An important establishment was now founded here, called the Pious Work of Mercy, which originated with a clergyman of the name of Losa, and who, together with Captain Esquerra, an inhabitant of Manila, employed themselves in collecting donations for this purpose; and their exertions were so successful, that they were soon enabled to build the college of Santa Isabel, where many female orphans are maintained, and on whom marriage portions are bestowed. In emulation of this pious work, many others were endowed in the convents, and in the cathedral. The projectors traded with their funds to China, Batavia, the coast of Coromandel, and Acapulco, the produce of which was destined to be employed in like manner as above, in hospitals, dowers to orphan females, in ransoming children in China [20], and for masses for souls in purgatory, reserving part of it for the annual increase of the funds of these pious establishments, and to alleviate the distresses occasioned by the losses of the annual ships, of which they thus became the assurers to a certain extent. Such establishments may be useful to new settlers, since the parties desirous of commercial pursuits, may, if they possess any credit, be certain of meeting in these resources a capital with which they may trade. I am not of opinion, however, that they are very useful to these islands, generally speaking, because the rich merchants, who have sufficient capital, employ it in objects attended with no risk, and in their store-houses, and trade with that which they draw from this charity, by which they escape the chance of loss. If there had not, unfortunately we may say, been this resource, no doubt some mode would have been resorted to, of insuring the Acapulco adventures, at less than the pious foundations have been in the habit of contributing, and which often exceeds fifty per cent., and never falls below twenty per cent. Like all other adventures managed by a public body, there is never such strict oeconomy as when under the control of individuals, whose interests are involved in the result. CHAPTER XII. ANNO DOM. 1596. The Administration of Don Francisco Tello de Gusman, the fourth Governor of Manila.