stilla pay. Crude silk is
neither necessary nor useful for ordinary maintenance or support;
and accordingly it seems best that your Majesty should, if such be
your pleasure, obviate these losses which are occurring, and obtain
satisfaction for them in some way and meet the great expenses which
you have here. Your Majesty should leave liberty, as you always have
done, for your vassals to trade in all merchandise with China in
all kinds of goods; but should have monopolized and forbidden this
trade in crude silk, commanding that no ship which comes from China
shall neglect to bring five picos of crude silk, which is a very
small quantity. They should be paid a reasonable price for it. In
this way there would be the profit which they make in bringing it
from China here, whence it is sent to Mexico; and, sold at retail,
there will be the profit on it of four hundred per cent. There come
usually from China to this city thirty ships and some years fifty,
so that the profit on this would be large; and there would remain to
the citizens of these islands a great deal of merchandise with which
to trade, without their missing these goods. There would be enough to
cover all the expenses, salaries, and other things which are necessary
in these islands, and must be paid from the royal treasury--which, with
all the money that is sent from Mexico, has not enough money to cover
all the very important expenses affecting the proper guard, protection,
and defense of these islands. This is all that occurs to me at present
to say concerning matters relating to the royal exchequer, for its
welfare. I shall continue always to watch for what is most fitting for
the royal service of your Majesty, and shall attempt to further it;
and such is always my desire. May God protect your Majesty many years,
with a greater increase of kingdoms and seigniories, according to the
needs of Christendom. In the city of Manila, which is in the island
of Luzon, the principal one of the Filipinas Islands. July 21, 1599.

The licentiate _Hieronimo de Salazar y Salcedo_

Sire:

Since I have given to your Majesty an account of the affairs of
the administration of justice and of the royal exchequer of these
Philipinas Islands by two other letters which accompany this, I
will here discuss affairs of government. The thing which seems to me
most necessary to do for the good government of these islands--and
especially for correcting the great excesses which are w