15. This increase of troops and pay, compared with the pay and troops stated in Señor Arandia's regulations, amounts to the half more; and I reckon it, with that of the artillery, at two hundred thousand pesos more of expense; this, with the hundred thousand applied for the navy alone, will make three hundred thousand pesos of increase to be charged to this royal treasury. Computing the cost not by the said regulations, but by the plan which I have just proposed, the entire cost of army, navy, and corps of artillery amounts to four hundred and fifty thousand pesos annually. Chapter Fourth: On the facility with which these islands can produce for the royal exchequer more than what it needs for the said expenses. 1. Having constituted the aforesaid military force--or half of it, in order that the expense may be less at first--the reduction of all the Indian villages ought to be resolutely undertaken, as a matter that is absolutely essential, without which all the rest will be useless. This reduction made (which can be accomplished in less than a year), enumeration will be made of the tribute-payers in all the provinces; after the reduction their numbers will be greatly increased, because the heads of barangay will not be able to hide the tributes as easily as they now do, or to commit thefts and dishonorable acts, as they have hitherto done. The ordinances will be made duly effective, especially in regard to plantations, and other measures will be adopted that are beneficial for the better government, both economic and civil, of the villages; government buildings will be erected in the chief towns, at least, that may serve to shelter the alcalde-mayor and the troops that he will have; also a storehouse, in which to keep the property of the royal exchequer. Good schoolmasters will be employed for the instruction of the Indians, and for teaching them our language; and the matters in which the father ministers should have the right to intervene, and those in which they ought to forbear, will be strictly regulated, without any dispensation. The cultivation of the land will be conducted with the utmost care; and, finally, the tribute will be increased, to the rate of two pesos a head each year. Although this is a very moderate impost, and is profitable not only to the king but to the Indians, in order to draw them out from their continual and pernicious slothfulness, this branch of revenue will produce annually one million, six hundred thousand pesos. This addition to the royal treasury, even when some deduction is made, as is ordinary, will not only support the expenses of my plan for army, artillery, and navy, but a considerable amount of silver will be left for other allotments from the royal exchequer, and for indemnifying the expenses with which the islands have been burdened, from the time of their conquest until now.