The governors who have been here have used no system in making disbursements from the royal exchequer.  They have followed the plan of spending as they saw fit and convenient to your Majesty’s royal service.  I have continued in the same way because in no other manner would it be possible to support it or make advancement.  The expenses here are for the most part extraordinary, and of small sums, as the royal exchequer cannot allow more owing to its limited resources, as I have already said.  For expenses of considerable sums, as those incurred in despatching fleets for our settlements, against pirates, and in paying the salaries of corregidors and alcaldes-mayor, the officials ask me to request an order from your Majesty.  I have no other way of complying with the obligations of your royal service.  Will your Majesty please to have an order sent me, in order that when I consider it convenient for your royal service, I may make payments from the royal treasury?  It is not possible otherwise to maintain your royal service.  The total expenditure is but slight, and is watched and regulated with all care.

There are several men, newly-arrived in this country, who are always writing advices and opinions in respect to the aforesaid matter and others.  It would be best for the royal service that the decrees despatched therefor be sent submitted to the consideration of the governor.  As we are so far away it is right, ceteris paribus, in order to insure progress, that confidence be placed in the governor.

By other letters, I have already given advices of the imposition of three per cent as duties on both importations and exportations of the merchandise of both Spaniards and Chinese.  A freight charge of twelve pesos per tonelada is also imposed.  Considering their large profits, these duties are very moderate.  For this reason, and because the instructions brought by the adelantado Legaspi decreed the collection of five per cent from the people of this country and seven from the merchants of Mexico, and as the collection at that rate cannot, in good conscience, be too long delayed, I have decided to enforce it.  Your Majesty will provide according to the royal pleasure.  In my opinion, the regulations made are moderate, just, and desirable for the royal service.

I also gave information that I had sent a ship to Piru in the year 81.  From all that I hear, it is important for the progress of this kingdom that it trade and have commerce with the others; therefore I am sending this year another ship, for private individuals, to Panama.  Consequently, I shall have ships sent to the principal kingdoms held by your Majesty in the Indias and the Southern Sea.  The ship for Peru carried some artillery to be delivered to the viceroy, among them a piece of eighty-five quintals.  I decided to do this, knowing the need there for heavy artillery, as the strait had to be fortified. [5] I think that the artillery arrived at an opportune season, for I have had a letter from the viceroy, Don Martin Enriques, in which he begs me to let him know if I could supply him with heavy artillery.  I am only waiting for [the return of] the ship which I sent a year ago, in order to furnish him with as much as I can, for I consider that your Majesty will be thereby served.