in the islands under Spanish rule.  Morga has obtained official positions for his relatives and friends, contrary to the royal ordinances.  One of these men, being utterly incompetent, has failed to drive back the Mindanao pirates, who have consequently inflicted much damage.  Through various machinations, Morga succeeded in depriving Ronquillo of the command of the fleet, in the battle with Van Noordt; but in the conflict he showed himself incompetent to command the troops, and a coward at the approach of danger; and, in consequence, his flagship was wrecked, with the loss of many Spaniards and of valuable military supplies.  Moreover, the enemy being allowed to escape, the islands are more exposed to future attacks from them.  The writers of this letter are sending documents to prove their charges; they also accuse Morga of writing anonymous letters.  A letter from Morga to the king (July 30) relates his services in the naval battle, and the unfaithfulness of Joan de Alcega to his trust in that and other instances.  Morga asks to be relieved from his post in the Philippines, and sent to some other country.  On December 11, 1601, the Jesuit school at Cebu is aided by a royal grant for the erection of buildings.

Governor Tello is superseded by Pedro de Acuna, and the latter is provided with instructions (February 16, 1602) by the king.  He must consult with the viceroy of Nueva Espana regarding the measures to be taken for the settlement of the islands; and the viceroy has been ordered to aid the governor therein.  Acuna is directed to look after the defense of the coasts, and the maintenance of a garrison in Mindanao.  He must do what he can to dispense with offices and salaries which are superfluous, for which the king makes various recommendations.  The frauds which have been committed in the shipment of goods to Nueva Espana, and in the payment of duties thereon, must be stopped.  Irregularities and frauds in the assignment of encomiendas must also cease.  These and various other matters are discussed by the king, in pursuance of the recommendations made by the royal fiscal in July, 1599.  Official inspection of affairs in the islands must be made by the auditors; and the royal officials must put a stop to the importation from America of money for investment in the China trade.  The cathedral at Manila must be completed, and the hospitals aided; and nuns will be sent for Santa Potenciana.  The Jesuit seminary for Indian boys should be cared for; and Acuna is to ascertain its condition and needs.  He must investigate the question of abolishing the Parian, and see that religious teachers are provided for the natives of the Ladrones Islands.  Agriculture must be encouraged in the Philippines.  Two royal decrees (dated February 16) command the viceroy of Nueva Espana to send to the Philippines more colonists, who shall be persons of good character; and two nuns, to take charge of the seminary of Santa Potenciana at Manila.  Captain Gallinato sends to the governor at Manila (June 4, 1602) warning of a large plundering expedition which is about to sail from Mindanao to ravage the Pintados Islands.  The Joloans are also hostile, and ready to attack the Spaniards; and the natives of Terrenate are aiding the Mindanaos.