![Mauilla, the town of a chief, his vassal, whither they were going,
stating that he sent to give him notice that he should have
provisions in readiness and Indians for loads; but which, as
afterwards appeared, was a message for him to get together there
all the warriors in his country.
The Governor marched three days, the last one of them continually
through an inhabited region, arriving on Monday, the eighteenth day
of October, at Mauilla.[269]
He rode forward in the vanguard, with
fifteen cavalry and thirty infantry, when a Christian he had sent with
a message to the cacique, three or four days before, with orders not
to be gone long, and to discover the temper of the Indians, came
out from the town and reported that they appeared to him to be
making preparation; for that while he was present many weapons
were brought, and many people came into the town, and work had
gone on rapidly to strengthen the palisade. Luis de Moscoso said
that, since the Indians were so evil disposed, it would be better to
stop in the woods; to which the Governor answered, that he was
impatient of sleeping out, and that he would lodge in the town.
Arriving near, the chief came out to receive him, with many Indians
singing and playing on flutes, and after tendering his services, gave
him three cloaks of marten-skins. The Governor entered the town
with the caciques, seven or eight men of his guard, and three or four
cavalry,[270]
who had dismounted to accompany them; and they
seated themselves in a piazza. The cacique of Tastaluça asked the
Governor to allow him to remain there, and not to weary him any
more with walking; but, finding that was not to be permitted, he
changed his plan, and, under pretext of speaking with some of the
chiefs, he got up from where he sate, by the side of the Governor,
and entered a house where were many Indians with their bows and
arrows. The Governor, finding that he did not return, called to him;
to which the cacique answered that he would not come out, nor
would he leave that town; that if the Governor wished to go in
peace, he should quit at once, and not persist in carrying him away
by force from his country and its dependencies.](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-26-320.jpg)
![Chapter 20
How the Governor set out from Mauilla to go to Chicaça, and
what befell him.
From the time the Governor arrived in Florida until he went from
Mauilla, there died one hundred and two Christians, some of
sickness, others by the hand of the Indians. Because of the
wounded, he stopped in that place twenty-eight days, all the time
remaining out in the fields. The country was a rich soil, and well
inhabited: some towns were very large, and were picketed about.
The people were numerous everywhere, the dwellings standing a
crossbow-shot or two apart.
On Sunday, the eighteenth of November,[271]
the sick being found to
be getting on well, the Governor left Mauilla, taking with him a
supply of maize for two days. He marched five days through a
wilderness, arriving in a province called Pafallaya, at the town
Taliepataua; and thence he went to another, named Cabusto,[272]
near which was a large river, whence the Indians on the farther bank
shouted to the Christians that they would kill them should they come
over there. He ordered the building of a piragua within the town,
that the natives might have no knowledge of it; which being finished
in four days, and ready, he directed it to be taken on sleds half a
league up stream, and in the morning thirty men entered it, well
armed. The Indians discovering what was going on, they who were
nearest went to oppose the landing, and did the best they could; but
the Christians drawing near, and the piragua being about to reach
the shore, they fled into some cane-brakes. The men on horses went
up the river to secure a landing-place, to which the Governor passed
over, with the others that remained. Some of the towns were well
stored with maize and beans.](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-33-320.jpg)
![Thence towards Chicaça the Governor marched five days through a
desert, and arrived at a river,[273]
on the farther side of which were
Indians, who wished to arrest his passage. In two days another
piragua was made, and when ready he sent an Indian in it to the
cacique, to say, that if he wished his friendship he should quietly
wait for him; but they killed the messenger before his eyes, and with
loud yells departed. He crossed the river the seventeenth of
December, and arrived the same day at Chicaça, a small town of
twenty houses.[274]
There the people underwent severe cold, for it
was already winter, and snow fell: the greater number were then
lying in the fields, it being before they had time to put up
habitations. The land was thickly inhabited, the people living about
over it as they do in Mauilla; and as it was fertile, the greater part
being under cultivation, there was plenty of maize. So much grain
was brought together as was needed for getting through with the
season.
Some Indians were taken, among whom was one the cacique greatly
esteemed. The Governor sent an Indian to the cacique to say, that
he desired to see him and have his friendship. He came, and offered
him the services of his person, territories, and subjects: he said that
he would cause two chiefs to visit him in peace. In a few days he
returned with them, they bringing their Indians. They presented the
Governor one hundred and fifty rabbits, with clothing of the country,
such as shawls and skins. The name of the one was Alimamu, of the
other Nicalasa.
The cacique of Chicaça came to visit him many times: on some
occasions he was sent for, and a horse taken, on which to bring and
carry him back. He made complaint that a vassal of his had risen
against him, withholding tribute; and he asked for assistance,
desiring to seek him in his territory, and give him the chastisement
he deserved. The whole was found to be feigned, to the end that,
while the Governor should be absent with him, and the force
divided, they would attack the parts separately—some the one under
him, others the other, that remained in Chicaça. He went to the town](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-34-320.jpg)
![where he lived, and came back with two hundred Indians, bearing
bows and arrows.
The Governor, taking thirty cavalry and eighty infantry, marched to
Saquechuma,[275]
the province of the chief whom the cacique said
had rebelled. The town was untenanted, and the Indians, for greater
dissimulation, set fire to it; but the people with the Governor being
very careful and vigilant, as were also those that had been left in
Chicaça, no enemy dared to fall upon them. The Governor invited
the caciques and some chiefs to dine with him, giving them pork to
eat, which they so relished, although not used to it, that every night
Indians would come up to some houses where the hogs slept, a
crossbow-shot off from the camp, to kill and carry away what they
could of them. Three were taken in the act: two the Governor
commanded to be slain with arrows, and the remaining one, his
hands having first been cut off, was sent to the cacique, who
appeared grieved that they had given offence, and glad that they
were punished.
This chief was half a league from where the Christians were, in an
open country, whither wandered off four of the cavalry: Francisco
Osorio, Reynoso, a servant of the Marquis of Astorga, and two
servants of the Governor,—the one Ribera, his page, the other
Fuentes, his chamberlain. They took some skins and shawls from the
Indians, who made great outcry in consequence, and abandoned
their houses. When the Governor heard of it, he ordered them to be
apprehended, and condemned Osorio and Fuentes to death, as
principals, and all of them to lose their goods. The friars, the priests,
and other principal personages solicited him to let Osorio live, and
moderate the sentence; but he would do so for no one. When about
ordering them to be taken to the town-yard to be beheaded, some
Indians arrived, sent by the chief to complain of them. Juan Ortiz, at
the entreaty of Baltasar de Gallegos and others, changed their
words, telling the Governor, as from the cacique, that he had
understood those Christians had been arrested on his account; that
they were in no fault, having offended him in nothing, and that if he
would do him a favor, to let them go free: then Ortiz said to the](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-35-320.jpg)
![so that they could not discern what they had done, and believed that
the beasts running about loose were the cavalry gathering to fall
upon them. The Governor, with a soldier named Tapia, alone got
mounted, and, charging upon the Indians, he struck down the first
of them he met with a blow of the lance, but went over with the
saddle, because in the haste it had not been tightly drawn, and he
fell. The men on foot, running to a thicket outside of the town, came
together there: the Indians imagining, as it was dark, that the
horses were cavalry coming upon them, as has been stated, they
fled, leaving only one dead, which was he the Governor smote.
