In accordance with clause 7 of your Majesty's instructions, whereby I was ordered to allow the Indians to pay their tribute in land products or in money, as they chose, your order has been observed hitherto. Experience has shown that the carrying of this measure farther means the ruin of the country; for since the Indian sees that he can pay his tribute with ten reals, which he makes in one day's gain, all the rest of the year he makes merry and spends his time in idleness and leisure, drunkenness and _magabalijas_, which are his sources of income. Therefore they do not sow their fields, raise animals, or weave their cloth, or cultivate the fruits of the earth. On this account no rice is found, nor one mata or lampote, [11] which is worth more than three from China. There is no cotton, wax, gold, or other article of exchange; and all the trade here in these things has been lost, as well as the great cheapness of these things when the Indians paid their tribute in produce, and not as they might choose. When it became evident that the country was falling into ruin, and the pressure brought to bear by the encomenderos in opposition to the religious orders, and the injuries and annoyances resulting from this method of collecting the tribute were seen, it was determined that it should be collected in produce, as your Majesty will see by the resolution taken there. Therefore we shall collect the tribute in accordance with this decision, until your Majesty shall be pleased to order otherwise. The bishop of Malaca wrote me the letter that I enclose herewith. And although I answered him so briefly, and without making a decision (as you will see by the enclosed copy of the letter), because I did not like to say what I thought without first consulting your Majesty, now, because of some news and information given me in regard to matters of the commerce and navigation of those regions and of these, I lay before your Majesty, in the enclosed paper, the drawbacks and advantages on either side that I find in this matter, so that, after examining them, your Majesty may be pleased to order in all these matters what is most suitable.