the Audiencia informs Felipe III of the death of Governor Acuña. New regulations for the commerce of the islands have been received from Spain, of which complaints are made. The amount of the Mexican trade has been limited to two hundred and fifty thousand pesos, and the returns therefor to five hundred thousand pesos; the citizens of the islands claim that this restricts their profits too much, and that they should be permitted to invest a larger sum. This liberty will tend to increase not only their prosperity, but the number of new settlers in the islands. The proposal to send on each ship from the islands fifty soldiers is quite impracticable, as the ships are too small and crowded. Instead of paying to the men and subordinate officers the salaries and wages proposed by the government, it is better to continue the present system of allowing each to do a little trading for himself. The auditors recommend that some changes be made in the duties levied on goods, which are onerous on the merchants.

      By the same mail goes a letter from the new fiscal, reporting to the king the condition of affairs in the islands. He complains that the Sangreys are allowed to remain in Manila, and that this is done by the Audiencia without heeding the remonstrances of the city officials and himself. Many Chinese also come without registry, evading even the slight restrictions heretofore imposed. Their number is steadily increasing, and the Parian is now as large as it was when the revolt occurred. He advises further and more severe restrictions on the Chinese immigration. Guiral also notifies the king that the laws regarding the succession to encomiendas are being constantly violated; and recommends that all which are wrongly held shall be declared vacant and be reassigned. The encomenderos resent his enforcement of the royal decree that they should furnish to the priests who instruct their Indians wine for celebrating mass. He recommends that the matter of granting offices to small encomenderos be further examined. The increase in extent and number of the cattle-farms near Manila causes much damage to the Indians and Guiral recommends that these farms be abandoned within a certain distance of all towns. The peaceful Pampango Indians are frequently harassed by the head-hunting Zambales; the only way to stop this is to allow the latter to be enslaved by anyone who will capture them. Certain questions regarding the status of children of slaves should now be settled. Guiral makes various recommendations as to the sale of offices and the use of certain funds. The seminary of Santa Potenciana recently lost its house by fire, which has since been rebuilt; the king is asked to aid it. A public-spirited citizen of Manila has established a hospital for Spanish women, and royal aid is asked for this also. The hospital for Spaniards is not properly cared for, and the king is asked to send over hospital brethren of the Order of St. John of God. The guardians of minors often prove unfit for such trust, and they should be called to account by the Audiencia. Disputes having arisen over the rights and prerogatives of the Audiencia in case of their succession ad interim to the government of the islands, Guiral asks for the royal decision of such questions. The fiscal complains of the tyrannical conduct of many friars, especially among the Augustinians, toward the Indians; he has opposed this as much as possible, but asks further redress from the king. The coming of the discalced Augustinians (Recollects) has been a useful check on the other branch of that order, especially on its arrogant provincial, Lorenzo de León—of whose unlawful acts Guiral complains, and demands an investigation. He has obliged the stray Indians about Manila to return to their native places; and he asks that those who are retained for the service of the religious orders shall be kept within the allotted number, and that the friars be compelled to pay these servants fairly. The Audiencia has allowed Gabriel de Ribera to resume his encomiendas, vacated by his illegal absence from the islands; and the fiscal asks for correction of this procedure. He advises the king to refuse the claims made by Figueroa’s heirs for release from the debts incurred by the conquest of Mindanao; and states that Tello and Morga are the ones responsible for part of these expenses, and for others which were paid from the royal treasury by the Audiencia. Guiral ends by requesting permission to leave the islands as soon as a permanent appointment to his office of fiscal can be made.

      Proceedings in the Council of the Indias (August 5 and 15, 1606) deal with Acuña’s effort to recover the Maluco Islands, from, the Dutch, summarizing his letters of July 1–7, 1605, and recommending the measures to be taken by the Spanish government in regard to it. Later advices emphasize Acuña’s statements as to the gravity of the situation in the Spice Islands. The Council commend Acuña’s action, and advise the king to further his efforts and supply him (from Mexico) with troops and money. The Council of State act thereon, seconding these recommendations, and advising that the archbishop and the Audiencia of Manila be warned not to meddle with affairs of war.

      Of special interest to American readers is a royal decree (August 19, 1606) addressed to Governor Acuña, establishing “a way station for Philippine vessels on the Californian coast”. The king recounts the results of Vizcaino’s exploration on that coast in 1602, and the advantages of Monterey as such station. It is believed that gold abounds in that region, and that many other advantages would accrue from a settlement there. The king appoints Monterey as a way-station for the Philippine vessels, and Vizcaino as the commander of the expedition to establish it; and directs Acuña to send with him two men from the Philippines to learn all that is necessary about the new station, so that they may command the next galleons from Manila.

      The Chinese immigration to the islands continues, the official statement for 1606 showing that over six thousand five hundred land at Manila in that year. On November 4 following, Felipe III sends warning to Acuña not to allow any more of them to remain than are necessary for the service of the community. The king also writes a letter of the same date to the governor, commending his action in sending troops to defend Samar from the Moros, in reducing the expenses of government, and in various other matters; and gives directions for rebuilding the hospital and for certain other measures.

      On January 18, 1607, the request of the Jesuits for confirmation of a grant in aid of their seminary for the Indians in Leyte is approved by the royal council. A report is made (July 6) by the chief of artillery, showing the number and description of pieces which are mounted on all the fortifications at Manila—in all eighty-three pieces, of various sizes and power. At the king’s command, the Audiencia furnish (July 11) a statement of the aim, scope, and labors of the charitable confraternity, La Misericordia, at Manila. It has one hundred and fifty brethren; they have established and maintained a hospital for women and a ward therein for slaves, besides their principal labors for the succor of the poor and needy of all classes. They provide food and water for the poor prisoners, aid to the inmates of Santa Potenciana, and homes for orphan boys; and assist many transient persons. They also settle many quarrels and reclaim dissolute persons.

      The question of restricting trade between the Spanish colonies is discussed by the Council of the Indias (December 18, 1607); they think it necessary to restrict trade to some extent, but hesitate to take too vigorous measures. At various times (1606–07) the Council of the Indias deliberate on the question whether religious shall be permitted to go to Japan via the Philippines. Certain objections to this are stated (May 30, 1606); that the Japanese suspect the Spaniards of desiring to conquer their country; that the constant flow of Mexican silver to China should be stopped; that the Jesuits, who are already established in Japan, desire to exclude the other orders from that country; and that the Portuguese desire to keep out all Spaniards from both Japan and China. The Council answer all these objections, and recommend that religious be required to go to Japan via Manila, but to embark there in Japanese, not Castilian, vessels. Ten months later (March 31, 1607) the same matter is again brought forward; and, as before, the Council of Portugal object to the entrance of Castilian religious into Japan. The Council of the Indias oppose this view, citing the profitable commerce of the Philippine Islands with Japan, recently begun; the successful work of the religious orders there, and the need of more missionaries in that broad field. They adhere to their former opinion regarding the passage of the religious to Japan, and recommend that the Philippines be allowed at least a moderate trade with that country. Both these reports are discussed in the Council of State (September 7 and December 20, 1607), where complaint is made against the methods of the Jesuit missionaries in Japan; and the king is advised to allow religious from other orders to enter that field, and to prohibit trade from the Philippines to Japan, The king thereupon requests from Rome the revocation of the briefs obliging friars to go to Japan via India, and a new one placing this matter in Felipe’s hands.

      An itemized statement of the “annual receipts and expenditures of the Philippine government”