The town lay in cinders. A woman, with her husband, having left a
house, went back to get some pearls that had remained there; and
when she would have come out again the fire had reached the door,
and she could not, neither could her husband assist her, so she was
consumed. Three Christians came out of the fire in so bad plight,
that one of them died in three days from that time, and the two
others for a long while were carried in their pallets, on poles borne
on the shoulders of Indians, for otherwise they could not have got
along. There died in this affair eleven Christians, and fifty horses.
One hundred of the swine remained, four hundred having been
destroyed, from the conflagration of Mauilla.
If, by good luck, any one had been able to save a garment until
then, it was there destroyed. Many remained naked, not having had
time to catch up their skin dresses. In that place they suffered
greatly from cold, the only relief being in large fires, and they passed
the night long in turning, without the power to sleep; for as one side
of a man would warm, the other would freeze. Some contrived mats
of dried grass sewed together, one to be placed below, and the other
above them: many who laughed at this expedient were afterwards
compelled to do the like. The Christians were left so broken up, that
what with the want of the saddles and arms which had been
destroyed, had the Indians returned the second night, they might,
with little effort, have been overpowered. They removed from that
town to the one where the cacique was accustomed to live, because
it was in the open field.[276]
In eight days' time they had constructed](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-37-320.jpg)
![Chapter 21
How the Indians returned to attack the Christians, and how the Governor
went to Alimamu, and they tarried to give him battle in the way.
On Wednesday,[277]
the fifteenth day of March, in the year 1541,
eight days having passed since the Governor had been living on a
plain, half a league from the place where he wintered, after he had
set up a forge, and tempered the swords which in Chicaça had been
burned, and already had made many targets, saddles, and lances,
on Tuesday, at four o'clock in the morning, while it was still dark,
there came many Indians, formed in three squadrons, each from a
different direction, to attack the camp, when those who watched
beat to arms. In all haste he drew up his men in three squadrons
also, and leaving some for the defence of the camp, he went out to
meet them. The Indians were overthrown and put to flight. The
ground was plain, and in a condition advantageous to the Christians.
It was now daybreak; and but for some disorder, thirty or forty more
enemies might have been slain. It was caused by a friar raising great
shouts in the camp, without any reason, crying, "To the camp! To
the camp!" In consequence the Governor and the rest went thither,
and the Indians had time to get away in safety.
From some prisoners taken, the Governor informed himself of the
region in advance. On the twenty-fifth day of April he left Chicaça
and went to sleep at a small town called Alimamu. Very little maize
was found; and as it became necessary to attempt thence to pass a
desert, seven days' journey in extent, the next day the Governor
ordered that three captains, each with cavalry and foot, should take
a different direction, to get provision for the way. Juan de Añasco,
the comptroller, went with fifteen horse and forty foot on the course
the Governor would have to march, and found a staked fort,[278]
where the Indians were awaiting them. Many were armed, walking](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-39-320.jpg)
![consequently desired to return to the cacique, to tell him that he
should come presently to obey and serve the Governor. After
presenting six or seven skins and shawls brought with them, they
took their leave, and returned with the others who were waiting for
them by the shore. The cacique came not, nor sent another
message.
There was little maize in the place, and the Governor moved to
another town, half a league from the great river,[279]
where it was
found in sufficiency. He went to look at the river, and saw that near
it there was much timber of which piraguas might be made, and a
good situation in which the camp might be placed. He directly
moved, built houses, and settled on a plain a crossbow-shot from
the water, bringing together there all the maize of the towns behind,
that at once they might go to work and cut down trees for sawing
out planks to build barges. The Indians soon came from up the
stream, jumped on shore, and told the Governor that they were the
vassals of a great lord, named Aquixo, who was the suzerain of
many towns and people on the other shore; and they made known
from him, that he would come the day after, with all his people, to
hear what his lordship would command him.
The next day the cacique arrived, with two hundred canoes filled
with men, having weapons. They were painted with ochre, wearing
great bunches of white and other plumes of many colors, having
feathered shields in their hands, with which they sheltered the
oarsmen on either side, the warriors standing erect from bow to
stern, holding bows and arrows. The barge in which the cacique
came had an awning at the poop, under which he sate; and the like
had the barges of the other chiefs; and there, from under the
canopy, where the chief man was, the course was directed and
orders issued to the rest. All came down together, and arrived within
a stone's cast of the ravine, whence the cacique said to the
Governor, who was walking along the river-bank, with others who
bore him company, that he had come to visit, serve, and obey him;
for he had heard that he was the greatest of lords, the most
powerful on all the earth, and that he must see what he would have](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-43-320.jpg)
![So soon as they had come to shore the piraguas returned; and when
the sun was up two hours high, the people had all got over.[280]
The
distance was near half a league: a man standing on the shore could
not be told, whether he were a man or something else, from the
other side. The stream was swift, and very deep; the water, always
flowing turbidly, brought along from above many trees and much
timber, driven onward by its force. There were many fish of several
sorts, the greater part differing from those of the fresh waters of
Spain, as will be told hereafter.](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-45-320.jpg)
![Chapter 23
How the Governor went from Aquixo to Casqui, and thence to
Pacaha; and how this country differs from the other.
The Rio Grande being crossed, the Governor marched a league and
a half, to a large town of Aquixo, which was abandoned before his
arrival. Over a plain thirty Indians were seen to draw nigh, sent by
the cacique to discover what the Christians intended to do, but who
fled directly as they saw them. The cavalry pursued, killed ten, and
captured fifteen. As the town toward which the Governor marched
was near the river, he sent a captain, with the force he thought
sufficient, to take the piraguas up the stream. As they frequently
wound about through the country, having to go round the bays that
swell out of the river, the Indians had opportunity to attack those in
the piraguas, placing them in great peril, being shot at with bows
from the ravines, while they dared not leave the shore, because of
the swiftness of the current; so that, as soon as the Governor got to
the town, he directly sent crossbowmen to them down the stream,
for their protection. When the piraguas arrived, he ordered them to
be taken to pieces, and the spikes kept for making others, when
they should be needed.
The Governor slept at the town one night, and the day following he
went in quest of a province called Pacaha, which he had been
informed was nigh Chisca, where the Indians said there was gold.
He passed through large towns in Aquixo, which the people had left
for fear of the Christians. From some Indians that were taken, he
heard that three days' journey thence resided a great cacique, called
Casqui. He came to a small river, over which a bridge was made,
whereby he crossed.[281]
All that day, until sunset, he marched
through water, in places coming to the knees; in others, as high as
the waist. They were greatly rejoiced on reaching the dry land;](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-46-320.jpg)
![because it had appeared to them that they should travel about, lost,
all night in the water. At mid-day they came to the first town of
Casqui, where they found the Indians off their guard, never having
heard of them. Many men and women were taken, much clothing,
blankets, and skins; such they likewise took in another town in sight
of the first, half a league off in the field, whither the horsemen had
run.
This land is higher, drier, and more level than any other along the
river that had been seen until then. In the fields were many walnut-
trees, bearing tender-shelled nuts in the shape of acorns, many
being found stored in the houses. The tree did not differ in any thing
from that of Spain, nor from the one seen before, except the leaf
was smaller. There were many mulberry-trees, and trees of plums
(persimmons), having fruit of vermilion hue, like one of Spain, while
others were gray, differing, but far better. All the trees, the year
round, were as green as if they stood in orchards, and the woods
were open.
