The admiral continued to sail along the northern coast of Hispaniola, where at point Angel, some Indians came aboard in canoes with provisions and other things to barter with the Spaniards. Anchoring afterwards off Monte Christo, one of the boats entered a river, were they found two dead men, one young and the other old. The latter had a rope about his neck made of Spanish esparto, his arms stretched out and his hands tied to a stick. It could not be ascertained whether these men were Christians or Indians, on which account the admiral was much troubled, lest some calamity had befallen the people he had left on the island. Next day, being Tuesday the 26th November, the admiral sent several men in different directions, to endeavour to learn if any news could be got of those whom he had left at the Nativity. Many of the Indians came up to the Spaniards, without fear, touching their dress, and saying tubon camisa that is doublet and shirt, to shew that they knew the Spanish names of these articles. These circumstances gave great comfort to the admiral, as he supposed the Indians would have been afraid, if those he had left in the new town were dead. On Wednesday the 27th, he came to anchor off the harbour of the Nativity, and about midnight a canoe came to the admirals ship, calling almirante, or admiral. The Indians were desired to come on board, but they refused till they saw and knew Columbus. They then gave him two well wrought vizor masks and some gold, which, they had brought as a present from Guacanagari, the cacique. Being asked concerning the Christians, they said some had died of sickness, and that others had gone up the country, along with their wives. The admiral much feared that they were all dead, yet thought it prudent to conceal his fears, and sent back the Indians with some brass baubles, on which they place great value, and with other toys as a present for the cacique.

Next day the whole fleet entered the port of the Nativity, where they found the fort burnt, on which it was concluded that all the Christians were dead, and the more especially as none of the Indians appeared. Some things which had belonged to the Spaniards were found scattered about the place, which gave a melancholy indication of what had actually happened. Columbus caused a well which had been dug in the fort to be cleared out, but nothing was found there. All the Indians had fled from their houses, in which some of the clothes were found which had belonged to the Spaniards. They discovered seven or eight men buried near the fort, whom they knew to have been Christians by their clothes. While employed in this distressing search, a brother of Guacanagari and some other Indians made their appearance, who spoke a little Spanish, and who were able to name all the men who were left in the fort: From these men, by the help of one of the Indians who had been in Spain, called James Columbus, they received an account of the disaster which had befallen the Christians of the Nativity. They declared, "That, as soon as the admiral departed, the Spaniards disagreed among themselves, refusing obedience to their commander, and went about the country in a disorderly manner, seizing women and gold from the natives. That Peter Gutierrez, and Roderick de Escovedo, killed one of the Spaniards, named Jacome; after which they went off with their women and goods to the district of a cacique named Caunabo, the lord of the mines, who killed them all. That soon afterwards Caunabo came with a great number of men to the fort, in which there were then only James de Arana, and five others. That Caunabo set the fort on fire during the night; and those few who were in it, in endeavouring to escape to the sea were drowned. That all the rest of the Spaniards had dispersed into different parts of the island. That Guacanagari went out to fight against Caunabo in defence of the Christians, and was severely wounded, being still ill of his wounds." All this agreed with the intelligence brought to the admiral by some of the Spaniards, who had been sent in search of information, and who had seen Guacanagari at his place of residence, finding him ill of his wounds, which he urged in excuse for not waiting on the admiral.

From all that could be learnt, it appeared there had been divisions among the Christians, which had originated in the disobedience of the biscainers, and that they would not have miscarried if they had obeyed the orders left by the admiral. Guacanagari sent a message to the admiral, requesting a visit from him, as he was unable to go abroad on account of his wounds. The admiral did so, and the cacique, with a melancholy countenance, gave him a recital of all that has been already said, shewing him his wounds and those of many of his men, which plainly appeared to have been made by the weapons used by the Indians, being darts pointed with fish bones. When the discourse was ended, the cacique gave the admiral 800 small stone beads, called cibas, on which the Indians set great value; likewise 100 gold beads, a crown of gold, and three little gourds or calabashes, called ybueras, full of gold in grains; the whole weighing about 200 pieces of eight. The admiral presented him with several glass toys, knives, scissars, hawks-bells, pins, needles, and small mirrors, which the cacique considered as a rich treasure. He attended the admiral to his quarters, and was astonished at the sight of the Spanish horses, and at seeing the way in which these animals were rode and managed. Some officers of the expedition, and even Friar Boyle, advised that Guacanagari should be secured, till he had cleared himself in a more satisfactory manner from having a concern in the death of the Christians who had been left in his country. But the admiral was of a different opinion, conceiving it very improper to use severity, or to go rashly to war, at his first settling in the country; meaning first to fortify himself and establish the colony on a permanent footing, examining more accurately into the matter gradually, and if the cacique were ultimately found guilty, he could be punished at any time.

The admiral was full of perplexity how best to give a good beginning to the great object he had undertaken; and though the province of Marien, in which he had formerly built the Nativity, had good harbours and excellent water, it was a very low country, in which stone and other materials for building were scarce. He resolved, therefore, to return along the coast to the eastwards, to look out for a more convenient situation in which to build a town. With this design, he sailed with all the fleet on Saturday the 7th December, and anchored that evening near some small islands not far from Monte Christo, and came next day to anchor close to that mountain. Imagining that Monte de Plata was nearer to the province of Cibao, in which he had been told the rich gold mines were situated, which he fancied to be Cipango, he was desirous to draw near that part of the island. But the wind proved so adverse after leaving Monte Christo, that the men and horses became much fatigued, and he was unable to reach the port of Garcia, where Martin Alonso Pinzon had been, and which is now called the river of Martin Alonso, being five or six leagues from Puerta de Plata. Under these circumstances, he was forced to turn back three leagues to a place where he had observed a large river discharging itself into the sea, forming a good harbour, though open to the north-west. He landed at an Indian town on this river, and found a delightful plain, some way up the river; at which place the river could easily be drawn out in trenches or canals, to supply his intended town with water, and might even be applied for the erection of mills, and all other conveniencies. He therefore determined to build a town on this spot, and ordered all the men and horses to be landed. To this place, which was the first colony established in the West Indies, he gave the name of Isabella, in honour of the queen of Castile, for whom he had extraordinary respect. Finding abundance of stone and lime, and every thing he could wish, and the land around being exceedingly fertile, he applied himself diligently to build a church, magazines, and a house for himself, all of stone, the others being of timber covered with thatch, every person being allowed to build according to his own fancy and ability; but the plan was regularly marked out in streets and squares.