Full text of "Report on the Federated Malay States and Java; their systems of government, methods of administration, and economic development"

0= 190 6.

5=; THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALLl

REPORT

THE FEDERATED MALAY STATES AND JAYA;

TUEIE SYSTEMS OF GOVERNMENT, METHODS OF
ADMINISTRATION, AND ECONOMIC DEVELOPMENT,

SENATOPv THE PIONOEABLE STANIFORTH SMITH.

Presented by Command ; ordered by the Senate to be printed, 20th June, 1906.

Printed and Published for the Government of tlie Commoito-ealth of Acste.\ua by J. Kemp
Acting Government Printer for the Stjit« of Victoria. '

No. 32.— F. 6615.

1906.

THE PAIlLLyiKNT OF THE COMMONWEALTH OF AUSTRALU.

REPORT

THE FEDERATED MALAY STATES AND JAVA;

THEIR SYSTEMS OF GOVERNMENT, METHODS OF

ADMINISTRATION, AND ECONOMIC DEVELOPMENT,

SENATOE THE HON OH ABLE STANIFOHTH SMITH.

Presented by Command ; ordered by the Senate to he printed, 20th June, 190G.

[Cost of Paper. — Preparation, h(7 ; D^to copies; approximate cost of printing; and publishing, £55.]

Printed and Puljlished for the (iovEUNiiKNT of the Commoxweai.tii of ArsTr:Ai,iA by J. Kfmp,
Acting Government J'rintcr for t!ie State of Victoria.

No. 32.— F.6615.

■r^

CU.N TENTS.

iN'ritonucTORV.

PART I.

Pa««.

THE FEDERATED MALAY STATES.
The System of Government, Mictikjus ok Auministkatiox, and Economic l>KVKr,oi'MENT.

CHAPTER I.

GOVERNMENT'AND LEOISI.ATrOW.

System of (ioverniiiLiit - MeLluul of Legislation —Taxation — Revenue and Expenditure — Land Laws —

Mining Laws .. ... ... ... ... ... ... ... ... ... 7 11

CHAPTER II.

Administration.
Administrative Civil Service —Clerical Service — Classification — Departments — Police and Military ... 11-15

CHAPTER III.
Economic Conditions.

Character of Country — Soils —Climate — Population — Diseases — Labour Sujiply .. ... ... ... 15-20

CHAPTER. IV.

Development.

General Development- -Live Stock — Agricultural Development — Mineral Development — Principal Exports 20-26

CHAPTER V.

Plant.\tion Industries.

Rubber — Coconuts— Sugar — Rice — Coffee — Tapioca — Pepper — Gambler — (jutta Percha — Indigo — Nutmegs
— Kola Nuts — Sago — Camphor — Cotton — Kapoc — Tea — Maize — Fibres — Ramie — Murva — Sisal Hemp —
Manilla Hemp— Drugs — Bael Fruit — Kosam— Coca — Castor Oil — Cassia Alata — Sarsaparilla — Ginger —
Bamboos ... ... ... ... ... ... ... ... ... ... ... 26-40

PART II.

JAVA.
TuE System of Government, Methods of Administration, and Economic Development.

CHAPTER VL

System of Government and Methods of Lec:isl.\tion.

Area and I'ojiulation — System of Government — Central Organization — Provincial Government —Native

Organization — Method of Legislation ... ... ... ... ... ... ... ... 40-44

CHAPTER VIL

Lemsl.^tion and Administration.
System of Taxation — Revenue — Expenditure — Land Laws — Civil Service ... .. .. ... 44-48

CHAPTER VIII.

Economic Conditions.

Climate — Soils — Native Labour — Transportation — Education — Defence — Hospitals — Live Stock .. ... 49-52

CHAPTER IX.

.\ciRicuLTrRAL Development.

Comparison between Java and Papua — Area Cultivated — Value of Exports — Botanical Gardens —

Laboratories — Museums and Other Institutions — Technical Periodicals ... ... ... .. 53-56

CHAPTER X.
Pi,ANT.\TioN Industries.
Sugar— Cacao —Tobaooo— Cinchona — Vanilla— Citronella Grass -Cloves .. ... ... .. 56-61

PART III. ''"^•'

PAPUA.

A Summary of the Policies and Methods of Devf.lopment of the Federated Malay States,
Java, the Solomon Islands, and the German Possessions in the Pacific, so far as they are

APPLICABLE TO THE TERRITORY OF PaPUA : TOGETHER WITH OTHER SUGGESTIONS KEfiARDING ITS

Administration and Development.

CHAPTER XI.

A Policy' of Develop.ment.
Methods Suggested — Industries we should Cultivate — Experimental Stations and Nurseries — Land Laws ... 62-66

CHAPTER XII.

Our Policy Towards the Natives.

Safeguards we should Adopt — Native Labour Supply -Native Prison Labour — Tlie Education of t)ie
Natives — Coconut Planting lij- Natives

6G-69

APPENDIX.
Bibliography ... ... ... ... ... ... ... ... .. ... ... 70

General Index ... ... ,. ... .- ... ... .- ... .- ... 71

INTRODUCTION.

Ill f'oiiipliaiice witJj tlie request of the Prime Minister I liave preprared a Report
on tlie Systt'ins (i('(i(>vennii('nl, Met hods oCAdiuiiiistratioii, ami Kconomie Development
of the Federated .Malav States and .lava.

During- th(! months of Fehruarv, Mai'cli and A|)i-il, of this year, I visited these
countries, and in my <j,(>neral inv(^stI^•ation devoted p.-irtirular attention to those
Plantation Indnstries tiiat, in the opiidon ol" the highest authorities, were suital)le foi'
immediate cultivation in our Territory of Papua. A chapter has been devoted to
the Avell-oro,;un"zed and efficient Civil Service of the Malav States, descrihinu- in some
detail the Classitication, Departments, Entrance Exanunations, Salaries, Retiring-Age
and Pension System, in the hope that it may be of assistance in re-organizing the
Civil Service of Papua. T have been most carofnl not to bui'den my Report with
administrative details and dilliculties concerning those Possessions, that have only a
local application, nor have I clogged my pages with any detailed particulars regarding
certain vahiable plantation industries whicdi are suitable so far as the cdimate and soil of
Papua are concerned, but which recjuire (a) skilled labour in the production or
preparation of the product ; (6) the investment of a large amount of capital in ]dant
and machinery ; or (c) necessitate the inauguration of irrigation schemes for their
cultivation.

In other words, I have endeavoured to make my Report thoroughly practical
and as concise as the many difficult problems in tropical administration and
development would permit.

I desire also to place on record my appreciation of the great kindness and
courtesy I have experienced both from the British and Dutch autliorities thi-oughout
the whole of my investigations, which I ascribe to the very i'riendly feeling they
entertain towards our young Commonwealth. The Director of Agriculture for the
Federated ]\lalay States, and the curators of the various botanical and experimental
gardens were requested to supply me witn all particulars regarding horticultural
development. I was everywhere met l)y Government officials who drove me out to
the plantations and introduced me to the leading planters. During the course of n\y
investigations in the Malay States which extended over five weeks, I travelled more
than one thousand miles through the jieninsula, and inspected everv plantation
industry in the Protectorate. From the Malay States I extended my visit to Java.
His Excellency the Governor-General was good enough to personally interest him-
self in ray mission, and issued instructions to the Directors of the various Departments
to supply me with Avhatever information I required regarding the Government and
industries of Netherlands India ; a similar covirtesy was also extended to me at their
various magnificent Botanical Gardens, and in every part of Java to which 1
travelled.

If my Report proves of value in forming the basis of a developiucntal ])oIicy in
Papua, it must be ascril^ed largely to the exceptional sources of information that ^vere
laid open to me. While it may appear invidious to single out any one in the adminis-
trative service for special thanks, I caiuiot help expressing my great ()l)ligations to
the Director ot Agriculture for the Netherlands East Indies, and Curator of the great
Botanical Gardens at Buitenzorg, in Java. Dr. Treul) is perhaps the greatest living
authority on tropical agriculture, and the intbrmation and advice he aftbi'ded me were
of the greatest value.

I have endeavoured throughout my Report to preserve the strictest accuracy iu
the large amount of information I have collected. On all subjects of special
importance, I have submitted my notes to experts, and the sources of my information
have invariably been of the most trustworthy nature.

If the information in this Report, which iu its collection aiul compilation has
occu])ied my undivided attention during the last four months, proves of benefit to the
Commonwealth and assistance to our new Possession, I shall feel amply rewarded for
any time and trouble I have expended in its production.

(Signed) STANIFORTH S:\IITH.

The Senate,

Melbourne, 11th June, 1906.

PART 1.

Hintorical.

THE FEDERATED MALAY STATES.

GOVKHNMENT ADMINISTRATION AND ECONOMIC DEVELOPMENT.

CHAPTER r.

Government and Leglslation.

Historical — System of Goveriiniont — Method of Administration — Taxation —
ii'evemie and Expenditure — Land liaws — Minino- Laws.

The Federated Malay States are the "Hinterland" of the Straits Settlements.
They comprise what were formerly the independent Native States of I'erak, Selangor,
.Negri Send)ilan, and Paliang. These countries stretch rigiit across the Malay
Peiunsula, and are bounded on the north l)y certain Malay States under tiie protection
of Siain, and on the south by the territory of doliore. The total area is approxi-
mately 26,000 scjuare nules, or a little more than one quarter the size of Papua.
In 1874 a Ijritisli Resident was appointed to the State of Perak, and from this centre
British influence gradually spread until by 1888 protection had been extended to the
remaining three States. A new ])hase was entered upon in July 1895, bv the
execution of an agreement, between the Lnperial Authorities and the Sultans of the
four States, by which these territories were combined in a Federation to be adminis-
tered under the advice of a Resident General, in addition to the four British Resi-
dents in each State. The Sultans further agreed to render one another such
financial and military assistance as the British Government might advise.

The Federation differs from all others in the fact that it has no federal Laws. Law^!**"*'
Each State makes its own laws (which are previously sanctioned by the High Com-
missioner), and collects and expends its own revenue. The reason for this appears
to 1)0 that the Sultan is nominally paramount in each State, and the British residents
are nominally his advisers, and nothing is done to offend the susceptibilities of the
Sultans oi- to deti'act from their pomp and outward power.

All I>aws in the States begin : — "It is hereby enacted by His Highness the
Sultan-in-v ouncil as follows." Actually all laws are drafted by the British, and their
enactment is little more than a formal but necessary corollary.

Central Organization.

The Governor of the Straits Settlements also holds the office of High Com-
missioner for the Federated Malay States. Under him is the Resident General who
lives at Kaula Lumpui-, the local seat of Government. He is the principal civil
Officer in the States, and in him is vested the general direction of affairs. He is
assistetl i)y a Staff of Federal ( )fficers, who control the following Federal Depart- Federal
ments: — Finance, Lands antl Mines, Police, Prisons, and Education. The Fedei'al ''^p"*"*"'^
Statt' also includes the Secretariat, the Judicial Commissioner, in whom is vested
the supreme judicial authority, the Legal Adviser, the Commandatt of the Forces,
the Conservator of Forests, the General Manager for Railways, the Director of
Public Works, the Director of the Institute for Medical Research, and the Director
of Agriculture.

Provincial Administration.

I'^nder the Resident General are four British Residents, one for each State. British
Their duties are numerous and important, comprising administrative, judicial, and '''""''°'''
fiscal functions.

Each State is divided into five or six Districts, with a District Officer (and
sometimes one or two assistants) at the head of each, who are immediately responsible
to the British Resident. In a ^aw instances the District Officers are Malays of high
fanuly. Assisted by various civil servants, these Officers constitute the Provincial
Administration. With '(qw exceptions they represent the various Federal Depart-
ments in the States, and supervise the prisons, direct the sanitation, and collect the
taxes.

District Officers.

Sultans.

Penghulu.

Katuah.

Ecclesiastical
Hierarchy.

Kathi.

Native Okganization.

It would be impossible to carry on all the administrative aud judicial work of
Government with British Officers unless at an expense that would ci-ipple the
finances. The British administration has therefore been superimposed on the lower
strata of the native organization. The Sultans and Territorial Chiefs have been brushed
aside, except as regards their functions on the Council.

The Penghulus or Native Magistrates are the connecting link Ix'tween the
British Official and the raiat. They have either been trained in the Civil Service or
are leading men in the State. Their duties are manv, and their services indis|)e)isable-
Tliere are from 40 to GO in each State. The duties they undertake relate exclusively
to the natives. They have no jurisdiction over Europeans. They advise the people
of the ref|uirenients of the Government, and see that the law is carried out. They
either collect the rent from the native lease-holders or assemble them together at;
stated periods to enable the District Officer to do so. They report on the native-
applications for land, see that the natives plant rice (their staple food) annually, and'
in the method prescribed. If a native neglects his holding and allows the jungle to
grow up, they advise the District Officer, who installs another man, who can take off"
one paddy crop without paying rent. They hold Petty Courts, and can hear all
native claims for debt where the amount does not exceed 10 dollars (in Fahang
25 dollars).

They are assisted by the " Katuah " or Elder of the Village (who coi'responds
with our village constable in Papua) in all these multifarious duties.

Besides the Civil British and Native Courts there is an Ecclesiastical Hierarchy,
at the head of which is the Sultan. The chief " Kathi " or priest, assisted by other
"■ Kathis," holds courts to tiy cases connected with marriage, divorce, inheritance,
breaches of Mohammedan Law, etc. They are empowered to adjudicate in cases
regarding the division of property up to £15 ; and to inflict fines as high as £1 5s.,
and imprisonment not exceeding one month. Assistant " Kathis " can impose tines
up to 12s., and imj^risonment for fourteen daj's. A more serious offence, or
important litigation under these heads, is tried by a British Magistrate.

Conference ot

British

residents.

State Counciip

Sultans.

Legislation.

A Conference of British residents presided over by the Resident General is
held at least twice a year at Kaula Lumpur, andoftenerif necessary, to discuss Legis-
lative and Administrative matters. At this Conference various Bills drafted by the
Legal Adviser are submitted and discussed. By this means certain State Laws —
where unity of action is essential — are prepared and subsequently passed by all the
States in exactly similar language, thus practically constituting Federal Laws. In
the year 1901 lOi enactments Avere passed (Pei'ak 29, Selangor 27, Negri Sembilan
27, Pahangl9), of which 42 were enacted in similar terms in the whole four States.
Thev dealt with Sanitary matters, Mohammedan Lnw, Probate Administration,
Criminal Procedure, Police Pensions, Import and Export Duties, Naturalization,
Indian Immigration, and J.,and, Mining, and Pailvvay matters. After the Conference
has adoptedor amended the Bills submitted by the Legal Adviser, they are finally
re-drafted ami a])prove(l by tin- High Commissioner. The Jiills are then forwarded
to the British Residents who submit them to the State Councils. The members,
twelve or more in number, constituting the Council, are the Sultan, who as ruler,
presides, the British resident, the Secretary to the Resident, where such an office
exists, the Principal Malay Rajahs or territorial chiefs, one or more influential
Chinese- citizens, and one or more non-official British citizens. The enactment of the
laws l)y the State Council is merely a formal though necessary proceeding, as
alteratio.ns are seldom if ever made in them at this stage. This method is necessary
so that the 3iiprem(! power will nominally rest with the Sultan, as the States have
not been annexed hut are only under the ju'otection of Great Britain. ;\fter the
Bills have been passed they are sent to the Secietary of State for the Colonies for
final approval.

The Sulfa ''^ '"*^ l*"^'' ''- ''^'^ ijritish from £4,250 to £7,000 a year, and the
Rajahs from £150 r ^ £L400 a year. These are conumited allowances in lieu of
certain ri'dits and t M which they relin(|uished at the desire of the P)ritish authori-
ties. The Sultans -i ! o, '"^^ "* *'''^' "■^'U'*'''''^ have private estates from which they
draw a large revenue.

H^.

System of Taxation.

Tlic sjstein of tuxiition in the Federated Malay States is peiliaps unique.

In respect to Custom taxation, there is free-trade in imports, and there are ciwtom datie«.
duties on most of tlie e.xports. The only direct taxation is in the farming out Direct taxation,
of the gamljling and ])a\vnl)n)king concessions. In its ])ractical application ncarlv
the whole of the taxation is paid by the Cliine.se section of the population.
Four-fifths of the export duties are paid on tin, and the tin mines are diiefiv owned Tin,
and entirely worked l)y Chinese. The taxation derived from spirits, opium and spintx, opium,
gambling is also principally paid by the Chinese, as the Malay, being a Mohiunmedan. '"^ "^
does not drink intoxicants nor smoke opium.

There is an import duty of 8s. ;ki. a pound on opium, and on spirituous
liquors 7s. per case of 1") bottle.". From spirits made from rice, sugar and ragi,
5(1. ])er (piart ; on vermouth, 2.U1. per quart ; on toddy, .^d. a pint. These duties
vai'y slightly in the State of Fahang. No duty is imposed on tobacco. Tobacco.

The selling prices of the above imports are fixed ])y the Government. Everv
year tenders are invited for the right to collect the duties on each of these articles.

The successful tenderers- arc invariably Chinese, and their tender for the opium tam.
opium concession is usually about £268,000 a year

The exjiort duties range from 1 per cent, to 10 per cent. No export duty Export duties
is charged on coft'ee if the selling price is less than 4d. a pound.

When the value of alluvial tin is from £10 17s. to £11 4s. per bhara (400 lbs.) tiu.
the export duty is £l 3s, 4d. per bhara. For each ri.se of 7s. per bhara above
£11 4s. and up to £13 6s., the duty is increased 7d. per bhara, and when above
£13 Gs., the duty is increased Is. 2d. for every rise of 7s.

On lode tin tlie duty is one-half the current rate on alluvial tin with a
minimum duty of 5 per cent, ad valorem. On tin ore the export dut\ is 70 ])cr
cent, of the duty on tin.

On gold, the export duty is 2k per cent., and on wolfram, 7s. per 400 ll)s. ooMaud

The Estimated Revenue for 1906 is £2,770,414 obtained from tlic following """
sources : —

Land Revenue (exclusive of Premia on Leases)... ... £101,175

Customs (including £1,018,6()6 export duty on tin, and

£290.882 import duty on opium) " ... ... 1, ,'504.1)70

Poi-t and Harbour Dues ... ... ... ... 2,27G

Licen.ses (including Opium Selling Licenses) ... ... 553,467

Fees of Court or office ... ... ... ... 52,981

Literest on Surplus Revenue Iii vestments ... ... 54,388

Federal Receipts (Railways £482,353)... ... ... 607,281

Miscellaneous Receipts ... ... ... ... 2,805

Alunicipal Assessments and Lighting ... ... ... 72,508

Premia on Agricultural Land ... ... ... 7,G98

Premia on Mining Leases ... ... ... ... 10,865

wolfram-

£2,770,414

The Estimated Expenditure for 1906 is £2,437,8al, the details of which are :—

Personal P^moluments ... ... ... ... £591.925

Other Charges ... ... ... ... ... -111,871

Pen.sions and Retiring Allowances ... ... ... 34,838

Transport ... ... ... ... ... 6,-^94

Interest ... ... ... ... ... ... 3,365

Miscellaneous Services ... ... ... ... 39,342

Purchase of Land ... ... ... ... ... 2,471

Expenditui-e under Volunteer Enactment ... ... 1,097

Works and Buildings ... ... ... ... 288,241

Roads, Streets and Buildings... ... ... ... 457,742

Irrigation Works ... ... ... ... ... 18,955

Railways ... ... ... ... ... ... 581,590

£2,437,831

ubii," Works. ft is wortliy of notice that in Piil)lic Works and M.-unteiiance £1,340,528 is to

be sjjent — a sum equal to nearly 60 per cent, of the total revenue. So large a
percentage of revenue spent in public works is probably unequalled in any part of
the world.

Malay
Land Laws.

Women's
Property Law.

Perpetual
Leases.

Improvement
cja'iitioni.

Rentals.

Rentals too

Ite-TaliiatioD.

I'.'i]>ua.

Land Laws.

According to the old jMalay law the people owned no land, but only the things
on it. All the land belonged to the Sultans. The Eajalis, or territorial chiefs, col-
lected the rents within their jurisdiction and jtaid tribute to the Sultan. They were
also obliged in time of war to turn out a stated number of fully equipped soldiers for
the use of t!ie Sultan — like the old feudal barons of England. The only exceptions
to this general rule were in the ca.se of important chiefs wiio owned large estates on
which they paid no rent, and in the State of iS'egri Seml)ihin where certain ancestral
lands Ijelonged to native families.

These lands are held exclusively by the women, who are entitled to their use
and occupation from generation to generation rent free, so long as they cultivate
them. l)ut if liie land remains out of cultivation for three years it reverts to the
Sultan, and the family loses it irrevocably. So jealously were the property rights of
the women I'egarde.l, that if a native from another State settled in Negri Sembilau
and married a woman there, in the event of her subsequent death, he could only claim
half the property that had l^een acquired since their marriage.

The British Government has wisely decided to continue the perpetual lease
svstem, with the result that not a single acre of land has been alienated in fee simple,
and the Government is in possession of an ever increasing rent roll, ili-awn both from
the native raiats and the planters.

The whole of the cultivated land (with the exception of certain vested rights
existing when the protectorate was proclaimed) is held under perpetual lease, subject
to certain improvement conditions and rights of reassessment.

The lease stipulates that at least one-twentieth of the land must be cultivated
progressively each year for five years ; at the end of that ])eriod one-fourth is under
cultivation, and such a ))roportion must remain cultivated during the existence of the
lease. If the economic plant grown is an annual — such as rice and tapioca — the Go-
vernment will resume the lease, provided the land is left uncultivated tor four years.

The leasehold land is divided into two classes according to its value, which is
appraised with respect to its fertility and accessibility.

For Hrst-class land a jiremium of 7s. an acre has to be paid as soon as the lease
is granted, and for the first six years the rental is 2s. 4d. an acre, and 9s. 4d. an acre
afterwards. For second-class lajid a premium of 4s. 8d an acre is charged, M'ith a
rental of 2s. 4d. an acre for the first six years, and 7s. an acie afterwards. The loAvcr
rental for the first six years is to enable planters of rubber and coconuts to tide over
the six lean years that must elapse before their trees are revenue producing.

Personally. I am inclined to thiidc the rentals and survey fees are too high, in
spite of the fact that aj)pl!cations for leases are pouring in from all parts. The
tendency appears to be to monopolize the planting lands in the hands of wealthy
capitalists and svndicates, to the exclu.sion of the smaller man. if small holdings
were l)eing taken up it would necessitate a much hirgt'r white ])oj)ulati()n, which
Avould l)e of a;reat advantage to the administration. For native ami other holdings
under ten acres in area the rentals are as follow : —

First-class — Is. 9d. to 78. 5d.,
Second-class— Is. lOd.,
Third-class — Is. 5d.

and no iiremium.

At the end of 30 years the Government has the right to re-value the land,
and increase or decrease the rental as they think fit, provided it is computed on its
unimproved value.

A very similar policy to this I have long advocated for I'apua, viz : — A per-
petual lease at a peppercorn rental for say ten or fifteen years, .-ind thereafter sul)ject
to re-valuation at stated |)eriods on the unitn|»i'oved or scrub value of the land. The
Federal (Jovernmeiit having decided to adopt the leasehold system, it is to lie hoped
that the local authorities will concede the longest tenure ])ossible, subject to le-ap-
praisenients on the unimproved value.

An ap])li('iint ciui take up any area in reason, sulyect to tlic consent of the Appiicationn for
British Resident, and snl)iect to any existing rights. If there are any native hohJings
in the area applied for they are excised l)etore tlie lease is granted.

All a])plicati<)ns for land are made to the District l.and OlHce. The District
Officer lias power to giant ap]dications up to 10 acres ; if the area afiplied for is larger
than he has jiovver to deal with, Ik; refers it to the British liesident, who has p(<wer to
grant a lease up to C)4() acres. If the area exceeds 640 acres it is referred hy the
British Kesiilent to the liesident General. In I'apua every application for a lease, p«p"»-
however small, has to he referred to the Executive Council at Port Moreshv. This
extreme ccntrali/.Mtion, and cons!'(|iient delay owing to infre(|uency of cfimmiiiiication,
has resulted in stopiting developnii'iit in I'apua.

The area of land held under lease for agricultural iiurposes in the Federated ArMofiand

o I I under

Malay States at the end of IDOt was 584,811 acres, and for mining pur|)i)ses .'513,786 "^n^'ion.
acres, or 1-llHli of the tDtal area of the States.

All town and village lots are sold by auction. The price oti'ered for the allot- towdioIs.
ment constitutes a premium, which is paid over to the (ilovernment, the annual rent
paid for the allotments being I percent, of the premium ])aid. The reserve premia
are fixed by the Resident. In addition a commission has to be paid, ranging from
I per cent, to 5 per cent., according to the premium bid.

Survey Fees.

The Goveruiiieiit survey fees are fixed on a graduated scale, according to the
acreage -•

£
For 5 acres and under ... ... ,... ... I

For 1 00 acres ... ... ... ... ... 1 .j

For 1000 acres ... ... ... ... ... i)6

For 10,000 acres ... ... ... ... ... 516

In addition to the survey fee, a fee of Is. 5d. is charged for each boundarv-mark
inserted, The prepiration of the grant or lease costs 4s. 8d.

The Mining Laws.