The Governor marched two days through the country of Casqui,
before coming to the town[282]
where the cacique was, the greater
part of the way lying through fields thickly set with great towns, two
or three of them to be seen from one. He sent word by an Indian to
the cacique, that he was coming to obtain his friendship and to
consider him as a brother; to which he received for answer, that he
would be welcomed; that he would be received with special good-
will, and all that his lordship required of him should be done; and
the chief sent him on the road a present of skins, shawls, and fish.
After these gifts were made, all the towns into which the Governor
came were found occupied; and the inhabitants awaited him in
peace, offering him skins, shawls, and fish.
Accompanied by many persons, the cacique came half a league on
the road from the town where he dwelt to receive the Governor, and,
drawing nigh to him, thus spoke:
Very High, Powerful, and Renowned Master:](https://image.slidesharecdn.com/16878-250302205833-e1abd63b/85/Test-Bank-for-Financial-Markets-and-Institutions-5th-Edition-Saunders-47-320.jpg)
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- 5. Chapter 01 - Introduction 1-1 Test Bank for Financial Markets and Institutions, 5th Edition: Saunders Full download link at: https://testbankbell.com/product/test-bank-for-financial- markets-and-institutions-5th-edition-saunders/ Chapter 01 Introduction True / False Questions 1. Primary markets are markets where users of funds raise cash by selling securities to funds' suppliers. True False 2. Secondary markets are markets used by corporations to raise cash by issuing securities for a short time period. True False 3. In a private placement, the issuer typically sells the entire issue to one, or only a few, institutional buyers. True False 4. The NYSE is an example of a secondary market. True False 5. Privately placed securities are usually sold to one or more investment bankers and then resold to the general public. True False
- 6. Chapter 01 - Introduction 1-2 6. Money markets are the markets for securities with an original maturity of 1 year or less. True False 7. Financial intermediaries such as banks typically have assets that are riskier than their liabilities. True False
- 7. Chapter 01 - Introduction 1-3 8. There are three types of major financial markets today: primary, secondary, and derivatives markets. The NYSE and NASDAQ are both examples of derivatives markets. True False Multiple Choice Questions 9. What factors are encouraging financial institutions to offer overlapping financial services such as banking, investment banking, brokerage, etc.? I. Regulatory changes allowing institutions to offer more services II. Technological improvements reducing the cost of providing financial services III. Increasing competition from full service global financial institutions IV. Reduction in the need to manage risk at financial institutions A. I only B. II and III only C. I, II, and III only D. I, II, and IV only E. I, II, III, and IV Figure 1-1 IBM creates and sells additional stock to the investment banker, Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public. 10. This transaction is an example of a(n) A. primary market transaction B. asset transformation by Morgan Stanley C. money market transaction D. foreign exchange transaction E. forward transaction
- 8. Chapter 01 - Introduction 1-4 11. Morgan Stanley is acting as a(n) A. asset transformer B. asset broker C. government regulator D. foreign service representative 12. A corporation seeking to sell new equity securities to the public for the first time in order to raise cash for capital investment would most likely A. conduct an IPO with the assistance of an investment banker B. engage in a secondary market sale of equity C. conduct a private placement to a large number of potential buyers D. place an ad in the Wall Street Journal soliciting retail suppliers of funds E. none of the above 13. The largest capital market security outstanding in 2010 measured by market value was A. securitized mortgages B. corporate bonds C. municipal bonds D. Treasury bonds E. corporate stocks 14. The diagram below is a diagram of the A. secondary markets B. primary markets C. money markets D. derivatives markets E. commodities markets
- 9. Chapter 01 - Introduction 1-5 15. _________ and __________ allow a financial intermediary to offer safe, liquid liabilities such as deposits while investing the depositors' money in riskier, illiquid assets. A. Diversification; high equity returns B. Price risk; collateral C. Free riders; regulations D. Monitoring; diversification E. Primary markets; foreign exchange markets 16. Depository institutions include: A. banks B. thrifts C. finance companies D. all of the above E. A and B only 17. Match the intermediary with the characteristic that best describes its function. I. Provide protection from adverse events II. Pool funds of small savers and invest in either money or capital markets III. Provide consumer loans and real estate loans funded by deposits IV. Accumulate and transfer wealth from work period to retirement period V. Underwrite and trade securities and provide brokerage services 1. Thrifts 2. Insurers 3. Pension funds 4. Securities firms and investment banks 5. Mutual funds A. 1, 3, 2, 5, 4 B. 4, 2, 3, 5, 1 C. 2, 5, 1, 3, 4 D. 2, 4, 5, 3, 1 E. 5, 1, 3, 2, 4
- 10. Chapter 01 - Introduction 1-6 18. Secondary markets help support primary markets because secondary markets I. Offer primary market purchasers liquidity for their holdings II. Update the price or value of the primary market claims III. Reduce the cost of trading the primary market claims A. I only B. II only C. I and II only D. II and III only E. I, II, and III 19. Financial intermediaries (FIs) can offer savers a safer, more liquid investment than a capital market security, even though the intermediary invests in risky illiquid instruments because A. FIs can diversify away some of their risk B. FIs closely monitor the riskiness of their assets C. the federal government requires them to do so D. both a and b E. both a and c 20. Households are increasingly likely to both directly purchase securities (perhaps via a broker) and also place some money with a bank or thrift to meet different needs. Match up the given investor's desire with the appropriate intermediary or direct security. I. Money likely to be needed within 6 months II. Money to be set aside for college in 10 years III. Money to provide supplemental retirement income IV. Money to be used to provide for children in the event of death 1. Depository institutions 2. Insurer 3. Pension fund 4. Stocks or bonds A. 2, 3, 4, 1 B. 1, 4, 2, 3 C. 3, 2, 1, 4 D. 1, 4, 3, 2 E. 4, 2, 1, 3
- 11. Chapter 01 - Introduction 1-7 21. As of 2010, which one of the following derivatives instruments had the greatest amount of notional principle outstanding? A. Futures B. Swaps C. Options D. Bonds E. Forwards 22. Which of the following is/are money market instrument(s)? A. Negotiable CDs B. Common stock C. T-bonds D. 4-year maturity corporate bond E. A, B, and C are money market instruments 23. The Securities Exchange Commission (SEC) does not A. decide whether a public issue is fairly priced B. decide whether a firm making a public issue has provided enough information for investors to decide whether the issue is fairly priced C. require exchanges to monitor trading to prevent insider trading D. attempt to reduce excessive price fluctuations E. monitor the major securities exchanges 24. The most diversified type of depository institutions are A. credit unions B. savings associations C. commercial banks D. finance companies E. mutual funds
- 12. Chapter 01 - Introduction 1-8 25. Insolvency risk at a financial intermediary (FI) is the risk A. that promised cash flows from loans and securities held by FIs may not be paid in full B. incurred by an FI when the maturities of its assets and liabilities do not match C. that a sudden surge in liability withdrawals may require an FI to liquidate assets quickly at fire sale prices D. incurred by an FI when its investments in technology do not result in cost savings or revenue growth E. risk that an FI may not have enough capital to offset a sudden decline in the value of its assets 26. Depository institutions (DIs) play an important role in the transmission of monetary policy from the Federal Reserve to the rest of the economy because A. loans to corporations are part of the money supply B. bank and thrift loans are tightly regulated C. U.S. DIs compete with foreign financial institutions D. DI deposits are a major portion of the money supply E. thrifts provide a large amount of credit to finance residential real estate 27. Liquidity risk at a financial intermediary (FI) is the risk A. that promised cash flows from loans and securities held by FIs may not be paid in full B. incurred by an FI when the maturities of its assets and liabilities do not match C. that a sudden surge in liability withdrawals may require an FI to liquidate assets quickly at fire sale prices D. incurred by an FI when its investments in technology do not result in cost savings or revenue growth E. risk that an FI may not have enough capital to offset a sudden decline in the value of its assets
- 13. Chapter 01 - Introduction 1-9 28. Money markets trade securities that I. Mature in one year or less II. Have little chance of loss of principal III. Must be guaranteed by the federal government A. I only B. II only C. I and II only D. I and III only E. I, II, and III
- 14. Chapter 01 - Introduction 1-10 29. Which of the following is/are capital market instruments? A. 10-year corporate bonds B. 30-year mortgages C. 20-year Treasury bonds D. 15-year U.S. government agency bonds E. All of the above 30. Commercial paper is A. a time draft payable to a seller of goods, with payment guaranteed by a bank B. a loan to an individual or business to purchase a home, land, or other real property C. short-term funds transferred between financial institutions usually for no more than one day D. a marketable bank issued time deposit that specifies the interest rate earned and a fixed maturity date E. a short-term unsecured promissory note issued by a company to raise funds for a short time period 31. A negotiable CD is A. a time draft payable to a seller of goods, with payment guaranteed by a bank B. a loan to an individual or business to purchase a home, land, or other real property C. a short-term fund transferred between financial institutions usually for no more than one day D. a marketable bank issued time deposit that specifies the interest rate earned and a fixed maturity date E. a short-term unsecured promissory note issued by a company to raise funds for a short time period Short Answer Questions 32. Discuss how secondary markets benefit funds issuers.
