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and landed near Aguadilla, the home of the principal cacique, Aqueybana, by whom he was kindly received and conducted to different parts of the island. In the course of the journey Ponce de Leon verified the reports of the Indians in regard to the presence of gold, and returned to Santo Domingo, leaving a few of his companions as guests of Aquey bana.

Ovando now determined to subjugate and colonize the island, and Ponce de Leon was selected to conduct the enterprise. Before organizing the expedition, however, Ponce de Leon resolved on another friendly visit for the purpose of a more thorough reconnoissance, and accordingly returned to Porto Rico. He found that his companions had been kindly treated and that the Indians were friendly, and believing he could get possession of the island peaceably he returned to Santo Domingo to solicit the appointment of Governor. He found, however, that during his absence Ovando had been superseded by Don Diego Columbus and that Cristoval de Sotomayor, a Spanish cavalier, had been appointed Governor of Porto Rico by the Crown. But Don Diego Columbus would not confirm his appointment or appoint Ponce de Leon, and sent Juan Ceron as Governor and Miguel Diaz as his second. Prompted by a love of adventure and the hope of bettering their fortunes Ponce de Leon and Sotomayor joined the expedition.

In the meantime Ovando returned to Spain, where he gave such favorable account of the character and services of Juan Ponce de Leon in Porto Rico that the King appointed him Governor of the island and intimated plainly to Don Diego Columbus that he must not presume to displace him.

Ponce de Leon took charge in 1509, and founded the town of Caparra, about 3 miles inland from the bay of San Juan. It was afterwards named Puerto Rico and transferred to the present site of San Juan. Subsequently the island and the city exchanged names, although by what process does not appear. The site of Caparra, the first town founded, is now known as Pueblo Viejo.

Having fixed the seat of government at Caparra, Juan Ponce de Leon began the pacification and colonization of the island in the usual manner. A conspiracy among the native caciques, led by Aquey bana, the brother and successor of him who had first welcomed the Spaniards to the island, was exposed and suppressed, but not without desperate efforts on the part of the Spaniards, the death of Sotomayor, and the destruction of such Spanish settlements as then existed. It does not appear that the colonists had any serious trouble with the natives thereafter.

Lying between and practically controlling the Virgin and Mona passages from the Atlantic into the Caribbean Sea, Porto Rico occupies a strategic position of much importance, which, no doubt, was recognized at an early day. Certain it is that several attempts were made to

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wrest the island from Spain. Thus, in 1597, Admiral George Clifford, Earl of Cumberland, blockaded and captured San Juan, and took possession of the island. But being forced by an epidemic of yellow fever to withdraw he destroyed the city, killed a number of its inhabitants, and carried off as trophies 72 pieces of artillery. Two years before, the English freebooter, Drake, had sacked and burned San Juan and destroyed all the vessels found in the harbor. These disasters led to the completion of the Morro of San Juan, commenced some time before, and an increase in the garrison of the island. In September, 1625, San Juan was attacked by a Dutch fleet of 17 vessels and a detachment of 2,500 men. They landed and besieged the city for 28 days, but were finally forced to withdraw with considerable loss. In 1626 the French attempted a landing, but were repulsed. Between this and 1797 several minor and unsuccessful attacks were made. In April of that year, a British squadron and a detachment of 6,500 soldiers, under Lord Ralph Abercrombie, attacked San Juan, but withdrew after an investment of two weeks. From this time to the date of the American occupation of the island (1898) Porto Rico was exempt from outside attack. On May 12 the American fleet, under Rear-Admiral W. T. Sampson, in search of the Spanish fleet under Admiral Cervera, bombarded the fortifications guarding the harbor of San Juan. After three hours firing the fleet withdrew, having ascertained in this way that the Spanish fleet was not there.

On July 21 Major-General N. A. Miles, with a force of United States troops, landed in the bay of Guanica without serious opposition, and, on the 27th, occupied Ponce, which was surrendered on demand. Organized in three columns, numbering about 12,000 men, the American forces pushed forward in the direction of Arecibo, Mayaguez, and Aibonito, meeting with slight resistance. At Aibonito, while about to attack that stronghold, word was received that the peace protocol had been signed, and hostilities were suspended.

Porto Rico has also been free from serious civil disturbances, although early in this century the native Porto Ricans manifested some signs of opposition to the insular authority, and a small republican faction proclaimed independence. But the prompt measures of Governor de la Torre, the presence of the troops, and the small area of the island prevented an outbreak. Some of the revolutionary leaders were executed. In 1868 there were manifestations in Ponce, Bayamon, and Arecibo, but, in consequence of the adoption of the Spanish liberal constitution of 1869, the island ceased to be a colony and was declared a province of Spain, although it had been nominally so since 1809.

Notwithstanding the generally peaceful condition of the island, its material progress was slow. During the sixteenth century but 3 settlements were made, to wit: San Juan, in 1521; San German, 1543, and

Aguada, 1590; in the seventeenth, but 3 more were added, viz: Arecibo and Coamo, 1616, and Ponce, 1620; in the eighteenth century 28, and in the nineteenth, 35. In fact, for many years after its colonization Porto Rico was simply a military station, and practically, although not so designated officially, a penal colony, to which civil, political, and military prisoners were sent from Spain and from her colonial possessions in America. The population increased slowly, so that by the middle of the seventeenth century it numbered but 880 souls. During the next hundred years it had increased to 44,883, and by 1812, to 183,014.

The system of taxes and duties applied to Porto Rico was very much the same as in Cuba and other Spanish possessions. Up to 1784 the public treasury was under the management of a treasurer and an accountant appointed by the Crown, who were responsible jointly with the Governor of the island for all revenues. In that year, by a royal decree of May 24, the intendancy of Porto Rico was established.'

The principal insular sources of revenue at the end of the last century were export and import duties (almojari fazgo); the tithes (diezmos); the alcabala, or tax on all sales of merchandise products, etc.; the tax on aguardiente and aloja, the latter a beverage of water, honey, and spices; the tax on stamped paper; on the introduction and branding of negroes; the estanco, a tax on the sale of negroes; the medias annatas, or tax on the salaries of certain civil and clerical officers; court fines, licenses, and the manda pia forzosa, a tax on mills. The salt works of Cabo Rojo, Guanica, and Coamo were also sources of revenue, and all unidentified property, such as cattle, etc., belonged to the King by authority of law. The export and import duties discriminated largely against all foreign merchandise. The tithes were established in 1501 by a bull of Pope Alexander VI and continued until abolished by royal decree in 1815. They were imposed again in 1830 and finally abolished in 1848. During this interim from 1815 to 1830 when the tithes were not collected and the tax on sales (alcabala) and existing restrictions on immigration were removed, a tax of 24 per cent on the agricultural products of the island was substituted for the tithes. They were paid in kind from the crops after they had been gathered, and in 1789 amounted to 69,720 pesos, a third of which went to the support of the clergy.

But all these sources of revenue were insufficient to cover the expenditures, and but for the aid (situados) from the treasuries of Mexico and Guatemala, the condition of the Government would have been critical. From the year 1790 to 1809 the total amount received from situados was 4,409,991 pesos, which was applied chiefly to the defenses of the island and the maintenance of the garrisons. The need for this help was fully demonstrated when the payments ceased in 1809. The insular treasury being without sufficient reserve funds or other

1Señor Coll y Toste, Civil Secretary of Porto Rico..

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