Mining leases are obtained either by auction, tender, or selection. The reserve
price on lands to be disposed of liy auction or tender is fixed by the Resident, and
the premium paid on State land so disposed of is ordinarily the price l)id or tendered.
When land for mining is obtained by selection the premium charged is £1 .^s. 4d. per
acre. The annual rent of the mining lease is fixed at 2s. 4d. an acre. The term of
of the lease does not usually exceed 21 years, except in the case of special concessions,
where a large outlay of capital is necessary. The leases are forfeitable unle.ss the
conditions imposed by the Government are fulfilled, the chief of which are continuous Labour
working and the employment of an adequate labour force. Full information regardino-
these are set out in the Federated Malay States mining enactment l8'JU. Intending
lessees of mining land can obtain prospecting licenses over defined areas for a stated
period, which enables them to obtain an option of the area while the ground is beino-
tested.

conditions.

CHAPTER II.

Administration.
Administrative Civil Service —Clerical service — Departments — Police and ]\Iilitarv.

The Administr.\tive Civil Service.

All cadets, before they are apiiointed, have to pass the Civil Service Commis- Examinations,
sioners' Examination in England, and are selected for Hong Kong, the Straits Settle-
ments, the Federated Malay States, and Ceylon, after those required for the Imperial
Civil Service have been chosen.

Cadets also have to pass within a prescribed period an examination in one of
the three local languages, Malay, Tamil, or Chinese, and also an examination in law.
If they pass in more than one language they are entitled to an increased emolument.
Those who are instructed to study Chinese, or Tamil, are sent to China or India, as the
case may be.

Ketirement at the age of 55 is optional, at 60 compulsory. ^e^^eLnt

PeD«ioa8,

If ail officer is jiermaueiitl}' injured in the actual discharge of his, (luty so tiiat
his capacity to coutrilmte to liis support is desfroyed, he receives a pension of one-
third of his salai'v.

After ten years (if liis healtli breaks down) he is entitled to a pension of
15-60ths of his salary (5-(i0ths lieing added for climate allowance) ; for every year's
service after that l-6bth is added up to :]5 years' service. Tiie r.-.aximum pension he
can draw is two-thirds of the highest sahiiy earned, exclusive of allowances.

The selection of officers possessed of professional qualifications rests with the
Secretarv of State for the Colonies.

staff
Appointments.

The Staff Appointments (five in nuniher) are as follow :-

Resident General of tiie Federated Malay States ...
Resident, State of Perak

„ ,, Selangor

,, ,, hegri Sembilan

Pahang

£•2,260
1,G00
].40()
1,?,00
1,300

Classification of
Adminirtrative
Service.

In addition to these salaries the Resident General receives an entertainment
allowance of £240 a year, and the Residents each an allowance of £120.

Cfass I. — In this class there are six officials, the Federal Secretary, the
Leoal Adviser, the Financial Commissioner, the Conimissioner for
Lands and Mines, the Secretary for Chinese Affairs (all of whom
receive £1,200 a year), and the Commissioner of Police at £1,020 a
year.

Class II. — There are ten officials in this class, including the Secretary
to the Resident of the State of Perak, the Senior Magistrates for
the States of Perak, Selangor and Negri Sembilan, tiie Chief
Auditor, the Senior Warden, the Director of Post and Telegraph
Department, the Inspector of Schools, and two District Officers.
Their salaries range from £7.S0 to £ 1,020 a year.

Class III. — Seventeen officials, including the Secretary to the High
Commissioner, eight District Officers, three Deputy Commissioners
of Police, the Protectors of Chinese, and other officials connected
with the collection of Revenue and Sanitary Boards. Their salaries
range from £660 to £780 a year.

Class IV. — Twenty-eight officials, including twelve District and Assistant
District Officers, with Salaries ranging from £.^40 to £600.

Clas.s V. — Twenty-four officials, including eleven District Officers with
salaries ranging from £420 to £480.

Class VI. — Twenty-five officials, including fifteen Assistant District
Officei's with salaries ranging from £350 to £400.

Classification of
Clerical Senicc,

of the Federated Malav

The Clei{icai> Skuvice.
The api)ointments to the Clerical Civil Service
States are divided into the following classes : —

Special Class. — Four appointments, to be increased later to six, £254 to

£282, liy annual increments of £14.
Class I. — Sixty-five appointments, £141 to £212, by annual increments
of £14, and after tluve vears' satisfactorv .service from £212 to
£22G.
Class //. — 145 appointments, £100 to £K)4, liy annual increments of £7.
Class III. — £50 to £85, by annual increment of £7.
A])])ointi)ients in Classes I. and II. are on the pensionalile estaltlishnient,
and oflicers in Class 111. will come on the jiensionable establishment on reaching
the maximum salary of £85. Every apjilicant for a C'lass 111. clerkship must be
over 16 and under '2?> years of age, must be of good chiiracter, and niiist have passed
the Government Seventh Standaril Examination in the Federated Malay States or the
Straits Settlements. He may also be called upon to pass an entrance examination to
be set bv the Federal Inspecfor of Schools. Vacant .•ippointmcnts in Class ill. are:
given to those who have passed these examinations by selectioii., and not necessarily

accordino- to tlic'if position 111 tlif list ()!' candidates. A clerk i> not elij^ilde for pro-
motion to Class 1. unless lie lias passed tin; Senior Cloncal Examination, and no clerk
in Class III. is eligible tor Class U. until lie lias passed the Junior Clerical Ex-
amination.

Junior Cleiucai- Examination.

The following are the subjects in Avhicli a clerk must have parsed before
becoming eligible for promotion to Class II : —

1. Copying manuscript, e."-., draft or minute.

2. Typewriting.

3. Knowledge of such General Orders as are ajiplicable to all Depart-

ments.

4. Knowledge of the terms and contractions used in Official correspon-

dence.

Senior Clerical Examination.
This embraces the following subjects : —

1. Englisli composition, especially drafting a letter.

2. Knowledge of the General ( )rders.

3. General knowledge (this examination is partly viva voce).

4. Docketing, tabulating, and indexing,
f). The keeping of simple accounts.

In promotions consideration is given to merit as well as seniorit\'.

Departments.

The follovi^ing are the principal Departments, with the salaries of the chief
officers: —

Affricnllural Department.

Director of Agriculture and Government Botanist, salary, i'800.
Inspector of Coconut trees, salary, £4'20.

Superintendent Experimental Plantations, maximum salary, £420.
Superintendent Government Plantations, salary, £2 10.
It is intended to supplement these officers by the appointment of an AotI-
cultural Chemist and an Il)ntomolooist.

Education Department.
Inspector of Schools, maximum salary, £900, with a stafF of State and
Assistant Inspectors draw'ing salaries ranging from £3.50 to £480
a year.

Forest Department.

Conservator of Forests, maximum salary, £1,200, assisted by a staff of
technically and non-technically trained officers, classilied as Deputv
Conservatoi's, Assistant Conservators, and Kano-ers.

Geological Department.
Government Geologist, salary, £800.

Indian Immigration.

Superintendent of Immigration and Protector of Labour, salary, £l,000.
Assistant Superintendents in the various States, salaries, £350 to £600.

Institute for Medical Research.
Director, salary, £800; two assistants, salaries, £360 to £420.

Marine Department.
Three Harbor Masters and Engineers, salaries, £210 to £480.

Medical Department.

Four State Surgeons, salaries, £480 to £840; Senior District Suro-eon
House Surgeon, sixteen District Surgeons, salaries, £350 to £480 ';
31 Assistant Surgeons and Apothecaries, salaries, £100 to £150 '
four Veterinary Surgeons, £120 to £480.

Lands and Mines Department.

Commissioner of Lands and Klines, salary, £1.200; Senior Warden ttC
Mines, niaxinnun salary, £1,020; two Wardens, salaries, £540 to
£G60; fonr Assistant Wardens, salaries, £4 20 to £.j40; Inspeetors of
Mines and Boilers, salaries, £240 to £420.

Treasurii.
Financial Commissioner, salary, £1,200.

Museimis.

Director, maximum salary, £540.

2 Curators, salaries, £240 to £300.

2 Ta.viderniists, salaries, £210 to £240.

Police Department.

Commissioner of Police, £1,020.

4 Assistant Commissioners, £350 to £780.

42 Probationers and Inspectors, £180 to £350.

Post and Telegraph Department.

Director of Post and Telegraph Department (maximum salarv), £900

4 Superintendents, £540 to £600.

Postmasters, Accountants, Inspectors, £150 to £510.

Printing Department.

Superintendent (maxinuun salary), £540.
Assistant Printers, £240 to £360.

Prisonb' Department.

5 Gaolers, £210 to £300.

2 Chief Warders, £210 to £240.

32 European Warders, £110 to £215.

Piiblic Works Depurtmod.

Director of Public Works, £1,200.
4 State Engineers, £780 to £900.
22 Executive Engineers, £480 to £780.
20 Assistant Engineers, £860 to £480.

6 Clerks of Works, £240 to £300. ■
Draughtsmen and Inspectors, £150 to £210.

Revenue Survey Department.

4 Superintendents of Revenue Survey, £480 to £660.
15 District Surveyors, £420 to £480.
18 1st grade Surveyors, £330 to £420.

18 Assistant Surveyors, £120 to £240.

19 Draughtsmen, £150 to £420.

I'rignnometrical Survey Dep(trtinent.

Director of Surveys (Chief Surveyor), £840.
Assistant Surveyors, £360 to £540.
Draughtsmen, &c., £120 to £420.

Railway Department.

General Manager, £1,200.
Chief Resident Engineer, £960.
Traffic Manager, £720,
assisted by a large staflf'.

Police Force.

The laws are enforced by a police force numbering 2276, including 42
Euro])eaii Officers The members of this force are made u]i of Malavs and Sikhs,
and excellent law an<l order is kept amongst the various nationalities and creeds.

Military.

tti case of a riot or rcljcllion there is also an eflicieiit military (brco known Ai
" The Malay States Guides," consisting of a battalion of Sikhs and I'athans (the
latter are Moliannncdan Hindoos), to which is atrached an aitillery corps with field
guns. The total strength is 842 niei?, including twelve British officers. They are all
of magnificent ])hysi((ue, excellently drilled, while their riHe shooting has won them
numerous challenge shields. (lencral Inigo Jones, who inspected llicm recently,
re[)orted that there were no more efficient or Ijctter drilled men in the ihitish Army.

CHAPTER III.

Economic Conditions.
Character of Country — Soils — Climate — Population — Diseases — Labour supply.

Character of thic Country

The ^lalav Peninsula is a coni])aratively narrow slip of land lying between the
Straits of jMalacca on the west, and the China Sea on the east, the federated
Malay States being situated in the central and broadest i)art of the Peninsula. A
range of mountains runs like a l)ackbone almost tliroughout its entire length, attaining
here and thei'c an elevation of from 4.000 to 7,000 feet. 'J' his range is the source
of numerous rivers and streams, which fiow east or west to the sea. These in
former times — as in Papua to-day — constituted the only means of access to the
interior, as the whole country', except where cultivation has taken place, is covered
with thick jungle and tropical vegetation.

Soils.

The character of the soil varies greatly according to elevation. The mountain
ranges of the Peninsula are chiefly granite, giving a poor light clayey soil, the
least valuable of any in the Peninsula. The foothills of the mountain ranges are
of laterite, sandstone, granite, and limestone. The red lateritc soil, though not so
rich as the coastal alluvium is w'ell enough suited for many crops, and rubber
plantations flourish fairlv well on it.

To the west of the main range, and between it and the Straits of Malacca, is a Aiimiai son.
belt of rich alluvial country, varying from five to fifty nnles in width, running right
along the States of Perak and Selangor. On this country the greater part of the
European and native cultivation has taken place. The soil is a rich l)lack or a greyish
loam, eminently suited for intense cultivation, and of great depth. In some of the
low-lying districts a considerahle area is covered with a deposit of ])eat, sometimes to Pcatiand.
a depth of several feet, this land is of little value unless it has been drained for
some years, and sweetened by exposure to the sun.

If the whole of this rich belt of country is to l)e utilized to the best advantage, Drain.-«e.
an important draining problem will have to be solved by the Government. When
the soil is properly drained the growth of many products is wonderful, equalling in
results the most fertile of tropical countries ; but a considerable projiortion of it is
fiat country only a very few feet above sea level, and unless it can be drained the
deeper soil is valueless, and these low-lying portions are thei-efoi-e useless for
plantations of big trees that strike their roots deep into the soil.

In any case, both on the east and west coasts, there are nnllions of acres of
splendid soil suitable for all tropical products that do not require to be grown at an
elevation.

Speaking generally, the mountain soils at an elevation of over 1,000 feet are Mountain soUs
somewhat poor, though tliere are notable exceptions to tins general statement. More-
over, the hills are so steep that if cleared of native vegetation tliev would become
denuded of soil owing to the heavy rains, and as there are verv few plateaux or rounded
valleys, they are therefore of little use. All efforts are being concentrated on the
production of those economic plants that flourish best at or near the sea level. In
Java and Papua, on the contrary, excellent soils are found at consideralile elevations, p^
and these countries are therefore capable of producing a much more diversified range
of economic plants.

Climate fail'Iy
healthy.

Climatk.
Altliouoli the Federated ]\falay States a.e situated only a few degrees from
the equator, the climate is modified and rendered less oppressive than that of other lands
in the same latitude by reason of its geographical configuration. The^ Malay
Peninsula, being a narrow neck of land, in no place nun-e than l80 miles wide, has
an insular or oceanic rather than a continental climate. The distinguishing feature
is an almost total absence of seasonal variations, the difference in temperature be-
tween the winter and sunnner being only about 3 degrees, and the climate, except
when affected by elevation, shows little variation in any locality. Notwithstanding
the continuous heat and excessive humidity, the health of Europeans is generally
o-ood. The average mean temperature in the shade is from 80 degrees to 85 degrees
F., and the temperature at night from 70 degrees to 75 degrees F.

Rainfall.

The States enjoy an even, plentiful and well-distritnited rainfall, admirably
suited for the orowth of most trojiical products. The average rainfall in the elevated
reo-ions varies from 100 to 200 inches per annum, while in the less elevated and
drier parts it ranges from 70 to 100 inches.

While an evenly-distributed rainfiiU is generally speaking a distinct advantage,
the absence of anv period in which fine weather can be relied upon renders the country
unsuital:)le for those plants, such as cotton and tobacco, that require a dry spell while
the product is ripening andl)eing harvested. The Federated Malay States are within
the monsoon region, although tiie rainfall does not vary greatly. The months with
the o-reater rainfall generally speaking are April, ]\Iay, September, and October, while
Janilarv, Fel)ruary, June, and July are somewhat drier, but the rainfall of any month
cannot be depended upon.

Population.

The jiopulation of the Federated Malay States at the last census (1901) was
678,000. It is now estimated to be 880,900, and comprises the following nationalities:

. Chinese 400,000, Malays ?.92,000, Hindoos 80,000, Europeans 2,500, Eurasians

3,000, other nationalities, 3,400. The innnigrant races have been attracted or intro-
duced for industrial purposes, sucli as mining, planting, and domestic service, and are
mostly hired labourers. This accounts for the great discrepancy in numl^ers between
the sexes. At the last census the numbers were as follow : —

Males.

Females.

Europeans

Eurasians

Chinc&e

Malays

Tamils...

Other races

Floating J'opulaiioi:

1,011

857

272,584

164,582

44,766

1 ,;!43

2,547

411

665

27,155

146,507

13.445

1,239

Total. s

487,690

189,508

Diseases.
For a tropical country the climate is fairly healthy for Europeans, ])rovided
reasonable precautions are taken, ami connnon sense is used in dress and diet. Malarial
fever is not uncommon, but the type is usually of a mild nature. Typhoid fever breaks
out occasionally, and diarrha'a and dysentery are of frequent occurrence. Cholera
amongst Europeans is hardly known. One of the most deadly diseases amongst the
natives is beri beri ; this is believed to be caused by a minute fungus on the rice, as
natives who live on locally-grown rice that has not been stored for a long time are

almost exempt.

Labour.
Next to soil and climate the most im])ortantf:ictor in the economic development
of a tropical country is the lal>onr supply. Generally s]icaking the native races of the
tropi<'S are indolent and slotliful ; nature has ])roviiicd them with such a rich soil and
forcin''- climate tliat their few requirements are easily satisfied with the produce of the
forest^ supplemented l)y a few planted fruit trees, or a small plot in which rice or root

crops are grown. The cliiof exception to tins 'rcneral letlmrffy, so i'nr as voluntary work
is concerned, is t) bo tbiiiul in those countries where the density of populaticni (as in
India, Ceyh)n and Java) has necessitated increased exertion, and more intense and
careful culture.

One of the Ml )stdilliiuilt proI)Ienis confronting- the European ruler, in a tropical
possession, is to induce the natives to accept vohintarily continuous labour.

The British have generally solved the proldem of tropical develo])Mient by Brituh ejstcm.
importing alien coolie races, principally from India and China, to initiate and develop
industries.

The Dutcli, in Netherlands-India, on the other hand, resisted all attempts to outchsyste .
introduce other coloured races to work on the plantations, and had recourse to certain
compulsory methods, such as the "Corvee" and " Culture " systems, which were
maintained until the habit of industry began to crystalise into a race characteristic,
and until the p()[)ulation by natural increase became so numerous that the struggle
for existence, becoming more severe, necessitated continuous labour to supply the
wants of the i'amily.

The British system is well exemplified in the Federated i\Ialay States ; in the
early stages of the Protectorate tin mining was practically the only industry, and the
authorities gave every inducement to large numbers of Chinese coolies to come and
work in these mines. Within the last i'ew years Indian coolie lal)our has been
attracted to develop the plantation industries.

The Malay.
The Malav, like the members of most other equatorial races, where poinilation indoicnccot
is sparse and nature bountiful, is not industrious. His ertoi'ts ai'e usually limited to
somewhat desultory cultivation, to the collection of forest pi'oduce, and to fishing, and
boat work, for which he shows a great aptitude. He evinces no desire to become a
" commercial" agriculturist ; if his crop is exceptionally heavy, and his supply of
food consequently large, he is not anxious to plant again until his supplies are
beffinuino- to run short.

The Britiiih administration has alwavs treated the Malav with symnathv and p^iti

ish

treatment.

genei'osity, and so far as personal comfort is concerned he is in an inmieasurably better
position than when under the undisputed sway of the Sultans. The British have
given him security for life and property, a condition unknown befoi'e, when his wives
and daughters, as well as his orchards, were at the mercy of the Rajahs and Sultans.
He has been freed from arlntary taxation, forced levies, and the system of "Krah" or
forced labour. He has a secure title for his land, of which no one can dispossess him
unless with his consent. Means of communication have been opened up for him b}'
the construction of bridle-paths, roads and railways, and a market provided for his
labour and produce. Free education has been provided for his children, free
hospitals and medicine when sick, while the scourges of small-pox and cholera have
been largely minimised. To encourage thrift Savings Banks have been established,
in which he can safely deposit his savings at interest. Law and order have been
establislie<l, and the legal rights of all, from Raiat to Rajah, are equal.

The policy of the British Advisers has been to interfere as little as possible ^"^'"^ ■'"""'^
with the native laws, manners, customs, habits, and JMohammedan religion, while
some effort has been made to improve the Malay's standard of living by draining
and irrigating his rice lands in certain places, and by improving the quality of his
cereals.

While all this is excellent, and in accord with the highest traditions of British
rule, it cannot, I think, be denied that the Malay has relapsed into greater sloth and
indolence as a direct result of British rule, while the Javanese peasant, who is the
same ;is the Malay in race, religion, and custon), is a more industrious and fruo-al in-
dividual as the I'esult of Dutch rule.

Formerly the heavy exactions of the Malay rulers forced the peasant to pro-
duce considerably more than was sufficient for his own requirements, while the
manufacture of agricultural implements, warlike weapons— in many of which o-reat
care, skill and labour were involved — the production of clothing, "potterv, baskets,
brass iuid silver ware, necessitated a life of considerable industrv, which was not
lessened by the almost continual wars amongst the various Sultans. "

The beautiful and distinctive ]\Ialay art is now almost a thing of the past, Malay art,
although an effort is being made l)y Mr. K. W. Birch, C.M.G., the British Resident
of Terak, to resuscitate it by the establishment of an Art School at Kaula Kan<»-sar.

F.6615. B °

Alien races.

HOM- arc the

tro;'ios to lie
iieTeloi)edV

A 1 artial
Golutiou.

Malay
list^essness.

Chinese miners.

Tlifse native manufactures have been superseded by cheap iniportntinns which
can be ])ur( lia.sed foi' a few pence, Avliile tlie cultivation ha.s shrunk to the requin nieiits
and neces.sities of the family.

AVhile the svstem of forced labour for the 1,'eiiefit of tiie rulers cannot be
defended, tiiere is little doubt that the introduction of coloured alien races to do the
niininu" and estate cultivation sim]>ly accentuates that slotii and ]etliar(.'.y to whicli the
tro])ical races are prone, and has the effect of deteriorating the natives Ix.th mentally
and physically.

It will naturally be asked, "How are tiiC tropics to lie develoijcd if neither o'
these methods is admissible, and the native races refuse to work? Aie the .strugoiing
millions of the world to be deprived of tlie benefit of the enormous food supply that
can be grown on tlie rich and often sparsely populated heat belt? Are great tracts
of the most fertile land in the Avorld to lie idle and useless, inhabited by a few indolent
natives, or should they contribute their fair quota to the Avorld's food supply? "

These most difficult questions can, I think, be partially solved by the appli-
cation of a method inti'oduced by Sir AVilliam jMcGregor. when (Joverncr of Pajiua.
This sv.stem will be dealt with in the chapters of my report devoted to that terrritorv.

After a short resistance to the incur.sions of the Chinese and the Europeans,
the ]\[a!av suljmitted to the government of the white men who fn'ed him from the
tvrannv and oppression of his own government, and, retiring to the recesses of the
jmiii'le, listlessly contemplated the yellow man and the black man developing the
industries of his cruntry. This condition of apathy, transmitted from generation to
generation, gradually produces a type or race-characteristic that it is most difficult to
overcome; just as conversely the congested condition of a tro])ical district will compel
the natives to haliits of industry. And the more strenuous life transmitted through a
long period will often survive when conditions have so altered that labour is optional
ratlier than imjierative.

TiiE Chjnkse.

The Chinese are numerically the dominant peoplo in the Federated Malay
States. Their advent has been encouraged and assiste<l by the rulers, because, coming
from a temperate region, the Chinaman is the most industiious and intelligent of all
the coolie races. Without doubt the wonderfully rapid industrial expansion of the
Federated Malay States would have been impossilde without the yellow man. Fi'om
an industrial standpuint, therefore, the end has amply iustified the means. Whetiier
that verdict will equally apply from the ])oint of view of national ))o]icy. or judged by
an ethical standard, I am inclined to doubt, but the sul)ject is too large to be discussed
licre, and is in any case beyond the scope of this report.

While the rap.id e.xpansion of the mineral resources of the StatCvS li.-is admittedly
been due to the euiployniciit of Cliines'' labour, it is impt ssihic to l;elieve that these
rich stannirerous deposits would have remained u::d('Vcloped without the ini])()i-tation
of coolie labour. The process would uiidou!)te(Ily have !)cen more gradual, and
possiblv expensive, if hydraulic sluicing and the most nu)(lern labour saving
a|i])liances had lieeii institnteel instead of the ])rinntive methods at ])resent in vogue;
but as a comiiensating advantage the mines would have been largely owmnl by
the white inhabitants instead of the Chinese, and a larger pi-oportion of the enormous
wealth produced would have been retainc d by the native and govei'iiing races instead
of lindiu"- its way to China or creating Chinese millioniares within the States.

()f the 400,000 Chiiu'sc in the Federated Malay States the great majority are
engaged in mining ()])erations and secondary industries connected therewith, such
as'st'ondveeping, money lending and trading. Comparatively few have so far engaged
in agriculture, Ik cause in liie past it has been less proiitable than the other vocations;
but they are now devoting increa.sed attention to the growth of sugar, coconuts, and
rubber. 'I'he Malav, in the I'ederated Malay States, is not pr()hil)ited from selling
liis holding to laces of another nationality, as is the case in -lava, and Papua ; and
if the Chinese devote a large amount of attention to consmercial agriculture there
is a dani^er of the easv-going Malay being deprived of his birthright .■uid the only
asset he ]iosscsses.

The number (»f Ciiine.se working in (he tin niiiun<i- industry is al)ont 200,000.
Some of these are indentured lalxniieis, but the niajcnily aie working nndi'r contract

or tribute. Tint t'lc iiuinhLT of indentured iiiin '.•- !; rapidly decreasing tlic Inllowing
figures indicate : —

—

liiilfiiturcil Men.

Contract or Trilnilc,

l<);):i ...
1;K)4 ...

Ro,fi-56

5(),5o8

120/,SI
H-M 1 1

NyHteDQ.

Tiie rates cA' wages paid (o indentured lalionrers are usuallv luwci- tlian those wage».
given to free laliourers, Init experience lias shown that free lahour gives hetter
results than iml MitiuvMl labjur wluu tliL' employer is a Europ(;an.

InI) ICXTi: R K S YSTK M .

The system of engagement l)v indenture of labour fi'om China is now almost in.untiire
e.Kclusivcdy contin?d t ) the Cliinesa Tow Kays or industrial magnates. 'J'heir wages
are from !)s. 4d. to lis. Sd. a tnontli, with food and clothing. The outlay in respect
of eaeli coolie im[)orled is from £.'i to £7, and this is ultinuatcdy recovered from them,
so that the first year's wages are iiardly sutHcient to pay their innnigration e.\])enses.
Until this debt is paid off the coolie is kept in a compound, as in South Africa. In
fact the Chinese compound system on the Hand mines was mod(dled on the system in
the Federated j\lalay States, and inaugurated by a State oHi(-ial from the .Malav States,
who was borrowed for one year and a half by Lord Mihier. .Xs the "sinkeh" or
indentured coolie ischea])er than the " loukeh " or free laliourer, it is to the advantnge
of the Chin.'se mine-ow/ur to retain him in that condition as long as |)ossible ; he is
therefore allowed to obtain opium and other luxuries on creilit if be desires, and by
this means his ransom remains unpaid, and his indentured tenure is prolonged The
food is principally rice, with pei-baps a little curry oi- (hied tish, tiie l)edding a straw
mat and a piHow, and the clothing a straw hat and a loose l)lue loin covering in sliape
like loose runniuLi-drawers — a very suitable dress for coolies in such a climate.

