On June 21, 1574 Felipe II bestows on Luzon the title of "New kingdom
of Castilla," and on Manila that of "Distinguished and ever loyal
city;" and permits the establishment of a new municipal office. On the
same day Fray Martin de Rada, provincial of the Augustinians in the
Philippines, gives his written opinion regarding the exaction by the
Spaniards of tributes from the Indians. He declares that he and all
his brethren regard the conquests made in these islands as unjust; and
denounces the acts of injustice, oppression, and extortion committed
against the helpless natives. Rada asserts that the rate of tribute
is three times as high as it ought to be, considering the poverty
of the Indians; and urges the governor to reduce the amount levied
to one-third of the present exaction, and to protect the natives
from oppression.

Lavezaris and other officials at Manila undertake to defend
themselves from Rada's accusations, writing (probably very soon
after his "Opinion") a letter to the king to state their side of the
contention. They deny some of Rada's statements, and excuse their
action in other matters, casting the blame for many evils on the
treachery of the natives. They claim that they are protecting the
friendly Indians, and have nearly broken up the robbery and piracy
formerly prevalent among those peoples. They assert that the natives
are well supplied with food, clothing, and gold, and that the tribute
levied is moderate, and not a burden on the people; also that it is
regulated according to the relative wealth of different classes and
regions. This is illustrated by interesting quotations of prices and
values, and enumeration of goods obtained in trade, and of the products
of native industry. The officials admit that the natives pay tribute
only under compulsion, but say, "They like to be compelled to do so;"
and they consider all poverty among the Indians as due to laziness and
drunkenness. It is also far better for them to pay tribute than to be
raided by the Spanish soldiers for the means of supporting themselves,
as was done before the encomiendas were made.

Two letters from Lavezaris (July 17 and 30, 1574) give account of the
past year's events. Juan de Salcedo has conquered the rich province of
Los Camarines in Luzon; and the governor will try to found a Spanish
settlement there. The town founded at Cebu was almost deserted by
the Spaniards; but Lavezaris obliges them to return thither and aids
them in t