anila. Other charges where public
moneys are involved should be inspected by the crown, and the waste
of those funds should be checked. Even all these reforms will not
provide all the funds for necessary expenses; the fiscal therefore
proposes that the crown monopolize the trade in spices and raw silk,
which would bring immense profits to the royal treasury. Another letter
from the fiscal to the king, of the same date, makes recommendations
as to certain affairs of government. He urges that the auditors
should make regular official inspection of the administration of
justice throughout the islands. He complains that the profits of
trade are absorbed by the officials and their dependents, leaving
the citizens poor. Offices and other sources of profit must not be
bestowed on those dependents, but on the citizens; and the officers
of the ships that carry goods to Nueva Espana should not be appointed
there, but in the islands. The ships should be more strictly inspected.

The ruler of Borneo sends (June. 1599) to Governor Tello a gift,
accompanied by a letter in which he expresses firm friendship for the
Spaniards. In a letter dated July 14, Tello complains that Morga is
hostile to him, and even writes anonymous letters against the governor;
the latter defends himself against these attacks. On August 7 he
reports to the king the arrival of English ships at Maluco, and his
intention of sending reenforcements to the Spanish fort there, and
to that in Cebu. He is asking aid from the viceroy of Nueva Espana,
and is trying to manufacture more artillery at Manila. Two letters
from Felipe III to Tello are dated August 16, 1599. The king commends
his proceedings in certain matters, and orders the viceroy of Nueva
Espana to send hereafter only useful colonists to the Philippines. He
also desires Tello to advise him whether the duties on Chinese goods
can be increased.

A brief account of the pacification of Mindanao (1600?) furnishes
some additional information as to events there, up to 1600. The
troops have been withdrawn from this island, owing to an alarm
of danger from English pirates; but these prove to be peaceable
Dutch merchants. In October of that year, certain foreign vessels
(thought to be English) enter the bay of Albay, and Antonio de Morga
is ordered by the Audiencia to fortify the port of Cavite and pursue
the enemy. Instructions for this latter proceeding are furnished to
him by the governor (December 10). He in tu