Method of tin
mining.

Free Labouh.

None of the Chinese miners are paid a daily wage. The free labourers either
work under contract or tribute, or under a co-operative system.

The contract system is tlie one usually employed by white mine-owners. IJe
ai'ranges his contract with a Chinese "boss," who employs the labour and carries out
the work.

The metlu^d of working the mines is to remove the earth covering tiie tin-
bearing stratum. 'I'liis is called the '-overburden," or " stripping." 'i he tin-bearing
layer or washdiit, is then carried to tlie surface and thrown into the sluice-l)oxes.
The wash contains one or two per cent, of ore on an average. The price paid for
removing the earth and wash is generally £1 3s. 4d. to £l 8s. per cliaung, that is,
an area measuring :;() feet l>y I'A) feet, having a depth of 1| feet, and containing 50
cubic yards. The ground is loosened liy large hoes called " changkols," and the earth
is filled into baskets, two of which are carried on a yolk or stick by each luan up
an inclined l)oard, with cleats nailed across it, to the sluice.

In the tribute .system the mine-owners (British or Chinese) enter into an Tribute system
agreement with the " boss " by which the members of the gang are entitled to all the
tin ore they obtain, but they must sell this to the mine-owner at a price considerably
less than the market value.

Perhaps the method most frequently adopted in Chinese-owned mines is one co.operativ..
known as the co-o]ierative .system, wdiere all the coolies are entitled to a share in
whatever profit is made after re-paying the loans advanced by the money-lender
(usually the owner of the ground) and paying for food and other necessities.

The Chinese mines are worked on the truck system, all food, clothing, tobacco,
opium, (S:c., being supplied In' the mine-owner. The profits on these sales are
naturally large, and often ])ay a dividend on mines that would otherwise be worked at
a loss

Tamii- Laboi'i?.
iile the Cliiiiaman is the most industrious of the coolie races, it does not

follow that he is fond of work, his energies are stimulated by the love of gain, and in

plantation
labour.

order to obtain the best results his reward must be according to the work Accom-
plished and not bv the term of service. Wheu. engaged at day labour his deliberation
is marvellous, and the work accomplished infinitesimal, for this reason he is unfitted
for those avocations, such as plantation woi-k, in which the labour cannot be done by
contract.

The immigrant race next in importance to the Chinese is the Hindoo hailing
from the southern parts of the Madras Presidency in India, known as the Tamil or
" Kling." They are a docile people, more amenable to control than the Chinese, and
work fairly well as day labourers. They form the bulk of the large laljour force
Government »nd cmploycd b}^ thc Govcmment in public w^orks, road making, and maintenance, and
are almost exclusively employed on the plantations. Many have also settled as
traders, and some as agriculturists. In the Krian irrigation district 305 Tamils own
2,000 aci'cs of irrigated rice laud. Like the Chinese, they leave their women-folk
behind, and generally return after a few years, taking their savings with them.
Another class of Tamil, known as Chetties, are usurious money lenders.

At present there is a great demand for Tamil labour to work the rubber estates
that are springing up everywhere, and the Government are doing all they can to
stimulate the introduction of this class of labour.

An Indian Immigration Department has l^een established, and last year 8,000
free passes were issued by the authorities to intending immigrants. The number of
Tamils and other Hindoos at present in the Protectorate is 80,000.

The system of indenture, as applied to the importation of Indian labour has
practically been discontinued, as employers find that the better sjstem is to engage
free Tamil labour in India at an initial cost sufKcient to pay their passage money and
a small advance. The outlay is usually about £2 6s. per head, which is subsequently
repaid by the coolie. The wages paid are from 6d. to lOd. a daj', in addition to house
accommodation.
Javanese. The Javanesc are not numerous in the States, they are good workers, and

especially useful at gardening, drain making, and irrigation.
Bengalis. The few Bengalis in the Protectorate are usually employed as cart drivers.

The wages of domestic servants are —

Indoor servant, 23s. to 35s. a month.
Cook, 23s. to 35s. a month.
Water carrier, IGs. 6d. to 23s. a month.
Gardener, 18s. (id. to 23s. a month.
Syce (groom), 21s. to 28s. a month.

Assisted
uiniig ration.

Comparison
with Fapua.

CHAPTER IV.

Development.
General development. — Agricultural extension. — Mining development — Exports of

produce.

General Development.

The Federated Malay States, although not much more than one quarter the
size of Papua, present in many respects a striking analogy to our territor}'. Athough
in the northern hemisphere, the Malay States are nearly the same distance from the
ecpintor as is Papua in the south, the climate and rainfall are very similiar, and
while the soil is not, I believe, so uniformly rich as is that of our possession, it has
enjoyed the advantage of a much superior steam-ship communication. The northern
State of Perak was placed under British jirotection ten years before Papua, but it
was not until twelve years later that the whole of the States were brought within the
sj)here of British influence, and while they have been somewhat haiulicapjicd by
remaining a protectorate and not a possession, Papua has l)een actualh' annexed for
eighteen years — or four years alter the ])rotectorate was established. At the advent
of the British in the Malay Peninsula the population was less than the estimated
pojiulation of Papua, and the native inhahifanls were possessed of no greater industry,
if as great. The country covered with dense jungle was (piite as inaccessible, thei'c were
no roads, and practically the only communication with the interior was by meaus of
the rivers, which are not navigable for any great distance. The natural conditions
ami the period of British occupation in both the territories show such a striking
resemblance that an enquiry as to reasons for the enormous dissimilarity in their

economic dcvelopmont is a matter of tlie greatest interest and importance to the
Australinri |)e()])le. On the one hand we find a small British protectorate so adminis-
tered that the growth of its traih', commerce, and industries lias l)eeii phenomenal,
and its revenue gi'cater than that of any other protectorate or any Crown colony in the
British Empire, while in Papua there is no develo])ment, and there are no industries
except a little desultory gold mining. The revenue is falling instead of expanding,
and now ccjnstitutes le.>s than oue-half the cost of administration.

The Federated Malay iStates have heen extremely fortunate in ])0ssessing ^'^^i„i,j„tio„.
exceptionally al)Ie administrators, such as Mr. .1. W. Birch, Sir Hugh Low, and Sir
Frank Swettenham, whose whole energies have been devoted to opening up the
country and developing its latent wealth. There is a popular movement to erect a
handsome statue to the memory of the first-named at the town of Ipoh. In Papun,
with the exception of the term of office of Sir William McGregor, the Government
has been merely a Big Policeman, maintaining excellent law and order, extending the
administration and treating the natives with kindness and consideration, but doing
nothing whatever towards removing those obstacles to settlement that private enter-
prise is powerless to accomplish. In fact, the harassing laws and regulations, the
absence of information and assistance, combined with the natural inaccessil)ility of the
country, have defeated all efforts of would-be colonists to develop the possession.

The causes of the success that has crowned the efforts of the rulers in the ^^J?„"if^i,e„t
Federated Malay States are not far to seek if we follow the trend of their legislative i'jJJ'^ states.
and executive actions. Having established law and order, and created good land
and mining laws, the first efforts of the (government were directed towards making
cart roads and bridle tracks to the rich mineral centres, and to those fertile agricul-
tural lands that were most accessible. This has been in all tropical countries the
genesis of successful development, because whatever may be the j)otentialities of a
mining district or the agricultural possibilities of a country, they are equally useless
and valueless so long as they are inaccessible. The enormous tin deposits of the
States of Perak and Selangor could not be developed until reasonal)le facilities for
their exjdoitation had been afforded by the Government. Latent wealth and
accessibility were the magnets that attracted innnigrants and cajiital, and the
stream of wealth thus produced has provided the Government with sinews of war
to penetrate the jungle and lay bare the hidden riches of the Jand. Bridle tracks
were superseded by roads, and these in man\- places gave way to railways. Hand-
some towns and palatial public buildings have sprung up where previously were
trackless forests or squalid kampongs.

The Government has constructed 1,586 miles of metalled roads, many of which ^'^^
have been made through most difficult country, requiring consideralde engineering
skill and a large expenditure. These roads have been so well made that they are
suital)le for motor car traffic. On my visit to the State of Pahaug, I was driven over
the main range at an elevation of 2,700 feet in an 18-liorse power motor car. These Bridie tracks.
roads are supplemented by 1,000 miles of bridle tracks. The i'ailwa\s have been Raiiuays.
laid down on the metre guage ; 421 miles have been constructed at a cost of £l 1.000
per mile, including buildings and rolling stock, or a total of £4,631,000 upon which
they earn 46 percent. To this must be added 25 miles of line, owned and worked
by a subsidized private companv. The Government is now l)uilding a line through
the State of Johore, a distance of 120 miles. This line when completed will connect
Singapore with Peuang, a distance of 480 miles. The passenger rates are : — First-
class, lid. per mile ; second class. Id. per mile ; third class, id. per mile. As a *^Morc.r
feeder to these lines there is a subsidized motor car service running from Kaula Kubu
to Kaula Lipis, that has proved a most useful adjunct to the general travelling facili-
ties. The all important problem of transi)ortation has, in s]iite of great natural
difficulties, been successfully solved by the administration. They have built 1,231
miles of telegraph lines, which connect all the principal centres. During 1904
£640,000 was spent on pul)lic works, of which 7-17 per cent, rein-esented salaries.
A well equipped pathological institute has been built at Kaula Lunqnir, the capital, fnliltu"?!"''
for the scientific study of trojncal disease, such as beri beri, malaiia, dysentry,
tuberculosis, glanders, and rinderpest Three medical men are engaged in this useful
work, and various publications containing the results of investigations are pnl)lislied
from time to time. There are 31 free liospitals established in various ])arts of the ^^'^ hosp.t^is.
States, and during 1904, 46,415 in-patients were admitted, and 13n,264 out-patients
•were treated. The doctors, some 30 in number, are all paid by the State, though ^^JtoT""*

S ate iKtjls.

Governmt.'nt
Sanitoria.

Mu ;eum3.

Education.

Savings Banks.

Currenf'v.

Printing.

Surveys.

No Public Dtbt

Non-alienation
ot land.

AuHtralian
horses.

'^'attle and
b.iilaloeH.

Slicep and goat*.

private practice is allowed. At all the railway stations, and at distances of a day's
journey along the roads are very interesting and novel institutions called " Rest
houses." These, al)out 3i) in niiniher, are sul)stantial wooden houses, witli good
well furnished rooms. Tliev weie erected and are owned l)y the Government, and are
really State hotels. The meals are good and the charges modei-ate. ^ixty " halting
bungalows " have heen also erected by the Government in the more remote parts;
in these meals, refreshments, or attendance are not provided.

The Government has erected buno-alows as sanitoria at elevations varvin^- from
1,500 to 4,000 feet amongst the hills. Tliey are well furnished, and can l)e hired by
tiiose whose healtli requires a cooler and more bracing atmosphere.

Tliere are two excellent museums at Tnipingand Kaula Lunijinr, in which are
most interesting dis|)lavs of the fauna of the country and tlie native art of the
jMalays and al)original tribes.

Great care and attention have been devoted to education. The number of
Government free schools throughout the States is 252, with 13,428 scholars; of these
^32 are Malaj- Vernacular Schools, and in 20 English is taught to 2,331 pupils.

1 he Malav lano-uag-e is written in Ai-al:)ic characters, and efforts are now beinsr
made to simplify mr.tters b}' substituting Ron)aii characters and adopting a phonetic
]:)asis for the spelling, except for words derived from a foreign language.

Saviiii!s )>anks have l)een established in various centres. These are managed
and guaranteetl by tlie Gi^vernment. Deposits from one to 500 dollars are received,
and interest allowed at the rate of 3 per cent.

The Chartered Bank of India, Australia, and China, has two branches in the
Federated Malav States, which undertakes all kinds of liankino- and exchaua:e
l)usiness.

Tiie unit of currency in the Federated jNIalay States is the dollar, which has
row been standardized at 2s. 4d. Other silver coins are 5, 10, 20, and 50 cents
])ieces, and copper coins are issued of the value of one cent, and a half cent.
Currency notes are issued for varying amounts b}' the Government of the Straits
Settlements, aggregating 17,0"0,0U0 dollars; against this there is a reserve of
1 1,000,000 silver dolhsrs^and a gold reserve equafto 6,000,000 dollars.

All the printing required by the Federal Government is carried out at the
State printing works at Kaula Lumpur.

Besides a large staff of revenue .surveyors the authorities have instituted a
Trigonometrical Survey Department, under capable officers. During 1904, the
expenditure under this head was £9,500, and is likely to be increased in the future.

All the public woi-ks have been constructed, all these institutions erected,
and all tliese services maintained out of revenue, yet, in spite of the large outlay
necessitated there is no pulilic debt. The Government has a good credit balance,
and lias invested some of its sur])]us in outside securities. At the beginning of
1905 these were: — Consols and Colonial Funds, £554,537 ; Indian Government, 3^
per cent, stocks, £20,000 ; 2,931 shares in the Tanjong I'agar Dock Co., Singapore,
£92,0C0 ; loan to the Straits Settlements. £70,000 "; and a.s none of the lands of the
States have l)een alienated, the pul)lic assets are intact, except in the case of minerals
won from the soil.

Live Stock.

Most of the stock in the Fedei'ated Malay States has been imported. All
the horses, with the exception of j)onies, are brought from Australia ; the ponies
principally come (i'om India, Bnrniah and the Dutch Islands. Australian horses
for riding and driving average from .1l40 to £50, ponies from £12 uj)war(ls. Cattle
are princi])ally used for draught |iui|ioscs, and are of three kinds — Bengal cattle,
Siamese cattle and water i)nfiiilocs. Uengal cattle are worth from £12 to £20,
Siamese from £9 to .'Cl^. iJutlaloes are used almost exclusively by tlie natives.
The meat is of poor (pndity and the c.'ittle are poor milkers. As in most tropical
countries there is little or no good grazing land owing to the ]irinci])al grass called
" lalang," lieing too coar.se for fodder. Stock breeding h:is, as yet, received little
attention, as it is generall\ coiisidii-cd the coiintry is not suital)le for that industry.
A large mimber of slieep and gnats are imported for ))utcheriiig purposes, and
goats of an inferior (piality are bred by the Malays

A GovcnuuL-iit W'tei'iiiiirv l)e[):u-ti)i('nt lias heuii cstaijlislied, .iiid its lalxjurs j;fp';;C*2it.
are lurmly diivitted tow.inls tlie |)rovc'ntioii ofdise.ised stock bein,i^' imported. This is
attained liv a rinoroiis iiispccti'in at tlic ports ot'ciitrv,

AGiurur/ruitAL Dkvki.oi'Mkxt.

The total area of tlie Federated Malay States is 1(5,800,000 aeres, of whidi ^J.'^^f'^J''
60"j,092 acros have been iea,scd for agricultural purposes under j)erj)efual tenure, and
3.50,000 acres are actually under cultivation. The following are the ])rinci])al crops: —
Kice, 112,000 acres; coc )nuts, Si:,000 acres; rul)l)er, 3l).()00 aeres ; coffee, l!M)00
acres; gauihier, 22,000 acres; sugarcane, 18,000 acres; tapioca, 17,000 acres; p(!pper,
3,500 acres.

In order to stimulate these indu ;trles and create others a 1 irector of Agricul- At"kuuure.
ture and Government I'otanist was appointed last year. Mr. .1. B. Carruthers, H.L.S.,
who was selected for this position, has hati an extensive experience of tropical agricul-
ture, gained principally in Ceylon. Under him is a staff of officials comprising the
Superintendent of the Experimental Station at IJatu Tiga, near the capital ; the
Curator of the Hill Gardens and (Jovernment I'lantations near Taiping, and an
inspector of coconut trees. It is intended to shortly supplement this staff by the
appointment of an agricultural chemist, who will be engaged in analyzing soils,
conducting experiments in connexion with rubber production and other nnitters, and
and an entomologist to study insect [)ests, fungus and other injurious vegetable
growths that are destrective to tin" 'plantations.

The superintendent of the exp:'riment:d "-ardens at I>atu 'I'iga (some 70 acres superintendent
m extent) is chiefly engaged in carrying out extensive experunents m connexion with oldens.
Para rubber growing, the selection of seed from sj^ecially vigorous or large latex
producing trees, the best methods of cultivation, modes of tapping, &c. As all other
plantation industries are being temporarily neglected on account of the rubber boom,
special attention is naturally being devoted to this subject. Tlie Lagos silk rubber and Ru''ti".
Panama rubber have also been experimented with, but tha results are not encouraging.
The cultivation of cotton — Egv])tian and Sea Island varieties — has proved a failure cotton.
owing to the unsuitability of the climate.

At Kaula Kangsar, in the State of Perak, there is another Ex])erimental
Garden, and near Taiping a hill garden, situated at an elevation of ],<iOOft. These
are under the sujiervision of a curator, and are carried on at a cost of £2,400 a year.
They have proved of value in stimulating rubber culture, and in the distril>ution of
fruit trees. Experiments in the hill gardens have also shown that the tea bush Teu.
will grow as well as in C'eylon and India, and probably yield well, but as there is little
ground in the Federated Malay States suitable for those cultures that recpiire to be
grown at an elevation, the usefulness of the hill garden in the encouragement of
estate plantations is problematical ; at the same time fresh vegetables and fruits of a
colder clime can l)e grown here, and in this respect the garden should fulhl a most
useful purpose.

At Singapore, and Penang, in the Straits Settlements, are excellent botanical Botanieai
gardens, and in these are numerous experimental plots containing manv varieties of
fruit trees, plants from which oils, drugs and dyes are extracted, ti))res, rul)l)ers, and
various species of tea and coffee plants. These gardens are under the able direction h. n. Ridiey.
of Mr. M. N. Ridley, M.A., F.L.S., uho has done much to encourage plantation
culture in the Peninsula.

Under excellent land laws the Administration uses everv endeavour to assist Land appiie»-

11 • 1 1 • I • 1 • /» 1 IT' x' 1 ' 1 • 1 tions quickly

the planter ni developmg the mdustries of the State. iSot the least miportant result slanted.
of this policy is the celerity with which applications for land are granted. Within a
few days, or, at the most, weeks, the a|)i)licant can secure a perpetual lease of the
ground he desires to possess aiul cultivate ; provided, of course, ths land is not
re(juired by tlie natives or for State purposes. To further assist the agriculturist the
Government, if he desires, will atlvance him sums of money up to half the value of °°^""°'°'
the property, charging interest at the rate of 6 per cent. This is a great boon to the
settler, and assists development, as the interest charges on private loans are verv hiah
in the States.

Special
concessions.

Irrigation.
Bice.

Irri^tion
scheme.

Roads.

Papua.

Handbook.

Report on
Industries, bv
Dr. J. C. Willis.

Pioneer
planting.

Forest timbers.

Forest products.

To eucourage new agricultural industries a planter who grows new products
not under general cultivation is exempted from export duties.

Owing to the copious and well distributed rainfall in the Federated Malay
States irrigation is, generally speaking, unnecessary, except of course for rice culti-
vation. Roughly speaking, an average !Malay family will consume from 2,400 to
3,000 lbs. of rice per annum. As the local supply is not equal to the demand more
than half a million pounds' worth has to be imported every year.

In order to assist the Malays and increase the local production the authorities
have carried out irrigation works in several ])]aces along the coast. By far the most
important of these is that known as the Kriau Irrigation Scheme in the extreme
north-west of the protectorate. To irrigate this area of 100 square miles cost
£160,000. The expei'imeat can hardly claim to be a thorough success ; although the
scheme was undertaken purely for the purpose of rice cultivation, a considerable
portion of it was leased without any stipulation as to the nature of the croj) grown
upon it, and although rice was at first cultivated much of the land has fallen into the
hands of Chinese, who are planting sugar thereon, and injuring the canals by
dragging about their sugar barges in them. The remainder of the land is now being
jeaseJ with the proviso that it is to be used exclusively for rice culture.

In leasing land for cultivation in the earlier stages of development a mistake
was made in not making provision for roads ; the consequence is that the leaseholds
along the sea or river frontages or abutting on main roads cut off' all access to the
"hinterland" estates that have been subsequently taken up. This should be borne
in mind by the Admiaistratiou in Papua, so that in granting leaseholds, frontage and
cross roads should be reserved not more than a mile apart.

A very informative and well-written handbook of the Federated Malay States
has been issued by the Government, containing information of value to the planter,
miner, business man and tourist, including particulars of the climate, the various
Government services, cost of living, and hints as to diet and dress. It is illustrated
with useful maps.

During 1904, Dr. John C. Willis, F.L S., Director of the Botanic Gardens,
Ceylon, paid a visit to the Federated Malay States, and at the request of the Govern-
ment furnished a report on the most promising industries from a capitalist's point of
view. In his able report he stated : —

" So tar as the particular case of the Malay States is concerned it seems
doubtful if any important industry other than coffee, sugar, rice,
coconuts, tapioca and rubber, is likely to be discovered for some time.
After all this is a good and varied list, and it is better to make the best
of those we have than to be continually looking out for new ones to
take their place."

He considered the most promising enterprises from the capitalist's point of view to be
rubber, sugar, and coconuts, in the order named, and from the small holder's point
of view, coconuts, sugar, ta])ioca, rice, pepper, and rubber.

Although the present prcspects of agricultural expansion in the Fedel
i-ated Malay States are of the l)rightest, the hi.story of its initiatory stages has been
beset with difficulties, and often marked with failure. Since 1.S90 considerable sums
have been invested and sometimes lo.st by Europeans and Chinese in pioneer planting.
At first it was mainly ])epper, coffee, gambier and ramie fibre, all of which Mere
failures or i)artial failures. Ten vears am) lliei'e was almost as iireat a boom in coffee
planting as there IS now in rubber, but over-production in other countries and the
resultant drop in jirices rendered the industry almost unpavalde. These industries
Avere largely succeeded by sugar, coconuts, ta])ioca, and rubber, all of which give
every promise of successful e.vpansion.

Besides tlie.se estate cultures there are valuable forests niuler the control of a
well-organized Fol•(^'^t Department, amongst the most im])ortant timl;ers may be men-
tioned the following varieties: — Daiilniiplii/llopsis (Jajritnta [Cliengal]. AJ'zi;lia!Sp
[Merbau], Scar odocur pus Bomeinsis [Kuliiii], Sliwtia Snh'.rnxylon [Tamjiinis], Fnr/rnc.a
Pi'.rr(i7-iii/i [Teml>usu], and ^Irovil.nsia Jnntvir/i [Petaling]. The collo(|Mial names
are in Iirackets. Other natural products of tlie Ibrest are gutta-percha, rubber, rattans,

incliulino- tlie well known Mnlncca cane, and trees yielding vegetable oils and resins.
With n view of protecting some oftlio most va]ua1)le timber, forest reserves luive been
proclaimed aggregating '250, 000 acres.

The two most liighlj prized Malayan fruits are the durian and the mangosteen. '•'■■"'"■
The former possesses a most offensive odour, but the flavour is delicious. Although
many Eiiro]K'ans cannot overcome their olfactory prejudices, the people of Eastern
nationality are slaves to its seductive (jualities. The favour in which this fruit is held
is not confined to the human family, as bears, .squirrels, elephants, cattle, goats, horses,
dogs, monkeys, and, if we can believe the Malays, even tigers show a great partiality
for the fruit. The mangosteen has a pleasant, delicate, and characteristic flavour that
makes it a great favourite amongst all races. The other well known fruits are
mangoes, langsat, machang, tampuni, granadillas, ranil)ei, shaddocks or pomeloes,
chiku, tamboi, bananas, melons, limes, oranges, pineajjples, duku, rambutan, ])ula.san,
papaws, guavas, jackfruit, sweet soj), sour sop, and custard ap])les. Fruit in tlie tropics
is not merely a luxury but a necessity, and without a good supply of ripe fruit the
health must suffer, although the climate is often wrongly blamed for resultant
debilit}'.

Papua is very badly provided with good fruits of any kind. A few bananas of Papuai. imiu.
inferior and coaise flavour, papaws, and an occasional orange, make up the sum total of
its ])resent fruit supply. It is very probable that the health of the white communitv
Avould be nuicli improved if the best and most ea.sily grown tropical fruit trees were
obtained and planted in those parts of the possession where the white population has
settled.

Mineral Development.

The Federated Malay States owe their wonderful development and their
present prosperity principally to their rich tin fields, but these only yielded up their
hidden wealtli tlirough the unremitting energy of the Government in affording every
reasonable facility for labour and capital to develop them. Three years after the
advent of the British the revenue from the tin-flelds only amounted to £14,000. a sum Revenue mis-r.
no larger than the present revenue derived from our undevelo])ed gold-fields in
Papua. If they had adopted the same laissez faire attitude as oui- administration has
done, if they had made no roads and afforded no facilities, their present development
would have been no further forward than is ours.

