that the Portuguese desire to keep out all Spaniards from both Japan and China.  The Council answer all these objections, and recommend that religious be required to go to Japan via Manila, but to embark there in Japanese, not Castilian, vessels.  Ten months later (March 31, 1607) the same matter is again brought forward; and, as before, the Council of Portugal object to the entrance of Castilian religious into Japan.  The Council of the Indias oppose this view, citing the profitable commerce of the Philippine Islands with Japan, recently begun; the successful work of the religious orders there, and the need of more missionaries in that broad field.  They adhere to their former opinion regarding the passage of the religious to Japan, and recommend that the Philippines be allowed at least a moderate trade with that country.  Both these reports are discussed in the Council of State (September 7 and December 20, 1607), where complaint is made against the methods of the Jesuit missionaries in Japan; and the king is advised to allow religious from other orders to enter that field, and to prohibit trade from the Philippines to Japan, The king thereupon requests from Rome the revocation of the briefs obliging friars to go to Japan via India, and a new one placing this matter in Felipe’s hands.

An itemized statement of the “annual receipts and expenditures of the Philippine government” (August 18, 1608) enumerates these.  The receipts comprise the tributes, by encomiendas; the royal tenths of gold, and the ecclesiastical tithes; customs duties; and fines from the courts.  All these sources of income amount to over one hundred and twenty thousand pesos.  Then are mentioned, in order, the expenses:  for salaries of government officials, alcaldes and other local magistrates; wages of government workmen, pilots, sailors, and others; supplies in the ship-yards, etc., and purchases for various purposes; salaries of ecclesiastics, and other expenses for churches and missions.  To these are added “extraordinary expenses:”  the cost of embassies to neighboring rulers; salaries paid to collectors of tribute, and others; expenses of the soldiers and their officers; and salaries to the wardens of forts.  All these expenses amount to over two hundred and fifty-five thousand pesos a year, more than twice as much as the income.

Felipe iii writes to Velasco, the viceroy of Nueva Espana (September 27 1608), regarding the proposed way-station for Philippine vessels.  After summarizing a letter on this subject from Velasco’s predecessor, Montesclaros, the king approves the latter’s advice to choose, as such way-station, the islands called Rica de Oro and Rica de Plata (afterward found to be fabulous) instead of Monterey; and orders Velasco to see that a port and settlement be established there, the enterprise to be conducted by Sebastian Vizcaino.  Another decree (May 3, 1609) states that, as Velasco has not carried out this order, and advices have been