Irala, in conformity with the orders of the President Gasca of _Peru_, retraced his steps to _Asuncion_. There he distributed to his followers _repartimientos_, or consignments of land and slaves--a measure which greatly added to his popularity. He likewise founded a new settlement named _Ciudad Real_, near the border line of the Spanish and Portuguese territories. In the year 1547 _Asuncion_ became the seat of a bishop, and about the same time an important intermediate station between _Paraguay_ and _Peru_ was established at _Santa Cruz de la Sierra_, whilst Spanish civilization also began to extend downwards from _Paraguay_ in the direction of the sea.
The favourable reports which had reached Spain of the climate and capabilities of _Paraguay_ were such as to divert thither many emigrants who would otherwise have turned their faces towards _Mexico_ or _Peru_. It was the constant endeavour of Irala to level the distinctions which separated the Spaniards from the natives and to encourage inter-marriages between them. This policy, in the course of time, led to a marked result,--namely, to that singular combination of outward civilisation and of primitive simplicity which was to be found in the modern Paraguayan race until it was annihilated under the younger Lopez. “It was,” to quote Mr. Washburn, who lived eight years amongst them, “an anomalous people, and the like had never been seen in any other country of America. The reason of this may be found in the fact that in no other colony did the early colonists in large numbers adopt the native language and take the Indian women as wives.”
Irala, in fact, created a nation. The colony under his administration became numerous and wealthy. From his first arrival in the New World until his death, his career was one of activity, toil, and adventure, always in the conscientious discharge of his duty to his sovereign and to those around him. He was the life and soul of the colony, and his death, which occurred in 1557 at the village of _Ita_ near _Asuncion_, when he had attained the age of seventy years, was lamented alike by Spaniards and _Guaranís_. In the estimation of Mr. Washburn, he was the first and last great man ever known to _La Plata_.