ur behavior,
friendship, and correspondence with certain chiefs of that country,
whom you have entertained. It is well to continue these efforts,
and to give us notice of what takes place.

What you say about retiring two companies is commendable; nevertheless,
if you think best in the future to increase one of them, do so, and
make the necessary provisions. Keep me informed of the measures that
you shall take.

I am writing to the viceroy of Nueva Espana, that I have assisted you
with what is necessary, and shall ask him to see that the people whom
he sends to those islands be useful and carry weapons. He shall take
care to punish the captains for their excesses. You shall do the same
in what concerns you.

In regard to the needs of the soldiers, which you attribute to their
not having, and the impossibility of providing them with, encomiendas
for a long time; and as it concerns the temporary employments which
you give them instead of the servants, and even these employments
are not sufficient for all--you shall observe the instructions, laws,
and ordinances which you possess. You shall see that the distribution
of what is available be made among worthy men who have served in
that land.

As to the remedy which you propose in the marriage of elderly women,
and encomenderas of the land, you shall introduce no innovation. But
you shall enable marriages freely to take their proper course. At
Denia, August 16, 1599.

_I The King_

By order of the king our sovereign:

_Juan de Ybarra_

The King: To my governor and captain-general of the Philippinas
Islands, and the president and auditors of my royal Audiencia
thereof. I have understood that the Chinese Indians who trade in that
country bring thither each year eight hundred thousand pesos' worth
of merchandise, and often more than a million; and that in the ten
days which they spend in that country they make more than a hundred
per cent, and that in the last year, ninety-eight, it was said that
they secured two hundred per cent. Since in their own country they
pay increased duties, and since so great profit comes to them from
the merchandise which they bring to those islands, while they pay me
no more than three per cent in duties, which is the amount formerly
imposed by Governor Don Gonzalo Ronquillo, it would be just that
they should pay the said duties proportionately to the profits;
and accordingly these might be increased by at least another three
per ce