How the great Sancho Panza took possession of his island, and in what manner he began to govern.

After having travelled a certain distance, Governor Sancho, with his attendants, came to a town that had about a thousand inhabitants, and was one of the best in the duke's territories. They gave him to understand that the name of the place was the island of Barataria. As soon as he came to the gates, the magistrates came out to receive him, the bells rung, and all the people gave general demonstrations of joy. They then delivered him the keys of the gates, and received him as perpetual governor of the island of Barataria.

Next they carried him to the court of justice; where, when they had placed him in his seat, "My lord governor," said the duke's steward to him, "it is an ancient custom here, that he who takes possession of this famous island must answer some difficult and intricate question that is propounded to him; and, by the return he makes, the people feel the pulse of his understanding, and, by an estimate of his abilities, judge whether they ought to rejoice or to be sorry for his coming."

All the while the steward was speaking, Sancho was staring on an inscription in large characters on the wall over against his seat; and, as he could not read, he asked what was the meaning of that which he saw painted there upon the wall. "Sir," said they, "it is an account of the day when your lordship took possession of this island; and the inscription runs thus: 'This day the Lord Don Sancho Panza took possession of this island, which may he long enjoy.'" "And who is he," asked Sancho, "whom they call Don Sancho Panza?" "Your lordship," answered the steward; "for we know of no other Panza in this island but yourself, who now sits in this chair." "Well, friend," said Sancho, "pray take notice that Don does not belong to me, nor was it borne by any of my family before me. Plain Sancho Panza is my name; my father was called Sancho, my grandfather Sancho, and all of us have been Panzas, without any Don or Donna added to our name. Now do I already guess your Dons are as thick as stones in this island. But it is enough that Heaven knows my meaning: if my government happens to last but four days to an end, it shall go hard but I will clear the island of those swarms of Dons, that must needs be as troublesome as so many gnats. Come, now for your question, good Mr. Steward; and I will answer it as well as I can, whether the town be sorry or pleased."

At this instant, two men came into the court, the one dressed like a country fellow, the other looked like a tailor, with a pair of shears in his hand. "If it please you, my lord," cried the tailor, "this honest man came to my shop yesterday; for, saving your presence, I am a tailor, and free of my company too; so, my lord, he shewed me a piece of cloth: 'Sir,' quoth he, 'is there enough of this to make a cap?' Whereupon I measured the stuff, and answered, Yes. Now, as I imagined, do you see, he could not but imagine (and perhaps he imagined right enough), that I had a mind to cabbage some of his cloth—judging hard of us honest tailors. 'Prithee,' quoth he, 'look there be not enough for two caps?' Now I smelt him out, and told him there was. Whereupon the old knave, going on to the same tune, bid me look again, and see whether it would not make three; and at last if it would not make five? I was resolved to humour my customer, and said it might; so we struck a bargain. Just now the man is come for his caps, which I gave him; but he refuses to pay me for my work; and now he will have me give him his cloth again, or pay him for it." "Is this true, honest man?" said Sancho to the farmer. "Yes, if it please you," answered the fellow; "but pray let him shew the five caps he has made me." "With all my heart," cried the tailor; and with that, pulling his hand from under his cloak, he held up five little tiny caps, hanging upon his four fingers and thumb, as upon so many pins. "There," quoth he, "you see the five caps this good gaffer asks for; and, on my conscience, I have not wronged him of the least shred of his cloth; and let any workman be judge." The sight of the caps, and the oddness of the cause, set the whole court a-laughing. Only Sancho sat gravely considering a while; and then, "Methinks," said he, "this suit may be decided without any more ado, with a great deal of equity; and therefore, the judgment of the court is, that the tailor shall lose his making, and the countryman his cloth, and that the caps be given to the poor prisoners; and so let there be an end of the business."

If this sentence provoked the laughter of the whole court, the next no less raised their admiration. For after the governor's order was executed, two old men appeared before him; one of them with a large cane in his hand, which he used as a staff. "My lord," said the other, who had none, "some time ago, I lent this man ten gold crowns, to do him a kindness, which money he was to repay me on demand. I did not ask him for it again for a good while, lest it should prove inconvenient. However, perceiving that he took no care to pay me, I have asked him for my due; nay, I have been forced to dun him hard for it. But still, he did not only refuse to pay me again, but denied he owed me any thing, and said that 'if I lent him so much money, he certainly returned it.' Now, because I have no witnesses of the loan, nor he of the pretended payment, I beseech your lordship to put him to his oath; and if he will swear he has paid me, I will freely forgive him before God and the world." "What say you to this, old gentleman with the staff?" asked Sancho. "Sir," answered the old man, "I own he lent me the gold; and since he requires my oath, I beg you will be pleased to hold down your rod of justice, that I may swear upon it how I have honestly and truly returned him his money." Thereupon the governor held down his rod; and in the mean time the defendant gave his cane to the plaintiff to hold, as if it hindered him while he was to make a cross and swear over the judge's rod. This done, he declared it was true the other had lent him ten crowns, but that he had really returned him the same sum into his own hands. The great governor, hearing this, asked the creditor what he had to reply. He made answer that, since his adversary had sworn it, he was satisfied; for he believed him to be a better Christian than offer to forswear himself, and that perhaps he had forgotten he had been repaid. Then the defendant took his cane again, and having made a low obeisance to the judge, was immediately leaving the court; which when Sancho perceived, reflecting on the passage of the cane, and admiring the creditor's patience, after he had thought a while he suddenly ordered the old man with the staff to be called back. "Honest man," said Sancho, "let me look at that cane a little; I have a use for it." "With all my heart, sir," answered the other; "here it is;" and with that he gave it him. Sancho took it, and giving it to the other old man, "There," said he, "go your ways, and Heaven be with you, for now you are paid." "How so, my lord?" cried the old man; "do you judge this cane to be worth ten gold crowns?" "Certainly," said the governor, "or else I am the greatest dunce in the world. And now you shall see whether I have not a head-piece fit to govern a whole kingdom, upon a shift." This said, he ordered the cane to be broken in open court; which was no sooner done, than out dropped the ten crowns. All the spectators were amazed, and began to look on their governor as a second Solomon. They asked him how he could conjecture that the ten crowns were in the cane. He told them that he had observed how the defendant gave it to the plaintiff to hold while he took his oath, and then swore he had truly returned him the money into his own hands, after which he took his cane again from the plaintiff: this considered, it came into his head that the money was lodged within the reed. From whence may be learned, that though sometimes those that govern are destitute of sense, yet it often pleases God to direct them in their judgment. The two old men went away, the one to his satisfaction, the other with shame and disgrace; and the beholders were astonished; insomuch that the person who was commissioned to register Sancho's words and actions, and observe his behaviour, was not able to determine whether he should not give him the character of a wise man, instead of that of a fool, which he had been thought to deserve.

And now, let us leave honest Sancho here for a while for his master, who requires our attendance, Altisidora's serenade having strangely discomposed his mind.