The transcendant military and diplomatic qualities Pizarro had displayed were equalled by the energy and foresight which he now showed as an administrator. Realising that his capital should be on the coast in order to secure direct communication with Panama, he made a careful examination of routes and possible sites and selected the valley of the Rimac, just below Jauja, where he founded Lima. From this point the military road by which the Incas had kept up communication from Cuzco with the coast and the northern provinces ascended to the plateau. Lima and Jauja were the strategical keys to central and southern Peru; San Miguel gave easy access to Quito, and Pizarro insured the region extending from Cerro de Pasco to the Ecuador border by establishing the city of Trujillo half-way up the coast.
Their original agreement provided that Pizarro should have the northern half of the countries they might conquer, and Almagro the southern. Accordingly, about two years after Cuzco was occupied, Almagro started for Bolivia and Chile, accompanied by five hundred Spaniards and two brothers of the Inca emperor, leading a large native army. In Bolivia, where the Inca power had been established for centuries, he encountered no opposition, and crossed the bleak plateaux of the Puna, descended the Andes, and finally reached the fertile valleys of northern Chile. But so little gold was found that Almagro determined to return and set up a claim to Cuzco.
[Illustration: STONE BRIDGE OVER THE RIMAC RIVER, LIMA, PERU.]
In the meantime the Incas of central Peru had awakened from the dream of a continuance of the ancient dynasty under Spanish protection. Pizarro himself seems to have been guilty of few acts of wanton cruelty, but he neither wished nor tried to restrain his followers from reducing the Indians to vassalage. The natives were fast crowded to the wall, and the Spaniards divided the fairest parts of the country into estates, treating the Indians as tenants from whom tribute was due. The sovereignty of the emperor soon became a mere fiction. In 1536 Manco escaped from Cuzco and raised the standard of rebellion. The moment appeared favourable. The Spanish forces were scattered; Pizarro was at Lima, and Almagro in the wilds of Chile, but as a matter of fact the Incas laboured under almost hopeless disadvantages. Their cities, fortresses, and roads were all in the hands of the Spaniards, and the kingdom of Quito, the most warlike part of the empire, had meanwhile been reduced by a Spanish expedition from San Miguel.