Certain offices should be taken from their present incumbents, and conferred on men of character and standing.  The fiscal complains of lax management of the treasury by its officials, and calls for an investigation; and the same with the cabildo of Manila.  Other charges where public moneys are involved should be inspected by the crown, and the waste of those funds should be checked.  Even all these reforms will not provide all the funds for necessary expenses; the fiscal therefore proposes that the crown monopolize the trade in spices and raw silk, which would bring immense profits to the royal treasury.  Another letter from the fiscal to the king, of the same date, makes recommendations as to certain affairs of government.  He urges that the auditors should make regular official inspection of the administration of justice throughout the islands.  He complains that the profits of trade are absorbed by the officials and their dependents, leaving the citizens poor.  Offices and other sources of profit must not be bestowed on those dependents, but on the citizens; and the officers of the ships that carry goods to Nueva Espana should not be appointed there, but in the islands.  The ships should be more strictly inspected.

The ruler of Borneo sends (June. 1599) to Governor Tello a gift, accompanied by a letter in which he expresses firm friendship for the Spaniards.  In a letter dated July 14, Tello complains that Morga is hostile to him, and even writes anonymous letters against the governor; the latter defends himself against these attacks.  On August 7 he reports to the king the arrival of English ships at Maluco, and his intention of sending reenforcements to the Spanish fort there, and to that in Cebu.  He is asking aid from the viceroy of Nueva Espana, and is trying to manufacture more artillery at Manila.  Two letters from Felipe iii to Tello are dated August 16, 1599.  The king commends his proceedings in certain matters, and orders the viceroy of Nueva Espana to send hereafter only useful colonists to the Philippines.  He also desires Tello to advise him whether the duties on Chinese goods can be increased.

A brief account of the pacification of Mindanao (1600?) furnishes some additional information as to events there, up to 1600.  The troops have been withdrawn from this island, owing to an alarm of danger from English pirates; but these prove to be peaceable Dutch merchants.  In October of that year, certain foreign vessels (thought to be English) enter the bay of Albay, and Antonio de Morga is ordered by the Audiencia to fortify the port of Cavite and pursue the enemy.  Instructions for this latter proceeding are furnished to him by the governor (December 10).  He in turn gives instructions to his admiral, Joan de Alcega.  Then follows an account not only of the battle between the Spanish and the Dutch fleets, but also of Van Noordt’s entire voyage to the Philippines.  The battle ends, on the whole, disastrously for Van