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336 of eleven hundred and twenty-six pesos was raised for the erection of a more suitable church, which was begun in August 1536 and completed in October 1539. From this time continued success followed, and Puebla became not only the cathedral town of the diocese, but a flourishing agricultural and manufacturing centre.

Flattered by the good effect of many benevolent measures, and the ease with which reforms had been introduced into the Indian department, the audiencia began to write glowing reports of their progress, and of the improvement of affairs generally. Their secret orders were not divulged, and for a long time the withdrawal of encomiendas was understood to be a step toward a new distribution, partly of grants in perpetuity. This belief was fostered to some extent by the utterances of certain oidores, made in good faith in favor of encomiendas as needful to colonial advancement, and partly by the public letters of Fuenleal to the same effect. But the latter were intended only to deceive the settlers, or calm them, for in private letters he spoke against all but temporary grants, and made light of protests from the colonists. Some of these, however, thought it prudent to secure all the benefit possible from the natives held, and this to a degree that left a stamp of desolation upon many a fair district. This done, they were ready to join those who had been dispossessed in an overwhelming clamor against the gradually disclosing policy of the audiencia. The country would surely be ruined.