The ninth section decrees that the freight charges to be paid on cargoes in the aforesaid vessels, for the voyages both going and coming, shall be determined and regulated in proportion to the expenses of the voyage, no more being charged than is necessary to meet them without any supply being required for this purpose from your Majesty’s treasury.  The section provides that for these expenses the duties shall be increased—­by two per cent on the goods carried in the ships, and another two per cent on the money sent to these islands as proceeds from the shipment.  It provides that this fund shall be put in a chest apart, and kept in this city, to meet the expenses of the said ships and the men in them.  This sum is to be kept together with the freight charges collected.  The contents of this section require careful consideration.  When the ships return to these islands, they come laden with the forces intended for this military district and garrison, and artillery, arms, and ammunition; and with the religious, and the colonists who come to settle in these islands, in addition to other things required for the service of your Majesty.  Although they do indeed bring the money for the citizens of this city, they at the same time bring much required for the reenforcement of the military establishments here.  If these freights are to be apportioned as your Majesty commands, there will be a large amount which might fall upon your royal treasury.  Hence it seems that, if your Majesty should be pleased, it would be well for the present not to change the custom which has hitherto been followed; and that only to assist the expenditures which your Majesty incurs in sending out these vessels should the citizens of these islands be charged two per cent on the merchandise which they ship, and two per cent more for the money sent them in return.  For, although it is said on the other side that the profits are large, they commonly are not; while the freight, fees, and duties are very great.  From these profits there is paid to your Majesty in this city five per cent, including the new increase, and in Nueva Espana sixteen per cent; while the expenses of the ships which had to put back to port, and the goods lost in those which have been wrecked since the year one thousand six hundred, come to more than a million.  It will take many years for the profits to make up for such a loss.  May God keep the Catholic and royal person of your Majesty.  Manila, July 6, 1606.

The licentiate Telles de Almacan
The licentiate Andres de Alcarez
The licentiate Juan Manuel de la Vega

Letter from the Fiscal to Felipe III

Sire: 

Last year, sixteen hundred and five, during which I began to serve your Majesty as fiscal of this Audiencia, and as protector of the natives [27] of these islands by appointment of the Audiencia, I sent a statement of everything of importance which within the short time of my service I was able to discover.  Since that time I have considered with care and attention the things of greatest consequence to your royal service, and have found that I ought to give your Majesty an account and statement of the condition in which I found affairs, and that in which they are at present.