Alvarado, on his arrival, was well received by the settlers, who were fain to believe that there were better days in store for them. The astute Cereceda, seeing himself virtually without authority, again pressed him to accept the governorship, so that the province might not go to ruin. By this artifice he hoped not only to escape punishment, but to confirm the impression in the adelantado's mind that it was to him and not to Célis that he was indebted for the offer. Alvarado accepted the governor's resignation, and assumed the reins of power, to the great joy of the colonists. He at once set about pacifying the country, sending out a strong force, stationing guards at the mines, and bringing the province into a condition of safety and prosperity. In the name of the crown, he assumed the title of captain-general and chief-justice, and without loss of time proceeded to establish new colonies. He built at Puerto de Caballos the town of San Juan, and on the site of the village of Thaloma, seven leagues from this settlement, founded the city of San Pedro del Puerto de Caballos. He determined the limits of its jurisdiction and distributed among the Spaniards the natives and native villages in its vicinity.[IX‑30] Captain Juan de Chaves was ordered to explore the province toward the south and west and to select a favorable site on the proposed line of intercommunication between Honduras and Guatemala. After a toilsome journey he arrived at a fertile and well watered valley, where he established a settlement, naming it in token of his thankfulness "Gracias á Dios."[IX‑31] But while the adelantado was winning fresh laurels and gaining new adherents in Honduras, he was informed that his residencia had been taken by the oidor Maldonado, and soon afterward received an order from the viceroy instructing him to proceed to Spain and appear before the throne, as his Majesty's interests would be thereby advanced. This was unlooked for. He had already petitioned the king for permission to return for the purpose of fitting out an expedition on a large scale for South Sea explorations;[IX‑32] a summons to appear at court, while his residencia was to be taken during his absence, made an intricate matter of it. There was no alternative, however, but to obey; and once more Alvarado set out for Spain, first addressing to the cabildo of Santiago a letter wherein he states the reasons for his departure, and remarks that although he does not return to his native land rich in gold, having spent all that he had gained during his career in Mexico and Guatemala, he has no doubt that his services will recommend him to the favor of the court. CHAPTER X. ADMINISTRATION OF AFFAIRS IN NICARAGUA. 1531-1550.