the citizens of Buenos Ayres to reap some slight portion of
the profits--although he erred in this, as it was done without his
Majesty's permission. However, now that this license is confirmed,
the matter, in so far as it touches this port, is remedied; for the
amount of flour which they take cannot be of sufficient consideration
to damage the commerce of Tierra Firme; and the citizens, as they
profit thereby, will prevent anyone from trading outside of the port,
and will execute the penalties imposed by his Majesty on those who
try to trade. I relate all the above because I think great things
will result therefrom to the service of our Lord and of his Majesty.

_Fray Martin Ynacio de Loyola_,
bishop of Rio de la Plata.

[_Endorsed_: "+ Memorial from the bishop of Rio de la Plata, in which
he declares what reform should be effected in the commerce of the
Filipinas and Mexico; and asserts that the action of the council in
Buenos Ayres has had very good effect."]

Extracts of Two Letters from the Conde de Monterrey

The merchants of the corporation of the city of Los Reyes, Peru,
declare that, in the commerce between that kingdom and this one of
[Nueva?] Espana, they regard it as so necessary, that should it
cease, it would mean complete destruction. On this account it must be
preserved, and to this end all the means possible must be sought out.

Further, they declare that the merchandise brought to the kingdom of
Peru from China is not the cause of this decline of commerce between
the Yndias and Espana, but the inadequate regulation of the war and
merchant fleets, and the winter seasons, which are the utter ruin and
destruction of the merchants. This is plainly evident, since before
the wars with Ynglatierra, when this matter was properly attended to,
the commerce was extensive and profitable--although there was no need
of so much merchandise as there is now, when the population of Peru
is so much larger than at that time--and the merchants not only of
Espana but of Peru were amassing wealth. But now they are not doing
so, for the reason that is here named. All is going to destruction:
payments cannot be met when due; and duties are excessive, for in
order to send money to Espana, the shippers pay seven and one-half
per cent for the galleons to guard the money, and when goods are
shipped from Sevilla, they pay as much as three and one-half per
cent. The principal cause of this loss is the time [required to
trans