ch region they are steadily and
even rapidly gaining foothold, and securing the best commerce of those
lands. Corruption in the management of the Spanish interests in the
Spice Islands renders them an expensive and embarrassing possession;
and the new governor, Fajardo, finds the same influence at work in
the Spanish colony itself, especially among the auditors and other
high officials. The colonial treasury is, as usual, short of funds,
and can do little to defend the islands from the Dutch; the Madrid
government is unwilling to spend much more on the Philippines, although
beset with importunities to save that colony, and Spanish commerce
generally, from the insolent Dutch. The usual building of ships in the
islands has so harrassed and exhausted the unfortunate natives that
it is necessary to have ships built for the Philippines in India and
other countries where timber and labor are more abundant. The trade of
the colony with China is the object of much discussion, and proposals
are again made to restrict it, as well as that with Nueva Espana, in
order to protect the commercial interests of the mother-country. In
the final document is a detailed statement, in vigorous language,
of the abuses current in the administration of the islands--arbitrary
and oppressive conduct of the auditors, corruption among officials,
extravagant expenditure of public funds, lax enforcement of laws,
burdensome exactions imposed upon the Indians, and Chinese, etc.;
for these the citizens demand redress, prevention, and relief.

Andres de Alcaraz, the auditor in charge of military affairs after
Silva's death, writes to the king (August 10, 1617). The ships
could not go to Nueva Espana in 1616, because the Dutch were lying
in wait for them; but the Acapulco galleon arrives safely at Manila,
and brings money to relieve the general distress. Alcaraz makes ready,
although in the midst of great difficulties, a fleet to drive away the
Dutch. On April 14, 1617, this Spanish fleet has a battle with the
Dutch squadron at Playa Honda. After a long and fierce contest, the
enemy take to flight, having lost several ships and much artillery,
and many of their men being killed or wounded. As soon as possible
thereafter, Alcaraz sends supplies to the Spanish forts in Ternate;
recalls Geronimo de Silva to Manila, to act as governor _ad interim_;
and despatches pilots to meet the fleet that is coming from Spain via
Cape of Good Hope. He criticizes Geronimo d