Note 1 — Letters from Felipe III to Fajardo

You are well aware, through the information that you carried from España, of the embarrassed condition of my royal inheritance, wasted in the defense of our holy faith, and unavoidable expenditures to oppose its enemy and others who have attempted to cause its decline—whom it has been necessary to oppose, in order to preserve the faith, thus causing enormous expenses. As aid for the conservation of Page 149my kingdoms, it has been necessary and unavoidable to use the wealth brought by the people of Nueva España; but the supplies and expenditures drawn from my royal exchequer for those islands are so consuming and reducing that account and fund, to such an extent, and with so injurious effect, that it hardly comes in but it must be paid out. Considering that what is carried in exchange for the quicksilver1 is revenue derived from the same merchandise that was sent, while the receipts from the bulls for the crusade are (as you know) but moderately successful, you are accordingly informed of this in such detail, so that you may understand how assured is the loss that is set forth to you. This loss would become greater if the account were measured by the demands that are sent from Filipinas; for then the proceeds of neither the quicksilver, nor the crusades, nor anything else would be enough even for the maintenance of those islands and those of Terrenate, according to our experience thus far. The result is that we are compelled by necessity to choose [as we do] in order not to allow affairs here to go to ruin for lack of money, which is not to be thought of. For you are aware of what importance this is, being the essence and substance of the rest; and it neither ought nor can be supposed that we should not heed the expenditures for Filipinas that have been made from my royal inheritance, which amount to more than seven millions, as has been proved. If there were no other consideration than the mere protection of religion and of the persons who live in those islands, it would oblige us to consider Page 150the expense; but we must do so all the more in this state of affairs, as it means the continual remittance and expenditure of money, and all things cannot be attended to. The matter has given us anxiety, as you will understand, regarding this condition; and, after consideration of it, the following measures are proposed to you.