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those things with which I charged him. Last year, when that enemy came to this bay, he helped to cast the artillery; and he worked at it day and night, until they had cast so many pieces that they sufficed to put the fort of Cavite in a state of defense. Two of his brothers and one cousin have died in this land in your Majesty’s service—one in the Sangley insurrection, and two on this noble occasion. One brother was commander of the galleon “San Phelipe.” As soon as the battle began, he was wounded by a musket-shot and lived little more than one hour. It is considered certain that more would have been accomplished with this galleon; had not the said commander been killed. On that account, and for the good accomplished by his services in this royal Audiencia, the said Licentiate Madrid claims that your Majesty should grant him as a reward permission to marry some of his seven daughters and three sons in Mexico. That is the greatest wealth that he takes from these islands.

      Captain Andrea Coello came from India in a patache in July last year with despatches from the viceroy. That enemy having come and taken position in the entrances of this bay, he offered to serve as ordered, whether on land or on sea, with his person, patache, sailors, and soldiers; for his profession was to serve your Majesty in war. He remained until the royal fleet was ready to sail in search of the enemy; and the said captain supported the sailors and soldiers with his patache and with the moderate aid given him. He took part on that occasion, and acted as an honorable and valiant soldier, attending with exactness to all his orders.

      The viceroy of Nueva España sent a ship from the port of Acapulco, which reached the port of Cavite on June twenty-six. Aboard it were the bishop of Nueva Segovia6 and twenty-eight Augustinian friars; one hundred and forty soldiers and twenty convicts; one hundred quintals of powder, one hundred muskets, and one hundred arquebuses. Since the country was at peace, that proved a tolerable reënforcement. No money came for the royal treasury, which does not contain one single peso. From the money that is expected from Nueva España must be paid the twenty-six thousand seven hundred pesos lent by the citizens and the probate court account; besides other twenty-three thousand pesos due to the captains and the Japanese and Chinese merchants, for cloth and war supplies which they have delivered to the royal magazines. There is no royal revenue from which to satisfy those debts. The only revenue that can be collected now will be the proceeds of the Sangley licenses, and that will scarcely suffice for the very ordinary expenses. There will be no money with which to pay the salaries of the Audiencia, royal officials, and other persons; the stipends of the bishops and prebends of the church, and those given to the religious; the wages of the infantry of this camp and that of Terrenate; and the aid that must be sent to those forts for their ordinary sustenance. And then this is increased by the delay of the fleet which your Majesty has ordered to come by way of the cape of Buena Esperança because of the great expenses that will be thus incurred, and by the repair of the galleons in Cavite. The latter must not be abandoned, and are without masts, for only their futtock-timbers can be of use. It is all very difficult when so many things come at the same time, and there is no money with which to repair them. May God in His mercy provide a remedy for so many necessities. I shall do the utmost that in me lies. Although there is considerable to provide, I shall attend to the most needful, so that things may be maintained until the viceroy of Nueva España, upon learning of the wretched condition of these islands and those of Terrenate, may provide the aid that is necessary for their conservation. Accordingly I humbly beg your Majesty to send the viceroy orders that the succor asked from him be sent promptly. And should a case happen like the present, of no vessels going to Nueva España because they have to return in distress to these islands, [I beg you to order] that the viceroy do not neglect to send the money which is usually asked from him for the payment of the expenses incurred in these islands. Those expenses, like those of the war which are of so great moment, cannot be supplied if there is a lack of money, and it will not be well to fall again into such straits as those that we suffer at present.