- 15. Chapter 01 - Introduction 1-11 33. How can brokers and dealers make money? Which activity is riskier? Why? 34. What does an asset transformer do? Why is asset transformation a risky activity? 35. How can using indirect finance rather than direct finance reduce agency costs associated with monitoring funds' demanders? 36. What have been the major factors contributing to growth in the foreign financial markets?
- 16. Chapter 01 - Introduction 1-12 37. You are a corporate treasurer seeking to raise funds for your firm. What are some advantages of raising funds via a financial intermediary (FI) rather than by selling securities to the public? 38. How can a depository intermediary afford to purchase long-term risky direct claims from fund's demanders and finance these purchases with safe, liquid, short-term, low denomination deposits? What can go wrong in this process? 39. Discuss the benefits to funds' suppliers of using a financial intermediary asset transformer in place of directly purchasing claims such as stocks or bonds. What is the major disadvantage? 40. Discuss the major macro benefits of financial intermediaries. What role does the government have in the credit allocation process?
- 17. Chapter 01 - Introduction 1-13 41. What determines the price of financial instruments? Which are riskier, capital market instruments or money market instruments? Why? 42. Explain how the credit crunch originating in the mortgage markets hurt financial intermediaries' attempts to use diversification and monitoring to limit the riskiness of their loans and investments while offering more liquid claims to savers.
- 18. Chapter 01 - Introduction 1-14 Chapter 01 Introduction Answer Key True / False Questions 1. Primary markets are markets where users of funds raise cash by selling securities to funds' suppliers. TRUE AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy Learning Goal: 01-01 Differentiate between primary and secondary markets. Topic: Overview of Financial Markets 2. Secondary markets are markets used by corporations to raise cash by issuing securities for a short time period. FALSE AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy Learning Goal: 01-01 Differentiate between primary and secondary markets. Topic: Overview of Financial Markets 3. In a private placement, the issuer typically sells the entire issue to one, or only a few, institutional buyers. TRUE AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy Learning Goal: 01-01 Differentiate between primary and secondary markets. Topic: Overview of Financial Markets
- 19. Chapter 01 - Introduction 1-15 4. The NYSE is an example of a secondary market. TRUE AACSB: Reflective Thinking Blooms: Understand Difficulty: 1 Easy Learning Goal: 01-01 Differentiate between primary and secondary markets. Topic: Overview of Financial Markets 5. Privately placed securities are usually sold to one or more investment bankers and then resold to the general public. FALSE AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy Learning Goal: 01-01 Differentiate between primary and secondary markets. Topic: Overview of Financial Markets 6. Money markets are the markets for securities with an original maturity of 1 year or less. TRUE AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy Learning Goal: 01-02 Differentiate between money and capital markets. Topic: Overview of Financial Markets 7. Financial intermediaries such as banks typically have assets that are riskier than their liabilities. TRUE AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy Learning Goal: 01-06 Know the services financial institutions perform. Topic: Overview of Financial Institutions
- 20. Chapter 01 - Introduction 1-16 8. There are three types of major financial markets today: primary, secondary, and derivatives markets. The NYSE and NASDAQ are both examples of derivatives markets. FALSE AACSB: Reflective Thinking Blooms: Understand Difficulty: 1 Easy Learning Goal: 01-01 Differentiate between primary and secondary markets. Learning Goal: 01-04 Understand what derivative security markets are. Topic: Overview of Financial Markets Multiple Choice Questions 9. What factors are encouraging financial institutions to offer overlapping financial services such as banking, investment banking, brokerage, etc.? I. Regulatory changes allowing institutions to offer more services II. Technological improvements reducing the cost of providing financial services III. Increasing competition from full service global financial institutions IV. Reduction in the need to manage risk at financial institutions A. I only B. II and III only C. I, II, and III only D. I, II, and IV only E. I, II, III, and IV AACSB: Analytic AACSB: Reflective Thinking Blooms: Evaluate Difficulty: 1 Easy Learning Goal: 01-08 Appreciate why financial institutions are regulated. Topic: Overview of Financial Institutions Figure 1-1 IBM creates and sells additional stock to the investment banker, Morgan Stanley. Morgan Stanley then resells the issue to the U.S. public.