The principal tin fields are situated in the States of Perak and Selangor, Tinfleid..
although every State contributes a quota to the yield. The output of tin in 1894
was 858,238 pikuls (a pikul= 1331 ibg.) as compared with 841,933 pikuls in 1903,
the value of the tin exported in the latter year being £6,213,121, representino- about
74 per cent, of the world's output. Alluvial tin mining by hydraulic ])ower has been Hydraulic
introduced ])y Europeans with success, and an electrical process has been started by a '"'"'"■.
French company at Ipoh. Most of the tin, however, is obtained by the most ]irimitive v^oJ^T
methods on account of the cheapness of the labour. The Tronah Mines Limited, ^ronah
situated eighteen miles from Ipoh, employ 2,000 nien. V\''itli a capital of £160,000^ "^^
their returns are 3,500 pikuls per month, the wash averages 25 kati (kati= 1§ lbs.)
of tin ore (70 per cent, tin) to the cubic yard. The dividends declared last year
amounted to £100,000. This is claimed to be the largest tin mine in the world.
The manager and all the shift bosses are Australians, and the shareholdei's are
Chinese.

Gold-mining is not a very important industry in the States, 'i'he Kaub "old- coid mining.
mine, situated in the State of Pahaug, is the most important, and is responsible foi-
the major portion of the output. This mine was discovered and developed
bv Australians. For tlie vear 1S04, 13,925 oz. of gold were won, valued at
£71,564.

The following metals have also been found in the difl^erent formations:— Lead, Minerals,
iron, tungsten, titanium, silver, zinc, copper, manganese and bismuth.

The total area tf mineral country held under lease is 305,521 acres.

The following were the principal avticles of export for the year I'tOi : — •

Areca nuts

Banana Flour

Blacliau

Coffee

Copra

Fish (dry and salted)

Gambler

Gold

Gutta percha

Hides

Indigo, ,..

Paddy

Para rubber

Pepper ...

PiiiS

Rice

Sugar
Tapioca ,.,
Tin
Tin ore ...

704

tons

952

982

■>■>

3,410

976

1,470

l,55r)

20,457

ounces

tons

ISG

407

11,024

547

4,921

in nunilier

318

tons

20,467

8,195

19, no

31,73^

■:j

CHAPTER V.

Plantation Industries.

Pubber — Coconuts — Sugar — Rice — Coffee — Tapioca — Pepper — Ganibier — Gutta
Percha —Indigo — Nutmegs — Kola Xuts —Sago — Camphor — Cotton — Kapoc —
Tea — Maize — Fibres^Ramie — Murva — Sisal Hemp — Manilla Hemp — Drugs —
Pael Fi-uit — Kosam — Coca — Castor Oil — Cassia Alata — Sarsaparilla —
Gino-ei" — Bamboos.

The world's
output.

Rubber.

At the present phenomenal price of rubber the returns from a first-class
plantation of well-grown para trees are something like 300 per cent, per atinum
on the capital invested, and there is, therefore, little reason foi' surprise that many
tropical countries are smitten with the rubber fever. ijut for tiiose who contem-
))late ])lanting, the probable i)rice of rubber ten years hence is the true crux of the
position. It may not, therefore, be unprofitable to review the whole (luestion
from that standpoint, and fortified with some knowledge of the present position, to
endeavour to form a rough estimate as to the limits within which the iiulustry is
capable of expansion and the probable growth of rubber consumption.

The world's output of rubber for 1905 was approximately G 1,000 tons. This
vield can be apportioned as follows : —

From Brazil (including Peru and Caucho)

From West Africa (including the Congo)

From Central America and Mexico

From East Africa, Ceylon, Malaya, aiul all other sources

Tons.

34,420

17,500

3,200

0,000

Gl,120

Value of .vici.1. Taking the average selling price at 4s. a II)., this represents the value of the

annual vii-ld as £27,38 1 ,000. Of this it is questionable if the contrihution of
estate or ])laiitati(>ii riihlicr is more than £1,500,000. In other words, of the
■world's output, f()ie>t i-uhher represents 94, V ]n'V cent., and cultivated rubber
only 5.], per cent.

In tlie next decade, however, we ai-e likely to see these proportions sub-
stantiallv le versed.

Forest rubber, il" not threatened with exthiction, is at any rate lial)Ie to beconie t'orcat rubber,
hu'gely (liiniMishcd ouiiiu' to tlic inetliod of treatment to vvhicli forest trees ai'e sub-
jected. I'^oi'cst li-ces tliat are tiie connnoii jiropertj of tlie iidial)itaiits are l)led by
rul)l)er liiiutersto tbi- last (bop of latex, and they are thus bled and often hacked to
death. A rnliber CKllcctor knows full well that if he only taps the tree to an extent
that will not rnin tlie industry, some otiier person will probably eonie along and avail
himself of tlir r.'inaindci-. Tlie teiuleney i.s, therefore, ruth le.ssly to destroy these
valuable forest trees, and to ciippIe tins sonri-e of supply. At tlie .same tinn' para
trees are paiticnlarlv liardy, and rbcir vitality is such tliat they are )iot easily de-
stroyed. There are also considcraljle forests of rubber in the hinterlands of Brazil,
ami the ( "oul;(), that have hai-dly as yet been touched. Fui-thermore, it is possible
that those S.ati-s that are threatened with the extinction f)f a valuable industry, will
protect large areas of timber country in which para trees are growino- by ])ro<daiming
them State f irests, and will reu'ulate the tapping by jtlacing it. solely in the hands of
State otiicials ; although in wild and unsettled cimntries such a .system, while
theoretically ea.sy, would be found difficult in practice.

In anv case it is evident that plantation rubber will not only have to take the i'i.j»tation
])lace of forest rubber largelv, but will also liave to provide for the ever-expanding
industrial demand.

In pursuing this incjuiry, the next iniportant factor is to define the geograjjliical Theiimitsof
limits within which plantation rubber can be successfully cultivated.

Pai'a lubber trees are possessed of enormous vitality and great adaptability,
and will grow almost anvwhere in the tropics ; but they produce the best results
( 1 ) in tropical countries that enjov a heavy ami evenly distributed rainfall; (2) at
an elevation langing from sea level to 800 feet ; (3) in a rich, friable, and well drained
soil.

While the first of the.se limitations disqualifies all tropical countries within the
reo-ular monsdonal belt from ijeinii' ideallv suital)le for rubber culture owiup- to their
po.ssession of a dry season, and alsn all those countries in the tropics where the
rainfall is small, it does not by any means foHow that rubber cannot be successfully
cultivated in those regions, although the returns will be less bounteous. As an
instance, rubber is successfully grown in Ceylon wdiere there is a well-detined wet
and dry season, but the trees do uot appear to grow as quickly or to yield as well
as in the Federated Malay States. I was shown cross sections of trunks of two
rubber trees, both fourteen years old, and both grown in somewhat similar soil.
The one grown in Ceylon was 12^ inches in diameter and the other from the
Federated ^lalay States was IG^ inches across. The latter tree, being more than
a foot larger in circumference, would naturally produce more rubber other things
being equal. The richness of the soil also, while im])ortant, is not imperative. I
have seen a plantation of rul)l)er trees in the Federated Alalav States urowing
fairly vigorously on red laterite soil that is chemically poor, though a good
mechanical soil. At the same time the trees were not so robust as those planted on
the rich alluvial soils of the coast. The limit regarding elevation is also not prohibitory,
as para rubber is grown with some success in Ceylon at an altitude of 4,000 feet.

Assuming, however, that the area of successful cultivation of rubljer trees
witliin the tropics is defined by the three above-mentioned limitations, it is evident
that immense tracts of uncultivated territory are available for this indu.str\' — when
we remembei' that the tropical l)elt is 3,000 miles in width and embraces a ver\- large
proportion of the land surface of the globe.

Having discussed the rubber-growing industry from the aspect of its possible Theprouawe
development, the next important consideration is the probable expansion of the ''""a^'"
industrial demand for rubber. 'Jliis question appears to me to be almost cntirelv
governed liy the market price. l-.ven at the present extraordinary prices the
demand is increasing. Stocks are low, and supply cannot overtake the re-
quirements of the trade. Assuming that the price fell to three shillings or
even two shillings a pound rubber growing would be a profitable industry
in those countries best .suited for its culture, provided land Avas cheap
and the labour supply good. If such a shrinkage in price occurred owing to increased
supplies, the demand for rubber would enormously increase, and fresh avenues for its

Rubber for
street paving^.

Area of
plantations
necessary to
supply world's
demand.

Possibility of a
substitute.

Price of rubber.

Market
llu( tuatlong.

employment would be opened up in all directions. It is prohablo that the wheels of
all vehicles used for human carriage would l)t rubber tvred, the amount ol i-ublier
used sparingly now in many directions, owing to its almost prohibitory piice, would
be largely increased, while the possibilities of its use for street paving and as a roof
material for houses opens up a question of great importance.

In 1881, a road 11 feet wide near Euston station, in London, constantly
used for horse and vehicular traffic, was covered with 2 inches of vulcanized rubber.
This was taken up in 1902, after 21 years' service, and it was found to have worn in
the thinnest place to hve-eighth of an inch in thickness. In other parts it was still
from 1 inch to 1^ inches in thickness. It has also been successfully tried
at Wellington Court, 42 Albert Gate, Knightsbridge, London. In a portion of the
footpath in Princes-street, Edinburgh, rubber paving has been laid down lor eighteen
years w'ithout any repairs, while freestone paving blocks in another portion of the
footpath have had to be renewed three times in that period.

My object in mentioning these instances is to show that while there is a
possibility of an enormous increase in the supply during the next decade, there is a
certainty of an immensely augmented demand it the piices of tlie commodity are
reduced owing to large production.

In the opinion of experts the consumption of rubber w'ould be quadrupled in
ten years' time provided there was a considerable reduction in price. Tliis, I think,
is a very conservative estimate.

Assuming that the demand for rubber increased fourfold, it is interesting to
estimate what area of country would have to be planted to supply the whole of that
demand irrespective of Forest rubber.

Assuming that the trees ai-e planted in the most suitable districts, and that
they are at least six years old, they should yield two pounds of rubber annually; old
trees, under tavorable conditions, often yield far more.

If 100 trees are planted to the acre it would require less than 3,000,000 acres
to produce 244,000 tons of rubber, or four times the present supply. ^Ir. Carruthers,
the Director of Agriculture for the Federated Malay States, estimates that there is a
larger area than this available for rubber growing in the Federated Malay States
alone.

Another factor that should not be forgotten is the possibility of some sub-
stitute being discovered or invented that would fulfil the same pur])oses as rubber.
In spite of immense research no such substitute has yet been found, and probably
never will be, although rubber for certain purposes has had many cheaper ingredients
mixed with it.

It may be taken for granted that eventually the price of rubber must come
down considerably, l)ecau.se whatever the increased demand may be rubber planta-
tions will go on multiplying so long as the present enormous profits can be made.
But rubber is an industry that recpiires six lean years to elapse before the profits
commence, and the iinpossibility of estimating, even approximately, what proportions
the increased demand is likely to attain, and tlie possil)ility of some substitute for
rub'her being discovered, condjined with the large initial expense, will ])revent many
people from going largely into the industry. 'I'lie history of all plantation ])roducts
such as tea, coffee, sugar, cinchona, indigo, &c., is that they have all had their period
of immense ])rofits followed by Lii'gcly increased ])ro(luction, with lower piices as an
inevitable corollary. But rubber differs from all these, except ptrhaps cinchona, in
the long period that nutst elapse before the [)Iantation becomes revenue i)roducing,
and it is pr()bal)le that for the next six or seven years rubber ])rices will be maintained,
if not exceeded, owing to the increased demaiul, a failing forest sup]»ly, and the fact
that mo.st of the present rubber plantations will not become ])roductive for some
years. While I have no figures of very recent date of the area of estate rubber, at
present the plantations do not, I should thiidi, aggregate anything like 3,U(i0,0('0
acres.

During the last twenty years the price of rubber has been siil)j((t to consider-
able market fluctuations. In "1885 the price was 2s. 3d. a pdund, in 1887 ;js. lM., in 188U

2s. ;)(!.; ill 18!)0, 3s. l*!. ; in 1892, 2s. 9(1 Ouriiig tliesuccecdinf^.st'ven yciirs tliero \v;i8
a steady incroase until in ISiti) it lind ronclied 4.s., from wlii('li it receded to 3s. Id. in
1902. Foi' tlie next tliree vcivrs pi'iccs ndvanced ra|i!dly. re;icliin<r ;')S. Sd., 4.s. 8d.. and
Gs. respectively. It is at least sioniticant that during tlie wliole of this period the
])nce of"ruI)))i'r has never receded to a figure that would uiake its pro(hiction nn])ay-
al)le, and it is unlikely in the future to I'all to an unreniunerntivc ])rice in tli<\se countries
where the conditions are most favorable to its culture.

So far as our information goes there is no country lietter suited for ruhljer
growing than I'apna. It possesses an immense area of rich, well-drained .soil, rising Papux
from the sea level to an altitudi- of 800 feet, and the rainfall is heavy and evenly
distril)uted. Another advantage of ru})ber cultivation is that it does jiot require
skilled n)anual labour, and when once planted the maintenance expenses aresniall.

A ])ara rul)her ti-ee six years old should bear at least 300 pods, ea(di containing "^11^1"'
three seeds. Tiiesc' can be obtained from the Government ex|)erinu'ntal stations in
the Federated Malay States at 5s. lOd. a thou.sand, but they must be ordi'i-ed a year
or two beforehand, as the present demand is so great.

On l)ehalf of the Commonwealth I ordered 100,000 of these seeds for Papua, seeds for Papua.
and thev Avill be ready for shipment in September or Octol)er.

The usual wav of forwardini:' seeds, if the distance is considerable, is to ^'ethodaof

..,-,, Ill sending eeeds.

pack them in boxes or kerosene tins with dry charcoal. Rubber seeds do not keep
well, and if their destination, packed in this way, covei's a period exceeding one
uionth, 40 percent, may not sprout ; if two months, experiments have shown that 70
per cent, may be useless. The other method, which is more ex])ensive, is to forward
them in a wardian case. 'I'his is a box in size about 2 feet by 4 feet, and 2^ feet in
height, containing eight trays, each tray holding 1.^ inches of soil and 200 seeds.

In preparing a nursery for these seeds, good, rich, friable, well-drained soil, ^uXry.*'°"°'
having an elevation from 10 to 300 feet above the sea level, should be chosen, all
vegetation should be cleared oif, and the ground dug up to a depth of 2 feet. The
seeds should be steeped in water for two hours before planting, and ])laced in the ground
6 inches apart. They should be laid horizontally and not perpendicularly, the flat
side downwards, and should be just covered with earth, which nuist be kept moist.
They should sprout in about 48 hours, if the weather is hot the young sprouts should
he protected by a little shading, such as small sticks and leaves ; a covering of leaves is
also a good thing if rats or mice are troublesome. If there are wild pigs in the neigh-
bourhood a pig-proof fence is necessary.

In clearing the jungle for the plantation the workmen are armed with scrub-cut- cieanng jungie.
ters and light American axes. The large trees are felled, and the scrub and tree tops
burned when the weather is favorable. The tree trunks and stumps are left on the
ground to rot, the process of decay being often assisted by white ants. The plantino- P'^ting.
often closely follows up the clearing to save time. The young trees should be trans-
ferred from the nursery to the plantation when they are from 18 inches to 2 or 3 feet
in height. A difference of opinion exists as to the number of trees that should be planted
to the acre. The best expert opinion seems to favour the trees in each row beino- 20
feet apart, with an avenue of 25 feet between each row. The trees should be 18 inches
high in 4 or 5 months, and 5 to 6 feet in 12 months. If they shoot up too quicklv,
and become so lanky that the wind blows them about, the top shoots should be pinched
off with the aid of a step ladder.

The trees should not be tapped until they are six years old. By that time thev T»pp>ns-
should be at least 4 inches in diameter, probably more if the conditions are favorable.
The best method for tapping para rubber trees is what is known as the "herring-bone"
system. A perpendicular scarf 6 or 8 feet in length is cut out of the bark to a
depth almost sufficient to reach the wood. Alternately from each side of this central
incision other latex gutters are cut in an upward direction, forming an angle with the
perpendicular incision of 45 degrees. The lateral incisions are from 18 inches to
2 feet apart, and reach half way round the stem. An aluminium cup is placed
at the foot of the tree to catch the latex as it gradually trickles down. In
this cup is placed as much nater as would fill two tablespoons, and in this a little
formalin is mixed to prevent the latex from coagulating. When the cups are full St^'^"'"'"'
they are emptied into an enamelled jug and taken to the drying-house. The latex is

Duration of
tapping.

Improving
yield.

Catch crop.

Diseases and
pests.

Papua.

Strip of jungle
left to prevent
the spread of
plant (lisea.ses.

Ficus Elastica.

Papua

Kelativc values
of forest and
estate rubber.

tlien ixiured through a fine mesh strainci' into enamelled dinner plates, so as to form
a thin layer, and a little acetic acid is stirred in to assist the solidifying process.
When hard the "biscuit," as it is called, is taken from the plate and hung up in the
drying-room, before being packed in boxes for export. In no case should any
artificial heat be employed, as it destroys the resilience of the rubber. The quantity
and quality of the latex is believed to improve as the tree grows older, nj) to the
twenty-fifth year. For this reason the latex taken from trees of different ages should
uot be mixed tooether; the quality is thus graded, according to the age of the tree.
The tapjiino- process continues for a month or even several nu)nths. Kach n;orning
the lateral incisions are slightly enlarged by cutting a very thin strip of bark oft" the
lower side. Tliis causes the latex to recommence running. But sufficient time
should be given for the wound to heal up before the succeeding year's tapping
commences. When the young trees are growing, the planter should see that the
stems oi-{)\v as perpendicularly as possible, as a straight stem facilitates tapping-
operations.

An improved viehl can often be obtained by careful selection. Trees can be
]n-opagated by seed or cuttings, and if a specially vigorous or large latex-jn-oducing
tree is discovered, it is advisable to ])ropagate by cuttings, as they are more likely to
carrv the special characteristics of the parent tree.

In the Federated Malav States a large number of rubber trees have been
planted between the bushes of coflee estates, the yield of coffee often ]>aying the
expenses of the estate until the bushes are destroyed by the growth of the trees. lu
order to oain some revenue while the ruliber trees are young, it is not considered
injurious to the trees to plant a catch crop (i.e., a crop from which a quick return is
obtained) between the trees, such as Liberian coffee, which will come into Ijearing
in two years, bananas, or maize, ground nuts, yams, sweet potatoes and other annuals,
When the rubber trees have attained considerable dimensions they usually destroy-
other vegetation in the plantation. Althougli the para rubber trees are vigorous and
hardy they arc not immune from pests and diseases. A species of white ant {frrines
gestroi) is the most dangerous pest, as it lives on green wood and will readily eat the
rubber roots. I am not aware if the " gestroi " species of white ant is to be found in
Papua. While white ants are very numerous there I have not heard of any trees
beino- killed l)v thein.

Another d.-inger to be avoided is a root fungus known as Ffjcmes seiiiitosti(,s.
Apparently this fungus can only be comnmnicated from tree to tree by the roots
interlacing. I have seen trees killed hy this disease in the Botanical Gard(>ns at Singa-
pore. In order to prevent it s))reading a deep trench has been dug betwec n the
stricken and sound trees, and Bordeaux mixture is being used to kill the fungus.
With the object of guarding against the possible spread of plant diseases and ])ests a
strip oi' jungle, a mile wide, running across the State of Selangor has been pioclaimed
a ibrest're.serve, and by this means a disease in one section may be prevented from
spreading to another.

The only other kind of rubber that has been successfully cultivated in the
^lalav States i.s" the native " Kambong " (/''?'rM.v FJastica). This grows and yields
well, and its product if carefully prepared is nearly eipial in value to para. Tiiis
class of ru])ber should also be cultivated in Pajma. In tapping the Ficus Fla.'ilica the
" !ierrIiig-l)one " svsteni is not recommended by the Dutch authorities, who prefer the
metlHjd of cutting the trunk in a number of different jilaces.

There has l)een a good ileal of discussion as to the relative value of forest and
estate i-ubber. At the jiresent time the best cultivated jiara rubber from the Malay
States fetches about Gd. a pound more than forest rubber from Ih'azil. It is, liow(!ver,
stated that the small amount of estate ruliher put on the market is bought up for
making rubber solution, because it saves the expense of cleaning the forest rubber,
and it is further stated that for the manufacture of sheet goods — which constitutes
nine-tenths of the rubber trade — the tbrest rubber is preferred. The late.x taken
from para rubber trees is believed to improve in quality each year until they are 25
V(!ars old. The e.-tate rubber is at pi'esent ]m in(Ii>ally iiikeii I'rom young trees, which
prol)a,l)lv accounts for the jirclcrciiru given to rubber irom the para forests ibr general

manufacture.

The (ollowiiii;- is an cstiiuati' of the cost ol' clcariii<T and jihiiitiiig 250 acres witli <'"»tofi.h
para i-ubbor trees in I'apiia : —

£ s, (1.

1. Kclliiii' and clearin"- 250 acres at :iUs an acre ... 375

2. lanini-,- 250 .lores at r)s. an acre ... ... <)2 10

."). I lolini;- and filling 250 acres at I -Js. an acre ... 150 (I

4. Nnrserics .'.. ... ... ... ."JO U U

5. Seed for same, plantiiiii' 20ft. x 25ft. - 8(5 per acre =

21,500 seeds, say 25,000 at 5s. lOd. per thonsan'l ... 7 5 10

(■). riaiiting and shading at 7s. C'd. per acre ... ... 1)."^ ] ;,

7 Koads and (h-alns ... ... ... ... 100

8. Weeding and maintenance for 1 2 months ... 200 t>

!). Supervision ... ... ... ... ."iOO

10 Kent of hind, say Gd. per acre ... ... G 5

1 I IJecniiting, say ?>0 natives, and expenses in connexion

therewith ... ... ... ... JoO

12. Survey fees, say ... ... ... 10

1"). I louse for superintendent ... ... ... 250 o

14. Huts for natives ... ... ... 'JOO

15. Tools ... ... ... ... 50

16. Conlingencies, sickness, &c. ... ... 150

2,1.34 15 10
Upkeep for five vears, including recruiting of labour, at

£700 a year " ... ..'. ... ... 3,500

Kent foi- five vears ... ... ... 31 5

5,G66 10

At the end of six years, assuming that the trees each yielded 2 lbs. of rubber
at the present pi-ice the gross income would be £12,900, or over 220 per cent, on tlie
outlay. Witii rubber at 2s. a lb., the gross income would be over 75 per cent. In
order to double the area of tlie plantation, tlie cost Avoiild l)e only £4,7 16 as items of
expenditure Nos. 1), 11, 13, 14, and 15 would be obviated. Under skilful management
catch cro])s planted between the trees should produce sufficient revenue to defravthe
cost of upkeep, reducing the capital outlay on a rubber plantation of 500 acres, in
full bearing, to £3,500.

As soon as a planter has (d)tained his land, he should order his i ubber .seed iiintsto
and food supplies, and engage half-a-dozen natives to put up his dwelling house, which •''""'°"-
can be constructed' entirely of native material — as are most of the residences of the
divisional magistrates — ^and the huts of the native employes. The next work should
he to clear a couj)le of acres of the proposed ])lantation, and with the exception of the
small area re([uire<l for the nursery the balance should be planted with vams and sweet
potatoes. This is the method adopted in the Solomon Islands (a British Protectorate) soiomon
and in the German Po.ssessions in the Pacific. This largely obviates the expen.se of '^'*"'''*'
native labour (i.e., imported food supplies), and the health of the natives is better when
they are supplied with their accustomed food tlian when placed on a ])ure rice diet,
although they should be supplied with rice occasionally. As soon as this is completed
the planter is ready for the main body of plantation workers, and they can start scrub
clearing as soon as they arrive. In five months from the planting of the seed the voting
rubber trees can be transferred from the nursery to the Diantation.

Coconuts.

The extension of coconut plantation in the Federated Malav Stales is progress-
ing slowly on account of the greater attractiveness of rul)ber cultivation. Itisaverv
remunerative industry and one that should receive quite as much attention in Papua
as rubber culture, as the natural conditions there are eminently suitable, and skilled
labour or extensive ])lant is not required in the production of coj)ra. In tact it is the
only plantation industry of which the Papuans have any ])ractical knowledge. Papua,
l)eing outside (he hurricane belt, possesses a great advantage over such places as
Fiji and Samoa.

Area miller
cultivation-

Yield.

Method of
planting.

Value of
coconut
plantation.

Demand for
Copra.

The area under coconuts in tiie States is estimated at 86,000 acres, the planta-
tions lying chiefly along the West coast, as the trees 3'ield best when thev can taste
the sea. In 1904, 976 tons of copra were e.vported — an exceedingly small return for
the area planted. This is to be accounted for l)y the fact that the trees in the great
majority of the plantations are just coining into bearing. With the present area in
full bearing the export of copra should be something like ■4;3,O00 tons, or half a ton to
the acre as the yield of the trees in the jseninsula is heavy.

In coconut planting no nursery for the young plants is necessar}-, as the coco-
nuts lying on the ground under the trees or in heaps will throw out sprouts.

The coconut plantations I saw in the States appear to me to be jdanted too
closely together, in some cases, I believe, as many as 2U0 to the acre. In the Solomon
Islands they are always planted 33 feet apai't, or 50 to the acre, and in the German
))lantations, in the Bismarck Archipelago, they are planted from 25 to 30 feet apart.
This method of allowing each tree more ground space tends to make them shorter,
bulkier, and more vigorous, with a consequent larger yield of nuts, while the larger
amount of sunlight they receive keeps them more free from insect jiests and disease.
The trees begin to yield in five years, and are in full bearing when eight or nine years
old. A full grown tree should yield 60 nuts a year, and with 50 planted to the acre
that area will yield 3,000 nuts, or half a ton of copra worth £5.

