founded the town of Arévalo in Panay. Another new town is being established—Nueva Segovia, in Luzon. Peñalosa has sent an officer to Maluco, and the Jesuit Sanchéz to Macao, to pacify the Portuguese there when they shall learn of the change in their rulers—the dominion over Portugal having passed to the crown of Spain. He criticizes the administration of his predecessors, saying that they followed no plan or system in disbursements from the royal exchequer.

The governor thinks that the customs duties heretofore levied in the islands—three per cent on both imports and exports—are too small; and he has decided to raise the rate to five per cent for merchants in the Philippines, and seven for those in Mexico. He is endeavoring to extend the commerce of the islands, and for this purpose is sending ships with goods to Panama and Peru. He has sent one piece of heavy artillery to the viceroy of Peru, who asks Peñalosa for more; this is for the defense of the Strait of Magellan. The commerce between the Philippines and New Spain is increasing. Peñalosa commends the Jesuit missionaries who have come to the islands, and advises that more of them be sent thither. He is building forts and ships for the defense of the islands. He remonstrates against the recent royal decree which ordered the liberation of all Indian slaves held by Spaniards in the Philippines; and closes by asking some personal favors.

By the same mail which conveys the governor’s letter is sent an account of the islands and their people, written by a soldier named Miguel de Loarca, Who was one of the earlier conquerors and settlers there. Beginning at Cebú, as the first settlement was made therein, he describes each island then known to the Spaniards in that group—noting its size, contour, and population; and enumerating the encomiendas assigned therein, the officials in the Spanish settlements, the products of the island, etc. With this information Loarca incorporates many interesting details regarding the social and economic condition of the natives. After this preliminary survey, he describes at some length the religious beliefs of the Pintados or Visayan Indians; these vary, as held by the coast dwellers and those of the mountains. He relates their notions about the creation of the world and the origin of man, the condition of departed souls, and the deities who control their destiny. Many of these beliefs are, of course, childish, crude, and superstitious; yet some indicate considerable imagination and poetic fancy. They have various deities, and their priests are usually women; their religious traditions are preserved in songs. Their mortuary and mourning customs are described. A chapter is devoted to the institution of slavery among these peoples—its nature and causes, and the value and status of the slave. Their marriage customs are described at length, with the status of women among them, the penalties for unfaithfulness, the causes for divorce, etc. There is considerable curious information regarding the fauna and flora of the islands. Loarca then proceeds to relate similar particulars about the Moros of Luzon; they adore a divinity called Bathala, “the lord of all,” or Creator. His ministers, who are deities of rain, harvest, trees, the sea, etc., are called anitos, and worshiped and invoked accordingly; they intercede for the people with the great Bathala. These Moros are governed by chiefs, who enact and administer such laws as seem necessary for the preservation of good order—adultery, murder, and theft being the chief crimes, which are punished by a system of fines, or by the enslavement of those who are without means to pay them.

The recently-arrived bishop, Domingo de Salazar, writes (June 20, 1582) to the king, imploring redress for the wrongs and sufferings endured by the Indians, who are continually oppressed by the Spanish officials placed over them. An affidavit made by some Indian chiefs relates their grievances. As a result of this ill-treatment, the native villages are rapidly being depopulated.

A letter from the royal factor in the Philippines, Juan Baptista Roman (June 25, 1582), relates the encounter of the Spaniards with some Japanese pirates who have raided the province of Cagayan in Luzón, and implores speedy aid from Mexico against this enemy. A letter evidently written by Peñalosa, although unsigned (July 1, 1582), mentions the fight with the Japanese, and asks for reënforcements of troops. More funds are also needed for extra expenses incurred, and especially for emergencies which often arise in the islands.

Two papal decrees (September 15 and October 20, 1582) found the Philippine province of the Dominican order, and grant indulgences to those who go thither as missionaries. An unsigned document (1582?) enumerates the “offices saleable” in the Philippine Islands; and recommends some changes in the methods of filling them, in view of the prevalent abuses. Captain Gabriel de Ribera addresses (1583?) to some high official a letter complaining that Peñalosa’s administration is a bad one, and injurious to the welfare of the islands.

In the same year Bishop Salazar writes a memorial regarding affairs in the islands, for the information of the king and his royal Council of the Indias. He begins by describing the present scarcity of food supplies in Luzón. This is the result of sending to work in the mines the Indians of Pampanga, which province has hitherto been the granary of the island. The Spaniards also compel the natives to work in the galleys, and at many other tasks, so that they have no opportunity to cultivate their fields, and are even deprived of suitable religious instruction. Greedy Spanish officials have monopolized all local traffic, and have set their own price on all provisions, from which some have made great profits. Salazar—who has with good reason been styled “the Las Casas of the Philippines”—enumerates a melancholy list of injuries and opressions inflicted upon the hapless natives by their conquerors, and urges in most forcible and eloquent language that they be protected from injustice and treated as human beings. He cites from the royal decrees the clauses which make such provisions in behalf of the Indians, and claims that most of these are continually disobeyed. The Indians held by the royal crown suffer even greater oppression than do those in private encomiendas. As a result of all these evil deeds on the part of the Spaniards, the Indians have come to abhor the Christian faith, and many remain pagans; while those who are nominally Christians are so through fear rather than choice. The preachers who are sent to them ought to go without military escort, and the ençomenderos should be compelled to fulfil their duties toward the Indians in their charge.

The bishop then describes the status of the Chinese traders who come to the Philippine Islands. Vexatious dues have been levied upon the Chinese in Manila; they have been herded together in one dwelling, apart from the other residents of the city; and a special warden, with arbitrary power, has been placed over them. Besides, they have been compelled to sell their goods at much below their value, and have frequently been plundered; and reparation for their wrongs has been denied. As a consequence, Chinese goods have almost disappeared from the market, and the few articles seen are sold at exorbitant prices. Other traders who come to Manila are also burdened with numerous unjust and arbitrary exactions.

Salazar complains that the Spaniards enslave the Indians, and, despite all remonstrances made by the priests and friars, refuse to liberate their slaves. The natives are oppressed by the officials, and are at the mercy of lawless, because unpaid, soldiers. The