Your Majesty’s exchequer has suffered so much damage and loss by the mismanagement of the officials, that, although various gentle means were taken to relieve and repair it, they were of no effect. Consequently, when the governor saw himself so hard pressed, he commenced to investigate the accounts; and the officers are suspended from the exercise of their duties until the state of their offices shall be ascertained. They are alike in their bitter enmities and difficulties with one another, making the despatch of the matter impossible. The papers are sent in order that your Majesty may see what has been done, and the condition of affairs here at present, which if investigated thoroughly will be found to contain other things of much moment in the matter. Your Majesty will decree in everything what will be most expedient for your service. I assure your Majesty that had any other means been found of dealing with the said officials besides the one used, until your Majesty should be advised thereof, this final measure would not have been taken—which was necessary, since no other effectual means were at hand.
Your Majesty has yet in this kingdom a revenue amply sufficient for all the expenses thereof, if it be administered with fidelity and care, and if many present superfluous expenses be suppressed. There are not more than a hundred paid soldiers in camp, and six captains of infantry and their officers draw salaries. The forts are without garrisons; but for more than a year the wardens thereof have been improperly drawing salaries. Your Majesty has no galleys whatever, and there is one commander, who, though unemployed, draws a yearly salary of eight hundred pesos; and there are many officers who get a salary in the same manner. There are many garrisons of soldiers, sailors, artillerymen, and others in various capacities who draw pay from your Majesty’s exchequer; and they are of no service, nor will they ever in their lives be of any use, except as servants and attendants upon the officers and other persons, who pay them from your Majesty’s revenues. In this way much of your Majesty’s revenue is being spent and wasted. It would be necessary to institute a reform, and to make many investigations of the accounts of your Majesty’s debtors and the collectors of your Majesty’s revenue, in order to regain much property which is lost. Every day more will be wasted unless your Majesty orders a speedy remedy, with punishment of the guilty, which shall serve as a warning for the future. In the meanwhile much suffering will be felt here, as at present; and even a large part of your Majesty’s estate in Nueva Espana will not suffice to meet the needs here.