Moreover, in regard to the inquiry which discusses the exchange of different grades of gold, the people here are of such sort that no one makes a payment without declaring that he is giving gold of a good quality; but, on the other hand, the one who collects declares to the contrary.  By the accounts for the year seventy-six, which are now finished, and by the entire expense account, which I have examined personally, it seems to me that good faith in the past year may be deduced.  In this country, the heat of the sun is very great; and for even one week’s work, or when a ship is going to be launched, it is necessary to erect a shelter for the workmen.  This is made in a short time, with poles, bamboo, and palm-leaves.  In the shipyards there is much waste; and, as the wood rots from dampness here, the soldiers take it at night to use in their houses, and relieve their misery.  This cannot be called a theft, as it is done by menials who came hither at your Majesty’s expense and are engaged in his service.

When I came here I found the country swept by fire, everything in ruins, and the Indians in rebellion, having taken advantage of the coming of the pirate [Limahon].  Since then I have not ceased in my endeavors to promote all possible peace here.  I have surrounded the city with a palisade and rampart, building therein two cavaliers, which are further strengthened by ramparts—­one toward the southeast, where the pirate landed; and the other toward the northwest.  It seemed to me very important to guard the point formed by the river and the sea.  People declare that after Miguel Lopez de Legazpi came here the water wore away the land for the distance of two gunshots.  I have all the river staked in, as also the point by the sea; and have had the latter filled in with earth until it is all level.  I think that it will, therefore, be always stable, if it is repaired from time to time.  I have had the fort of this city repaired, building ramparts where they were lacking, so that one may walk around it on the rampart.  I have covered two cavaliers, although communication may be had between them at a pike’s length, which could not be done before.  The floors have been covered with wood, so that the pieces of artillery may be dragged about more easily.  I have also constructed many chests, both for the interior of the fort and for the galleys, and have mounted all the guns here.

As I advised by the ship “Santiago,” I sent to the island of Panay for galleys to be made.  Two built there were launched in this city, and I have another of sixteen [toneladas?] finished, and one of twenty-five is in course of construction.  It would have been completed four months ago had it not been for the overhauling of this ship “San Juan,” which carries this letter.  Nevertheless, it will be finished inside of two months, because all the boarding, planking, and sheathing has been done, and there is nothing more to hinder the workmen on the ship.  I have also had oars brought for