bring their merchandise to them, as the citizens have not the forces or the capital to go to their country for it. The Chinese are allowed to sell the goods at wholesale, in accordance with the order that was introduced by Governor Gomez Perez Das Mariñas. The goods are appraised in a lump by persons deputed for that purpose; and then the goods are divided and distributed among the inhabitants, so that all may have a share in the commerce. That method was approved by a letter of instructions of January 17, 593, and is the method called "pancada;" to the governor was left only permission to send one ship annually to Macan, in order to buy military supplies and no other thing, by a decree of February 4, 608. For some little time past the Portuguese of that city have begun going to Manila, or sending thither merchandise from China. That is a great damage to the citizens, for the Portuguese sell the goods dearer than do the Chinese. Formerly those Chinese goods were taken freely to Nueva España, Guatimala, and Panamá, and passed on to Perú; but on account of their cheapness and the extent to which they were consumed, and the profit made on their cost, they were a menace to those kingdoms, and the damage caused by them to the commerce of Sevilla was regretted. Accordingly, the exportation of those goods to Guatimala and Panamá was forbidden, and afterward their transportation to Perú; and the permission was left only for Nueva España, as will be related, as that is the principal point under discussion. [_In the margin_: "From number 62 on."] Number 38. Fifth argument for the importance of the islands: their superiority in those seas