- 21. Chapter 01 - Introduction 1-17 10. This transaction is an example of a(n) A. primary market transaction B. asset transformation by Morgan Stanley C. money market transaction D. foreign exchange transaction E. forward transaction AACSB: Analytic AACSB: Reflective Thinking Blooms: Analyze Difficulty: 1 Easy Learning Goal: 01-01 Differentiate between primary and secondary markets. Topic: Overview of Financial Markets 11. Morgan Stanley is acting as a(n) A. asset transformer B. asset broker C. government regulator D. foreign service representative AACSB: Analytic AACSB: Reflective Thinking Blooms: Analyze Difficulty: 2 Medium Learning Goal: 01-06 Know the services financial institutions perform. Topic: Overview of Financial Institutions 12. A corporation seeking to sell new equity securities to the public for the first time in order to raise cash for capital investment would most likely A. conduct an IPO with the assistance of an investment banker B. engage in a secondary market sale of equity C. conduct a private placement to a large number of potential buyers D. place an ad in the Wall Street Journal soliciting retail suppliers of funds E. none of the above AACSB: Reflective Thinking Blooms: Evaluate Difficulty: 2 Medium Learning Goal: 01-01 Differentiate between primary and secondary markets. Learning Goal: 01-02 Differentiate between money and capital markets. Topic: Overview of Financial Markets
- 22. Chapter 01 - Introduction 1-18 13. The largest capital market security outstanding in 2010 measured by market value was A. securitized mortgages B. corporate bonds C. municipal bonds D. Treasury bonds E. corporate stocks AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy Learning Goal: 01-02 Differentiate between money and capital markets. Topic: Overview of Financial Markets 14. The diagram below is a diagram of the A. secondary markets B. primary markets C. money markets D. derivatives markets E. commodities markets AACSB: Analytic AACSB: Reflective Thinking Blooms: Understand Difficulty: 1 Easy Learning Goal: 01-01 Differentiate between primary and secondary markets. Topic: Overview of Financial Markets
- 23. Chapter 01 - Introduction 1-19 15. _________ and __________ allow a financial intermediary to offer safe, liquid liabilities such as deposits while investing the depositors' money in riskier, illiquid assets. A. Diversification; high equity returns B. Price risk; collateral C. Free riders; regulations D. Monitoring; diversification E. Primary markets; foreign exchange markets AACSB: Reflective Thinking Blooms: Remember Difficulty: 2 Medium Learning Goal: 01-06 Know the services financial institutions perform. Learning Goal: 01-07 Know the risks financial institutions face. Topic: Overview of Financial Institutions 16. Depository institutions include: A. banks B. thrifts C. finance companies D. all of the above E. A and B only AACSB: Reflective Thinking Blooms: Understand Difficulty: 2 Medium Learning Goal: 01-05 Distinguish between the different types of financial institutions. Topic: Overview of Financial Institutions
- 24. Chapter 01 - Introduction 1-20 17. Match the intermediary with the characteristic that best describes its function. I. Provide protection from adverse events II. Pool funds of small savers and invest in either money or capital markets III. Provide consumer loans and real estate loans funded by deposits IV. Accumulate and transfer wealth from work period to retirement period V. Underwrite and trade securities and provide brokerage services 1. Thrifts 2. Insurers 3. Pension funds 4. Securities firms and investment banks 5. Mutual funds A. 1, 3, 2, 5, 4 B. 4, 2, 3, 5, 1 C. 2, 5, 1, 3, 4 D. 2, 4, 5, 3, 1 E. 5, 1, 3, 2, 4 AACSB: Analytic AACSB: Reflective Thinking Blooms: Analyze Blooms: Understand Difficulty: 2 Medium Learning Goal: 01-05 Distinguish between the different types of financial institutions. Learning Goal: 01-06 Know the services financial institutions perform. Topic: Overview of Financial Institutions
- 25. Another Random Scribd Document with Unrelated Content
- 26. Mauilla, the town of a chief, his vassal, whither they were going, stating that he sent to give him notice that he should have provisions in readiness and Indians for loads; but which, as afterwards appeared, was a message for him to get together there all the warriors in his country. The Governor marched three days, the last one of them continually through an inhabited region, arriving on Monday, the eighteenth day of October, at Mauilla.[269] He rode forward in the vanguard, with fifteen cavalry and thirty infantry, when a Christian he had sent with a message to the cacique, three or four days before, with orders not to be gone long, and to discover the temper of the Indians, came out from the town and reported that they appeared to him to be making preparation; for that while he was present many weapons were brought, and many people came into the town, and work had gone on rapidly to strengthen the palisade. Luis de Moscoso said that, since the Indians were so evil disposed, it would be better to stop in the woods; to which the Governor answered, that he was impatient of sleeping out, and that he would lodge in the town. Arriving near, the chief came out to receive him, with many Indians singing and playing on flutes, and after tendering his services, gave him three cloaks of marten-skins. The Governor entered the town with the caciques, seven or eight men of his guard, and three or four cavalry,[270] who had dismounted to accompany them; and they seated themselves in a piazza. The cacique of Tastaluça asked the Governor to allow him to remain there, and not to weary him any more with walking; but, finding that was not to be permitted, he changed his plan, and, under pretext of speaking with some of the chiefs, he got up from where he sate, by the side of the Governor, and entered a house where were many Indians with their bows and arrows. The Governor, finding that he did not return, called to him; to which the cacique answered that he would not come out, nor would he leave that town; that if the Governor wished to go in peace, he should quit at once, and not persist in carrying him away by force from his country and its dependencies.
- 28. Chapter 18 How the Indians rose upon the Governor, and what followed upon that rising. The Governor, in view of the determination and furious answer of the cacique, thought to soothe him with soft words; to which he made no answer, but, with great haughtiness and contempt, withdrew to where Soto could not see nor speak to him. The Governor, that he might send word to the cacique for him to remain in the country at his will, and to be pleased to give him a guide, and persons to carry burdens, that he might see if he could pacify him with gentle words, called to a chief who was passing by. The Indian replied, loftily, that he would not listen to him. Baltasar de Gallegos, who was near, seized him by the cloak of marten-skins that he had on, drew it off over his head, and left it in his hands; whereupon, the Indians all beginning to rise, he gave him a stroke with a cutlass, that laid open his back, when they, with loud yells, came out of the houses, discharging their bows. The Governor, discovering that if he remained there they could not escape, and if he should order his men, who were outside of the town, to come in, the horses might be killed by the Indians from the houses and great injury done, he ran out; but before he could get away he fell two or three times, and was helped to rise by those with him. He and they were all badly wounded: within the town five Christians were instantly killed. Coming forth, he called out to all his men to get farther off, because there was much harm doing from the palisade. The natives discovering that the Christians were retiring, and some, if not the greater number, at more than a walk, the Indians followed with great boldness, shooting at them, or striking down such as they could overtake. Those in chains having set down their burdens near the fence while the Christians were
- 29. retiring, the people of Mauilla lifted the loads on to their backs, and, bringing them into the town, took off their irons, putting bows and arms in their hands, with which to fight. Thus did the foe come into possession of all the clothing, pearls, and whatsoever else the Christians had beside, which was what their Indians carried. Since the natives had been at peace as far as to that place, some of us, putting our arms in the luggage, had gone without any; and two, who were in the town, had their swords and halberds taken from them, and put to use. The Governor, presently as he found himself in the field, called for a horse, and, with some followers, returned and lanced two or three of the Indians; the rest, going back into the town, shot arrows from the palisade. Those who would venture on their nimbleness came out a stone's throw from behind it, to fight, retiring from time to time, when they were set upon. At the time of the affray there was a friar, a clergyman, a servant of the Governor, and a female slave in the town, who, having no time in which to get away, took to a house, and there remained until after the Indians became masters of the place. They closed the entrance with a lattice door; and there being a sword among them, which the servant had, he put himself behind the door, striking at the Indians that would have come in; while, on the other side, stood the friar and the priest, each with a club in hand, to strike down the first that should enter. The Indians, finding that they could not get in by the door, began to unroof the house: at this moment the cavalry were all arrived at Mauilla, with the infantry that had been on the march, when a difference of opinion arose as to whether the Indians should be attacked, in order to enter the town; for the result was held doubtful, but finally it was concluded to make the assault.
