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 reform. The officials of the treasury are under suspension, pending investigation; and the revenue has been wasted for needless salaries and sinecures. The soldiery devote themselves to trade, losing their military efficiency and interfering with the business of the citizens. The city of Manila is well provided with funds, and the fiscal arrangements are just. Internal affairs are in a bad way, because of the facility and youth of Luis Perez Dasmariñas, and the lack of a regularly-appointed governor. Morga complains of the meddlesomeness of ecclesiastics. He prays for the reëstablishment of the Audienca; and reports that the country is all pacified, needing now mainly religious. He praises the plan of educating the sons of the natives at the Jesuit college. He reports the arrival of vessels from the unsuccessful exploring expedition of Mendaña to the islands of the South Pacific. In conclusion, he prays that, in consideration of his poor health and the death of his children, he may be permitted to return to Spain.

Tello writes to Felipe II (July 17, 1596) a letter upon his arrival. He is pleased with Manila, although many public requirements are not attended to. The Chinese near the city require watching. The archbishop has remained in Mexico. Trade has fallen off; and soldiers should be sent yearly to make up for deaths and losses. He recommends the continuation of the Mindanao pacification at the expense of the heirs of Figueroa. In a postscript he reports bad news from the Camboja expedition.

The pacification of Mindanao (begun by Figueroa) is continued by Juan de Ronquillo. He sends a report (May 10, 1597) of the campaign to Governor Tello. After a fierce contest with the natives,