In a letter dated July 6, 1606, the Audiencia informs Felipe iii of the death of Governor Acuna. New regulations for the commerce of the islands have been received from Spain, of which complaints are made. The amount of the Mexican trade has been limited to two hundred and fifty thousand pesos, and the returns therefor to five hundred thousand pesos; the citizens of the islands claim that this restricts their profits too much, and that they should be permitted to invest a larger sum. This liberty will tend to increase not only their prosperity, but the number of new settlers in the islands. The proposal to send on each ship from the islands fifty soldiers is quite impracticable, as the ships are too small and crowded. Instead of paying to the men and subordinate officers the salaries and wages proposed by the government, it is better to continue the present system of allowing each to do a little trading for himself. The auditors recommend that some changes be made in the duties levied on goods, which are onerous on the merchants.
By the same mail goes a letter from the new fiscal, reporting to the king the condition of affairs in the islands. He complains that the Sangreys are allowed to remain in Manila, and that this is done by the Audiencia without heeding the remonstrances of the city officials and himself. Many Chinese also come without registry, evading even the slight restrictions heretofore imposed. Their number is steadily increasing, and the Parian is now as large as it was when the revolt occurred. He advises further and more severe restrictions on the Chinese immigration. Guiral also notifies the king that the laws regarding the succession to encomiendas are being constantly violated; and recommends that all which are wrongly held shall be declared vacant and be reassigned. The encomenderos resent his enforcement of the royal decree that they should furnish to the priests who instruct their Indians wine for celebrating mass. He recommends that the matter of granting offices to small encomenderos be further examined. The increase in extent and number of the cattle-farms near Manila causes much damage to the Indians and Guiral recommends that these farms be abandoned within a certain distance of all towns. The peaceful Pampango Indians are frequently harassed by the head-hunting Zambales; the only way to stop this is to allow the