liable to lose more in one year than the expense for its defense in ten, or that all the cost be loaded on to your Majesty's treasury, by which doing away with the avería would be a greater expense than would paying it. Who can deny that if the customs duties in the ports of España were to go up to fifty or one hundred per cent, they would not be worth ten times more than they are worth at present? But who would say that such an expedient would ensure the duration of commerce, and the ability of your vassals and the foreigners to maintain it? If the immediate result of increasing the duties must be the loss of the principal from which they are collected, the ruin of trade, the desertion of the ports, the impoverishment of your vassals, the depopulation of the cities, and the ruin of everything, one can easily understand that this scheme would, under pretext of increasing the royal treasury, ruin it and destroy the kingdom. These examples are no different from what is observed in the commerce of Filipinas. It is represented that, by the measures which are ordered to be put in force, the duties in the port of Acapulco alone will be increased one million seven hundred thousand pesos; and although this calculation, as will be seen, has no foundation, supposing that it did have, that increase would result in such a decline of trade there that everything would go to ruin. [_In the margin_: "In numbers 83, 85, and 91."] [6] And if the wealth on which that trade depends should fail, either your Majesty will alone sustain the Filipinas, or you will have to abandon them. The first is almost impossible without spending twice as much as is now spent. The second has the disadvantage that will be explained. [_In the margin_: "In numbers 6-44."] Therefore the execution of the methods proposed at once carries with it irreparable injuries, which, after they have happened, will be so difficult of remedy, that the return of things to their present condition may not be possible. As this [present] condition has become established during the course of many years, it is preserved both by the wealth that those who sustain it have acquired during those years, and by merely allowing it to continue. But, if those two requisites fail, first will be experienced the loss of courage in the ruin [that will ensue], as the return [of courage] can be seen in the restoration [of the present condition]. Number 3. Commissions given to Licentiate Quiroga, and their execution