When the arrival and intention of the fleet was certainly known and understood, by which it appeared necessary to prepare for war, Gonzalo began immediately to put every thing in proper order, and to assemble his troops; having hitherto believed himself in perfect security against any hostile attack.  He appointed the licentiates Carvajal and Cepeda to be captains of cavalry, as persons in whose attachment he could confide, considering the weighty obligations they had received from him.  Juan de Acosta, Juan Velez de Guevara, and Juan de la Torre were made captains of musqueteers; and Ferdinand Bachicao, Martin de Robles, and Martin de Almendras captains of pikemen.  Francisco de Carvajal, who had hitherto enjoyed that office, was nominated lieutenant-general, having an hundred of the musqueteers he had brought with him from Las Charcas appointed for his guard.  It was proclaimed by beat of drum, that all the inhabitants of Lima, and all strangers residing there, of whatever quality or condition, were to enrol themselves among the troops under pain of death; and money was issued to the several captains for the pay and equipment of their companies.  The two captains of horse received 50,000 crowns, with which they were each ordered to levy and equip fifty horsemen; besides which, several merchants and others, very unfit for warfare, enrolled themselves.  It was well known that these men were quite unfit for being soldiers; but they were constrained to enlist on purpose to exact money from them for their discharge, which in fact they purchased by furnishing horses, arms, and money to such as were in want.  Martin de Robles received 25,000 crowns with which he was to enlist and equip a company of 130 pikemen.  Ferdinand Bachicao had 20,000 to raise 120 pikemen; and Juan d’Acosta a similar sum for an equal number.  Martin de Almendras had 12,000 crowns to raise 45 pikemen; and Juan de la Torre 12,000, to levy 50 musqueteers, who were to form the ordinary guard of Gonzalo.  Antonio Altamirano, one of the principal inhabitants of Cuzco was appointed to carry the grand standard, with a troop of 80 horse; and he received 12,000 crowns for some particular purpose, as his men had no need of pay or equipments, being all chosen from among the rich inhabitants of the country.

On this occasion the several captains had standards or colours painted according to their respective fancies, the grand standard alone carrying the royal arms.  Among these, Bachicao had the letters G.P. or the cypher of Gonzalo Pizarro, interlaced upon his colours, surmounted by a royal crown.  Every thing being in order, posts were assigned to each officer, of which they were to take especial care by day and night.  Gonzalo Pizarro made liberal donations to several soldiers who were unfit for service, as well as to those who took the field; giving them, besides what they were entitled to for their equipment, considerable sums according to their respective merits and occasions.