e.

Much ill-feeling was aroused in the discussion of these two and
distinct theories. Juan Volante, a Dominican friar of the Convent
of Our Lady of Atocha, presented a petition against the views of the
Sanchez faction, declaring that the idea of ingrafting religion with
the aid of arms was scandalous. Juan Volante was so importunate that he
had to be heard in Council, but neither party yielded. At length, the
intervention of the Bishops of Manila, Macao and Malacca and several
captains and governors in the Indies influenced the King to put an
end to the controversy, on the ground that it would lead to no good.

The King retired to the Monastery of the Escorial, and Sanchez was
cited to meet him there to learn the royal will. About the same time
the news reached the King of the loss of the so-called Invincible
Armada, sent under the command of the incompetent Duke of Medina
Sidonia to annex England. Notwithstanding this severe blow to the
vain ambition of Philip, the affairs of the Philippines were delayed
but a short time. On the basis of the recommendation of the junta,
the Royal Assent was given to an important decree, of which the
most significant articles are the following, namely:--The tribute
was fixed by the King at ten reales (5s.) per annum, payable by the
natives in gold, silver or grain, or part in one commodity and part
in the other. Of this tribute, eight reales were to be paid to the
Treasury, one-half real to the bishop and clergy (_sanctorum_ tax),
and one-and-a-half reales to be applied to the maintenance of the
soldiery. Full tribute was not to be exacted from the natives still
unsubjected to the Crown. Until their confidence and loyalty should
be gained by friendly overtures, they were to pay a small recognition
of vassalage, and subsequently the tribute in common with the rest.

Instead of one-fifth value of gold and hidden treasure due to His
Majesty (_real quinto_), he would thenceforth receive only one-tenth
of such value, excepting that of gold, which the natives would be
permitted to extract free of rebate.

A customs duty of three per cent. _ad valorem_ was to be paid on
merchandise sold, and this duty was to be spent on the army.

Export duty was to be paid on goods shipped to New Spain (Mexico), and
this impost was also to be exclusively spent on the armed forces. These
goods were chiefly Chinese manufactures.

The number of European troops in the Colony was fixed at 400
men-at-arms,