35. That when the goods had been landed and the amounts registered had been ascertained, the ships should be inspected; and whatever else was found therein should be regarded as confiscated, without allowing therein any claim or remonstrance. Half of the goods confiscated should be applied to the royal treasury, and the rest in two parts to the judge and the informer--excepting in the case when the value of confiscated goods should reach 50,000 pesos; for then the viceroy and the royal court of Mexico must allot to the judge and the informer such quantity as should be proper, leaving to the decision of the judges other penalties in accordance with the guilt of the offenders. 36. His Majesty having agreed to the proposals made by the Council, they issued on August 12, 1702, despatches in accordance therewith, to the governments of Nueva España and Philipinas, informing them of the regulation herein explained, and commanding them both to observe it strictly and inviolably. In consequence of this, the governor of Philipinas, in letters of June 21, 1705, and May 24, 1708 (in which he acknowledged the receipt of the despatch sent to him), reported that he had carried the decree into execution, and had made it known to the merchants in the city of Manila, who had offered to make good the burdens of expense which would ensue if the two ships of 500 toneladas each were immediately built according to this command--in view of the fact that there were two galleons and one patache in the ports there; of these one might serve eight years, and the other a little less, and the patache four. For this reason the governor had commanded that the building of the two ships should be suspended until those which were then in use should be worn out. 37. That also it had been regarded as impracticable that the valuation of the cloth and wares which were to be traded should be made through the actual examination of the bales and their other goods, and that this should be carried out in the royal storehouses--considering that the crowded condition of those buildings, and the risk of thefts, fires, and other accidents, did not permit this method to be practiced, as was commanded by the decree that has been cited.