After the settlement of his new city, and having received a reinforcement of soldiers from Peru, he resolved to attack the Araucanians in their own territories, believing that their courage was now entirely subdued, as they had made no attempt to molest him since their late repulse under Lincoyan. With these views, he passed the Biobio in 1552, and proceeding rapidly through the provinces of Encol and Puren, unopposed by the tardy and timid operations of Lincoyan, he arrived at the river Cauten, which divides the country of the Araucanians nearly into two equal parts. Near the confluence of this river with the Damas, he founded a new city which he named _Imperial_[66], in honour of the Emperor Don Carlos; though some say that it received this name in consequence of finding some wooden figures of eagles with two heads, fixed on some of the native huts. This city was placed in a beautiful situation, abounding in all the conveniences of life; and, during the short period of its existence became one of the most flourishing in Chili. Being placed on the shore of a large and deep river, capable of allowing large ships to lie close to the walls, it was excellently situated for commerce, and had free access to receive succours of all kinds by sea in case of being besieged. By modern geographers, this place is still spoken of as an existing city, strongly fortified, and the seat of a bishopric; but it has been in ruins for considerably more than two hundred years. [Footnote 66: The place where Imperial once stood is marked on our maps on the right or north shore of the conjoined streams of the Ouisa and Cauten, immediately above the junction of a small river which is probably the Damas of the text.--E.] Intoxicated with his present prosperity, and the apparent submission of the Araucanians, he assigned extensive districts in the surrounding country among his officers. To Francisco Villagran, his lieutenant-general, he gave the warlike province of _Maquegua_, considered by the Araucanians as the key of their country, with about thirty thousand inhabitants. The other officers obtained grants of lands and Indians proportionate to their rank, and the degree in which they possessed his favour, some getting as far as eight or even ten thousand Indians. He likewise dispatched Alderte, with a detachment of sixty men, with orders to establish a settlement on the shore of a lake called _Lauquen_, to which he gave the name of _Villarica_, or the rich city, owing to the great quantity of gold that was procured in the environs.