According to the terms of his commission from the crown, his discoveries and conquests were limited to the islands and mainland of that portion of the south sea bordering on New Spain, and thence in a westerly direction, and he was forbidden to form any settlement on a territory already assigned to others.[VII‑1] He was appointed governor and alguacil mayor for life, and until otherwise ordered was to be intrusted with full civil, military, and judicial powers over all new lands which he might find. During the royal pleasure he was also to receive a twelfth of all profits which might in the future result from his explorations. Whether the expedition was to be fitted out entirely or only in part at the adelantado's expense is a matter not easily determined;[VII‑2] but in a letter to Charles V. sent in 1532, wherein he states his intention to build and equip a fleet of twelve vessels and raise a force of four hundred men, he declares that the cost of his armament will exceed forty thousand castellanos, and that this outlay will exhaust his private means. He claims of course that he is thus expending all his resources solely with his usual desire of serving the emperor, and avers that he has information of rich islands near the coast from the discovery of which his Majesty must derive great benefit. [Sidenote: FLATTERING PROSPECTS.] While the construction of his fleet was yet in progress, rumors of Pizarro's conquest and of the fabulous wealth which had fallen to his lot were noised throughout the province. Alvarado was not over-scrupulous as to ways and means, as we well know. Already he had proved false to him through whose friendship and favor he had been raised to his high station; could he not now replenish his depleted purse, and also win glory in the land of the incas? Was it not better thus to employ his armament than go on a wild-goose chase for islands no one had ever yet seen? And surely with a few ship-loads of Peruvian gold, which it would not take him long to gather, he could serve his sovereign as well as with never a maravedí in his treasury. It was fortunate, it was indeed providential, that now, when the fleet was almost ready, and the men equipped and prepared to embark, this princely quarry should have been started to the south of him. On the return of a vessel despatched for supplies to Panamá the reports of the immense treasures discovered in Peru were confirmed, and the enthusiasm knew no bounds. "Come," said Alvarado to the colonists, "come with me and I will make you so rich that you may walk on bars of gold." * * * * *