      The two auditors who were to come to this Audiencia, remained in Mexico, as there was no accommodation in the ship to enable them to sail. Their absence causes a conspicuous deficiency; for I am the only judge in the Audiencia, because the sickness of Doctor Juan Manuel de la Vega is of long duration, and few hopes are sustained of his recovery, according to the physicians’ reports. Licentiate Manuel de Madrid y Luna has determined to go to serve in the position of alcalde of the court in Mexico (which your Majesty has bestowed upon him as a reward), notwithstanding that I did not allow him to quit that of auditor of this Audiencia on account of the just reasons for serving therein—through the many affairs concurrent in it of justice and government, and through the great lack that all these would experience if they were in charge of only one person. Should it happen that I were to die, there would be no Audiencia nor any one to govern these islands—irreparable injuries, for which it is advisable to prepare the remedy beforehand. And although, besides these things, I presented to him many considerations that should oblige him to postpone his departure; and notwithstanding the requests and protests that I have made to him regarding the present injuries and those that might happen on his account; all this has not sufficed to move him from his purpose. He has answered me with the arguments which if your Majesty pleases may be seen in the accompanying testimony. Manila. August 10, 1617.

Licentiate Andres de Alcaraz

      [Marginal note: “Take particular account of what is stated about his services, in order to reward him as may be fitting, especially for what he did on the occasions that he mentions which have been so advantageous to the royal service and to the conservation of those islands, which results from achievements as great as were the defeat and punishment of the enemy. In what concerns the persons of whose services he gives information, let attention be given to them in the Audiencia; and have them summoned so that they may know what knowledge his Majesty has of them, and what he has entrusted to their persons.”]

Trade Between Nueva España and the Far East

Of the Trade of Eastern India, Nueva España, and Filipinas with Macao and Japon

      Beyond a doubt Christian interests in Japon and China are sustained and prospered, after the grace of God, through the trade which your Majesty’s vassals carry on with those kingdoms; for the heathen there, being avaricious, are much pleased with the gain they derive from the goods carried to them, and from those which they sell to the Christians. Therefore, they allow the religious of Europe in their countries, because they know that, if they do not admit them, they will not enjoy this trade; for they see that principally on account of religion your Majesty’s vassals come to them with their ships and goods. This is shown by the experience of many years.

      Although this trade may be profitable to your Majesty’s subjects and to your royal exchequer, it ought to be so carried on that not only may these interests be advanced, but also in such a way that Christianity shall not be injured. When any one of these interests is in danger, it is plain that it would be a less evil to lose something of the temporal [advantage from trade] than of the spiritual advantage resulting from the conversion of souls there. There is no doubt that your Majesty wishes it thus, as do all of your ministers, who are so anxious for the honor of God and for the progress of His holy Catholic faith.

      Trade with China and Japon is carried on as follows: from Eastern India [to both countries] by way of the city of Macao, and entirely in the hands of the Portuguese; from Felipinas and Nueva España to China, by way of the same city of Macao; and [from Felipinas and Nueva España] to Japon by way of the various Japonese cities, principally Nangasaqui.

      From Eastern India eight-real pieces and other things in which there is considerable profit are carried to China. From Macao, which is a Chinese city, silks and gold, upon which profits are large, are taken to Japon; while silver, which also yields profit, is taken to China. From China, copper, silks, gold, and other articles are transported to India. This trade is also remunerative. Since upon all these things import and export duties are paid to your Majesty, this trade is undoubtedly the means by which Eastern India is maintained; for through it are made possible the large expenditures for the fleets which the viceroys send each year against your Majesty’s enemies. Indeed, without this trade little could be done, because the [a word lacking; MS. worn] customs would yield little.

      From Nueva España silver is exported to China, but little more; they do not carry silver thence to Japon, because there is no lack of it there. Some other things are

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This was Miguel García Serrano; he made his profession as an Augustinian friar in 1592, at Agreda, Spain. Three years later, he arrived in the Philippines, where he was minister in several native villages, and held various important offices in his order, being provincial in 1611. Then he went to Spain and Rome; and, when the see of Nueva Segovia became vacant, Serrano was appointed to it. After ruling this bishopric for two years (June, 1617-August, 1619) he became archbishop of Manila. His death occurred in June, 1629.