Letters from the king to Fajardo (December 19, 1618) give him orders regarding certain matters in the administration of the Philippine government.  Offices shall be given to these citizens of the islands who deserve rewards for meritorious services.  The alarming expenses of the Maluco establishment are not counterbalanced by any returns from the spice-trade there, and it is openly declared that the Spanish officials have embezzled what profits might have accrued therefrom to the royal treasury.  Fajardo is therefore ordered to investigate this matter and punish those who may be guilty; and to take charge, for the present, of the conduct of the clove-trade at Ternate.  The force of men there should be reduced, if practicable; and certain forts in Maluco should be abandoned.  In these and other ways expenses must be reduced.  The governor and the archbishop must warn the religious orders to cease their exactions upon the Indians.  A separate letter warns the governor that expenses must be reduced to the utmost; and that he must maintain the colony on its own revenues, without aid from the government.  He is advised to endeavor to open and work the mines in the islands; but in doing so he must not molest or injure the Indians.  He should endeavor to enlist their aid in this undertaking, and the missionaries should use their influence with the natives.

The Jesuit Joan de Ribera writes to some high official in Spain (December 20, 1618), urging the importance of Manila and the Philippines, and the necessity of opposing the progress that the Dutch are making in India, Japan, and the archipelago, so as to preserve for Spain the rich trade of the East.  Another most important consideration is the need of maintaining these islands as a center for religious labors among the heathen tribes.

A naval officer, Sebastian de Pineda, sends from Nueva Espana (1619) to the king a paper on ships and shipbuilding in the Philippines.  He begins by describing various kinds of timber used for this purpose; then enumerates, the shipyards in the islands, and the wages paid to the workmen.  Fourteen hundred carpenters were formerly employed at one time in the Cavite shipyard alone; but half of them were killed or captured by the Moros in 1617, many have died from overwork, and many others have fled to parts unknown because they had been unpaid for five years.  Iron is brought to Manila from China and Japan, and wrought by the Chinese and Indian artisans; the Chinese smith “works from midnight until sunset,” and earns less than one real a day.  Iron should be imported from Biscay, however, for some special purposes.  Much useful information is given as to the material, quality, and prices of rigging and canvas.  Pineda makes recommendations as to the shipment to Manila of various articles, showing how present expenses may be lessened, and waste avoided, in many ways.  He states that the naval defense of the islands is quite inadequate, and they are consequently in danger of being seized