No sooner were the Araucanians informed of the death of their general than they sent into the field a still more numerous army under the command of Lincoyan. In the following year the new _Toqui_ marched against the Spaniards, who took shelter under the guns of their fortifications. Lincoyan, however, was a commander of the stamp of Fabius, and, finding his first attack unsuccessful, ordered a precipitate retreat--to the great surprise of Valdivia. So unexpected a result was ascribed to St. Iago, who was seen during the fray mounted on a white horse and armed with a flaming sword. But this miracle, adds the candid ecclesiastical historian[O] from whom we quote, is not entitled to the greater credit from its having been so frequently repeated.
Valdivia being now freed from the terror of the Araucanians, applied himself with great diligence to building the new city, where he intended to establish his family. In the division of lands he reserved for himself the peninsula lying between the mouths of the rivers _Bio-bio_ and _Andalien_. The city progressed rapidly, and he employed himself in regulating its internal police. His statutes discover much prudence and humanity respecting the treatment of the natives. Believing that the Araucanians were now daunted, he resolved to take the initiative in attacking them; and with this intention, in the year 1552, he passed the _Bio-bio_ and proceeded to the river _Canten_. At the confluence of this stream with the _Damas_ he founded another city, to which he gave the name of _Imperial_.
Carried away by his unopposed successes, he now displayed the customary liberality of the Spanish conqueror in disposing of the property which did not belong to him. Supposing that he had vanquished the most valiant nation of _Chili_, he assigned to his followers the surrounding district. To Villagran, his lieutenant, he made over the province of _Maquegua_, with thirty thousand inhabitants. Other officers obtained from eight to twelve thousand natives, with lands in proportion; whilst Alderete was despatched with sixty men to form a settlement on the shore of Lake _Laquen_. To this was given the name of _Villarica_, from the quantity of gold found near it. Valdivia himself, still undisturbed by the Araucanians, continued his march towards the south, where he founded his sixth city, which he called _Valdivia_, being the first Spanish conqueror who thus sought to perpetuate his name. This settlement, which, like _Imperial_, enjoyed but a brief existence, is now only represented by its fortress.