royal treasury.  Not only ships, but sailors and carpenters are needed, who should be paid in the same way.  More artillery is needed, also to be furnished by royal aid.  The Chinese trade is continually increasing.  The city of Manila is being fast rebuilt, and in stone.  But the land is unhealthful and the soldiers die fast, so that the islands have few men for their defense; and again the king is earnestly entreated to order that men and supplies be sent at once from Nueva Espana.  The new fort has been injured by earthquakes, but Vera is building it more strongly.  He complains that the friars have neglected his commands to learn the Chinese language and instruct the Chinese who live on the islands.  The Dominicans alone have entered this field; they have achieved great results, and have now among the Chinese “a village of Christians.”  Many more would be converted, if it were not for the bishop’s order that the long hair of the converts should be cut off; accordingly the king orders that a conference of religious and learned persons be held, who shall take suitable action in regard to this and other matters concerning the conversion of the Chinese.  Vera complains of the arrogance, obstinacy, and high temper of the bishop, and asks that the king restrain him.  There is no physician in Manila, and one is urgently needed in the royal hospital.  This document is followed by the notarial record of proceedings in the trial of various Indians for conspiracy, which is mentioned in Vera’s letter.  The punishments inflicted upon them are specified:  in each case, appeal was made to the Audiencia, which in some cases modified the penalty, but otherwise affirmed the former decision.

Gaspar de Ayala, royal fiscal in the islands, makes his report to the king (July 15).  He advises that ships for the royal service be built in the islands; also that the gold used as currency there be exchanged in Nueva Espana for Spanish coin—­both of which measures will be of profit to the royal treasury.  He renders account of the recent sale of offices in the islands, and gives advice regarding this method of aiding the royal exchequer.  Certain encomiendas becoming vacant, Ayala, as fiscal, undertakes to secure them for the crown; in this he has difficulties with the governor, who also is trying to make trouble for Ayala with the soldiers.  The latter asks to be relieved from his post in the Philippines, and sent to some other.  The Chinese trade is meager this year, owing to war and pestilence in China; and there are rumors that it is being diverted to Peru or Nueva Espana.  If this be true, the Philippine colony will be ruined.  A second plot against the Spaniards has been revealed, this time in Cebu; but the leaders have been captured.  The Indians of Cagayan have also revolted, and troops have been sent against them.  Ayala adds, “I am ready to certify that there are few places in these islands where the natives are not disaffected.”  The Spanish colony