[High character of early administrators.] Since the measures adopted in alleviation of the conquest and occupancy succeeded in so remarkable a manner, the governors and their subordinates of those days, at a time when Spain was powerful and chivalrous, naturally appear to have been distinguished for wisdom and high spirit.  Legaspi possessed both qualities in a marked degree.  Hardy adventurers were tempted there, as in America, by privileges and inducements which power afforded them; as well as by the hope, which, fortunately for the country, was never realized, of its being rich in auriferous deposits.  In Luzon, for instance, Hernando Riquel stated that there were many goldmines in several places which were seen by the Spaniards; “the ore is so rich that I will not write any more about it, as I might possibly come under a suspicion of exaggerating; but I swear by Christ that there is more gold on this island than there is iron in all Biscay.” [Conquerors on commission.] They received no pay from the kingdom; but a formal right was given them to profit by any territory which was brought into subjection by them.  Some of these expeditions in search of conquest were enterprises undertaken for private gain, others for the benefit of the governor; and such service was rewarded by him with grants of lands, carrying an annuity, offices, and other benefits (encomiendas, oficios y aprovechamientos).  The grants were at first made for three generations (in New Spain for four), but were very soon limited to two; when De los Rios pointed this out as being a measure very prejudicial to the Crown, “since they were little prepared to serve his Majesty, as their grand-children had fallen into the most extreme poverty.”  After the death of the feoffee the grant reverted to the State; and the governor thereupon disposed of it anew.

[The feudal “encomiendas.”] The whole country at the outset was completely divided into these livings, the defraying of which formed by far the largest portion of the expenses of the kingdom.  Investitures of a similar nature existed, more or less, in a territory of considerable extent, the inhabitants of which had to pay tribute to the feoffee; and this tribute had to be raised out of agricultural produce, the value of which was fixed by the feudal lord at a very low rate, but sold by him to the Chinese at a considerable profit.  The feudal lords, moreover, were not satisfied with these receipts, but held the natives in a state of slavery, until forbidden by a Bull of Pope Gregory XIV, dated April 18, 1591.  Kafir and negro slaves, whom the Portuguese imported by way of India, were, however, still permitted.