An idea of the value of a coconut plantation in the Malay States can be
gained by the report issued In- the Inspector of Coconut Trees, in which he records
the sale of a plantation of trees just coming into bearing at £30 per acre.

A factor of great importance in connexion with the copra industry is the
al)sence of large fluctuations in the price of the product, and the remote probability of
there being a serious slump in prices, as the demand for the oil is almost unlimited.
One of its principal uses is for soap manufacture, and as the ])rice of cocomit oil is
very little more than that of the best tallow, the demand is not at all likelv to fall
oft;

Monkeys^used
for coconut-
pickiny.

(M>pra,

In the German possessions and the Solomon Islands, the coconuts arc allowed
to fall naturally to tiie ground liefore beiiig collected and taken to the copra sheds.
In the Federated Malay States they are plucked oft' the tree as soon as ripe. While
this must be included in the category of " manual " labour it entails little human
effbrt. as the woi'k is jierformed by trained monkeys imder personal guidance. A
native pos.sessing one or more pig-tailed baboons (locally known as a " broh ")
enters into a contract to pull down the ripe coconuts from the trees. His
monkey, with a long string attached to its body, ascends the trt-e and proceeds to
twist a nut oft" ; if the fruit is too green to pluck, a tug at the string causes it to
relinquish that nut and tackle another; in this way onl}^ the matured nuts are
Preparation of gathered. The coconuts are split open and left in the sun until the flesh or
copra l)egins to curl. It is then taken out, chopped up, and spread on the trays
to dry, preparatory to its being bagged for export.

Coconut trees in the Peninsula have sufl'ered considerably from the attacks of
the coconut beetle, and this evil assumed such proportions, owing to the carelessness
of the native cultivators, that the whole industry was jeopardized. To cope with
this clanger, "The Coconut Trees Preservation Enactment" was passed, and an
inspector appointed. Plantations were regularly inspected, the rubbish which had
been a breeding ground for the beetles was collected ami burnt, di.seased trees were
destroyed, and plant sanitation rigorously enforced. The Act endowed the inspector
with powers to enforce his decisions; if the cultivator refused to obey instructions,
the work was done at his expense, and the owner punished. This wise and firm
treatment has rehabilitated the industry and ]ilaced it on a sound basis.

It would, I think, be advi.sable, when the Legislative Council of Papua is
))assing an enactment dealing with agriculture generally, to include certain clauses,
empowering the administration to insist on plantations being kept in a cleanly state,
aixl authorizing tin- ;iutliorities to destroy, without conipenisation, any diseased trees
that were endangering the industry.

Necessity for
le^iHlation in
]'Apua.

''HI

lie following is an esciniate of the cost of cleaning and planting 500 acres costoipiAntins.
witli coconut trees in I'apua: —

£ s. (1.

Felling- and clearing at 30s. per acre ... ..• 7.")0

Lining and holing ... ... ... ... -10

Cost of 25,000 coconuts lor planting ... ... 50

Planting coconuts, 33 feet x 33 feet ... ... 20

Weeding and maintenance ... ... ••• 1()0

lioads .'.. ... ... ... ... ... 5U

House for superintendent... ... ... ... 200

Huts for natives ... ... ... ... 200

Tools... ... ... ... ... ... ."jO

Supervision 2.50

Rent (say 6d. an acre) ... ... ... ... 12 10

Recruiting 30 natives (labourers) ... ... ... 1.50

Contiuo-encies ... ... ... ... ••• 50

Uj^V.

1,922

2,2,50

4,235

Upkeep for five years at £450 a year
Rent for five years

In the sixth year the trees shoidd hear 40 nuts each, or 167 tons of copra, worth
£1,670. In the eighth year the trees sliould bear 60 nuts each, or 250 tons, worth
£2,500. This would represent a gross annual profit on the total outlay of about 50
per cent. Healthy trees will live at least 60 years, probably longer.

The cost of upkeep could be defrayed by the returns from catch crops,
reducing the capital outlay to £2,000.

Sugar.

The sugar fields cover an area of 18,000 acres, and are situated on the rich Area.
alluviarcoastal soils of the State of Perak. Besides the local consumption, 20,467 Export.
tons were exported in 1904. The cultivation is mostly in the hands of Chinese,
although there are two or three large estates owned by Europeans. It is quite possible ^^^^^
that the sugar industry Avill attain "large dimensions in the Federated 31alay States,
and competent authorities believe that it will become one of the most important indus-
tries. Like kindred industries, its expansion is governed by the Avorld's prices, and not
by the extent of good available land. Last year the price of sugar was fairly high, and
good profits were made, but this year lower prices rule, and the lessened returns may
discourage vigorous development.

In Java the sugar industry has assumed much greater proportions, and is con- sugar culture in
ducted on the most modern methods, with the most up-to-date apjiliances. I have
therefore dealt with the subject more fully in that portion of my report.

In any case this is one of those industries that we can hardly hope to see
introduced into Papua for some years, as successful sugar production requires an
initial outlav of from £50,000 to £60,0U0 in plant alone if success is to be hoped
for.

Rice.

Rice is practically the only crop that is largely cultivated by the ^Malays, ^'^l^^-'
They practically mono])olise the industry, although a considerable area in the Krian
district is cultivated by immigrant races ; Init it is a peasant and not an estate culture,
each family rarely growing more than sufficient for its own consumption. The total ^^Jft-vation.
area under rice is 112,000 acres, or nearly one-third of the whole cultivated area of
the Federated Mala\' States. The local consumption of rice is enormous in the
aoo-veoate, as it forms the staple food of more than three-fourths of the pojiulation.
Rouo'lily speaking, each adult mah; Malay consumes about 600 lbs. of rice per annum,
and an average Malay family 2,500 lbs. The natives plant only one crop of rice in the
vear, although two could be produced annually on the same plot of land. This system
may not be wlioUy the result of indolence on the part of the Malay. The ground is
improved bv a rest, and the weeds and growth that make their appearance ai-e turned
in as greeii manure. Two principal types of rice crops are grown — hill or dry

F.6615 c

Efforts of
Government to
improve rice
culture.

Not suitable for
Papua.

Cultivation
bein^' neirlected.

Good catch
crop.

Government

assistance.

Area planted.

New variety.

paddy, and wet or irrigated paddy. The former method of cultivation is now pro-
hibited, except in the case of the Sakais (moantain races, some 17,000 in numl)er,
who are believed to be the aboriginal inhabitants). Tlie object of tliis eml)argo is to
prevent forest destruction, as fresh jungle is cleared for each succeeding crop ; because
drv rice cannot be o;rown nrofitablv vear after vear on the same land. The method
of rice culture is very primitive, necessitating an immense anxjunt of lal)uur to attaiii
a given result, while the \icld might be increased by better methods of cultivation
and a careful selection of seed. The Government have made praiseworthy
efforts to benefit the J\lalay in this respect, and to increase the annual pro-
duction. One hundred square miles of the Krian district have been irrigated
at a cost of £160,000, a very small sum considering the area supplied with water.
The ground is low-lying and flat, and therefoi'e lends itself to e(;onomic irrigation,
while the water supply is abundant and accessible. Two thousand acres of this have
been taken up by Tamils for rice cultivation, and additional areas l>y other races,
while a considerable area has been used for suo-ar-o-rowina,-.

The Government is also experimenting with the object of securing an improve-
ment of the grain by hybridisation and the introduction of new varieties.

In spite of these efforts the area under rice cultivation does not indicate much
expansion, and there is little likelihood of the local supply overtaking the demand.
The annual import of rice is, roughly, 100,000 tons, and the export 11,000 tons.

It would, I think, l)e inadvisable to encourage the cultivation of rice, for the
present at any rate, in Papua. In the first place, it postulates extensive irrigation,
and in the second place it is a crop that requires a lai'ger amount of labour and atten-
tion than almost any other crop value for value. A similar amount of labour on
ricli, unirrigated land would produce a larger food supplj* of tapioca or sweet potatoes.

Coffee.

Although tliis crop receives little attention now, it Avas formerly the chief
plantation Industry of tlie country. But the enormous production of Brazil and other
places so glutted the market that prices became unremunerative. Many of the older
coffee plantations have been abandoned and overgrown with lalang grass ; while the
more recent plantations have been largely planted with rubber. The trees are planted
amongst the coffee bushes. The rubber trees, if planted a good distance apart, do not
destroy the coffee plants until tiiey have assumed considerable dimensions, and in the
meantime the profits from the sale of coflree contribute materially towards the cost of
planting and maintaining the rubber trees.

Conversely Liherian coffee is an excellent catch crop to plant between the
trees of a rul)ber plantation, as the bushes come into bearing in two years.

In this way coffee-growing may be pi'ofitably carried on in Papua, and
constitute an important element in tlie general industrial development. Alreadv threi;
small coffiee plantations are in existence there, but it is questionable if they will pay at
present prices unless as a catch crop.

With a view of assisting coffee planters to tide over the period of low prices,
the Government of the Federated Malay States has abolished the whole export duty
on coffee when the price is less than 19 dollars a pikul (about 4d. a lb.).

It has generally Ijccn held that all varieties of coH'eegrow best at a consider-
able altitude, and that they require to be protected by shade trees from the full heat
of the sun. In the Federated Malay States, however, the Liherian coffee ))ushes have
been planted on rich alluvial land only a i'cw feet above the sea level, and unprotected
by any shade trees. The bushes are large and healthy, and bear a splendiil crop of
berries. So far as productiveness is concerned they will compare with similar
plantations in other conntri(>s. AVliether the qualitv is uj) to the highest standard I
am unal)le to say. The ))rices are a little lower than in other countries, l)ut it is
pi-obable that this is assignable to the method of preparation rather than to the quality
of the raw jimduct. The area at present under coffee culture is 19,000 acres, but a
very large proportion of this land has been also planted with rubber, and in some
cases coconuts, and the industry is likely to dwindle unless coffee is replanted as a
catch crop ])etween the young rul)ber plantations. In 1904, 3,400 tons of coffee were
exported.

Mr. W. W. Baile\^ at Klans;, has carried out some interestina; ;ind valuable
experunents in the hybridisation of coffee. One variety tliat he has ])ro(iiice(I, called
"Bailey's Hybrid," is a cross l)etween Stenophylla and Lilieriaii, and is l)elieved to be
one of tlie best kinds known.

T]i(' folloAving is an estimate of tlie cost of clearing and planting- 100 acres v.'ith
coffee in I'apua : —

1. Nursery expenses (growing 44,000 plants G inches

by inches — allowing a margin of 20 percent, fen-
failures — including seed, shade for young plants,
&c.)

2. Felling and clearing at 30s. per acre

3. 3G,;^ 00 pegs for lining

4. Lining

5. Holing 3(1,300 holes, 12 feet bv 10 feet ...

6. Planting, tilling holes with surface earth, and shading
, 7. Weeding and maiuteuance for part of year

8. Roads

9. Tools for clearino- and ))lantin"- ...

10. Mouse for superintendent

11. Huts for natives

12. Supervision ...

13. Rent of land, say 6d. an acre

14. Survey fees ...

15. Recruitino- native lal)ourers

16. Various expenses and contingencies

• _

1,227 10

1 50

120

200

150

250

.')

100

When the trees are l)earing, extra buildings are required, and provision for the
preparation of the coffee, costing, say, £600.

If the 100 adrcs of coffee were planted as a catch crop between rubber trees, piantin?
the expenditure on items 2, 7, 8, 9, 10, 11, 12, 13, and 14 would be unnecessary, and the Tn^penTe.
expense of planting the 100 acres would be reduced from £1,227 10s. to £390, as the
£50 for contingencies would be sufficient to provide for the small amount of extra
laliour in maintenance, beyond the ordinary work of a rubber plantation. Liberian
coffee grows best below 2,400 feet, and is the hardier plant. Arabian coffee requires
an elevation of 2,000 to 4,500 feet, and is worth from 20 to 30 per cent, more tlian
Liberian, while in good ground it will yield equally as well. The Arabian variety
was largely destroyed in Java by the leaf disease.

Tapioca.

The cultivation of tapioca (called in other countries cassava or manioca) is an Area.
iiulustry of considerable importance and value in the INIalay States, the crops, princi-
pally in the hands of Chinese, covering an area of 17,000 acres. Li 1904 the Exports.
exports totalled 8,200 tons, worth, it is estimated, £90,000, while the local consump-
tion is considerable. The yield of tubers is very large, and the crop is consequently Exhausts the
a most exhausting one for the soil. The land is able to produce only three successive ^''''•
cro})s, and is useless for tapioca for a long time afterwards. Owing to the greedy
nature of the plant, and the method of production in the earlier days of the Protectorate,
considerable injury has been done to large areas of the most fertile land in the Malay
States. The metliod in the past was to (dear a ])iece of forest land, take off two or
three crops, and then abandon it. Abandoned cultivations in the Malay States are
soon covered with a waving growth of " lalang " grass {Imperata ai-midi/iacea), one Laiang grass,
of the most troublesome weeds in the Peninsula. Its shoots creep underground and
throw out roots as they go along, while the fluffy seeds are carried everywhere by
the wind. Once the lalang gets hold of an abandoned holding the ground is practi-
cally useless, as cattle will not eat the grass, and it would take from £4 to £5 an acre
to chop it out. Fortunately, it will not grow well in shade , and, consequently, the
jungle is fairly free from its presence. Thousands of acres of useless lalang country
mark the districts where tapioca and, to a less extent, coffee were previously cul-
tivated. New regulations have lately been enforced under which a cultivator, taking
up land for tapioca, is obliged to plant with it fruit trees, coconuts, rubber, or some
other permanent culture ; by this means abandonment of the area is prevented, and
other useful industries are stimulated. The large growers make the tapioca of
commerce from the tubers, while the natives cook and eat them like yams or sweet
potatoes. They are also largely used in some countries for the mauufjicture of starch

C 2

Papua.

Dr. Willis.

Inciustries
suitable for
Papux

Other

economic

plants.

Area.

Export.

Yield.

Cost of planting.

Papua.

and as food for fattening cattle. The cultivation of tapioca i.s an industry verv suit-
able for rapun, and its introduction should lie encouraged, but under the strictest
regulations regarding tree-planting, or otlier\'vise making it permissive only as a
rotation crop.

•When Dr. Willi.s, the Director of the Royal Botanical Gardens in Ceylon,
visited the Federated ^lalay States to report on the industries, he stated : " So far as
the particular case of the jNIalay States is concerned, it seems doubtful if any important
industry other tliau coH'ee, sugar, rice, coconuts, tapioca, and ruljber is likely to be
discovered for some time." These industries I have now described, and have advo-
cated the cultivation of the three last-mentioned in Papua, and coffee as a catch crop
only, uuless there is an improvement in the market price. There are other industries
suitable for Pa]ma, which cannot be profitably cultivated in the Malay States owing
to the fact that there is little country suitable for agriculture at a considerable
elevation. These will be fully dealt witli in Chapter X. on Java.

This inquiry into the economic development of the Malay States would not be
complete without a short description of other economic plants, that are either being
experimented with in the Government Gardens, or are being cultivated on a small com-
mercial scale.

Pepper.

The cultivation of pepper is principally centred in the State of Negri Sembilan.
At present o,50() acres are under cultivation — a much smaller area than in former days.
The decline is caused b}' over production in otiier lands and the con.sequent low prices.
The amount of pepper exported in 1904 was 547 tons.

Pepper is phmted from cuttings taken from the young vines. Great care
should be exercised to insure their being taken from healthy stocks, and difficulty is
sometimes experienced in getting the cuttings to root. Hardwood posts 11 feet long
are placed in the ground 9 feet apart ; the portion put in the ground (about 2 feet)
must be tarred to resist white ants. In Java I have seen the pepper vines trained up
kapoc trees, whiidi is a more effective and cheaper metliod. The vines in the ]\Ialay
States are trained up these posts, and should not be allowed to bear until they have
reached the top — usually in about three years. A good pepper plantation should
vield half a ton of pepper to the acre in, say, four years from the time of ])lanting.
The cost of curing the pe])per is small, no expensive machining or buildings being-
necessary. By using ka[)OC trees instead of hardwood posts the cost of planting an
acre should not exceed £12. while the kapoc trees are an additional source of revenue.
The soil and climate of Papua are well suited i'or pepper culture, and as the market for
pepper has improved lately, I think it should be tried on a small scale. The difference
between black and white pepper is only in the preparation.

I ndisncnsable
for HUlmiarine
cables.

The

Gambieu.
leaves of the gand)ier shrub are largely used in tanning and dveino- ;

22,000 acres are at ])resent under cultivation, and 1,550 tons were exporteii in ]!)()4.
As a dye it is ])rincipally used for native cloth, aniline d3'es having largely superseded
all vegetable products. As a tanning agent it is inferior to oakliark or sumac. Its
cultivation in Papua would not lie warranted, as it is not a profitable exj)ort industrv.

GuTTA Percha.

There are several vaiieti(;s of gutta percha, ol' which the "Palacjuiin gutta " is
the best. It is indigenous to ]\Ialaya, although now cultivated in many places. It is
indispen.sable in long distance telegraphy, as it possesses the pro]ierty of jierfect ii:-
sulation. It is also used for surgical instruments. The j)rincipal sup]dies have been
obtained from the forests of .Malava, and most of the lart>e trees have been destroved
by the Dyaks and others in the process, as the late.K cannot be ol)tained by ta])]>ing,
and the trees have been cut down. A niunlier of young trees have hvcn discovered in
the forests of Perak, and these arc being carefully protected by the Forest Depart-
ment. The proper method of obtaining the gutta jierclia is to prune tlie trees, grind up
the leaves and slalivs with a pulvcri/cr, and throw into water; the gutta ]ierclia will
gradually rise and float on the top, when it is skinuned off.

Tlie demand for gutta percha is very intermittent. Sometimes prici's are verv
high, especially v.li(;ii (■al)le constrnction is Jictive. At otiier times there is little
deinaml. Owing to the slrides wireless telegraphy is making the demand may
become still less. Dui'Ing llMJl, 105 tons were exported from th(> Malav

StiXtos. TIk' yield per tree is not iioarly so l;ii'<;(' as in tlie rase of rul)l)C'i', and it is a
particularly slow-^rowino- tree, no i;iitta perdia i)eiiig ol)t:iine(l until it is 2o years old,
and sometimes fjO. For private enterprise L;utla perelia-i>ro\ving is out of the ques-
tion, Ijut a (iovernment ])lantation is a(lvisal)le. In Java a larg(!areu lias heen planted
by the (iovei'innent, and this should l)e ilone in I'apua, as the trees eould he planted i-a|„ia.
in a forest reserve hy simply eleai'ing a spaee for tlie youny ti'ees.

Indigo.

Tndio'o growing was a very important industry bpfore the discovery of aniline oym.
dyes. It is grown hy the Chinese, generally as a eat(di erop, on coconut and rubher
])lantations. The total export iu IDOt was 407 tons. It is principally used for
dyeing the blue cloth worn by Chinese coolies and otliers.

NUT.MEGS.

Tlu're is a little haphazard cultivation of this product, iMit the return is
uncertain. (_)nly ahout half tlie trees bear, as it is impossihle to tell wliicli are the
male trees until nearly l)earing time. A return may be looked for when the trees are
six years old. I have seen these trees orowini>- and bearino- well in the Bismarck Archi-
pelago, and I think a few should l)e planted on good well drained soil in experimental
gar-lens in Papua. They should l)e ])lantL'd 'M feet apart. IJetween the outer p„i,ua.
coverintj- and the nulmc"- there is a second coyerin<>- ; this is the mace of commerce.

Kola Nuts.

The Kola tree ( Co/a acuminata^ is a heavy bearei", producing a pod which con-
tain-; several seeds al)out the size of horse chestnuts, from which a valuable drug is
made. The seeds are l)agi!,ed and exported. The Curator of the Botanical ( Jardens pa,,ua.
at Singapore thinks it should be tried in Papua.

Sago.

The sago ])alm is grown in many places in the Malay States. The trees prefer
rich, swampy land. It is a valuable food product, and the cultivation is simple.
Sago is indigenous to Papua, and on hundreds of square miles of low lying and swampy papua.
country this valuable food-tree is growing. Its cultivation, therefore, is not necessary,
but a strong eti'ort should be made to utilize this natural wealth.

CAJirHOR.

Formosa camphor (Camphora officinarum) grows best at a considerable
altitude. Foi- a long time the supply has not nearly equalled the demand, and prices
during the last five years have gone n\i 170 percent. Its principal use is as an
ingredient iu smokeless powder (cordite), and it has been largely used in the manu-
facture of celluloid, moth balls, &c. On account of the iusufhcient production
another ingredient has had to be used as a suljstitute for camphor in the production
of celluloid ; and na])htha balls have been utilized as an inferior substitute for camphor
as an insect dcstrover. It, however remains an indispensable constituent of cordite,
and as the luatcrial is likely to be in large demand until we reach the niillennium, a
go(»l market for some time is assured. The principal su|iplies have i ome from
Formosa, but these have fallen off considerably since the territory canu' into the ])0S-
session of the Japanese. In manufacture the tree is cut down, the wood and boughs
cho|)ped iqi, and the camphor obtained hy distillation. This r-hould certainly be tried p.puj.
iu Papua in the Government experimental garden.

Cotton.

For the lirowth of cotton the climatf is unsuitable, as it re((uires some months
of drv weather while the bolls are developing. It has been tried experimentallv in
the Botanical Gardens in Singapore, 'and ^!r. liidley informs me that seven or eioht
ditterent kinds of l)ugs attack it on sight.

It is, I l)elieve, (|uite uusuited for Papua. A carel'ul record of the dailv
rainfall iu Papua, Fast of the Owen Stanley Range, was sent to the British Cotton
Growers' Association hy ^Ir. liochfort, and the Secretary reported that the rainfall
was too continuous for the connuercial cultivation of cotton. In New Brita'n, iu
the Bismarck Archipelago, I have seen a l:irge number of (U'ad cotton bu.sbes in a
plantation, the loss l)eing caused either by ins'jcts or disease.

Kapoc.
Kapoc grows well in tlie Malay States, and there is a small industry in Kapoc
fibre, but it barely pays to grow as a special crop. It growls with remarkable
rapidity, and the growing trees are used in German Xew Guinea as green posts for
Papua. ^yjj.g fencing, thus getting over the difficulty of white ants ; and in Papua it should

be introduced for that purpose, and instead of posts for training pepper and other
climbing economic plants.

The Kapoc fibre can also be used as a suljsidiary product. In some portions
of Netherlands India, growing Kapoc trees are used for telegraph poles.

Tea.

The cultivation of Tea has never been attempted on a conmiercial 1)asis in the
Malay States, altliougli small experiments in many estates have been tried, and it has
been cultivated successfully in the Hill Gardens of Perak ; but the country is not
well suited for the product, as there is not a sufficiently large area of good elevated
ground. Jt would also be useless to attempt competition with old estaldished centres,
as the present low prices only allow a small margin for profit, and an immense amount
of cheap labour is required in the jncking season. While the natural conditions in
Papua. Papua should be suitable for tea culturt-, the small profits, the large amount of

skilled labour, and scientific management required, the growing competition and the
established reputation of other centres would almost inevital)ly lead to unsuccessful
results. The varieties most usually grown are the Assam Hybrid and the China tea
bushes. The former is the kind priucipaUy grown, except in China.

Maize.

Only small quantities of maize are grown in the Malay States ; the quality 's
Papua. inferior and the yield poor. This should only be grown in Papua as a catch crop

between the rubber and coconut trees.

Fibres.

There is an immense number of fibrous, plants that grow well in the tropics,
many of them vielding most valuable fibres ; but the amount of labour required to
extract this and prepare it for the market makes the cultivation generally unprofitable.
In the Singapore Botanical Gardens alone there are no less than 35 species and
varieties growing well, and yet as a commercial industry fibi-e plants are not
cultivated in the ^lalay States, in spite of the enormous demand for such conunodi-
ties in the markets of the world.

Ramie.

Various varieties of ramie are amongst tlie finest and most valual)le fibres in
the world. The plant is about four feet higii and grows well in the States, yet in
spite of these advantages, the considerable areas that have been cultivated )w various
planters have all ended in absolute i'ailure. This was owing to the expense in pre-
pariiiii- the crop. The fibre is obtained from the bark, .which has to be stripped off
the small limbs of the plant and then prepared by a laborious jn'ocess.

Murva.

Murva, or bow-string hemp, is another very vahuible libre. There are several
varieties, of wliich Sanseviera zeylanica is the best. It should be grown in slight
shade, and could ))e used as a catch crop.

Sisal Hemp.

Sisal hemp does not grow well near tlie I'cpiator as it requires a dry cliinalc.
It "-rows best 20 d('<>;rces from the ('(juator, or just inside the tropicus. Tliis is an
industry that might be cultivated witli success in certain parts of Australia. At
Itigo, in Papua, there is a small plantation of sisal hemp. While it may be hoped
this will result in success, the ])rol)al)ilitics are aiiainst it, as, in the ojiinion of the
most competent experts, the climate is altogether unsuitable. Dr. Treub, Director of

Agriculture in Java ; Mr. Ridley, Director of tlio Singapore Botanical Gardens ; and
Mr. Carrwtlicrs, Director of Agriculture for tlie ]\ralay States, were all of ()|)inion tliat
the climate of Papua is unfitted for its culture. This is proljaljly another illustration
of the necessity of expert knowledge in stai'ting new industries.

Manilla Ukmi*.

