Of much interest is the brief narrative (sent from Mexico January 11, 1574) by Fernando Riquel, Legazpi’s notary, of events in the islands during 1570-73.  The governor founds a town in Cebu, and allots to his followers the land and the natives who reside thereon.  In April, 1571 he conducts an expedition for the conquest of Luzon (the events of which have been related in previous documents).  Riquel mentions the coming of the ships, Legazpi’s death, and other events.  The islands are in a peaceful condition; the lands are allotted in such districts as have been pacified; there is promise of an abundant income from the tributary natives; and the gold mines are very rich.  The Chinese trade is described; and Riquel thinks that China, notwithstanding its great population, could be subjugated “with less than sixty good Spanish soldiers.”  His narrative is followed by a list of the articles carried in the ships which bear his letters—­gold, spices, silks, cotton cloth, and porcelain.

On June 21, 1574 Felipe ii bestows on Luzon the title of “New kingdom of Castilla,” and on Manila that of “Distinguished and ever loyal city;” and permits the establishment of a new municipal office.  On the same day Fray Martin de Rada, provincial of the Augustinians in the Philippines, gives his written opinion regarding the exaction by the Spaniards of tributes from the Indians.  He declares that he and all his brethren regard the conquests made in these islands as unjust; and denounces the acts of injustice, oppression, and extortion committed against the helpless natives.  Rada asserts that the rate of tribute is three times as high as it ought to be, considering the poverty of the Indians; and urges the governor to reduce the amount levied to one-third of the present exaction, and to protect the natives from oppression.

Lavezaris and other officials at Manila undertake to defend themselves from Rada’s accusations, writing (probably very soon after his “Opinion”) a letter to the king to state their side of the contention.  They deny some of Rada’s statements, and excuse their action in other matters, casting the blame for many evils on the treachery of the natives.  They claim that they are protecting the friendly Indians, and have nearly broken up the robbery and piracy formerly prevalent among those peoples.  They assert that the natives are well supplied with food, clothing, and gold, and that the tribute levied is moderate, and not a burden on the people; also that it is regulated according to the relative wealth of different classes and regions.  This is illustrated by interesting quotations of prices and values, and enumeration of goods obtained in trade, and of the products of native industry.  The officials admit that the natives pay tribute only under compulsion, but say, “They like to be compelled to do so;” and they consider all poverty among the Indians as due to laziness and drunkenness.  It is also far better for them to pay tribute than to be raided by the Spanish soldiers for the means of supporting themselves, as was done before the encomiendas were made.