land, although the galleons built by Don Juan de Silva had been wrecked, and although the Audiencia which was then governing had ordered, notwithstanding that the treasury did not contain a single real, some ships to be built, so that they might be finished in place of those which had been wrecked, yet the governor, on finding them on the stocks at his arrival, ordered all work to cease, and only two ships were finished.  He ordered even those vessels to be reduced in size, whereat there are not wanting those who grumbled that he did it in order to have trading-ships instead of warships. [29] He has not built any others during all these three years, although the employees in the accountancy of the royal treasury assure me, and it is without doubt so, that he has spent three millions [of pesos] of your Majesty’s royal incomes from these regions, and of the funds brought from Nueva Espana, during three years.  That is a very great pity here, for it is to be presumed that he has spent a great portion of that sum in paying due-bills bought at one-third and less [their face value], as I have said above.  The employees of the accountancy have assured me that five hundred thousand pesos were paid in that way last year, and that fact is very well known.  It is also known that the due-bills outstanding have been exhausted, so that now they are being sought very anxiously in the same districts, but cannot be found.

Although we generally have six or seven months’ sure notice from Xapon before the coming of the enemy, that they are going to come, the governor makes no preparation, small or large, nor does he build any vessels, but allows the time to pass as if he had no such warning.  When the enemy arrive at the coast, the governor, without any intention of going to meet them—­as is known publicly and generally, and is known by the results, as he has already spent the money—­lays hands on the inhabitants and mainly by force gets a loan of one hundred thousand pesos from them, or what he thinks best, and has the ships in the port repaired.  Those vessels often do not exceed three, and he spends on them a vast sum of ducados, even loading them with food and war-supplies of all that is needed.  He troubles the soldiers in making them go and come to and from Cavite, and even making them embark.  He says with show of great courage that he is going out, although he is told that such a thing is impossible with the ships that he has, for the enemy have many.  Having spent all the money and exhausted the miserable inhabitants whom he has thus burdened, he calls a council at this juncture, and asks whether it is advisable to go out.  Since the enemy are so superior they cannot tell him to go out, and in addition they see little gain in it; accordingly it is resolved that it is not advisable to go out.  Your Majesty’s royal treasury thus remains depleted, and the enemy are left to pillage the vessels that they seize from those who come to this city, especially those from China.  It is