In that ancient capital of the Peruvian empire, Pizarro and the Spaniards found a prodigious booty in gold and silver, not less in value than all they had collected at Caxamarca for the ransom of Atahualpa.  He made a division of this among his soldiers, and settled a colony in Cuzco, which had long been the capital of the Peruvian empire, and continued to be so for a considerable time under the Spaniards.  He likewise made a repartition of Indians among such Spaniards as chose to settle in the place as colonists:  Only a few, however, chose to avail themselves of their advantage; as a considerable proportion of the Spaniards were better pleased to return into Spain, that they might enjoy in repose the treasure which they had acquired at Caxamarca and Cuzco, than to remain in Peru.

“The riches displayed by the early conquerors of Peru on their return among their astonished countrymen, had so great an effect to induce others to try their fortunes in that golden region, that the governors of Guatimala, Panama, and Nicaragua could hardly restrain the people under their jurisdiction from abandoning their possessions, and crowding to that inexhaustible source of wealth which seemed to be opened in Peru.  In spite of every check or regulation, such numbers resorted to the standard of Pizarro, that he was soon enabled to take the field at the head of five hundred men, besides leaving sufficient garrisons in San Miguel and other places necessary for the defence of his conquests[26]”.

It has been already said that Pizarro, soon after his arrival in Peru, established a settlement at the town of San Miguel in the province of Tangarara, not far from the harbour of Tumbez[27], as a secure place of disembarkation for those who came to join him from Spain.  While he still remained at Caxamarca after the death of Atahualpa, on recollection that he had left a weak garrison in San Miguel, the governor thought proper to send a reinforcement of ten horsemen to that place under the command of Benalcazar.  Soon after his arrival, a considerable number of Spanish soldiers came there from Panama and Nicaragua, and as the Cagnares made loud complaints to him that they were oppressed by Ruminagui and the Peruvians of Quito, Benalcazar chose two hundred of the new recruits, eighty of whom were cavalry, with whom he marched for Quito, because he was informed that Atahualpa had left a large quantity of gold in that city, and that he might likewise protect the Cagnares, who had declared themselves the friends of the Spaniards.  Ruminagui advanced with an army of more than twelve thousand Peruvians to defend the defiles of the mountains leading towards the kingdom of Quito, which he endeavoured to do with considerable judgment, taking advantage of the nature of the ground, and fighting only in places of difficult approach.  Benalcazar, on his side likewise, joined stratagem and military conduct to courage and prudence; for, while he occupied the attention of the enemy by frequent skirmishes, and