Whilst the Spaniards held Valdivia the resources of its government were very limited. Being a close port all foreign commerce was prohibited, and the few taxes collected in the whole province, including the diesmo, never exceeded 500 dollars. In the city there is a parish church, another belonging to the Franciscan convent of missionaries, formerly of the Jesuits, and a chapel appertaining to the hospital of San Juan de Dios. The ecclesiastical department was dependent on the see of Conception, but the conventual was a branch of the establishment at Chillan, subject to the provincialate of Santiago de Chile. Valdivia was a place of exile, _presidio_, to which convicts were sent from Peru and Chile. Their number was but small, and they were employed in the public works. The province of Valdivia extends from the river Tolten in 38° to the Bueno in 40° 37´ south, and from the Andes to the Pacific, being about 52 leagues long and 45 wide. The three principal rivers in this province are Tolten, Bueno and Valdivia. Their origin is in three separate lakes of the Cordillera, from whence they run in a westerly direction, receiving in their progress several smaller streams and emptying themselves into the sea. Valdivia river enters the harbour of the same name, which is the only one in the province. This river, after uniting its waters to those of San Josef, Cayumapu, Ayenaguem, Putabla, Quaqua and Angachi, besides a great number of rivulets and estuaries, becomes navigable for canoes of 200 quintals or 20 tons burthen. Between the fort Cruces and Valdivia several small but beautiful islands are found: the principal are Realexo, Del Almuerso, Balensuela, El Islote, De Mota, San Francisco, De Ramon, De Don Jaime and Del Rey, which is the largest, being about seven leagues in circumference. There are besides a great number of smaller ones. In all the streams and ravines in the neighbourhood of the city and port are to be seen the vestiges of gold washings, _labaderos_, which are at present totally neglected. After heavy rains grains of gold as large as peas are often found, but there are no accounts in the treasury of the working of any mines since the year 1599, when the first revolution of the indians took place, and the city fell into their hands. At Valdivia I saw two chalices made of the gold thus accidentally collected.