- 30. Chapter 19 How the Governor set his men in order of battle and entered the town of Mauilla. So soon as the advance and the rear of the force were come up, the Governor commanded that all the best armed should dismount, of which he made four squadrons of footmen. The Indians, observing how he was going on arranging his men, urged the cacique to leave, telling him, as was afterwards made known by some women who were taken in the town, that as he was but one man, and could fight but as one only, there being many chiefs present very skilful and experienced in matters of war, any one of whom was able to command the rest, and as things in war were so subject to fortune, that it was never certain which side would overcome the other, they wished him to put his person in safety; for if they should conclude their lives there, on which they had resolved rather than surrender, he would remain to govern the land: but for all that they said, he did not wish to go, until, from being continually urged, with fifteen or twenty of his own people he went out of the town, taking with him a scarlet cloak and other articles of the Christians' clothing, being whatever he could carry and that seemed best to him. The Governor, informed that the Indians were leaving the town, commanded the cavalry to surround it; and into each squadron of foot he put a soldier, with a brand, to set fire to the houses, that the Indians might have no shelter. His men being placed in full concert, he ordered an arquebuse to be shot off: at the signal the four squadrons, at their proper points, commenced a furious onset, and, both sides severely suffering, the Christians entered the town. The friar, the priest, and the rest who were with them in the house, were all saved, though at the cost of the lives of two brave and very able men who went thither to their rescue. The Indians fought with so
- 31. great spirit that they many times drove our people back out of the town. The struggle lasted so long that many Christians, weary and very thirsty, went to drink at a pond near by, tinged with the blood of the killed, and returned to the combat. The Governor, witnessing this, with those who followed him in the returning charge of the footmen, entered the town on horseback, which gave opportunity to fire the dwellings; then breaking in upon the Indians and beating them down, they fled out of the place, the cavalry and infantry driving them back through the gates, where, losing the hope of escape, they fought valiantly; and the Christians getting among them with cutlasses, they found themselves met on all sides by their strokes, when many, dashing headlong into the flaming houses, were smothered, and, heaped one upon another, burned to death. They who perished there were in all two thousand five hundred, a few more or less: of the Christians there fell eighteen, among whom was Don Carlos, brother-in-law of the Governor; one Juan de Gamez, a nephew; Men. Rodriguez, a Portuguese; and Juan Vazquez, of Villanueva de Barcarota, men of condition and courage; the rest were infantry. Of the living, one hundred and fifty Christians had received seven hundred wounds from the arrow; and God was pleased that they should be healed in little time of very dangerous injuries. Twelve horses died, and seventy were hurt. The clothing the Christians carried with them, the ornaments for saying mass, and the pearls, were all burned there; they having set the fire themselves, because they considered the loss less than the injury they might receive of the Indians from within the houses, where they had brought the things together. The Governor learning in Mauilla that Francisco Maldonado was waiting for him in the port of Ochuse, six days' travel distant, he caused Juan Ortiz to keep the news secret, that he might not be interrupted in his purpose; because the pearls he wished to send to Cuba for show, that their fame might raise the desire of coming to Florida, had been lost, and he feared that, hearing of him without seeing either gold or silver, or other thing of value from that land, it would come to have such reputation that no one would be found to
- 32. go there when men should be wanted: so he determined to send no news of himself until he should have discovered a rich country.
- 33. Chapter 20 How the Governor set out from Mauilla to go to Chicaça, and what befell him. From the time the Governor arrived in Florida until he went from Mauilla, there died one hundred and two Christians, some of sickness, others by the hand of the Indians. Because of the wounded, he stopped in that place twenty-eight days, all the time remaining out in the fields. The country was a rich soil, and well inhabited: some towns were very large, and were picketed about. The people were numerous everywhere, the dwellings standing a crossbow-shot or two apart. On Sunday, the eighteenth of November,[271] the sick being found to be getting on well, the Governor left Mauilla, taking with him a supply of maize for two days. He marched five days through a wilderness, arriving in a province called Pafallaya, at the town Taliepataua; and thence he went to another, named Cabusto,[272] near which was a large river, whence the Indians on the farther bank shouted to the Christians that they would kill them should they come over there. He ordered the building of a piragua within the town, that the natives might have no knowledge of it; which being finished in four days, and ready, he directed it to be taken on sleds half a league up stream, and in the morning thirty men entered it, well armed. The Indians discovering what was going on, they who were nearest went to oppose the landing, and did the best they could; but the Christians drawing near, and the piragua being about to reach the shore, they fled into some cane-brakes. The men on horses went up the river to secure a landing-place, to which the Governor passed over, with the others that remained. Some of the towns were well stored with maize and beans.
- 34. Thence towards Chicaça the Governor marched five days through a desert, and arrived at a river,[273] on the farther side of which were Indians, who wished to arrest his passage. In two days another piragua was made, and when ready he sent an Indian in it to the cacique, to say, that if he wished his friendship he should quietly wait for him; but they killed the messenger before his eyes, and with loud yells departed. He crossed the river the seventeenth of December, and arrived the same day at Chicaça, a small town of twenty houses.[274] There the people underwent severe cold, for it was already winter, and snow fell: the greater number were then lying in the fields, it being before they had time to put up habitations. The land was thickly inhabited, the people living about over it as they do in Mauilla; and as it was fertile, the greater part being under cultivation, there was plenty of maize. So much grain was brought together as was needed for getting through with the season. Some Indians were taken, among whom was one the cacique greatly esteemed. The Governor sent an Indian to the cacique to say, that he desired to see him and have his friendship. He came, and offered him the services of his person, territories, and subjects: he said that he would cause two chiefs to visit him in peace. In a few days he returned with them, they bringing their Indians. They presented the Governor one hundred and fifty rabbits, with clothing of the country, such as shawls and skins. The name of the one was Alimamu, of the other Nicalasa. The cacique of Chicaça came to visit him many times: on some occasions he was sent for, and a horse taken, on which to bring and carry him back. He made complaint that a vassal of his had risen against him, withholding tribute; and he asked for assistance, desiring to seek him in his territory, and give him the chastisement he deserved. The whole was found to be feigned, to the end that, while the Governor should be absent with him, and the force divided, they would attack the parts separately—some the one under him, others the other, that remained in Chicaça. He went to the town
- 35. where he lived, and came back with two hundred Indians, bearing bows and arrows. The Governor, taking thirty cavalry and eighty infantry, marched to Saquechuma,[275] the province of the chief whom the cacique said had rebelled. The town was untenanted, and the Indians, for greater dissimulation, set fire to it; but the people with the Governor being very careful and vigilant, as were also those that had been left in Chicaça, no enemy dared to fall upon them. The Governor invited the caciques and some chiefs to dine with him, giving them pork to eat, which they so relished, although not used to it, that every night Indians would come up to some houses where the hogs slept, a crossbow-shot off from the camp, to kill and carry away what they could of them. Three were taken in the act: two the Governor commanded to be slain with arrows, and the remaining one, his hands having first been cut off, was sent to the cacique, who appeared grieved that they had given offence, and glad that they were punished. This chief was half a league from where the Christians were, in an open country, whither wandered off four of the cavalry: Francisco Osorio, Reynoso, a servant of the Marquis of Astorga, and two servants of the Governor,—the one Ribera, his page, the other Fuentes, his chamberlain. They took some skins and shawls from the Indians, who made great outcry in consequence, and abandoned their houses. When the Governor heard of it, he ordered them to be apprehended, and condemned Osorio and Fuentes to death, as principals, and all of them to lose their goods. The friars, the priests, and other principal personages solicited him to let Osorio live, and moderate the sentence; but he would do so for no one. When about ordering them to be taken to the town-yard to be beheaded, some Indians arrived, sent by the chief to complain of them. Juan Ortiz, at the entreaty of Baltasar de Gallegos and others, changed their words, telling the Governor, as from the cacique, that he had understood those Christians had been arrested on his account; that they were in no fault, having offended him in nothing, and that if he would do him a favor, to let them go free: then Ortiz said to the
