4. Freed at last from the aforesaid enemies, [a time of] serenity and calm began in these islands, and much progress might have been made, to the benefit of the royal exchequer; with its forlorn condition, and the interested motives of those who were managing it, the zealous and disinterested governor Don Fausto Cruzat promptly made himself acquainted. He collected much money which had been regarded as lost; he erected or rebuilt very costly works, as the galleon "San Joseph," the palace, the halls of the royal Audiencia and the accountancy, with prisons, storehouses, etc.; he left much money in the royal treasury; he prevented the remittance of large sums which were due from the Mexican treasury; and he practiced economies which were very considerable, and suited to his own example of interest, zeal, application, and ability. But the reduction which he made in the military force, in pay, and in the royal situado, was not the best idea for the security of these islands, and for supplying their urgent necessities--especially as no increase of the royal revenue was established in place of the said reduction. For as a consequence--and the receipts of the royal treasury having been diminished, when they might have been increased--and with the necessity of holding the Moros in check, with costly expeditions and the construction and equipment of some military posts, our expenses were increased; and since these were greater than the incomes, the islands have not retrieved their condition since that time. They have had but few troops, and this government has not been able to make itself respected, or to restrain the invasions of the Moros. Nor is it able to undertake enterprises that would be useful in the provinces, in order that these might produce for the royal revenues the great increase which they bid fair to yield, and for which plans would be made, [if the support of the government could be given], by those who were of opinion that these islands should be preserved. As is admitted by [those of] all nations, these islands are the most fertile, abundant, and rich, and the country the most delightful, in all India; and no other region is so well suited for [the center of] a flourishing commerce, on account of their situation. [For they lie midway] between the empire of China, the kingdoms of Siam and Cochinchina, the islands of Celebes and Molucas, the kingdom of Borney, Vengala, the coasts of Coromandel and Malavar, Goa, Persia, and other populous regions which have made the [mercantile] companies of Olanda and Inglaterra rich. With greater reason would they be able to increase the wealth of España, if in these islands were cultivated their many valuable products, which are greatly esteemed in the aforesaid colonies, and if these products found there the market which foreign goods now enjoy. The whole matter consists in restoring our commerce with the same courage and perseverance which the foreigners display, for which design the abandonment of