Because of the many accounts that had reached the court of his Majesty concerning the affairs of the Filipinas, and because of their need of being supplied with settlers and soldiers to pacify them, an arrangement was made with Don Gonzalo Ronquillo de Peñalosa, a native of Arevalo, and chief alguacil of the Audiencia of Mexico, who was residing at court, so that it might be done better and at less cost to the royal exchequer. By this arrangement he was to be governor of the Filipinas for life and was to take six hundred married and single men from the kingdoms of Castilla to the Filipinas. His Majesty granted him certain assistance and facilities for this purpose, together with other favors as a reward for this service. Don Gonzalo prepared for the voyage, raised his people, and embarked them in the port of San Lucas Barremeda, but, as the fleet left the bar, one of his ships was wrecked. He returned in order to repair his losses, and, although he took less than at first, he made his journey to the mainland, and at Panama, embarked his people in the South Sea, and set sail for the Filipinas, where he arrived and took over the government, in the year one thousand five hundred and eighty. Don Gonzalo Ronquillo founded a Spanish town in the island of Panay, in Oton, which he named Arevalo. During his term, the trade with the Chinese increased, and he built a market-place and Parián for them within the city, where the Chinese could bring and sell their merchandise. He tried to discover a return passage from the islands to Nueva España, by way of the south, for which purpose he sent his cousin, Captain Don Juan Ronquillo del Castillo. The latter could not effect this, for after sailing for some time, until finding himself near Nueva Guinea, he could go no farther, on account of many severe storms, and returned to the Filipinas. In like manner, Don Gonzalo sent another ship, under command of Don Gonzalo Ronquillo de Vallesteros, to Peru, with some merchandise, in order to obtain certain goods from those provinces which he said that the Filipinas needed. This vessel returned from Peru after the death of the governor. The latter imposed the two per cent duty on the merchandise exported to Nueva España, and the three per cent duty on the goods imported by the Chinese to the Filipinas. Although he was censured for having done this without his Majesty's orders, these duties remained in force, and continued to be imposed thenceforward.