- 36. Indians, that the Governor had the persons in custody, and would visit them with such punishment as should be an example to the rest. The prisoners were ordered to be released. So soon as March had come, the Governor, having determined to leave Chicaça, asked two hundred tamemes of the cacique, who told him that he would confer with his chiefs. Tuesday, the eighth, he went where the cacique was, to ask for the carriers, and was told that he would send them the next day. When the Governor saw the chief, he said to Luis de Moscoso that the Indians did not appear right to him; that a very careful watch should be kept that night, to which the master of the camp paid little attention. At four o'clock in the morning the Indians fell upon them in four squadrons, from as many quarters, and directly as they were discovered, they beat a drum. With loud shouting, they came in such haste, that they entered the camp at the same moment with some scouts that had been out; of which, by the time those in the town were aware, half the houses were in flames. That night it had been the turn of three horsemen to be of the watch,—two of them men of low degree, the least value of any in the camp, and the third a nephew of the Governor, who had been deemed a brave man until now, when he showed himself as great a coward as either of the others; for they all fled, and the Indians, finding no resistance, came up and set fire to the place. They waited outside of the town for the Christians, behind the gates, as they should come out of the doors, having had no opportunity to put on their arms; and as they ran in all directions, bewildered by the noise, blinded by the smoke and the brightness of the flame, knowing not whither they were going, nor were able to find their arms, or put saddles on their steeds, they saw not the Indians who shot arrows at them. Those of the horses that could break their halters got away, and many were burned to death in the stalls. The confusion and rout were so great that each man fled by the way that first opened to him, there being none to oppose the Indians: but God, who chastiseth his own as he pleaseth, and in the greatest wants and perils hath them in his hand, shut the eyes of the Indians,
- 37. so that they could not discern what they had done, and believed that the beasts running about loose were the cavalry gathering to fall upon them. The Governor, with a soldier named Tapia, alone got mounted, and, charging upon the Indians, he struck down the first of them he met with a blow of the lance, but went over with the saddle, because in the haste it had not been tightly drawn, and he fell. The men on foot, running to a thicket outside of the town, came together there: the Indians imagining, as it was dark, that the horses were cavalry coming upon them, as has been stated, they fled, leaving only one dead, which was he the Governor smote. The town lay in cinders. A woman, with her husband, having left a house, went back to get some pearls that had remained there; and when she would have come out again the fire had reached the door, and she could not, neither could her husband assist her, so she was consumed. Three Christians came out of the fire in so bad plight, that one of them died in three days from that time, and the two others for a long while were carried in their pallets, on poles borne on the shoulders of Indians, for otherwise they could not have got along. There died in this affair eleven Christians, and fifty horses. One hundred of the swine remained, four hundred having been destroyed, from the conflagration of Mauilla. If, by good luck, any one had been able to save a garment until then, it was there destroyed. Many remained naked, not having had time to catch up their skin dresses. In that place they suffered greatly from cold, the only relief being in large fires, and they passed the night long in turning, without the power to sleep; for as one side of a man would warm, the other would freeze. Some contrived mats of dried grass sewed together, one to be placed below, and the other above them: many who laughed at this expedient were afterwards compelled to do the like. The Christians were left so broken up, that what with the want of the saddles and arms which had been destroyed, had the Indians returned the second night, they might, with little effort, have been overpowered. They removed from that town to the one where the cacique was accustomed to live, because it was in the open field.[276] In eight days' time they had constructed
- 38. many saddles from the ash, and likewise lances, as good as those made in Biscay.
- 39. Chapter 21 How the Indians returned to attack the Christians, and how the Governor went to Alimamu, and they tarried to give him battle in the way. On Wednesday,[277] the fifteenth day of March, in the year 1541, eight days having passed since the Governor had been living on a plain, half a league from the place where he wintered, after he had set up a forge, and tempered the swords which in Chicaça had been burned, and already had made many targets, saddles, and lances, on Tuesday, at four o'clock in the morning, while it was still dark, there came many Indians, formed in three squadrons, each from a different direction, to attack the camp, when those who watched beat to arms. In all haste he drew up his men in three squadrons also, and leaving some for the defence of the camp, he went out to meet them. The Indians were overthrown and put to flight. The ground was plain, and in a condition advantageous to the Christians. It was now daybreak; and but for some disorder, thirty or forty more enemies might have been slain. It was caused by a friar raising great shouts in the camp, without any reason, crying, "To the camp! To the camp!" In consequence the Governor and the rest went thither, and the Indians had time to get away in safety. From some prisoners taken, the Governor informed himself of the region in advance. On the twenty-fifth day of April he left Chicaça and went to sleep at a small town called Alimamu. Very little maize was found; and as it became necessary to attempt thence to pass a desert, seven days' journey in extent, the next day the Governor ordered that three captains, each with cavalry and foot, should take a different direction, to get provision for the way. Juan de Añasco, the comptroller, went with fifteen horse and forty foot on the course the Governor would have to march, and found a staked fort,[278] where the Indians were awaiting them. Many were armed, walking
- 40. upon it, with their bodies, legs, and arms painted and ochred, red, black, white, yellow, and vermilion in stripes, so that they appeared to have on stockings and doublet. Some wore feathers, and others horns on the head, the face blackened, and the eyes encircled with vermilion, to heighten their fierce aspect. So soon as they saw the Christians draw nigh they beat drums, and, with loud yells, in great fury came forth to meet them. As to Juan de Añasco and others it appeared well to avoid them and to inform the Governor, they retired over an even ground in sight, the distance of a crossbow-shot from the enclosure, the footmen, the crossbowmen, and targeteers putting themselves before those on horseback, that the beasts might not be wounded by the Indians, who came forth by sevens and eights to discharge their bows at them and retire. In sight of the Christians they made a fire, and, taking an Indian by the head and feet, pretended to give him many blows on the head and cast him into the flames, signifying in this way what they would do with the Christians. A message being sent with three of the cavalry to the Governor, informing him of this, he came directly. It was his opinion that they should be driven from the place. He said that if this was not done they would be emboldened to make an attack at some other time, when they might do him more harm: those on horseback were commanded to dismount, and, being set in four squadrons, at the signal charged the Indians. They resisted until the Christians came up to the stakes; then, seeing that they could not defend themselves, they fled through that part near which passed a stream, sending back some arrows from the other bank; and because, at the moment, no place was found where the horses might ford, they had time to make their escape. Three Indians were killed and many Christians wounded, of whom, after a few days, fifteen died on the march. Every one thought the Governor committed a great fault in not sending to examine the state of the ground on the opposite shore, and discover the crossing-place before making the attack; because, with the hope the Indians had of escaping unseen in that direction, they fought until they were broken; and it was the cause
- 41. of their holding out so long to assail the Christians, as they could, with safety to themselves.
