the king to watch over and shield the Indians; the other is the opening there of a branch of the Inquisition or Holy Office. Fuller details of all these matters are herewith given in the usual synopsis of documents.
In a letter dated June 16, 1582, Governor Peñalosa reports that the conversion of the natives is making good progress, but there are not enough missionaries. He recommends that a convent be established in every city and village; and that missionaries be sent directly from the mother-country, rather than from New Spain, as in the latter case they soon become discontented after coming to the Philippines. He complains because the Franciscans have gone to China; he renews the plea advanced by former officials for the conquest of that country, but regards the present Spanish force in the Philippines as inadequate for that purpose. Meanwhile, he is endeavoring to strengthen the colony, and has founded the town of Arévalo in Panay. Another new town is being established—Nueva Segovia, in Luzón. 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
