Many of our soldiers had incurred heavy debts. A crossbow cost fifty crowns, a musket a hundred, a horse eight hundred or a thousand, and every thing else in proportion. Our surgeon, master Juan, and Doctor Murcia our apothecary and barber, charged very high, and there were various other sources of debt, all to be satisfied from our miserable dividends. These required to be regulated; and accordingly Cortes appointed two respectable persons, Santa Clara and Lerena, to arbitrate all claims, which were ordered to be cleared off within two years according to their award. The value also of the gold was debased, to serve us in our dealings with the merchants from Spain and Cuba; but it had the opposite effect, as they charged more than double the difference on their goods. On these abuses being known at court, our emperor was pleased to prohibit the farther currency of this base metal, ordering it to be all received in payment of certain duties, and no more of it to be made; and as two goldsmiths were detected for putting off base metal with the legal mark of good, they were hanged for the fraud.

As the best way to rid himself of troublesome demands, Cortes resolved to send off colonies to make settlements at convenient situations. Sandoval was sent for this purpose to occupy Coatzacualco and Tzapotecapan, the south-eastern provinces of the Mexican empire. Juan Velasquez to Colima, and Villa Fuerte to Zacatollan, the most westerly provinces on the south sea. Christoval de Oli to take possession of the kingdom of Michuacan, and Francisca de Orozco to Guaxaca or Oaxaco. The native chiefs of the distant provinces could hardly be brought to believe that Mexico was destroyed, and sent deputations to ascertain the truth of the report, bearing large presents of gold to Cortes, and submitting themselves as vassals to our emperor. Many came in person to Mexico, and even brought their children to see the fallen condition of that great power which they had once held in such awe and terror, expressing themselves in their own language, as who should say, Here stood Troy. My readers may be curious to know how we, the conquerors of Mexico, after encountering so many fatigues and dangers to gain possession of that city, should now so readily abandon it in search of new settlements. To this I answer: The books containing the record of the Mexican revenues were examined to find whence Montezmna had obtained the valuable articles of tribute, such as gold, cocoa, and cotton, and we all wished to remove to these productive districts. Some especially were led by the example of Sandoval, who was known to be the particular friend of Cortes, and who would not, as they thought, be sent upon an unprofitable errand. We all knew that the vicinity of Mexico had neither mines, plantations, nor manufactures, being entirely occupied in the cultivation of maize and maguey, which did not afford sufficient prospects of advantage, and we anxiously removed therefore to other places, where we were miserably disappointed. I among others, went to Cortes and asked permission to accompany Sandoval to his government: "Brother Diaz," said he, "you had better stay with me: If you are resolved to accompany your friend Sandoval, you may certainly go; but on my conscience you will repent." All the gold got into the hands of the royal officers, as the slaves were purchased by the soldiers at a public sale. The various detachments were sent out at different periods to occupy the provinces, but all within two months after the reduction of Mexico.

At this time, Christoval de Tapia, veedor of Hispaniola, arrived at Villa Rica with a commission to assume the government of New Spain, by order of the emperor and under the direction of the bishop of Burgos. He likewise brought letters from the bishop to Cortes and many persons in the army, recommending him to be received with honour as governor, promising great rewards to all who should assist him in assuming the government, with severe threats of punishing all who opposed him: besides these sealed letters, he had many others which he was authorised to address as he saw occasion. Tapia in the first place presented his commission to Alvarado, who now commanded at Villa Rica, who received it with the highest respect, saying that it did not belong to him to decide on so important a subject, and it would be proper, therefore, to assemble the alcaldes and regidors of the settlement, that the commission might be verified in their presence, and that it might be certainly known it came regularly from his majesty. This did not exactly suit the views of Tapia, who was advised to proceed to Mexico, and to produce his commission to the general; he therefore forwarded to Cortes the letter of the bishop, and wrote to him on the subject of his mission to New Spain, using smooth and persuasive terms, and Cortes was by no means behind hand in the civility of his reply. Cortes, however, sent off expresses to some of his most confidential officers whom he had previously detached to settle colonies, ordering them to go to meet Tapia, who had already begun his journey to Mexico, and was met with on the road by Alvarado, Sandoval, Valdenegro, Andres de Tapia, and Father Olmedo, all persons in the confidence of Cortes, by whom Christoval de Tapia was persuaded to go back to Chempoalla, and to produce his commission to them. Having examined it and finding it genuine, they placed it on their heads in token of respect and submission to the will of the emperor, yet hesitated as to acknowledging Tapia for governor, alleging that it was necessary in the first place to be assured of his majestys pleasure in the present state of New Spain, which had been concealed from his knowledge by the bishop of Burgos, to serve his own private views and to favour Tapia and Velasquez, one of whom it was alleged was to marry his niece. Tapia saw evidently that it would be no easy matter to enter upon his office of governor, and fell sick with vexation. The before-mentioned deputies informed Cortes by letter of all that had passed, and advised him to try the all-powerful influence of gold on the would-be governor. Cortes complied with this advice, and transmitted a good quantity of golden ingots by return of the express, by means of which his friends gratified the avarice of Tapia, under pretence of purchasing one of his ships, with some horses and negroes; and Tapia set sail in his other vessel for Hispaniola, where he was very ill received by the royal audience and the Jeronymite brotherhood, as he had undertaken this business contrary to their express orders.

I have formerly mentioned some particulars of an unsuccessful expedition set on foot by Garray, the governor of Jamaica, for the establishment of a colony on the river of Panuco; and as Cortes was informed that Garray intended to resume that project, he resolved to anticipate him, considering the country on that river as included in New Spain. Having likewise been informed that Narvaez, who still continued a prisoner at Villa Rica, had held some confidential intercourse with Tapia, in which he advised him to quit the country as soon as possible, and to lay a statement of the whole before his patron the bishop of Burgos; Cortes sent orders to Rangel, now commandant at Villa Rica, to send up Narvaez to Cojohuacan, where Cortes resided until the palace he meant to inhabit at Mexico was completed. On appearing before Cortes, Narvaez fell on his knees and endeavoured to kiss his hand; but Cortes raised and embraced him, and treated him with the utmost kindness. His residence in Mexico being ready for his reception, Cortes went to live there in great splendour, marking out a plan for the restoration of the city, in which ample allotments were made for churches, monasteries, and public buildings, with squares and markets, all the rest of the ground being set apart for the private inhabitants; and both so speedily and splendidly was this capital restored, that all who have seen it allow there is not in Christendom a larger, better built, or more populous city. While thus employed, intelligence was brought to Cortes that the province of Panuco was in arms, and had killed many of the soldiers whom he had sent to make a settlement at that place. He resolved, therefore, to proceed to Panuco in person, as all his most confidential officers were now absent on different duties.