Your Majesty has some encomiendas apportioned to your royal crown, some distance from here and in a district where their products cannot be used. That is the most serious thing; for the collectors generally defraud [the royal officials] by saying that it was a bad year, and that they collected in money. If they confess to have collected something in kind, they say that it was too great trouble to bring it; and they sell it there, as they wish—perhaps selling it at retail to one who immediately returns it to them, and, besides this, harassing the Indians. On account of the distance, that is not often discovered, and less often can it be proved. And so that your Majesty might have much greater benefit from another equal number of tributes, I think that, as the encomiendas of private persons of La Pampanga and those in other districts near here, which yield a good harvest in products, continue to fall vacant, they should be exchanged for the said distant ones; for the latter will not be unsuitable with which to reward services. If they have a private person as encomendero, the Indians will be much better treated, and the tributes will be well collected and administered, with more justification and mildness. The tributes near here will result well for your Majesty through the profit on those paid in kind, which can come from this bay overland and by rivers, straight to the door of the magazines. It would be better for your Majesty to have charge of them than the encomenderos, for they are so near the Indians that they never fail to gather in a harvest of some kind—either in services, or some other thing. Being so near the governor, no collector would dare to treat the Indians badly. For the above reasons I think that I shall place this in execution as opportunity offers, unless I am so strongly opposed in this as in other things, that I would be embarrassed in it—although I cannot see what arguments they would have for doing so.
[Marginal note: “Council. This scheme and method of management that you present is excellent, and thus you shall do. In the council of the treasury, you shall always continue to deliberate on what could be of greater advantage to my royal revenues. Thus shall you do and advise, since it will all be so proper and justifiable, as I expect from you. You have noted one matter of unjust government, namely, excess [in the collections.] Accordingly, you ought to censure and punish it, and not permit any officer of justice or collector, whether for himself or for third persons, to be able to collect in public auction, or secretly outside of public auction, any products or articles that are owed by tributarios, landlords, Indians, or debtors. For great frauds are wont to ensue in that, and the laws punish and prohibit such acts as you are advised. For greater justification in the matter, the above shall be set forth as a clause in the patents made out for each one of these collectors, with a penalty of four times the amount of any excess that they might obtain.”]