Manilla heni|) (Alusa lextUis) is not, strictly speaking, a hemp at all ; it belongs
to the banana family, and is one of the finest Hbres for rope making. It is largely
produced in the Piiilippiiie Islands, the 1891 crop ])eing valued at £4, .^.59, 000, or very
nearly 60 per cent, of their total ex])orts. It recpiires a rich soil with plenty of hunms,
a regular rainfall, and shelter from strong winds. In Manilla, on good soil, the
])lantations are renewed only after a period of fifteen or twenty years. When the
plant begins to bloom the leaf sheaths are pulled oflf", cut into lengths — the longer the
l)etter — and are drawn under a heavy knife. The knife is fi.xed to a table or board,
like a large tobacco-chopper, and the leaf sheath is dragged through. This is repeated
until all the [lulpy part is separated from the fibre ; Avhich is then washed, dried, and
packed. Good Manilla hemp is worth from £36 to £48 a ton. Seeds can be sent in a
Wardiau case. The most difficult problem in all fibres, except cotton, is the trouble
and ex])ense in exti'action and preparation.

An improved Mexican raspador (rasper) has been invented in the United
States which will, it is I)elieved, largely solve the problem of this labour and expense.
If that be so, the most valuable Hbres amenable to this treatment shovdd be grown in
Papua. I would recommend that small patches of ramie, niurva, and Manilla hemp Pai.i
should be laid down in the Government Experimental Gardens.

Drugs.

There are a large number of tropical plants yielding drugs, some of which are
valuable for local consumption and others for export. 1 append a few particulars of
some useful kinds that are easily grown and require no skilled labour in their
production.

Bael Fruit.

Bael fruit grows easily from seed and bears a fruit something like an orange in
its appearance. It is an excellent cure for dysentery, a disease very rife in the
tropics, both amongst white people and natives. The medical properties are contained
both in the fruit and seeds, whicdi are eaten. They have been planted at all the police
stations in the State of Malacca, for the use of the native officers.

KOSAM.

Kosam {Brucea Suinatrana.) — The seeds from this shrub which is a quick
gi'ower are very bitter, and have been found very valuable in cases of dysentery and
persistent diarrlicea. The sufferer is given twelve seeds to chew' the first day, and a
lesser number afterwards. Some notable cures have been effected by them.

Coca.

The coca shrul) orows from 6 to 8 feet hiyh and is easilv cultivated. From
the leaves is extracted the valuable anaesthetic known as cocaine, used in dentistry and
sux'gical operations. The leaves can be picked two years after planting. They are then
dried and exported. The market is very variable, and occasionally a good price is
obtained.

Castor Oil.

The castor oil shrub (7i'/ci//«.s Comwm7^^V) is easily and (quickly grown. The
seeds from which the medical oil is extracted are collected and exported. In the
Singapore Botanical Gardens the caterpillars have destroyed a number of the trees.

Cassia Alata.

The leaves of the cassia alata shrub, used as a poultice, are good for some
skin diseases. A few seeds are scattered in the ground, and this is all the cultivation
required. Skin disease amongst the Papuans is very prevalent.

SARSArAUILLA.

The sarsaparilla bush {Smilax sarsaparilla) is an annual. It shouhl be planted
in rich soil. The roots are dried and exported, or boiled, and the li(|uid used as a
local medicine.

Ginger.

Ginger (^zingiber officinale) is easily grown. The roots, from which the
ginger of commerce is extracted, are dried and exported. It is a plant that soon
exhausts the soil.

Chinese ginger (^zingiber Sp). Some plants of this species produce the well-
known preserved ginger of commerce.

Bamboos.

The gigantic baraboo-reed or grass is most useful in a variety of ways, and is
considered almost indispensable in the East. Its uses range from house-building and
fencing material to natural water pipes, while the tender shoots form the princiijal in-
gredient in a bamboo-curry. About twelve varieties are cultivated in the Malay
Papua. States, and some of these should be grown in Fapua, as they require no attention

after planting.

PART II.

JAVA.

The System of Governme>jt, IMktiiods of Adjiinistration, and Economic

Devklopment.

CHAPTER VI.

System of Government and Methods of Legislation.

Area and Population — System of Government — Central Organization — Provincial
Government — Native Organization — Method of Legislation.

Area and Populatiom.

Java is the second in that garland of islands that stretch from the Malay
Peninsula to New Guinea. It has an area of 50,000 scpiare miles, about one-half
the size of Papua, or the State of Victoria ; and constitutes l)ut one-fourteenth
of tije Dutch Island I{mi)ire in the j\Ialay Archipelago. The ])opulation of
Java and the small Island of Madura, at the census taken in 11)00 was 28,747,028,
and at the present time nuist be over ^A) millions, or GOO ])eople to the square mile.
Of these not more tiian one million and a half are concentrated in large towns. The
most surprising characteristic of (he .Javanese natives is their extra on h'nar}' fecnnditv,
the po]inlation having increased during the last hundred years from four millions to
its ])r('sent enormous dimensions, and this without any immigration worth mentioning.

imui, III,!.. No iiigher tril)ute can be accorded to Dntcli rub' in .Java than the simple fact that
the inhabitants have increased seven f iM witliiii a century, an unexanqtied record
that is in ])leasant contrast with the u^ual annals of tropical colonization. The

M lay suck. Javancse bcIong to tlic Malay stock, which is believed to have spread in prehistoric
times fi-om South-eastern A>i i over the islands of the Malay Archipelago almost as
far as New (ininea. In spite of this common di'sceut, the natives differ somewhat in

socndancM. ])liysique, temperament And characteristi 's The Socndanese of AVestern Java iwr
miM-e sdf-ivdiant, an 1 sh-^w a g,-.'a cr pe.-^ouil ind 'p /nd Mice than the nrjcker ami

.i.,v„n„e. more servile .Javanese ])ro]HM-, wiio inhibit the central portion of the island. In the

first century of (Mir ci'a, Java was invadcil from Continental Jnilia, and for nearly "i'l'i""'
1,500 years the island was governed bv Hindoo Dynasties. In 1478, a.d., tlie island ".viiiuitien.
was captured by the Arabs, and the natives were gradual I v converted from IJuddliism
to the Ishunic faith. While it is dillicult t) estimate the intiuence that the Hindoos
exercised over their Malay subjects, the infusion of Hindoo blood seems to Vje more
evident in Central Java than elsewher,'. This was |)roi)al)ly the Ilindoo'.stronghold,
as the nnignificent ruins of ancient Ijuddhist teni])les s(;attered everywhere al)uut seem
to testify.

In the island of ^fadura, and the eastern portion of Java, the iidiabitants are
more euter])rising, and are possessed of greater courage and truculence they prefer to
fight in the open rather than under cover, or l)y stabbing from behind, as is the more
usual method in Central Java.

The ethnological divcixt^ncies in Java are, however, not nearly so accentuated '■•.t'>'">ioK''.-ai
as in 1 apua, whei'e tlie present mluil)itants seem to have sprung from at least two if
not three separate stocks.

The immigrant races in Java'are surprisingly ^^i\v in numl)er. The most
important, numerically, are the Chinese who nuniber 277,205, or less than one per
cent ; while the governing race — the white inhabitants — nuister only 61,7.30. Of
these about one-half are employed in civil and military o(;cupations, one-tiiird in agri-
culture, and one-sixth in trades and professions. A i^Vi Arabs ami a lesser number
of Japanese practically complete the total.

System of Government.
Central Organisation.

At the head of the Government of Netherlands-India is the Governor-General, oovemor-
lle is assisted by, and presides over, the Indian Council, consisting of five members — '■'^^"'^'"'•
a Vice-President and four others — appointed by the Sovereign. The functions of this ^"'"*" '''°""''"-
body are chiefly of an advisory nature. It possesses some legislative power, but no
executive functions, and the Governor-General is not obliged to accept its advice
except in a few matters. The councillors are men of high standing and ability, and
their (lelil)erations are of importance in the government of the Indonesian possessions.

The Chief Secretary is the head of the Secretariat, or Cabinet of Secretaries chict secretary.
to the Governor-General.

The Central Administi-atiou of Java is conducted by eight Chiefs of Depart- cwefsof
ments, of whom six are called " Directors," each controlling one of the followiuo- ^'''P^rt"'^''*^-
Departments : —

1. Justice.
2-: Finance.

3. Internal Administration.

4. Education, Religion, Industry.

5. Public Works. ^

6. Cultures.

7. War (Commander in Chief).

8. Navy (Vice-Admiral).

All public service appointments, both civil and militaiy. are made bv the Pnbiic servi,^
Governor-General, with the exception of the following, who receive their commissions •^»'i"""""'""'-
from the Home authorities : —

1. jNIembers of the Indian Council.

2. President of the Hioh Court of Justice.

3. Attorney-General.

4. President and Officers of the Auditor-General's Department.
.'). ^'ice-Admiral.

(i. Commander in Chief.

7. Generals— Major of Infantry.
*8. Generals — Major of Artillery.
*9. Chief of the Intelligence Service (General Staff).
10. Commander of the Second Military Division of Java at Samaran"-.

The rank of General Major is between that of Colcuel and Lieutenant-
General.

Directors.

*These appointinenls can also be made by t!ie GovernorC'e leral.

Salaries.

The Order of Precedence, and the annual remunei-ation, are as follow : —

Governor-General (exclusive of allowances)

Vice-President of the Council

Lieutenant-Geueral

Vice- Admiral

Members of the Council ... • ...

Chief Secretary ... ... ...

Directors

£11,000
, 3,000
, 2,680
, 2,500
, 2,40U
, 2,()U0
2,000

Assistant
Residents.

CoiUroleurs.

Regents.

We(laiia.i,

Bekcl LotTuli', or
Villii;^o Jlviul-
malt.

EUilive l(e|>re-
tM:ntation.

PiiovixciAL Government of Java.
Java is divided into sixteen Residences, and the Island of Madura constitutes

a seventeenth.

At the head of each Residency is a Resident, with from two to six assistant
Residents. Each Resident represents the authority of the Governor-General in the
province of his jurisdiction, an area roughly of 3,000 square miles with a popu-
lation of 1,700,000 peojjle. His duties are numerous and important. He combines
administrative, minor legislative, judicial, and fiscal functions. It is his duty to
protect the natives from oppression, and to maintain and extend economic de-
velopment and education.

A Residency is divided into from two to six divisions, in each of wliich is an
As.sistant Uesident who is empowered to exercise all the above functions (except
lea;islation) under the supervision of the Resident. The Resident corresponds directly
with the Governor-General or with the various chiefs of departments (Directors)
according to the nature of his communications.

The Controleurs are the last in the European administrative organizatioa,
and are divided into Controleurs and " Aspirants." They have been termed the
" nerves and sinews " of the administration ; they come into daily touch with the
upper strata of the native organization ; they see that the commands of the Resident
are enforced settle minor disputes, supervise the collection of native taxation, and
exercise o-enerally an important influence on the general administration.

Native Organization.

The Reo-ents are nominally at the head of the native organization, but in actual
m-actice thevhave few executive functions and little real authority, although possessing
Lr'eat influence with the natives by reason of their dynastic prestige and Mohammedan
reli'o-ion. The administration, while appropriating the real authority, has wisely
allowed them to retain the outward semblance of riders, thus preventing the appear-
ance of violent change in rulership that is especially injurious in an oriental comnninity.
The number of Residents and Assistant Residents nearly corresponds with the numl)er
of Reo-ents and the former generally have their headquarters near the court of each
Pe<Tent The Re'>-ents are of princely or noble rank, and the Governor-General in
•mnointino- them endeavours, as far as possible, to maintain an hereditary succession.
In this wav the Govermnent retains the form and jn-estige of the old lines of native
rulers from whom the Regents are descended.

The Resident and Assistant Residents issue their instructions through the
Reo-ent in the form of " recommendations" or as instructions of the central Govern-
ment. They hold the title of '■ Klder Brother," a position whi(di, according to the
customs of the East, entitles them to the obedience iind respect of their "younger

brothers " the Regents.

The District Heads (Wedanas) and the Under District Heads (assistant
We(hmas) also natives of iin])ortant families, number some 1,500. They collect the
taxes and inform tlie natives of tlie commands and re(|uirements of the Government.

Last of all is tlie village lieailnuui, (•orresi)on(ling with our village c()nstal)le in
Papua He is called " Bekel " in Middle and East Java, and " Locrah " in West Java.
The hoiulmen assist the superior ollicers, superintend the village, apportion to in-
dividuals tlie communal tax, and are resp()nsil)le for the maintenance of law and order
in the vilbve. They receive no salary from the Government, but are allowed to re-
tain 8 per"cent. of certain taxes which they collect. An interesting phase of the
native or'ninization is the fact that the village headman is elected by the villagers.
Thus we see in the subordinate native ofliciaLs the germ of electoral representation.

The onlv variations in this general system of government that I have sketched socrakaru and

I T^ • *i • • T\' 1 • 1 1 c» I rm !• • • Djokjakarta,

are in the Kesidencies or Djokjakarta and ooerakarta. Inese districts represent, in a
iiiucii diininislied form, tlie great Mataram Kingdom, and the ])resent ruling Sultans suiton».
are the direct descendants of the dynasty that ruled all Java before the arrival of the
Dutch, and against whom the Dutch, French and English waged war from 1629 to
1 825. The Soesoelioenaii of Soerakarta takes precedence over all other Javanese,
and is the iiead of the Mohanuncdan religion in Java. He receives an annual sul)sidy tiut^-h sutMdie..
of £73,750 a year from tiie Dutch Government, and a larger sum from his vast es-
tates. The Sultan of Djokjakarta ranks next to the Soesoehoenan, and receives an
annual subvention of £39,387, in addition to a large agrarian revenue. In each of
the Jtesidcncies of Soerakarta and Djokjakarta there is also an independent prince,
who rules over a certain portion of territory and is not subject to the Sultans. These
rulers are invested witii great power over the natives of their territories. The Resi-
dents at the Courts of the Sultans, while occupying the same position as the other
Residents towards the white population, are political agents for native affairs.

It is probal)le that a drastic change will be made in the provincial government imporunt
of Java before very long with a view to simplify and decentralize administration, ".vstimof'
Consideration is being given to the advisability of dividing Java into three provinces, probaw"'"
Kast, Central, and West, and of appointing to each a (Jlovernor at £1,500 per annum.
Tliis will make it possil)le to do away altogether with the Residents, while the Assistant
Residents will be advanced somewhat in status and salary.

The authorities in Java are also anxious to be invested with ])ower to float '■"""■
colonial loans with a view to the more speedy development of their possessions.

Method of Legislation.

The statute laws of Java emanate from five soiu'ces and are called,
respectively : — j

1. Laws.

2. Royal Decrees.

3. Ordinances.

4. Regulations.

5. " Keuren," or Minor Regulations.

The "Laws " are drafted l)y the Minister of Colonies, and are enacted bv the uws.
Queen and the Netherlands Parliament. The laws thus passed (exclusive of the
annual Budget) are few in number, some fifteen or twenty altogether, and comprise
the constitution of Netherlands-India and important laws dealing with broad principles
of colonial policy.

The Royal Decrees are numerous. They are drafted in Holland under the R.va Dccrc«.
instructions of the Secretary of Colonies, and are passed by the Queen without
reference to Parliament.

The remaining three classes of legislation are enacted in the colonies.

The ordinances are passed l)y the Governor-General in Council and relate cdmances.
principally to administrative matters. The most interesting and important function of
this Legislature is to decide the method of collection of anv particular tax that has
been imposed on Netherlands-India by the States-General (or Parliament) of Holland.
For instance, in the Estimate of Revenue to be received from various taxes given on
page 44 of this report, a sugar tax amounting to £73,583 is set down. The form
this tax will take has not yet been decided. The States General, in discussino- the
annual Budget, decided to raise this sum of money by a sugar tax, but the method of
collection is left to the Governor-General in Council, and may take the form of an
export duty, a tax on sugar growers' profits, or a tax on the area cultivated.

The Regulations are passed liy the Governor-General without reference to the KeKniatioi.s.
Indian Council. They usually take the form of minor amendments or amplifications
of legislation alreadv in existence.

Lastly the " Keuren " or minor regulations are made by the Resident. They Keunn.
are unimportant by-laws relating to local administration, and must receive the assent
of the Director of Justice before being enacted.

Last year the Dutch inaugurated a system of municipal government in Java. Municipal
In 1905 three municipalities were created. At present there are no less than sixteen °°'^"'"'™'-
in existence.

Method of
noininatiuii.

Soerabaja
Council.

The councillors are noiiiinated by tlie Government from the official and non-
official iiilial)itants, not necessarily Dntclinien. The Municipal Act empowers the
Councils to impose taxation, provided the consent of the Governor-General is Krst
obtained. Up to tlie present no taxation has been imposed, the municipalities relying
solely on the Government for their revenue.

In Soerabaja (the commercial capital of Java) the Council consists of 23
members, sixteen Europeans (ten otHcial and six non-official, one of the latter he'ing
Dritish), three Chinese, three Javanese, and one Arab. The Act further provides
that after three years the non-official members may be elected by the citizens.

CHAPTER VII.

Legislation and Administration.
System of Taxation — Revenue — Expenditure — Land Laws — Civil Service.

System of Taxation.
The sources of revenue and the systems of taxation in Netherlands-India are
numerous and varied, and have not up to the present been fully and correctly indi-
cated in any English publication, so far as I am aware. They can be ascertained only
by an exhaustive search through the Dutch Blue-V)ool\S, or (as in my case) from the
Central Administration. Separate systems of taxation are imposed on the white and
coloured populations, except in regard to Customs duties ; and considerable revenue
is derived from State monopolies, State plantations, various ]niblic services, and
royalties. Actual taxation provides only 47 per cent, of the total revenue.

Revenue.
The total revenue from ordinary taxation is £4,775,751 ; from Government
monopolies, £2,857,871 ; from royalties, £360,334 ; from State plantation?, £546,792 ;
from Government services, £1,655,258. Total, £10,196,006. The following table
ffives the amount of Revenue collected under each head : —

(a) Custom Duties ...

* Ta.ves on WJiife Pupulation.

(b) Propertv Tax .. ... ... 81,666

{(1) Verponding ... ... ... 191,100

(f?) Sugar Tax ... ... ... 73,583

Succes.sion Duties ... ... 10,167

£
1,659,012

576,016

■f Ta.ves on the Coloiu-fd Population.
If) Land Tax ... ... ... 1,612,000

(r;) Poll Tax ... ... ... 283,750

(A) Labour Tax on Natives and Orientals 270,750
{;i) Slaughter-house Tax (principally

paid l)y natives) ... ... 162,167

(/) Tax on Native Vehicles ... ... 26,583

Suiulry small taxes

Govern in en I Mon npoUe.s.

(/r) Opium Monopoly ... ... 1,657,546

(/) State Tin Mine.s^, Banha Island ... 71,525

(to) Salt Manufacture ... ...1,010,167

(w) Coal Miiu's (Snniatra) ... ... 66,083

(«) Public Auctions ... ... 52,550

Royalties.

(}>) Royalties on I'illiton Tin Mines

(y) Revenue on Railway and Tr/mnvay

Concessions ... ... ... 114,667

(;•) Pievenue from Pawnshop Farms ... 95,667

2,355,250
185,443

2,857,871

150,000

360,334 ,

E<iiml to £9 On. 8<1. per head, exclusive of OuKtoni Duties.

t K<|Hal to l.«. »d. per head, cvehisivc of Custom Duties.

Govcriiiin'iif. I'hiiifalions. !C

(s) Cofl'ec ... ... ... 218,708

Citiclioiia ... ... ... ;5S,417

Teak Forests ... ... ... 259,067

Gutta Perclia (not yet hearing) ...

(jovurtimi'tit Services.
{/) liL'Vcnue from 2-1 (lovci'nnicnt

I'awnsliops ... ... ... 115,383

Tostal DopartnuMit ... ... 143,458

Telegraph Department ... ... 78,500

Stamp Duties ... ... ... 111,500

State Railwavs ... ... 1,20(1,417

54(;,792

1,655,258

Total ... ... £10,196,006

Of tliis total .lava contrihutes al)out £7,790,000.

Custom duties are imposed for purely revenue purposes. 'I'lie Tariff ranges import duties
from 6 to 10 per cent, on im[)orts with only a small free list which includes cattle,
horses, coal, agricultural implements, steam-engines, and raw metals. No preference
is given to the mother country. The duties are nearly all (id ralorein. yV peculiar
feature in the working of tlie Att is that no invoices ai*e required hy (lie authorities,
and no undervaluations are possi])le. The Government re((nires mei'ely a correct xovd tariff
schedule of the goods that are imported. The Director of the Department (,f '■'^*■"■"""■
Finance issues every ([uarter a manual containing the current prices of all goods
imported. The (ul valorem duties are calculated on these, and not on the immediate
fluctuations of the market.

Export duties are imposed on four .aiticles only — Hides, 2 per cent ; tobacco. Export duties.
Is. 8d. per 100 kilos.; tin, 5s. lOd. per 100 kilos ; and edible bird nests, G per cent.

The property tax is 5 per cent, on the rent of a house, 2 per cent, on the i-ropcrty tax
value of the furniture, lOs. a year on every horse kept, and 5s. for each wheel, ^''^'
including bicycles.

The income tax is progressive, ranging from 2 to Ah per cent, on incomes in.on.L. ex
resulting from personal exertion only. ''''•

The verponding is a tax on real estate — | per cent, on the improved value of verpondinif
the property. It is levied on the owner and not on the occupier. For l)usincss *''*'
houses, shop.s, and private residences tlie valuation is ten times the annual rental.
For factories, broad acres (freehold or land held under a 75 years' lease) the tax is
estimated on the selling value. The verponding is not imposed on land leased bv
Euro])eans from the natives for short terms for the growth of sugar, tobacco, &c.,
as this laiid is subject to tlie native laud ta.v.

The sugar tax, amounting to £73,583, originated in the following manner: — sujrar tax <«).
The Dutch Parliament of Holland decided, in discussing theauuual Budget of Xether-
lands-India, to raise this sum by a sugar tax, and it was therefore included in the
Budget without anv instructions as to its method of collection. Instructions have
been sent to the Governor-General to frame an ordinance. This lias not vet been
enacted, but will be passed by the Governor-General in Council, and may take the
form of an export duty, or more probably a percentage of the net income from each
sugar estate.

The native land tax was first imposed by Sir Stamford Raffles in 1812, and Land tax (o-
has been continued ever since. Tf the villasrc lands are held on the communal svstem,
the area is assessed at a lump sum, and the village headiuan apporti(ms the amount
paid by eacdi individual. The tax ranges from 3 per cent, to I'j per cent, of the
annual proiluction.

The poll tax amounts to one guilder (Is. 8d.) a year, and has to be paid bv ivii tax c)-
every worker. It was imposed as a substitute for many compulsory services that
he was formeily compelled to perform.

The labour tax corresponds with the income tax on the white inhabitants. It i.ai>our tax <»).
araountsto 2 per cent, in the case of the uatives, and 4 per cent, on oriental immigrants.

The slaugliter house tax is imposed on domestic animals killed for food. .sKau^iitcr-
Before a cow or buffalo is killed a permit costing 5s. lias to be obtained, for every ''°"*^""'W
horse (eaten by the natives) 6s. 6d., and for every pig 2s. 6d.

Vehicle tax (i).

Opium
monopoly (A-)-

State tin
mines (0-

Salt monopoly
(m).

State coal
mines (n).

Public
auctions (o).

Royalty on
tin"(p);

Railway
revenue (</).

Pawn-shop
farms (r).

Government
coffee
plantation (.0.

Government
pawn-shops(0-

Tlie tax on native veliicles is £1 a year for a two-wheeled vehicle, and £?>
])er annum for a four-wheeled cart or trap.

The Government prohibits the growth of opium in Netherlands-India, and
its importation bv private individuals. All opium is imported and sold l)y the Go-
vernment in Java. In some other parts of Netherlands-India it is farmed out.
Besides the Chinese some of the natives are addicted to the opium habit.

The tin mines on Banka Island, separated ))y a narrow strait from Sumatra,
are owned by the Government, and are worked l^y Chinese lal)our.

Tlie salt is obtained pi'incipally on the island of Madura, near Java. It is
prepared by the natives under European supervision, and sold at a low i)rife to the
Government.

The coalmines, situated in the island of Sumatra, belong to the Government,
and are worked l)y Chinese or prison labnui-.

Private auction sales are prohibited. All auctions are conducted by the Govern-
ment. For furniture and other small sales the Government charges the seller 2 per
cent, and the purchaser 6 per cent. For houses and land a less commission is
demanded. The Government pays over the purchase money immediately to the
seller and incurs the risk of collecting the money from the purchaser.

Tlie tin mines of Billiton Island (near Banka Island) are owned by private
companies. The Government exacts a royalty of 8 per cent, of the output.

On all privately-owned railways and tramways the Government imposes a tax,
varying in its percentage, on the net revenue of the companies.

The Government calls for tenders annuall}^ (as in the Federated Malay States)
for the right to conduct pawn-shops. There are about 1,000 of these, all owned by
Chinamen.

'I he Government coffee plantations are the last vestige of the old "culture"
system introduced l)y Van den Bosch, in 1832. In the neighbourhood of the Govern-
ment coffee gardens the natives are obliged to attend to the cultivation of the trees,
and to prepare and deliver the coffee into Government stores at 2|d. a pound. Each
native has to attend to not more than 50 trees a year.

The Governments conduct 24 pawn-shops in Java. The experience has been
that the Chinese charge usurious rates of interest, and often treat the simple natives
unfairlv in other ways. It is probable thei'efore that all the jiawn shops will gradnally
be taken over by the State, especially as a larger revenue than from the farming-out
svstem would be obtained.

Cost ot
departments.

EXPENDITURE.