- 42. Chapter 22 How the Governor went from Quizquiz, and thence to the River Grande. Three days having gone by since some maize had been sought after, and but little found in comparison with the great want there was of it, the Governor became obliged to move at once, notwithstanding the wounded had need of repose, to where there should be abundance. He accordingly set out for Quizquiz, and marched seven days through a wilderness, having many pondy places, with thick forests, all fordable, however, on horseback, except some basins or lakes that were swum. He arrived at a town of Quizquiz without being descried, and seized all the people before they could come out of their houses. Among them was the mother of the cacique; and the Governor sent word to him, by one of the captives, to come and receive her, with the rest he had taken. The answer he returned was, that if his lordship would order them to be loosed and sent, he would come to visit and do him service. The Governor, since his men arrived weary, and likewise weak, for want of maize, and the horses were also lean, determined to yield to the requirement and try to have peace; so the mother and the rest were ordered to be set free, and with words of kindness were dismissed. The next day, while he was hoping to see the chief, many Indians came, with bows and arrows, to set upon the Christians, when he commanded that all the armed horsemen should be mounted and in readiness. Finding them prepared, the Indians stopped at the distance of a crossbow-shot from where the Governor was, near a river-bank, where, after remaining quietly half an hour, six chiefs arrived at the camp, stating that they had come to find out what people it might be; for that they had knowledge from their ancestors that they were to be subdued by a white race; they
- 43. consequently desired to return to the cacique, to tell him that he should come presently to obey and serve the Governor. After presenting six or seven skins and shawls brought with them, they took their leave, and returned with the others who were waiting for them by the shore. The cacique came not, nor sent another message. There was little maize in the place, and the Governor moved to another town, half a league from the great river,[279] where it was found in sufficiency. He went to look at the river, and saw that near it there was much timber of which piraguas might be made, and a good situation in which the camp might be placed. He directly moved, built houses, and settled on a plain a crossbow-shot from the water, bringing together there all the maize of the towns behind, that at once they might go to work and cut down trees for sawing out planks to build barges. The Indians soon came from up the stream, jumped on shore, and told the Governor that they were the vassals of a great lord, named Aquixo, who was the suzerain of many towns and people on the other shore; and they made known from him, that he would come the day after, with all his people, to hear what his lordship would command him. The next day the cacique arrived, with two hundred canoes filled with men, having weapons. They were painted with ochre, wearing great bunches of white and other plumes of many colors, having feathered shields in their hands, with which they sheltered the oarsmen on either side, the warriors standing erect from bow to stern, holding bows and arrows. The barge in which the cacique came had an awning at the poop, under which he sate; and the like had the barges of the other chiefs; and there, from under the canopy, where the chief man was, the course was directed and orders issued to the rest. All came down together, and arrived within a stone's cast of the ravine, whence the cacique said to the Governor, who was walking along the river-bank, with others who bore him company, that he had come to visit, serve, and obey him; for he had heard that he was the greatest of lords, the most powerful on all the earth, and that he must see what he would have
- 44. him do. The Governor expressed his pleasure, and besought him to land, that they might the better confer; but the chief gave no reply, ordering three barges to draw near, wherein was great quantity of fish, and loaves like bricks, made of the pulp of plums (persimmons), which Soto receiving, gave him thanks and again entreated him to land. Making the gift had been a pretext, to discover if any harm might be done; but, finding the Governor and his people on their guard, the cacique began to draw off from the shore, when the crossbowmen who were in readiness, with loud cries shot at the Indians, and struck down five or six of them. They retired with great order, not one leaving the oar, even though the one next to him might have fallen, and covering themselves, they withdrew. Afterwards they came many times and landed; when approached, they would go back to their barges. These were fine-looking men, very large and well formed; and what with the awnings, the plumes, and the shields, the pennons, and the number of people in the fleet, it appeared like a famous armada of galleys. During the thirty days that were passed there, four piraguas were built, into three of which, one morning, three hours before daybreak, the Governor ordered twelve cavalry to enter, four in each, men in whom he had confidence that they would gain the land notwithstanding the Indians, and secure the passage, or die: he also sent some crossbowmen of foot with them, and in the other piragua, oarsmen, to take them to the opposite shore. He ordered Juan de Guzman to cross with the infantry, of which he had remained captain in the place of Francisco Maldonado; and because the current was stiff, they went up along the side of the river a quarter of a league, and in passing over they were carried down, so as to land opposite the camp; but, before arriving there, at twice the distance of a stone's cast, the horsemen rode out from the piraguas to an open area of hard and even ground, which they all reached without accident.
- 45. So soon as they had come to shore the piraguas returned; and when the sun was up two hours high, the people had all got over.[280] The distance was near half a league: a man standing on the shore could not be told, whether he were a man or something else, from the other side. The stream was swift, and very deep; the water, always flowing turbidly, brought along from above many trees and much timber, driven onward by its force. There were many fish of several sorts, the greater part differing from those of the fresh waters of Spain, as will be told hereafter.
- 46. Chapter 23 How the Governor went from Aquixo to Casqui, and thence to Pacaha; and how this country differs from the other. The Rio Grande being crossed, the Governor marched a league and a half, to a large town of Aquixo, which was abandoned before his arrival. Over a plain thirty Indians were seen to draw nigh, sent by the cacique to discover what the Christians intended to do, but who fled directly as they saw them. The cavalry pursued, killed ten, and captured fifteen. As the town toward which the Governor marched was near the river, he sent a captain, with the force he thought sufficient, to take the piraguas up the stream. As they frequently wound about through the country, having to go round the bays that swell out of the river, the Indians had opportunity to attack those in the piraguas, placing them in great peril, being shot at with bows from the ravines, while they dared not leave the shore, because of the swiftness of the current; so that, as soon as the Governor got to the town, he directly sent crossbowmen to them down the stream, for their protection. When the piraguas arrived, he ordered them to be taken to pieces, and the spikes kept for making others, when they should be needed. The Governor slept at the town one night, and the day following he went in quest of a province called Pacaha, which he had been informed was nigh Chisca, where the Indians said there was gold. He passed through large towns in Aquixo, which the people had left for fear of the Christians. From some Indians that were taken, he heard that three days' journey thence resided a great cacique, called Casqui. He came to a small river, over which a bridge was made, whereby he crossed.[281] All that day, until sunset, he marched through water, in places coming to the knees; in others, as high as the waist. They were greatly rejoiced on reaching the dry land;
- 47. because it had appeared to them that they should travel about, lost, all night in the water. At mid-day they came to the first town of Casqui, where they found the Indians off their guard, never having heard of them. Many men and women were taken, much clothing, blankets, and skins; such they likewise took in another town in sight of the first, half a league off in the field, whither the horsemen had run. This land is higher, drier, and more level than any other along the river that had been seen until then. In the fields were many walnut- trees, bearing tender-shelled nuts in the shape of acorns, many being found stored in the houses. The tree did not differ in any thing from that of Spain, nor from the one seen before, except the leaf was smaller. There were many mulberry-trees, and trees of plums (persimmons), having fruit of vermilion hue, like one of Spain, while others were gray, differing, but far better. All the trees, the year round, were as green as if they stood in orchards, and the woods were open. The Governor marched two days through the country of Casqui, before coming to the town[282] where the cacique was, the greater part of the way lying through fields thickly set with great towns, two or three of them to be seen from one. He sent word by an Indian to the cacique, that he was coming to obtain his friendship and to consider him as a brother; to which he received for answer, that he would be welcomed; that he would be received with special good- will, and all that his lordship required of him should be done; and the chief sent him on the road a present of skins, shawls, and fish. After these gifts were made, all the towns into which the Governor came were found occupied; and the inhabitants awaited him in peace, offering him skins, shawls, and fish. Accompanied by many persons, the cacique came half a league on the road from the town where he dwelt to receive the Governor, and, drawing nigh to him, thus spoke: Very High, Powerful, and Renowned Master:
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