"He took the principal cacique, who lived nearest to the mines, for
himself, and rented him out on condition that he keep sixteen men
continually at work in the mines, and if any failed he was to receive
half a ducat per head a day."

"He has taken Indians from other settlers and made them wash gold for
himself, etc."

Before Ponce's departure for Spain the island had been divided into
two departments or jurisdictions, the northern, with Capárra as its
capital, under the direct authority of the governor, the southern
division, with San German as the capital, under a lieutenant-governor,
the chain of mountains in the interior being the mutual boundary.
This division was maintained till 1782.

Capárra, or Puerto Rico, as it was now called, and San German were the
only settlements when Ponce returned. The year before (1514) another
settlement had been made in Daguáo, but it had been destroyed by the
Caribs, and this ever-present danger kept all immigration away.

The king recognized the fact, and to obviate this serious difficulty
in the way of the island's settlement, he wrote to his officers in
Seville:

" ... Spread reports about the great quantities of gold to be found in
Puerto Rico, and do not trouble about the antecedents of those who
wish to go, for if not useful as laborers they will do to fight."

That Ferdinand was well aware of the insecurity of his hold on the
island is shown by his subsequent dispositions. To the royal