Since the year 1878 there have been occasional years in which the finances of
Nethei'lands-India showed a surplus, but the genei'al tendency has l)een in an opposite
direction. Any surpluses sin(re the above date have not lieen appropriated l)y the
Home Government as vpas formerly the case, and the money required to make up the
more numerous deficits has been lent by the Home Government to Netherlands-India.

Below is a comparison between the Expenditure set down in the Budget of this
year and the Expenditure of 1870, and 1900.

Departments.

1870.

1900.

1906.

Superior Government ...

Justice

Finance

Internal Administration

Kdncalioii, Religion, Indii-stry ...

AKiieiiltiire ...

I'uWic Works ... ■■• ■•■ • •••

War

Navy

Distrit^t (ir.d Local Administration

62,417

260,083

362,083

3,370.417

.576,583

609,833

1,. ■526,666

433,2.50

£
92,333

444.167
1.068,667
2.463,167
1,385,417

1,824,083

2.104. .H)0

381,167

92,02.5

486,.518

1,284,217

1,920,482

1,633,441

.531.809

2,182,727

2,226.993

402.902

94,892

£7,201,332

£9,763,501

£10,856,006

The Department of Agriculture has only lately been created, and the district
and local administration includes the recently formed Municipal Councils.

If Java had a separate BiuJoet a considorablo surplus would be shown, but
that island lias to carry on her l)aclv the outlyini^- possessions where industries do not
exist (as in Dutcdi New Guinea), or when; tiieyare beini^ fostered and develo))ed, and
at present afford little revenue.

Bv the al)ove table the cause of the deficits is partly explained. 'Inhere has i-»i-<.»t in
been a largely increased expenditure owing to tiie sporadic outl)reaks of guerrilla war-
fare in the Achin district (N.W. Sumatra), and there have been large increases in the
money spent on education and ])ul)lic works. The former increase evidences the care
and attention bestowed i)y the Government on their native subjects.

All pui)lic works are constructed out of revenue, inchuHng railway <'onstruc-
tion, schools, hospitals, irrigation, and harbor schemes.

Under the head of industry is also grouped the expenses in connexion with the
tin, coal, and salt monopolies.

These items of increased expenditure, in conjunction witli the loss of revenue
caused by the coffee bligiit of 1879, which ruined many plantations, acc(junt for the
unsatisfactory Budgets of late years.

The greatly reduced expenditure under "Internal Administration" has resulted
from the practical cessation of the culture system, which accounted for no less than
two millions of the expenditure in 1870, whereas to-day it is less than £500,000.
Similarly the large increase in the Department of Finance represents the cost of the
tax systenj that replaced the forced cultures.

Land Laws.

All the lands of Netherlands-India, with the exception of a small area in Java undthe
held under freehold rights, are the property of the State. The land occupied bv the the'stote.
natives is held under hereditar}' right of possession, either by individuals or in com- ncre-jitary
niunal holdings, for which they pay the Government a land tax or land rental of from
3 to 16 per cent, of the animal value of production. In comnuuial holdings the communal
natives live in a village, or kampong, and their lands are jointly held. Each head of '"'''*'"'^-
a family is apportioned a certain area of irrigated rice land, and the produce of this
belongs to him after he has paid the land tax or land rent set down for that area, as
well as the poll tax and labour tax. The following year the lands of the village are
redistributed, so that no individual can monopolise the more fertile portions of the
village lauds. In the case of conuuunal holdings the Government assesses the whole
area at a lump sum, and the village headman, who is elected by the people, apportions
the amount amongst the various individuals. Roughly speaking, aliout one half of
the native agricultural land is held under the village conununal system, and one half h'oid"nt8?'
individually. It is illegal for the natives to sell their land to Europeans or to anv J^»"™s

11^, . , , . r T ' 1 " cannot

immigrant race, tliougti tiiey are permitted to dispose ot their tenures to each other, '"•i""'"'-
This humane law is also in force in Papua, and has prevented the perpetration of manv
injustices upon the simjde natives. The policy of the Dutch Government in Nether-
lands-India has always been op])osed to the alienation of any land from the Crown, and
no freehold land can be obtained at the present day. But, during the British occupa- FreeimM.
tion of Java (1811-1816), Sir Stamford RatHes, in order to obtain sufficient funds to
carry on the Government, sold considerable areas of land in fee simple to Europeans
and Chinese, including lands cultivated by the natives and native villages. The total
area of this "particuliei'e landeryen" is 2,681,000 acres, and is the only freehold land
in Java.

Under the agrarian law of 1870, opportunities were afforded white settlers to Leasehold.
obtain unused land on lease for a terra of 75 years at a quit rental ranging from 6d.
to 5/9 an acre The area of land thus held is 1,143,196 acres, of wliich 5::JO,97o
acres are cultivated ; the crops bping chiefly coffee, tobacco, tapioca, and cinchona.
No applications for leasehold are entei'tained if the lands desired are under cultivation
by the natives. Europeans are also allowed to rent land for a few vears from the

natives with the consent of the Government, but in no case is the individual native

or community, as the case may be — allowed to rent more than one-third of his or their
land at one time.

The Civil Service.

Dutch officials enter the service between the ages of 20 and 25 years. They cuiise ■
are requii'ed to pass an examination in Holland or Netherlands-India before they are «''=™'''"i«n'

Aspirant Con-
troleur.

Controleur.

Assistant
Resident.
Resident.

Governor,

Pensions.

Age of retire-
ment.

Holidays.

appointed. Tlii.s is open to all Dutch stiulents wlio have graduated from a high
school — tliu.s ensuring tiiat they possess a good .general education. Tiie examination
is divided into two parts, a pi-eliminary and a final, and embraces the history,
geography, ethnoh)gy, laws, institution.s and cn.stoms of Netherlands-India. A know-
ledge of the jNIalav and Javanese languages is also coni])ul.sor3'. He joins the service
in Java or the other possessions as an "ofticialat disposi:ion," and is either attached
to the central or provincial administrations. If he joined the latter, say, in the year
1900 at £20(' a vear, he may in 1901 become an "aspirant controleur," at £-2-J5. By
190 i he is promoted (if there is a vacancy and his service has been satisfactory) to the
position of "controleur" at £300 a year ; by 1908 (after eight years' service) his
salary cannot be less than £400 a vear, and l)y 1915 this must be increased to
£500.

Bv 1920 he may become an Assistant Resident at £650, with gradualincreases
to £900." By 1923 he may become a Resident at £1,250. From this there are only
two positions he can rise to — outside of tlie Central Administration — tho.se of
Governor of West Sumatra or the Celebes, at £1,500 a year. The upward progress
of the civil servant in this Branch is necessariW slow, as the higher the position
the fewer the offices, and he is compelled to work up from the base to the apex
of the pyramid.

In the Judiciary, or in other departments, such as Public Works, Forestry,
Agriculture, and Education, the civil servants, possessed of some scientific knowledge,
receive higher renuineration and quicker promotion.

An official, who has completed 20 years' service, and has reached the age of
45, mav retire on a pension of one quarter of the highest salary he has drawn.

In order to encourage civil servants to remain longer in the service, it is
enacted that if they extend their term of service to 30 years, the above-mentioned
pension will be increased liy one-half, ecpial to three-eighths of the highest salary.
Officials generallv retire at or before 65 years of age, although retirement is not
compulsorv unless on account of infirmity. Besides the general holidays, which are
few, a civil servant is entitled to a holiday of one year after ten years' service, and
the passages of himself and his wife and family are paid to Hollaiul and back. If his
salary is £250 or under, he receives half-pay, if £500 40 per cent, of his salary, if
£750 30 per cent, of his salary, if £1,000 and over 25 per cent., any other
special holidays, except for sickness, are granted without pay. In the event of illness
the official is examined by a commission of physicians, and if they report that a
chansic is necessarv, he is allowed leave according to the duration of his illness
up to two years. I'^ven this term may be extended for another year if a connuission
of physicians in Holland, report that it is necessary. He also obtains a free passage
and the same pay as those on ordinary leave.

The following table presents a summary of the official titles and salaries of
the Provincial Administration : —

Numbur in

of! whom

Title.

Netlierlands-

there are

Salaries.

India.

in Java.

European Organization —

Governors

—

1,250 to 1,500

I'esidents

1,250 to 1.500

Assistant Rc^idcn(.■5

159

78-

650 to 900

Controlciir.s

255

119

300 to 5O0

Aspirant Controlcurs

225

Kaiive Organization —

licgenls

1,200

Disliict Hcnils (Wcdana?) ...

3'Jt

391

260

Under District Heads (Assistanl \Vi(lanas)

l,3o()

1,356

145

Village Hcadincu ...

32,645

32,045

8 por i^enl. of some of

the taxes collected.

Six of tlic Itcsidents in Java have secretaries, who bear the title of Assistant
Presidents, making 84 Assistant Residents in all.

CHAPTER VIII.

EcoNOMtc Conditions.
Climate — Soils — 'Native Labour — Transj)ortatioii — Education — Defence Hospitals —
Live Stock.

ClJMATK.

Meteorological observations are carefully registered at miinerous stations
throughout Netherlands-India, and tlu-se are tabulated in instiuctivc ])iil)lications
issued from time to time hy the Pirector of the Batavia ( )b>ervator-i-. A tiiorough
knowledge ol' tiie climatic conditions of the country, diversified as they are by
natural features, is indispensal)le for the scientific development of agricultural
industries.

The mean monthly tem])eratnre throughout the year averages 78'09 deg. Tc'nperaturej
The variations between the different months are exceptionally small, and do not
amount to more than 1-87 deg. F. The two warmest months are ^lay and October,
registering T'J.bO dei^. and 7ii'4G deg. respectively : while the coldest are January and
February, recording 77"G3 deg. and 77"70 deg. The variations in temperature
between night and day are nuu;h greater, amounting to 9 and 10-8 deg. F. Tlie
causes responsil)le for such a steadily high temperature are attributalde not alone to
the perpendicular rays uf the sun, but also, as A. R. Wallace points out, to the
"Warmth of the soil and the dampness of the atmosphere caused bv the high
temperature of the sea (82'4 deg. to 84'2 deg.) over which the winds sweep.

The amount of rainfall and the difference iu distriliution between the periods of Rxmaii.
the N.W. monsoon and the SW. monsoon show considerable dissimilarity. At
Batavia the rainfall is 72-28 inches, o'f which the N.W. monsoon contributes ')!■'}
inches, and the S.W. monsoon onlv 20'78 inches. At Buitenzorir the rainfall from
November to April is 97o, and for the remainder of the year 75'I') inches. In
Eastern Java the four driest months are from July to October. On the East Coast
the annual rainfall is only 58 inches, while in the interior of l-lastern Java it is from
72 to 117 inches. In the interior of the western and middle portions of the island
the rainfall is from 108 to 15G inches, while at Tjilatjap, on the South coast, the
annual fall is 151'43 inches, of which 878 is brought by the S.E. monsoon.

Soils.

The soils of Java are probably unequalled in the world for fertility, due largelv
to the fact that a great portion of the surface of the island is covered with compara-
tively recent volcanic earths.

The western ])ortion of the Malay Archipelago was for several geological Geological
periods united with Asia, as the shallowness of the China Sea indicates. An examin-
ation of the rocks of Java shows that during the earlier portion of the secondarv period
Java was raised above the sea-level, and in tlu^ earlier stages of the tertiary era was
submerged, only to rise again during the later portion of the last-named epoch. The
strata of the late tertiarv era is broken and folded, constitutino- with volcanic rocks
the prevalent formation of the island. Java at that period consisted of at least eight
islands, but the channels between these became filled by volcanic action and with
diluvial and alluvial deposits from the seas and rivers.

If we divide up the surface of Java into these various formations we shall find surface
that the rocks that are older than the late tertiary period occupy oid}- 1-16 per cent,
of the surface. Rocks of the later tertiary formation cover 37-7 ]ier cent, of the
surface, I'ecent volcanic rocks (leucite and phonolith), 27'G per cent , and alluvial
and diluvial deposits of the quaternary period, 33'54 per cent.

Java is, therefore, geologically speaking, a compai'atively recent island, and
more fertile on that account because the erosive agents — atmospheric, fliiviatile, and
organic — have not exercised such prolonged sway over the sm-face. They have,
therefore, not robbed the soil of its richest plant foods to tlie same extent as in more
ancient lands. Recent volcanic rocks in Java contain from 1 to 1^ per cent, of phos-
phoric acid, while the older volcanic formations have only | per cent.

It would be more correct to say that the soils of Java are extremelv fertile than fj^rti'ityot
extremely rich. The warmth of the soil, and a heavy and a fairly evenly-distributed
rainfall, are most important factors; and these, combined Avith a friaUe soil, in which
the plant foods are more solulde than in older formations, account for the wonderful
fertility of the island.

F.6615. D

Analyeis of
soil.

As an illustration of the above, I might instance the island of Sumatra, one of
the l)est tobacco-producing lands of the world. At Deli, on the northern coast, some
of the finest tobacco on the market is grown, the leaf for cigar wrappers having sold
at from 3s. 4d. to 5s. a pound. Tobacco proverbial! v requires the "richest" soil for
its successful production, and yet some of this Deli tobacco-growing soil was sent to
Europe for skilled analysis, and the report came back that "they had nothing so poor
in Europe." i'he soil was chemically poor, but it was good mechanical soil, the plant
foods were easily soluble, and this, combined with the climate, created the fertility.
In Australia to1)acco is often grown on lanil tliat we class as poor soil, although it is
probably chemically richer than that of the tropics.

Plant-foods seem, therefore, to bear some resemblance to animal foods, in that
a human being may partake of a certain class of nourishment the whole of M'hich is
digested and goes to renew organic waste or create tissues, while another class of foods,
richer in proteids, sugars, starches, or fots, is indigestil)le or insolul)le, and, therefore,
of little value.

For this reason chemical analyses of the soil are often misleading unless
various other factors receive due consideration.

Personal
service.

Fefler.ltcd
.Malay States.

Native Labour.

All natives, except the provincial Government officials and a fvw others, are
liable to persimal service to the Government, and also to service for their own villages
or connnunities.

The following statement details the number of days of personal service re-
quired b}' the Government in the various districts and the total number of natives iu
those districts hable to personal service: —

Provinces.

Number of Days.

Number of Natives
Liable.

Bantam

126,920

Batavia

( Domein Bloeboer ...
1 Kwawang

3,.529
33,705

Preanger

Uegoncies

... ...

235 267

Cheribon

231,923

Pekalongan ..

227,6S2

Semar.iuj;

32n,182

Rembang

207,737

SoerabHJa

(North an

a South) ...

302,572

Soerabaja

(Baweaii

Island)

6,528

Pasoeroean ...

299,550

Besoeki

156,6-17

Banjoeraas ...

... •• •

117,178

Kcdoe

... .. ■

279,731

Madiocn

...

159,672

Kediri

182,353

M ad n ra

Total

ira

311,143

for Java and

Mad

3,208,319

Houghlv this is ecuuxl to about 300,000 natives in continuous employment.

Tlie al)ove statement includes all the provinces except the native Sultanates of
Soerakarta and Djokjakarta, where the right of personal service belongs to the
Sultans.

It does not, of course, Ibllow that natives are called upon to fulfil the amount
ot personal service to which tliey are liable. Many natives are not called upon to
undertake any forced labour.

This personal service was enforced in substitution lor certain taxes, now re-
linquished, that where previously levied on the ])eople by the Sultans. The work per-
formed is almost wholly of a nature that indirectly l)enefits the peasants, ;uh1 consists
of repairs, road mtiintenance, the upkeep of reservoirs, irrigation channels and drains,
in the neighl)ourho()d of the peasants' rice fields or kampongs.

A somewhat similar system is still in force in the Federated Malay States.
There, the Government has the right to " krah " labour ; that is to ik'niaiul 30 days'
service from each native petisant in any one year in lieu of a head tax previously
exacted by the Sultans. The Govcrnmeat supplies them with good food and lodging.

This practice is now tailing into (Icsnctiidc, and runipulsory service is only required
for polinf^ boats, carrying, &c., for wliioli tlie natives arc |i;ii(l ;i shilling a day. Tlie
Sultans still " ki-ali " tlicir subjects without payment.

In the German possessions in the I'acitic, most of the roads liave been made by |;„«™*'j„„,
the natives under Government direction without pay, and this system was introduced
into Papua in a modified form by Sir Wm. McGregor, who had an ordinance passed, p^i-"*-
compelling the natives to keep open the traeks between their vilhiges.

Tlie last vestige of the old "culture system" introduced by Van Uen Bosch, cuitun-
in 1830 is to be found only in the Government cotfee plantations (G"), 196 acres in ''"""■
extent), just asthe lasttrace of the old Corvee system introduced by Daendels, in 1807, corv^e.
is to be found in the limited personal service that is still demanded l)y the Govern-
ment from the natives.

The natives in the neighbourhood of the Government coffee plantations are
obliged to attend to the cultivation of the trees and deliver the coffee in the Govern-
ment stores at 2^ per lb., each native having to attend to not more than 50 trees per
year.

Tn Java, the natives are almost invariably ]»aid by piccewoi'k, and are seldom pictcwork.
engaged by the day or week.

The labourers work in the field, from 6. -HO a.m. to 1 1 a.m., antl from l\ p.m. to fi workinB
p.m., or sunset. The.se hours are also kept l)y the natives workiuL' on their own land,
and also by the water buffaloes emjiloyed by the natives in the paddy fields. If the
natives occasionally try to work them after 1 1 in the morning, when the sun l)econies
oppressive, the sagacious animal '■ strikes," and either makes for shade or a waterhole.
In the sugar factories, the natives usually work twelve hours a day.

The highest wage paid for unskilled labour is .30s. a month, and usually from wages.
128. 6d. to £1 a month ; lodging is supplied, but no food.

Skilled labour is paid for on a much higher scale. Smiths and carpenters
receive from £2 Is. 8d. to £3 15s. a mouth, and native overseers for steam-engines
and dynamos sometimes receive £I per week In West Java, and especiallv in the
Preanger Regencies, the labour is engaged by agreement, the Boedjang or garden
overseer receives about ]3s. 4d. a month, and sometimes a daily allowance of li lbs.
of rice. Auotliei form of employment is the engagement of natives to keep tea and
coffee plantations clean and free from weeds for '2s. 4d. an acre a month. This
system might be followed with advantage in Papua, and thus give light emplovment i-apua.
to the inhabitants of native villaiies in the neiiilibourliood.

Free coolies (without advances or agreement) who work daily or remain home
as they think fit, receive very small remuneration, which varies in the different
provinces.

For the outlying possessions of . etherlands-India, coolies, mostly from Java,
are engaged by contract.

The tin mines at Baidca and Billiton Islands are worked principally ])v Chinese mncm
lal)our, and the coal mines in Sumatra by Chinese, and, I am informed, native prison
labour.

There are 7,117,272 male adult natives in Java, of whom 5,014,218, or 70 {)er Aduitmaie..
cent, are engaged in agricultural pursuits.

Transportation.

The supremely important question of transport has always received from the
Government the most careful attention. From the time of Daendels, who constructed,
100 years ago, a great military road from one end of Java to the other, up to
the present time, the authorities have steadily pushed on with roadmaking, harlior
construction, river communication and railroad facilities, and a large proportion of
the wonderful development of Java, can be assigned to this wise policv.

There are 2,469 miles of railways in the island, of winch 1,3.'>4 miles of rail- Rauways.
roads and steam tramways are privately owned, and 1,115 miles belon'>- to the
Government. Java has a greater length of railway per square mile than even
Victoria, a State that has the best railway communication in the southern hemispliere.
The Java railway gauge is '6ft. 6in., with the exception of the private line between

D 2

O'J.

Boa<is.

Shipping'
facilities.

Telegraph
linee.

European
schools.

Native
schools.

Sauiarang and Djokjakarta, ^vliich is 4f't. 8Mn. The passenger fares on the Govern-
ment lines are first class, "id. per mile fw 'the first ii-t miles, and IJd. a mile beyond
that distance ; second class, ] id. per mile for the first 94 miles. r.::d Id. for each
additional mile ; third class, three-tenths of a Id. per mile for Europeans, and
one-fifth of a Id. for natives.

The Avhole island is covered with a network of metalled roads which, Avhile noj'
quite 80 smooth and even as are the roads of tlie Federated Malay States, are well
fitted fo]- Inillock-waggon traction or carriage traffic.

Java enjovs the advantage of splendid steamship conununication between the
world of islands "comprising Netherlands-India. Almost every coastal town of any
importance is afforded the privilege of regular steamer connexion by one or more of
the 49 steamships owned by the Ivoninklyne Paketvaart-Maatschappy (Royal Steam-
ship Coiu|)any). These boats are heavily subsidized by the Government, and enjoy
a monopolv of the inter-island trade, as foreign vessels, with few exceptions, are not
allowed to trade from one Dutch i)ort to another in Netherlands-India. I was
informed bv His E.^cellency the Governor-General that he hoped to make such
arrangements as would enable one or more of these l^oats to call at Australian ports.
' The total length of telegraph lines is 2,424 miles.

Education.

For the education of European children there are in Java alone 150 Govern-
ment schools, with an attendance of 19,835 scholars. There are also 298 schools for
natives with an attendance of 40,122 scholars. The number of instructors is 777
European, and 1,247 natives.

Defence.

In 1902 the strength of the army was 1,416 officers and 35,220 sub-officers and
soldiers, comprising 12,925 Europeans and 23,711 natives. The army is purely
colonial, as the Home forces are not allowed to ))e sent on Colonial service, but
individual soldiers and officers are allowed to enlist in the Indian service by permis-
sion of their conunanding officers. The Euroi)ean and native soldiers are not divided
into separate corps, Ijut into separate compaiues in the san\e battalions.

Beri-heri.

Lunatic
asylume.

Free
medicine.

Hospitals.

There is a large number of Government hospitals at which poor natives are
treated gratis. Besides three large hospitals at Batavia, Samarang, and Soerabaja
respectively, there are smaller ones in the several districts.

In Buitenzorg there is a special Government hospital for patients suffering
from ])eri-beri, an endemic disease in Java. At Buitenzorg and Lawang there are
Government lunatic asylums in which poor natives are treated free.

The ordinary medicines, such as quinine, &c., are at the disposal of the various
Dutch and native Government officials to be dispensed gratis to the population.

In Batavia there is also a medical laboratory where series of lectures are given
regarding tropical diseases to the young military and civil doctors.

Water
buffaloes.

Cattle.

Uoracs.

Bhcep

Stock.

The number of water buffaloes in Java is 2,436,031. They are employed,
exclusively by the natives, foi- the cultivation of their rice fields, the drawing of carts
and othei- purposes.

( )f other cattle thei'e are 2,654,809, the oxen are also used for draught purposes
and the kinc; as milkers.

The number of liorses totals -118,000. They are never used in agricultural
pursuits. The large ones all come from Australia, and are used for riding and driving,
while the ponies bred in Java and the surrounding islands are chiefly used in the
native conveyances that ply for hire.

There arr^ a few sheep and goats of an inferior class, but tiiey are of little use,
as the Dutch and natives seldom eat mutton.

■53

CHAPTER IX.

Agriculturat. DeVELOPMEN'J'.
Comparison Ix'twren ,I;)v;i and Papua Area Ciiltivatcd— Value of Exports—
Botanical CJardons- Lal)oratories — Museums and other Institutions — Technical
Periodicals.

CoMI'AUISON BETWKK.Nf JaVA ANM) PaI'UA.

The unrivalled position ol'Java in wealth and population over tiie otlior terri-
tories of Netherlands-India can be largely assigned to its extraordinary fertility due to
the recent volcanic nature; of its soil. The island prohahlv contains more volcanoes, v, • ■,
active and extinct, than any otiier territory ot equal extent. The substances poui-ed
out of these volcanoes are superimposed on the older stratified rocks, creating- a soil of
exceptional richness.

Java is situated 2,0U0 miles due west of Papua, and is in exactly the same rapua.
latitude and in the same isotherm as our Possession. The monsoonal winds lilow in
the same direction simultaneously in each place, the rainfall is approximately equal
and the climate very anahjgous. While the soil is undoubtedly somewhat richer and
more friable in Java on account of greater and more recent volcanic disturbances, still
the soil of Papua compares very favourably with that of the Dutch Possessions gener-
ally, and is, I believe, only slightly inferior to that of " The Garden of the East," as
Java has been rightly called. In fact, the natural conditions obtaining in Papua and
Java are extremely alike, and, if the same could l)e said of the artificial conditions, it
could be confidently asserted that any economic plant growing suc<'essfullv in Java
could be grown equally successfully in Papua. Unfortunately the artificial conditions
show a wide diveroence. The natives of Java have been produciuir crops from irri- Jayan^se good

,,,. ~, ,_„ , 1.111 " ^ «i»-'ii» iiii irrigationists.

gated lands tor at least 1,;)00 years, and are most skilful and practical irriiiationists.
They also under Dutch guidance successfully engage in cultures that require skilled skuici labour.
labour in their production. (Jther industries again, such as sugar, cannot be attempted
■without the immediate expenditure of large capital in the preparation of the product
for the market. While it is not improbable that all these conditions will in time exist
in Papua, it is quite evident that the introduction <jf industries of this nature would be
premature at the present stage. In my investigation into the agricultural develop-
ment of Java, I have therefore devoted my time principally to those industries that
require neither great skill nor large capital in their production ; and to those economic
plants that do not require an irrigated soil for their successful growth ; the onlv
exception 1 have made is in regard to the sugar industry, which is of immediate import- sasar,
ance to Australia, and possibly of future importance to Papua.

