Since I have learned that the office of treasurer of my exchequer in those islands has very little work attached to it, since its duties consist mainly in those of factor and accountant; and that therefore there is no need of the said treasurer, and that office could be fused with that of factor and the latter could act as treasurer, as was done before—I command you to send me a report of what would be expedient in this matter; also, of the duties of the said treasurer, and if, as it has been said, dispensing with the office, the factor and the accountant could take sufficient care of the administration of my exchequer.

I have learned that the governors, your predecessors, have often interfered in the affairs pertaining to the administration of my exchequer, which is entrusted to its officials; and that, contrary to the orders given them, they have not allowed the said officials suitable freedom in the exercise of their offices. Since in matters of this nature it is right to keep in mind the necessary security of my exchequer, I order you to observe and cause others to observe the ordinances and decrees which were issued in regard to this. You will maintain friendly relations with the officials of my exchequer in everything, and will give them the favor and aid necessary in the exercise of their offices, so that they may fulfil their charge and see that nothing is lacking to my service, and to the security, accounts, and order of my exchequer.

The accountant and the treasurer of my exchequer have written to me that my storehouses in the city of Manila have been in charge of the factor, who placed over them a man with the title of "lieutenant of shipping," whose duty was to keep an account of the receipt and distribution of what came under his supervision, thus relieving the work of the factor. A few years ago, on account of an information sent against the factor, it was ordained that each of the said officials should have his own key, and a person at the said storehouses in order to have all transactions pass through three hands, and that two hundred pesos a year should be paid to each person. They complained of this, saying that they were unable to furnish a man for this on account of their small salaries, which they needed entirely for their own support; and they besought me to free them from this obligation. Since I desire to be informed of the facts and occurrences therein; and how and under whose charge, and on whose account, the said storehouses have been usually kept; and the reason for ordering each of the said officials to have his own key to the said storehouses; and whether they are more secure for that precaution; and what sort of persons are placed there by the said officials and at what salaries—I command you that, after having examined the orders that have been given, and obtained thorough information of what is expedient to do, you send me an account of it, together with your opinion about the matter.

Although, as there are so excellent judges and officials in the Audiencia of Manila, it is reasonable to believe that justice is administered therein, I have learned that in certain cases there has been laxity, and especially in two—namely, when Melchor Ramirez de Alarcon, being intoxicated in the said city of Manila, and being reprimanded by his son-in-law, Pedro Munez, gave the latter a blow with his fist, receiving in return nine dagger-thrusts, of which he died; and when, in the city of Cazeres, Captain Pedro Cid killed Joan Martin Morcillo in a duel. In spite of the gravity of these cases, the delinquents were not sent to prison, but were set free on paying a fine of eight hundred pesos each—a procedure which caused censure and discontent among the people. Since it is right that similar cases be not left unpunished, I charge and command you that, as soon as you reach the islands, you demand and copy, without declaring your purpose, the record of the proceedings in regard to the said two murders, and examine it in company with the licentiate Don Antonio de Rivera, auditor of the Audiencia; and with the consent of the fiscal; and, if you find sufficient cause for action, you will have the culprits seized, and will make all the investigations and efforts necessary for ascertaining the truth. If it seem to you that the administration of justice requires it, you will send the prisoners under arrest to Nueva España, together with the records of their cases, and will inform me of what has been done and of the investigation made. You will always take great care that justice be done and administered in every case, and that crimes which merit punishment receive it, so that disorders may be repressed and justice exist and be feared, and that it shall not set a bad example or occasion lawless conduct in the land.

I have learned that many of the decrees and orders issued for those islands are not being executed, and that there is laxity in this respect, especially as concerns the ordinances about the equity with which the positions of profit in that country should be apportioned, and those persons who have not yet been remunerated should be rewarded. When my fiscal demanded the observance of the decrees, and especially in the case where the governor appointed Captain Cerban Gutierrez de Cespedes to the office of alcalde-mayor while he possessed an encomienda of Indians worth fifteen hundred ducados, and the fiscal asked that the said captain be not allowed to exercise the office until the completion of the trial, the Audiencia postponed its final decision, and meanwhile the said Cerban Gutierrez continued to exercise the office, and finished his term before the case was settled. I have thought best to refer this case to you, as I do, because in similar cases you will take suitable measures to prevent difficulties of this sort. It is especially necessary to observe and minutely fulfil the ordinances concerning the distribution of the profits of the country and the grant of rewards to persons who have not received them.