By dividing this commerce, and by one ship going to Acapulco and another to Panama, one would think that, if the vessels’ were not more nor larger, the export or sale of Spanish merchandise would not be checked; for inasmuch as Mexico would be abandoned in order to go to Panama, the former country would come to have need of España, and would consume as much and perhaps even more than the amount that was not used in Panama because of the departure of the ships of this country. It is almost a certainty that no innovation would have to be experienced because of the way in which, it may be understood, the Mexican merchants have communication with those of Peru and all the Indias—avoiding the royal duties on what is smuggled. If each ship went publicly by permission from your Majesty to that region, as I have said, the increase of duties would be very great, and there would be no difficulty in the way, according to the understanding here—which, I have understood, is also the opinion of this city. They petition it from your Majesty, and I do the same, with the desire that I have and ought to have for you royal service and the welfare of this country. I find myself daily under new obligations to this country, which the inhabitants lay upon me by the willingness with which they respond to the service of your Majesty with their possessions, persons, and lives, as I have experienced from many on the occasions that have arisen. According to the limit of my understanding, and that which I have been able to grasp with it in this particular, I regard the aforesaid as so important to your Majesty’s service that, considering the matter in case that it should be necessary for the ships to go together, I would regard it as more advisable for both to go to Panama rather than to Acapulco—although I think that the said division is better, and the advantage of the reënforcement of men, and that which that country [i.e., Nueva España] can give easily; for thus results service to your Majesty and good to this country, and apparently not a little benefit to the commerce of España. For the products and merchandise of España that are esteemed here would be bought and imported in a much greater quantity with the saving of the freight charges overland, which are so excessive from Vera Cruz to Acapulco. The cost of those articles is also increased by the profit of the merchants who buy and retail them in that country [i.e., Nueva España]. If the merchandise were relieved from so high prices as it reaches to in this manner, and if the goods can be so easily passed on from owner to purchaser without resale, the shipment here of a great amount of the said merchandise and products, and of money less that quantity, is certain.

Likewise, in addition to the above, if the enemy should station themselves on that coast [i.e., of Nueva España], to await the ships that sail to Acapulco (as they have already done at other times), where they have captured some of those that have sailed hence, not only are there not ships at hand ready to go out to fight with them and to prevent them from making such attempts, but not one patache in which to send advice of it out to sea; while in Panama and on its coast that danger would be more easily averted because there are plenty of ships and seamen there. Will your Majesty be pleased to have this matter examined and considered so that, after understanding the pros and cons, what is most advisable to your service may be done.

[Marginal note: “Note of what was decreed, on a separate paper.”[3]]

5th. We are very happy at the good news that has arrived here of the favor that your Majesty concedes, to all of us who live in this country, of sending us reënforcements of soldiers and ships by the Cape of Buena Esperanza; and I more happy than I could express, because of my great desire for it and my great regret over its lack, in order to demonstrate effectively the desire that I have always had, and have, of employing myself in your Majesty’s service. May His Divine Majesty so well manage it that, if life does not fail me, I shall, with the protection of God, endeavor to employ it to my very utmost—without my promising more at greater length, for we can promise much from the hands of His Divine Majesty, but from our own but little. In order that the successful end of such intents may be better attained, at the best time, without there being any lack, I petition your Majesty to the utmost of my ability that the sending of this help, together with troops, be continued for some years—by way of Panama, or by whatever way your Majesty may please—so that the forces which might be assembled with such a fleet as is above mentioned might not be weakened so soon because of the many men that die here; and that the provision of money be in proportion to the men, and for the same time. I trust that, with the above, the cost and trouble incurred will succeed, without my endeavoring to excuse myself from it, or failing to economize and well administer the revenues as well as other things. The results certify it; for, with less money than has entered the royal treasury for many years, I have accomplished so many works, and have built or bought, in two years only, as many boats, provisions, and war stores as was done during many years in the past, and at a much less cost. For I have paid for all these, and of the arrears of debt a very large amount—as, if time allowed, could be seen by the official statements that would be sent to that effect. However, I shall try to do that on another occasion. I have come to say this, because your Majesty charges me to be very careful of your revenues, and as I have a bit of vanity in it, which seems to me not to be the most harmful vanity. I desire exceedingly that the manner in which I manage this matter be known, for there is a great difference in faithfulness, in good administration alone.

[Marginal note: “Council. You have already been informed in another letter that God was pleased to let the reënforcement be lost because of a bad storm. Nevertheless, all possible care is being taken to prepare another. May our Lord be pleased to direct it, since it is so important for the things of His service. By the despatches that you will receive from the hand of the castellan Pedro de Heredia, you will understand about the two hundred infantrymen, with which your present need will be supplied, until the more important aid is made ready. Inasmuch as you are advised of other things touching this matter in the despatch of the said castellan, nothing more will be told you of it, as I refer you to what it contains.”]

6th. For this purpose, very acceptable aid has come to me with the arrival of the factor, Diego de Castro Lison. For the favor that your Majesty granted him in this—both to him and to me—I kiss your royal feet with the humility and acknowledgment that is fitting.

It seems to me that with the commission borne by the above-mentioned, it will be very well if, during his execution of it, he be relieved somewhat of the many onerous duties of the office of factor; and for that purpose I shall endeavor to give him the aid and leisure that should appear necessary. If the treasurer—who has not yet arrived and whom I do not know—is such as I believe and have proved the factor to be, I shall have no need of carrying memoranda in my pocket of what is paid into the royal treasury, as I have done sometimes, even constraining this present treasurer so that he might ordain that those warrants for whose despatch and payment he did not have my decrees should not be honored. Consequently, I would not be sorry to see here two or three men for the accountancy of this treasury and for that of Terrenate; but, although the governors are accustomed to make that appointment, I cannot find many to choose here.

[Marginal note: “It is well. With the arrival of the treasurer and that of the treasury accountant, he is relieved of his anxiety about the matter of accounts.”]

7th. I have equalized the pay of the captains, officers, and soldiers here and at Terrenate, by increasing that of some and diminishing that of others, as your Majesty has ordered. In order that they may have an equal amount of work, and comfort also, I am having part of them changed every year, so that their exile may not be perpetual, nor desperation compel them to go over to the enemy, as many have done. Accordingly, for this reason, and so that the smaller and larger boats, in which the reënforcements are conveyed, may go and come in safety, I cause some infantry to go in all of them.

[Marginal note: “Council. It is well. You have already been informed in regard to this, and it was referred to your prudence and better judgment, as you are the one in direct charge of affairs. You shall give licenses and shall arrange for the passage of the soldiers from one part to the other in the manner most advisable.”]