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dful of strangers who constituted themselves their masters. The next requisite was a church or chapel in which to invoke the divine blessing on the enterprise, or maybe to appease the divine wrath at the iniquities committed. Last, but certainly not least in importance, came the smelting-house, where the King of Spain's share of the gold was separated. Around these the settlers grouped their houses or huts as they pleased. The first settlement on this island was made in 1508, on the north coast, at the distance of more than a league from the present port of San Juan, the space between being swampy. Ponce called it Caparra. When the promising result of Ponce's first visit to the island was communicated to King Ferdinand by Ovando, the Governor of la Espanola, his Highness replied in a letter dated Valladolid, September 15, 1509: "I note the good services rendered by Ponce and that he has not gone to settle the island for want of means. Now that they are being sent from here in abundance, let him go at once with as many men as he can." To Ponce himself the king wrote: "I have seen your letter of August 16th. Be very diligent in the search for gold-mines. Take out as much as possible, smelt it in la Espanola and remit it instantly. Settle the island as best you can. Write often and let me know what is needed and what passes." Armed with these instructions, and with his appointment as governor _ad interim_, Ponce returned to San Juan in February, 1510, with his wife and two daughters, settled in Caparra, where, before his departure in 1509, he had built a house of stamped earth (tapia), and where some of the companions of his first expedition had resided ever since. Ponce's house, afterward built of stone, served as a fort. A church or chapel existed already, and we know that there was a smelting-house, because we read that the first gold-smelting took place in Caparra in October, 1510, and that the king's one-fifth came to 2,645 pesos. [Illustration: Plaza Alphonso XII and Intendencia Building, San Juan.] With the reinstatement of Ceron and Diaz, complaints about the distance of the settlement from the port, and its unhealthy location, soon reached the king's ears, accompanied by requests for permission to transfer it to an islet near the shore. No action was taken. In November, 1511, the monarch wrote to Ceron: "Ponce says that he founded the town of Caparra in the most favorable locality of the island. I fea
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