1584) into the commercial and industrial status of the colony; the
witnesses all testify that great scarcity of supplies, and poverty
among the people, are prevalent; that a considerable portion of the
native population has perished; and that the non-productive elements
of the population are much too large.

One of the auditors, Melchor Davalos, writes (July 3, 1584) to the king
a letter which, withal containing some valuable information regarding
matters in the islands, is a curious mixture of pedantry, bigotry,
egotism, and vanity. He mentions the arrival and establishment of the
Audiencia at Manila, complains that he cannot obtain the salary due
him, and relates the services which, he thinks, entitle him to better
treatment. He asks for instructions as to what shall be done with the
Mahometans, and cites the permission formerly given to Legazpi by the
king to enslave the Moros in certain cases, also the example set by
the sovereigns of Spain and Portugal in expelling or crushing the Moors
who inhabited their dominions. Davalos also desires the king to settle
the question of slaveholding by the Spaniards, which he is inclined
to justify; and to take such action as will prevent the Chinese from
obtaining all the money which comes to the Philippines. The utmost
poverty prevails among the Spanish soldiery, who are unpaid; and
Davalos advises that they be sent to make fresh conquests, by which
they can support themselves. The Spanish post in the Moluccas is
menaced by the native king of Ternate, and a large force of troops
is to be sent to its aid. A controversy arises among the Spanish
officers over the appointment of a commander for this expedition,
which Davalos proposes to settle by himself going as commander--thus
satisfying all the discontented captains, as he informs his royal
correspondent. He desires the king to grant him authority to punish
the Chinese for vicious practices, and thinks that the friars should