A letter from the Audiencia of the Philippines to the king (dated June 26), recommends an increase in the rate of tribute paid by the Indians; the money thus obtained could be used to pay the soldiers, which would greatly improve the standard of military service in the islands.

The colonial treasury is greatly embarrassed by heavy expenses, and the salaries of the Audiencia would better be paid from Mexico; then the encomiendas of Indians now taxed for that expense could be assigned to the soldiers who have so long been serving in the Philippines without pay.

The king is asked to make an annual appropriation for the military and marine expenses of the islands.

Father Sanchez is recommended by the Audiencia also, as their envoy to the home government.

Their dissensions are now all settled, and some matters which caused these disagreements are referred to the king for his decision.