Every thing in Peru being now reduced to good order, the president gave permission to all the citizens and other inhabitants of the country, who had hitherto served in his army, to retire to their homes, to look after the re-establishment of their private affairs, which had, suffered great injury from the unavoidable losses experienced during the rebellion, and their own necessary expences in the field. He likewise sent off several officers with detachments upon new discoveries, and appointed the licentiate Carvajal lieutenant-governor of Cuzco, taking up his own residence at Lima, which was the seat of government. About this time an hundred and fifty Spaniards arrived at the city of La Plata, having travelled all the way from the mouth of the Rio Plata under the command of Domingo de Yrala to that part of the country which had formerly been discovered by Diego de Royas, and were now come into Peru to solicit the president to appoint some one to act as governor of the country on the Rio Plata which they proposed to settle. He accordingly nominated Diego de Centeno to that new government, with authority to raise as many more men as he could procure, to enable him to complete the discovery and conquest of that country. When all their preparations were completed, and they were on the point of setting out on the march, Centeno died, and the president appointed another captain in his place.

The Rio Plata, or River of Silver, derives its source from the high mountains continually covered with snow which lie between the cities of Lima and Cuzco40. From these mountains four principal rivers flow, which derive their names from the provinces through which they pass. The Apurimac, Vilcas, Abancay, and Jauja. This last derives its source from a lake in the province of Bombon41, the most level and yet the highest plain in all Peru, where accordingly it snows or hails almost continually. This lake is quite crowded with small islands, which are covered with reeds, flags, and other aquatic plants, and the borders of the lake are inhabited by many Indians.

In the late war against Gonzalo Pizarro, the president incurred enormous expences for the pay and equipment of his troops, for the purchase of horses, arms, and warlike stores, and the fitting out and provisioning of the ships which he employed. From his landing in the Tierra Firma to the day of his final victory over Gonzalo, he had expended on these necessary affairs more than nine hundred thousand dollars, most of which he had borrowed from the merchants and other private individuals, as all the royal revenues had been appropriated and dissipated by Gonzalo. After the re-establishment of tranquillity, he applied himself to amass treasure with the utmost diligence, both from the fifths belonging to the king, and by means of fines and confiscations; insomuch that after payment of his debts, he had a surplus of above a million and a half of ducats, chiefly derived from the province of Las Charcas.

In his arrangements for the future government of the country, in conformity with the royal ordinance, he took much care to prevent the Indians from being oppressed. In consequence of the fatigues which they underwent, in the carriage of immense loads, and by numbers of the Spaniards wandering continually about the country attended by a train of Indians to carry their baggage, vast numbers of them had perished. Having re-established the royal audience, or supreme court of justice, in Lima, he applied earnestly to regulate the tributes which were to be paid by the Indians to the Spaniards upon fixed principles, which had not been hitherto done on account of the wars and revolutions which had distracted the country ever since its discovery and conquest. Before this new arrangement, every Spaniard who possessed a repartimiento or allotment of lands and Indians, used to receive from the curaca or cacique of his district such tribute as he was able or willing to pay, and many of the Spaniards often exacted larger sums from their Indians than they were well able to afford, frequently plundering them of their hard-earned property with lawless violence. Some even went so far as to inflict tortures on their Indians, to compel them to give up every thing they possessed, often carrying their cruelty to such a pitch as to put them to death in the most wanton and unjustifiable manner. To put a stop to these violent proceedings, the taxes of each province and district were regulated in proportion to the number of Indian and Spanish inhabitants which they respectively contained; and, in forming their arrangements, the president and judges carefully inquired into the productions of each province; such as its mines of gold and silver, the quantity of its cattle, and other things of a similar nature, the taxes on which were all regulated according to circumstances in the most reasonable and equitable manner.

Having thus reduced the affairs of the kingdom to good order, all the unemployed soldiers being sent off to different places, some to Chili, others to the new province on the Rio Plata, and others to various new discoveries under different commanders, and all who remained in Peru being established in various occupations by which they might maintain themselves, according to their inclinations and capacities, mostly in the concerns of the mines, the president resolved to return, into Spain, pursuant to the authority he had received from his majesty to do so when he might see proper. One of his most powerful motives for returning to Spain proceeded from his anxiety to preserve the large treasure he had amassed for the king: as, having no military force for its protection, he was afraid such great riches might excite fresh troubles and commotions in the country. Having made all the necessary preparations for his voyage, and embarked his treasure, without communicating his intentions hitherto to any one, he assembled the magistrates of Lima, and informed them of his intended voyage. They started many objections to this measure; representing the inconveniencies which might arise from his departure, before his majesty had sent out some other person to replace him, either in the capacity of viceroy or president. He answered all their objections, stating that the court of royal audience, and the governors of the different provinces which they were authorized to nominate, were sufficient to dispense justice and to regulate all affairs, they at last consented; and immediately embarking, he set sail for Panama.

Just before he sailed and while on board ship, the president made a new partition of such lands and Indians as had become vacant since the former distribution which he made at Cuzco. The number of vacant repartimientos was considerable, in consequence of the death of Centeno, De Royas, the licentiate Carvajal, and several other persons of rank; and as there were many candidates who demanded loudly to be preferred, he chose to defer the repartition till after he had embarked, as he was unable to satisfy all the claimants, and was unwilling to expose himself to the clamours of those whom he was unable to gratify. Having settled all these distributions, he left the different deeds signed and sealed with the secretary of the royal audience, with strict injunctions that they should not be opened until eight days after his departure. Every thing being finally concluded, he set sail from the port of Callao in December 1549, accompanied by the Provincial of the Dominicans and Jerom de Aliaga, who were appointed agents for the affairs of Peru at the court of Spain. He was likewise accompanied by several gentlemen and other considerable persons, who meant to return to Spain, carrying with them all the wealth they had been able to acquire.

The voyage to Panama was prosperous. The president and all who were along with him immediately landed at that place, and used the utmost diligence to transport all the wealth belonging to his majesty and to individuals, to Nombre de Dios, to which place they all went, and made proper preparations for returning to Spain. Every one treated the president with the same respect as when he resided in Peru, and he behaved towards them with much civility and attention, keeping open table for all who chose to visit him. This was at the royal expence; as the president had stipulated for all his expences being defrayed by his majesty, before leaving Spain on his mission to Peru. In this he acted with much and prudent precaution; considering that the former governors had been accused of living penuriously in proportion to their rich appointments, and being satisfied that the administration in Spain would not allow him a sufficient income to defray the great expences he must incur in a country where every thing was enormously dear, he declined accepting any specified salary, but demanded and obtained authority to take from the royal funds all that was necessary for his personal expence and the support of his household. He even used the precaution to have this arrangement formally reduced to writing; and in the exercise of this permission he employed a person expressly for the purpose of keeping an exact account of all his expences, and of every thing that was purchased for his table or otherwise, which were all accordingly paid for from the royal coffers.