5.  One of the things in which, I have understood, the royal exchequer of your Majesty has been the most defrauded and the citizens of these islands the most aggrieved, is in the freighting and despatching of vessels which go from here to Nueva Espana with merchandise; for the governors have, for some years past, assigned to this duty various special friends and confidants of themselves, and even at times their own servants.  The said persons lade in the ships their own property, and even that of their relatives and friends—­and likewise, it is said, of any person who will pay them for it.  This transaction and negotiation is of great profit for them, and a great fraud upon the royal exchequer; for all the merchandise which they lade in this way, outside of the amount allotted, goes without paying your Majesty the royal duties, and is not a part of the cloth which is assigned to the citizens in the general allotment which is made to them.  As a remedy for this, it will be well that in the future, when the allotment of the cloth is made, there should be present and superintend it, besides the governor and the other persons who are appointed, an auditor and royal official in rotation, each year, commencing with those longest here.  As soon as the said allotment shall be finished, the royal official shall take a copy of it, and the persons to whom allotment is made of the said cloth shall come with their invoices, to bale it and pay the royal duty in the presence of the royal officials, who should give warrants for it.  One or two of the officials should be present at the port of Cavite, which is the landing-place of ships, two leagues from this city; and there should be also present on the ship, during its lading, the freighters who are ordinarily appointed, and an auditor, so that no cloth will be allowed to be laded except it be that contained in the said allotment.  That which is thus authorized shall be vouched for by warrants from the said royal officials that the duties are paid.  So great has been the irregularity in this matter that, by having it checked by these strict methods, there would probably be a great gain to the royal treasury.

[In the margin:  “Write to the new governor about the information given in this letter, and the complaints that are made; and have him remedy this evil, appointing for this persons who are of satisfactory record, and taking care that all this be done with justice—­and, if it seem best to him, being sometimes present in person at the inspection.”]

6.  From the payment of tributes by the Indians in the usual currency there have resulted and still result many inconveniences, losses, injuries, and diminutions to the royal exchequer; for formerly they paid the eight reals of tribute each year in kind, which they gathered on their lands.  A short time ago they were given the alternative of paying it in coin if they wished; and since then they have ceased to cultivate the land, make linen fabrics, raise fowls