given to the Chinese who come to the islands; Corcuera describes their present location and status, and proposes further imposts on them in order to replenish the Philippine treasury. He relates the controversy between the Dominicans and Jesuits over the salary paid to the Santa Cruz cura from the Parian fund, and his settlement of the case. Corcuera also proposes the names of several persons from whom may be chosen a protector for the Chinese residents, and announces that he has made a temporary appointment for this office. He states the action that he has taken in regard to certain vacant encomiendas; and asks that these rewards be more strictly assigned, and that the large encomiendas be divided into smaller ones. Another part of this first report of Corcuera concerns administrative and financial matters. He complains that the royal treasury has been recruited, and afterward depleted, by illegal and unjust means; and that its poor creditors have been shamefully treated by royal officials. He urges that vacancies in the post of governor be filled by persons appointed and sent to the islands before such emergency arises; and that these be sent from Europe, and not from Nueva Espana. To this is appended a full and itemized account of pay-warrants which have been drawn from the royal treasury during the past year, but were commuted to one-third of their face value, as a "voluntary contribution" to his Majesty's impoverished treasury. This is followed by another list, showing what sums were paid out of the treasury during 1632-35. Much light is thus thrown on the peculiar financial methods of the royal officials, and the general administration of the colony's affairs. Corcuera relates the manner in which he has reorganized the military forces of the colony--doing all in his power to save expenses and to supply deficiencies. He has enrolled several companies of Pampango Indians, who will make good soldiers, and cost much less than do the Spaniards. Soon after his arrival, he revises both the civil and military pay-rolls and other costs of government, making all changes that he considers necessary for greater economy and efficiency. He sends the king a copy of the new regulations thus made, with a statement of all salaried offices and paid employments, and the amounts paid in each formerly and now. From these data is deduced the statement that the amount saved to his Majesty's estate is nearly forty-two thousand pesos a year.