In another report, dated June 8, 1577, Sande furnishes some information additional to that in the preceding document.  The Moros of Luzon are very shrewd traders, and are skilful in alloying the gold which they obtain in that island.  This practice causes the governor much perplexity regarding the currency question.  He has succeeded, during the past two years, in putting “the affairs of the royal estate into as good order as in Mexico;” and has reformed various abuses, small and great.  He explains the manner in which he has aided needy soldiers and other persons in want, and reassigned encomiendas of persons deceased.  As for the natives, Sande says that they are not simple, foolish, or timorous; “they can be dealt with only by the arquebuse, or by gifts of gold or silver.”  He has maintained good discipline among the soldiers, and reformed them from the vicious habits which had been prevalent among them.  He asks that the concessions made regarding the customs duties and the royal fifths be continued, on account of the poverty of the colony.  He renews his request for more religious teachers, and asks not only for secular priests, but more friars—­especially those who cannot own property, as the Indians will have more regard for such.  He explains in detail his difficulties regarding the proper disposal of the crown funds by the royal officials, and the heroic treatment made necessary by their inefficiency and mismanagement.  The property of Guido de Lavezaris is confiscated, and the goods of other wrong-doers are seized.  The city is now surrounded by a palisade and rampart; and the river-bank has been protected against the action of the waves.  He has built, or has now in the shipyards, vessels worth in New Spain one hundred thousand ducats, which have cost him less than fifteen thousand.  The resources of the land are being developed; the rebellious natives have been pacified; churches, and a house for the friars, have been erected; and a residence for the governor has been built.  In all these undertakings, he finds it necessary to watch everything, and superintend the workmen; this care and oversight has enabled him to secure good returns from the expenditure of the public funds.

A papal bull dated February 6, 1578, erects the diocese of Manila, and constitutes its church a cathedral; the duties and privileges of the bishop thereof are enumerated.  He shall be subordinate to the archbishop of Mexico; and the usual tithes and other dues are remitted.  Sande writes to the king (July 29, 1578) a brief report of his expedition to Borneo in the months of March to May preceding; and requests rewards and promotion for himself and his brothers.  By a decree dated November 15, 1578, Pope Gregory XIII grants “plenary indulgence to all the faithful who visit churches” of the Franciscans in these Oriental regions.  On May 13, 1579, King Felipe issues a decree regarding the foundation of monasteries in the Philippines.  Fray Domingo de Salazar (a Dominican) has been appointed bishop of Manila, and will soon go thither with friars.  The governor is ordered to ascertain where monasteries are needed, and there to erect buildings for this purpose.