Area Cultivated.
A very large proportion of the surface of Java is covered with mountains, onlv
portions of which are cultivatable. In spite of this no less than one quarter of the
total area is actually under cultivation, while considerable areas are required for
pasture. The agricultural land held l)y the natives has an area of 7,227,587 acres of
Vidiich only 16?), ."59 1 acres are implanted. The lands of Java can be divided into
" sawah " or irrigated land and " tagal" or dry land. By far the largest proportion of
the natives' land consists of irrigated ])addy-fielils, as rice is the staple food. On the
irrigated land sugar is also grown. The sugar estates have a total area of 203,333 sugar.
acres, and the indigo plantations 3,967 acres. Tobacco is planted on 15,046 acres, and '"'"^°-
the cofi'ee gardens cover 20,.51S acres. Besides these in the Sultanates of Djokjakarta coff«™
and Soerakarta there are 30,187 acres planted with sugar, and 16,975 acres with
indigo. Of the land held under leasehold tenure for 75 years 520,975 acres are
cultivated. The area of the Government coffee plantations is 65,196 acres; of the
Government cinchojia gardens 2,366 acres, and of the Government gutta percha plan-
tations 2,625 acres. During the period of the culture system (1832-72) the Govern-
ment experimented with coffee, sugar, indigo, tea, tobacco, cinnamon, cochineal, peppei',
silk, cotton, and other products ; but cofiee, sugar, and indigo were the onlv industries
that attained commercial success, the former being by far the most important, no less
than four-fifths of the total revenue derived by the Government from the various
cultures was received from coffee. The coffee blight of 1879 largely ruined this coffee mi ht
industry, which in that year produced no less than 79,400 tons of coffee, and the
competiti(ni of aniline dyes greatly reduced the importance of the indigo industrv as
an item of export. Sugar-growing has had a somewhat chequered career, Init has
always maintained an important place in the industries of the island, and to-dav is the
most valuable crop produced under the supervision of Europeans.

Value of
principal
exports.

Botanical
gardens.

Botanical
research
institutes.

Dr. Trcub.

Kxpcrmcntal
gardens.

Perliaps no lietter indication can be given of the relative importance of the
industries of Java than a statement of the value of eacli of the |)rincipal exports.

Product

Value of Export froiti Java.

Value of export from Netherlands-
India (including Java).

Sugar
Tobacco ...
Coffee ...
Tea
1 Cinchona
Rice

Tin

Copra

Indigo

Hides ...

Tapioca ...

Pepper ...

Teak and other Timber

Kapoc

Cotton ...

Nutmegs...

Mace

Sago

Gutta Percha

Cloves

Gambier...

Petroleum

£7,010,162
2,279,661
932,178
589,920 3
549,267 ;
>= 381,983 5
^ 342,425°
292,426 ;
175,724
234,375
184,743
159,5061
154,944
119,862
27,437
23,238]
9,648
4,246
2,971
542
31
13

£7,010,252
3,664.674
1.363.921 ;
589,929 1
549,32 1 i.
392,0 11 ji
347,225^
1 086,932
175,724'
316,168
184,821
462,908
204,152
136,735
83.870
■ 273,212
93,691
114,849
504,644
6,363
175,757
1,488,398

£13,475,302

£19,225,557

The diversification and development of the industries of Netherlands-India
have been ininienselv assisted bv the wise and fostering care of the Government,
who have spent money lavishly in creating the finest tropical gardens in the world,
where almost every tro])ical plant of beauty, interest, or utility is grown under
scientific supervision. Close by are the great Botanical Research Institutes — a maze
of detached laboratories, museums, libraries, printing establishments, and offices, con-
stituting a little town in itself. Almost every avenue of tropical botanical lesearch is
studied and investigate<l by professors with every modern appliance and under the
best conditions. At the head of this little world of science is Dr. Treub, perhajis the
greatest living authority on tropical agriculture — the master mind who has brought
all these research establishments and information bureaux into existence, and who has
develo])ed the botanical gardens to their present state of excellence. He is the
Director of the Department of Agriculture, whose jurisdiction extends over the whole
of the Netherlands Kast Indies. Not only the Dutch colonies, but the whole tropical
Avorld, has been placed under an obligation to the Netiierlands Government for tlie
valual)le investigations regarding tropical flora that they have conducted, and the
information tiiey have collected ; which is published in various languages and circu-
lated in every part of the civilized world.

The Botanical Gardens at Buitenzorg cover an area of 170 acres. They are
under the direction of a curator, two assistant curators, and three assistants, and
employ 90 gardeners continually. There are no fewer than 10,000 difierent species
of plant life in the gardens.

The Horticultural Experimental Garden.s, under a curator and two assistants,
occu])y 180 acres with 80 em])loyes. Here an; growing IfiO different economic
plants, all the subject of various ex])erin)ents. At Tjibodas, situated some distance
t'loni Buitenzorg, there is a Government Botanical and ICxpcriuicntnl Hill Garden. It
is under the control of a curator, and is 80 acres in extent, situati^d at an attitude
of 4,(i00 feet, and emploviiig 20 men. lleie exju'riments are carried on in connexion
with cinchona trees, (Voni which (piinine is obtained — a drug tlint has made the
tropics hal»ital)le for white men. This industry has readied such ' important
dimensions owing to Government assistance tliat Java now contril)utes 80 per cent,
of the world's supply of quinine. Adjoining the Hill Gardens is a State forest of 400
acres, containing a magnificent re])resent!ition of the natural tropical flora of that
attitude. There are also experimental plots in various parts of the Netherlands
East Indies.

fiABORATORrKS.

There nrc thirteen prineipal laboratories, eaeli cinjihiviiig iroin one to the
scientists, with assistants and other employes. The foHowinj^ is a suinmarv of tlie
investigations eondiuted in eacli lahoi-atorv : —

1. l']xperiineiital Lal)oi'atorv lor investigations regarding rice and alJ the
different plants cultivated hy the natives. Tiie ohject is to improve the qualitv and
yield of the crops, investigate all diseases, and supply information with iX'gard to tin;
growth and rotation of crops, i^'ivc scientists are employed at this work.

2. Experimental Laboratory devoted entirely to coffee culture, under the
direction of a botanist and a chemist.

8. l)0tanical Lal)oi-atory. -lleic a l)otanist ami a nivcologist are engaged in
practical and scientific pathoh)gy, and in studying the life-history and culture of
plants.

4. Zoological Lal)oratory. — Two scientists are engaged in all kinds of
zoological work having reference to agriculture and industry.

."). Zoological fjaboratory, a l)ranch of the above established in Hatavia, in
comiexion with the fisheries and sea fauna, its aims are entirely practical — one
scientist.

6. Laboratoi-y for Agricultural Chemistry. — -This imj)ortant institution
employs two scientists and two assistants.

7. Pharmacological Laboratory. — In this a scientist is engaged in investigating
the medical properties of native plants. In this interesting work nianv valuaiile
discoveries may be expected.

8. Bacteriological Laboratory. — In this experiments are conducted regarding
bacteria and its effects on animal and plant life, also regarding certain kinds of fungus
that are injurious to ])lantati()ns. Here I found a number of rats in cages con-
tentedly nuinching l)acterialized food. The rats and mice of Java are a troublesome
pest in the sugar, rice, and other Helds. Last year one of the staff was sent to
Europe, and obtained at the Pasteur Institute certain bacteria cultures which, eaten l)v
the rats in corn, kills them in eight or ten days. These dead rats in the fields are
eaten l>y a number of the other rats wdiich, dying in their turn, ti'ausmit the disease
to others in geometrical progres.sion. The experiments have not yet reached finalitv,
but the authorities are hopeful of good results. This of course is on a different prin-
ciple to the proposed destruction of rabbits by bacteria in Australia, as in the case of
the non-carnivorous rabbit the death-dealing agency must be either infectious or
contagious. It is, however, of special interest to Australia, as the destruction of i-ats
in our big cities may be the means of purging the CommonAvealth of the plague,
which now threatens to become endemic. The experiments in Java will prove if
other animal life is immune to the bacillus. One scientist and assistants.

9. Chemical and Geological J^aboratory. — A scientist is employed here in
studying the development of soil out of rocks, the effects of volcanic and .-Kjueous
action, soil analyses and its chenncal and mechanical changes.

10. Expei'imental Laboratory devoted entii-ely to the study of all matters relat-
ing to tol)acco grown at Deli, in Sumatra, 'i'he three scientists employed here intend
to transfer their head-quarters to Deli.

11. Experimental Laboratory, devoted entirely to the study of the culture and
preparation of tea and the diseases and pests associated with it — one scientist.

ri. Experimental Laboratory, devoted exclusively to investigations reo-ardino-
Javan tobacco. The expenses of the three laboratories last mentioned are defrayed bv
planters' associations on a voluntary assessment of so nuich an acre, the pavments of
each planter varying with the size of his property, the Government supplyino- the
buildings and appliances without cost.

13. Lastly, there is a large lal)orat()ry well fitted up, which is placed entire! v at
the disposal of foreign scientists who without cost can here carr}' on their experiments
and investigations, with access to the libraries and museums, and the privileo-e of
intercourse with brother savants.

^luSKU.MS AND OtHKR INSTITUTIONS.

In addition to the laboratories there are the following technical institutions: —
1. Museum of economic botany under the direction of a curator. This is de-
voted entirely to commercial and technical botany relating particularlv to the indus-
tries of the countrv.

Herbarium.

Scientific
library.

Government

printing

works.

Government
plantations.

Forestry
iJepartment.

Agricultural
college.

Veterinary
Department.

2. A museum of the fauna of Netherlaiids-Iiulia.

3. A lierbarium in which three botanists are engaged in j)rocuring, arranging
and classifying a magnificent collection of dried plants.

4. A library of general and applied science, containing 15,000 volumes, and in
addition 12,000 volumes the property of the Society for Natural History.

5. A printing and bookbinding estal^lishment in which Javanese and others are
employed in sketching and painting botanical plates, photography, lithography,
photozincology, &c., &c. In fact in all these institutions Javanese are largely em-
ployed in positions that require consideral)le technical skill — for which they show a
great aptitude.

Besides the Government plantations of coffee, cinchona, and gutta-percha, em-
ploying a large staff of inspectors, there is the Forestr}- Department, the importance
of which the Director of Agriculture has fully recognised. This is under the imme-
diate control of an Inspector General, with a staff of 125 European assistants, and a
number of natives, who are located in all parts of the country. The magnificent
forests of native teak and other valuable timbers bring in an annual revenue to the
Government of over £200,000.

At the experimental station there is an Agricultural College which was opened
some three years ago. There are at present 38 students, of whom twenty are in the
first vear, thirteen in their second year, and five in their third year. When the natives
have passed their final examinations in the " Training School for Native Government
Servants " they are encouraged to take a first and second years' course at the Agri-
cultural College ; so that in their official work as Wedanas, or assistant Wedauas,
they can instruct the natives in the proper methods of husbandry.

The Veterinary Department is an important institution, under a Chief Inspector,
who lives at Buitenzoi'g. The members of his staff, numbering between 40 and 50
white men, are stationed in various centres throughout the Indonesian possessions.

Technical Periodicals.

The results of all the investigations, experiments, and discoveries of the large
staff of technical experts, employed luider the supervision of the Director of Agri-
culture, are carefully tabulated and embodied in no less than six ditt'erent publications,
each appearing at regular intervals. The following is a brief sunmiary of these : —

1 . " The Annals " giving a general resume of the work done. These are sent all
over the world.

2. "Descriptions of Plants with Plates."

3. " The Bulletin " containing notes of investigations, extracts from Dutch
publications and short remarks. All of these are published also in English, French
and German.

4. " Annual Reports " on the general work and the results of experiments
and investigations, published in Dutch 'only.

5. Comnuinications regarding entomology, chemical research, analyses of soils.
This is a practical report of all the investigations made by the whole staff' that would
be useful for industrial purposes.

6. Horticultural and agricultural monthly paper containing short notes on
various matters which are sometimes amplified in more technical puljlications.

There is also a large work on "The Flora of Buitenzorg;" six volumes
have been published, and there are four or five more to follow.

CHAPTER X.

Plantation Industries.

Sugar — Cacao — Tobacco — Cinchona — Vanilla — Citronella Grass — Cloves.

The economic plants that are cultivated l)otli in the Federated I\Ialav States

and Java have, for the sake of readier refer(!nce, been (h'scribed in my report on the

former country. In this chapter I have confined myself practically to those economic

plants suitable for Papna that are grown only in Java.

SUGAK.

As Java is OIK' ()(■ the largest producing countries of cane sugar in tlic world,
some pai'ticulars of the niethoil and cost of production will he of interest to Australia,
and may he of use in the future to Pa[)ua.

The whole of the sugar in Java is grown on irrigated land and on soil owned sunorKrowa
by the natives, and not hy the white ])eople. The in-igated paddy, or i-ice iields, are ia»''-
the lands utilized for this pur[)ose. The uatives are alloweil to rent to white people
on short tc-nure not nu)re than one-third of their land, so that the remainder may he
used for growing rice (their staple food), or other crops, such as tapioca, indigo, &c.
In the case of a Communal village, where the hinds are jointly held, the ])lanter conies
to terms with the villagers and rents one-third of the area for eighteen months; he also,
if possil)le, gets them to agree to rent him another third the following year, and the
remaining third the succeeding year. Having arranged with the village, the planter and
the village headman go hefore a Government official, who records the agreement and
sees that the money is paid (jver to the native for the first eighteen months' rental, and
the dejjosit of perhaps 5s. an acre on the remainder of the land to be rented during the
second and third years. Tim Government official generally seizes the opportunitv for
impounding the land, poll, and laliour taxes on the natives for the year, as otherwise
it is not always easy to obtain. The natives, with that improvidence which is
characteristic of the whole of the Malay race, generally squander the balance in a few
days or weeks. The same process is gone through in the case of individual holdings.
A sugar estate, with its own '• fabrik" or mill, generally has an area of from 1,200 to
l,r)0O acres. The plantation is by no means compact, but spread all through the
]iaddy fields, an acre in one place and five to ten acres or moi-e in another. In
planting the " Keynoso" system is generally adopted (deej) parallel furrows with high
ridges between, on wliich the cane is planted) with the irrigation channels running
across at right angles.

The total area under sugar cane in Java is 233,520 acres, and there are 180
sugar mills equal to 1,300 acres per mill ; of these mills 20 are owned by Chinese and
160 by Europeans.

After providing for the very large local consumption of sugar by 30,000.000
people the balance is exported. Last year sugar to the value of over £7,000,000 was
shipped. The manufactured sugar is classified by numbers from 12 to 18 according
to purity. Nos . 12 to 14 are called "muscovado" and contain DGi per cent, of pure
sugar. No, 18 is over 98 per cent. Not much sugar is refined to great purity in
Java and goes into local consumption in that state, but a consideral)le amount is
shipped to Hong Kong refineries. Aj)art from the fact that all sugar in Java is grown
on irrigated land there are other striking divergences in the method ol' production in
Australia and Java.

Instead of allowing the cane to grow up again after cutting, and thus make one .sufar planted
planting do for several years, the cane in Java is freshly planted every year and ='""'"'"•'■
seldom on the same ground twice in succession, two crops of paddy usuallv
intervening.

In Java the roots of the sugar cane are crushed as m'cII as the stem, a sugar^-aneroou
considerable amount of sugar l)eing obtained from the former ; this, 1 believe, is ""*"*
never done in xVustralia, and is a matter that might receive consideration when fresh
planting is contemplated.

Though the price of sugar is not so liigh now as it was last year, planters are
very confident that they can produce sugar profitably against any competition, whether
from beet or cane, and a considerable amount of capital is being invested in the
industry. Previously the molasses, after all the sugar ])ossible had l)een extracted,
was thrown away. The growers have now found a market for this product in
British India, though the present price is only about 5s. 6d. a ton.

To ffive a correct idea of the cost of sugar production and manufacture in ^ , ,

•^ , i • z? 1 i .lI /~i ''°^ "' sugar

Java, I ap])end a precis of the returns — certineu to the Government as correct — production.
of two plantations, one in Soerabaja, East Java, and one in Banjoemas, Central
Java. The cost of production of sugar on one bouw (1|- acres) of land, worked on
the " Reynoso " system in the Residency of Banjoemas, Central Java.

Rent of groiiuil (18 inontlis) ...
Planis aiul planting material ...
Workiuf;; expense.- — ■

Irrigation channels, largi^ and small

Ridging fur planting

Planting

Cost of water .•supply and distrihntion

Weeding and keei)ing gronnd cdean

Replacing with fre^ii jilants those that have

First manuring

Second ,,

Third

Trashing

•Cost of fertilizer (sulphate of ammonia)

Watching' for animals or thieves

European and native employes

Cost of cane-cutting

Transport by rail of 8-5 tons cane

General expense, weighing, &c.

Total cost ...

s; s.

] 1

•2 10

■

1 18

:',

-2

o
O

1(!

• • •

] 8

For £2") Is. 8fl. oue can produce aud deliver at the sugar mill 85 tons of
cane. In Banjoenias an extraction of lOo per cent, can l)e generally relied upon,
this o-ives 8 tons 18 cwt. 2 qr. of unrefined sugar. The cost of manufacture in a
modern sugar mill of tiie above is £12 5s. Cost of producing cane and delivery at
mill, £25 Is. 8d. Total cost sugar production, £37 Gs. 8d. To this add 10 per cent,
depreciation of factory and plant, £(j 5s. Interest, administration, and management,
£4 3s. 4d. — £10 8s. "4d. Total expenses for 1| acres, £47 15s.

Cost of sugar production per ton

Present price of " Muscovado "

The price last year averaged per ton...

The following table gives the cost price per pikul (13G lbs.) of sugar pro-
duction on an estate in Soerabaja for the years 1902, 1903, and 1904 : —

£ s.

5 6

7 17

9 10

Farticalars (Sugar Nos. 1'2 to 18).

Staff, and bonus to same

I'laniing

Trimspoit of cane to factory ...

MiUins

Packing

Tran.'port to port of shipment...

U[ikee|) and writing-off machinery

Genf-ral charges

190-2.

1903.

1904.

Guilders.

■44

■37

-382

2-285

2^107

1-634

-804

925

-805

-219

•213

■239

•139

•19

-207

•3

•305

•293

•142

•112

•208

■277

•116

•109

4-606

4^338

3-877

(7s. 8d.)

(7s. 4d.)

(6s. 6d.)

The total cost of sugar pi'oduction per ton is therefore £6 6s. Id., £6 Os. 7d.,
and £5 7s. respectively.

Cacao.
Cacao, or cocoa, can be grown ])rofitabl(' only on ccftaiii soils and situation.s,
between the fifth and twelfth degiee north or soutli of the etiuator. 'ilic tree grows
to a lieight of 15 to 25 feet, and requires an altitude of 1,500 to 2,500 feet, a deep rich
veoetal)le soil, well (h^aincd, and ])lenty of moisture. The holes for planting sliould
1)0 (hig 14 feet apart, as if phmted too far apart they will fail to give the retpiisite
support and shade to each other. In every third liole a shade tree (Dudiip eryfhrina
or (ilftuzzia niolifrraii", very tpiick growers) should be planted to ])rotect the cacao
plants from the Imf mid-day sun ; and at 7 feet iVom each cacao tree bammas
should be planted in IIik- with the other trees. The cacao seed, when j)lanted, should

*Thii is exceptionally heavy, Sulphate of ammonia coats in Java at present £14 lOs. a ton.

be covered witli one iiifli of finely pulverized soil, the <;ri)iuiil sliould be kept loose
and well weeded round tiie trees. The eacuo tree begins to bear at four vears,
matures at ten, and sliould live GO or bO years. The fruit, wliicdi is produced all tlie
year round, is elliptical in form, 7 to 10 inches in length, and from 4 to
inches in dianietcr. Kach pod contains from 20 to 40 seeds or beans, whicii are
embedded in a pink pulp. The best varieties to grow are the ''sanguetoro" (red),
forastero (green), and criolo (yellow); a good average plantation should yield four
or five l)ags ( I 08 lbs. eacli) to th(> acre, worth ill 8 to £20. When the pods are
ripe they are cut otfandpileu in heaps under tiie trees for 20 hours ; they are then
split open and the seeds with their coating of palp are carried in trays to the ferment-
ing boxes, where they are subjected to a ))rocess of fermentation for periods vai'ying
from live to ten days, according to circumstances. They ai'e then placed in thin
layers on drying trays exposed to the sun's rays, and occasionally turned over with
rakes ; care must be taken to protect them from the rain ; when thoroughly dry they
are bagged for ex])ort.

The cacao trees are often troubled with various insect pests, of which the hclo-
peltis is the most dangerous.

This is an industry that Mr. Carrnthers, the Director of .Vgricadtui'O for the »'. i urruthti
Federated Malay States, thought we should certainly try in J'apua. Dr. Treub, the
Director of Agriculture for K'etherlands-lndia. thought it should be tried, and pre-
dicted success, if ])ro])erly cultivated, provided the insect pests do not injure them.

Tobacco.

Next to sugar this is the most important i)lantation industry in Java — the area
planted is 15,041) acres, and the value of the exports last year was £2,27ri,6(il. The
plant re(juires the most fertile land and a great deal of attention while under cultiva-
tion. The seeds are planted in a nursery, and in 40 days' time the young plants are
ready to be transferred to the plantation. They are planted 2 feet apart, or
1^ feet apart, and .'> feet between the rows ; and in three months the leaves
should be ready to |)ick. When the plant begins to blossom the top is picked off, so
that the leaves will develop to a greater size. The lower leaves are readv for picking-
first, and are gathered as soon as they begin to show a tinge of yellow. Tobacco in
Java is usuall}' grown by the natives under European supervision. The latter comes to
an agreement with the native to plant a certain area with tobacco, undertaking to pay
him so much a pikul for the leaf on delivery. The value of "Krossac" tobacco, nsed
for cigar filling is from 3d. to 4d. a pound, while leaf tobacco is sold up to 5d. and 7d.
The tobacco of Java is not equal in quality to the Sumatra leaf, the choicest of which,
for cigar wrappers, has been sold up to 5s. lOd. a pound.

There is a little cultivation of this jilant in the Malay States, but not on a com- MaUy sut«.
mercial basis, and yet Sumatra, just across the Straits of Malacca, will probal)ly become
one of the most important tobacco-growing centres in the world, owing to its pos-sessino-
a different soil and rainfall distri1)ution.

This is an iudustrv that requires the most scientific treatment and expert know- Papu*.
ledge, and for these reasons, if other conditions were suitable, I do not think it could be
profitably intrfnluced into Papua. The German New Guinea Company expended German x«w
considerable sums in tobacco planting without any successful result, and the plaiita- °'^""'*-
tions have been practically abandoned or used for other purposes.

Cinchona.

Cinchona is a genus of evergreen tree belonging to the order Rabiaceoe, at least
thirty-six species have been discovered, of which only twelve or fifteen are of sufficient
value to justify cultivation. The trees are indigenous to [the western slopes of the
main mountain range of South America, and ai-e found in the forests of New Granada,
Equador, Peru, and Bolivia; their geographical limit being 10 degrees north and 22
degrees south of the equator. They flourish l)est at an altitude of from 4,00o to
5,000 feet above the sea level, although they have 1)een noted growing as hiijh as 1 1,000
feet and as low as 2,600. The trees are valuable solely on account of thebark; from
this is obtained quinine, the most valuable tonic and febrifuge medicine that has ever
been discovered. Without the aid of this drug a great portion of the tro|)ics would be
uninhal)ital)le for the white man. Three other primary alkaloids are also ol)tained from
the bark (juinidine, cinchonine, and cinchouidine, all valuable medicines, the first-named
especially so.

In 1854 the Dutch introduced a number of young trees into Java, and as tlie
result of scientific investigation and great attention, State and private cinchona
plantations have Ijecome a most profitable investment. In 15ritish India the cinchona
tree was first introduced in 1 8oO. Government and private plantations there now cover
thousands of acres, the supply of quinine being chiefly absorbed by the enormous
local consumption. The species of cinchona principally grown in Java are : — Cinchona
Officinalis, C. Ca/isaija, C Ledgeriana, C Succirnbrn, C. Pitai/e?isis, and C.
Pahudiana, some agreeing with certain climates, certain soils, and certain elevations
better than otliers, while the yields of quinine and other alkaloids vary in each
species. Some barks have been known to ^ield as high as 16 per cent, of
alkaloids, while others yield little or nothing. It is, therefore, evident that great care
is necessarj' in the selection of the species for cultivation, and in the propagation
from vigoi'ous trees of a particular species that yields largely. In the extensive
experiments that the Dutch in Java have undertaken regarding soil, climate, and
elevation, and in connexion with the selection, hybridization and pro])agation of the
trees, lies the key to their merited success. This combination of science, theory, and
practice, has enabled them not only to cater for the requirements of 30,000,000
people, but to expoi't cinchona bark to the value of over half-a-million sterling
annuallv, together constituting 80 per cent, of the world's output.

From two of the cinchona species a hybrid has been produced, called, C.
Ledoreriana. The l)ark of this tree produces a large jiercentage of quinine, Inxt the tree
is not so vigorous or quick growing as the C. Succirubra, whose red liark yields only
a small ani^ount of quinine ; by grafting slips from the Lc.dgeriaiia on to the
Succirubra Siock, the Dutch have Iieen successful in producing a tree possessing the
good qualities of both, a comltination of quick growth and good bearing capabili-
ties.
j,^j^gj„, 111 India the system has been to remove the bark from the trunk of an eight-

obtainiDgthe year-old tree in alternative strips, so as not to injure the cambium in which the
annual growth is formed in exogenous trees. Next year a new bark, richer in quinine
than the original and equally thick, has spread itself over the wound.

In Java a different, and I believe more profitable method, is adopted. When
the cinchona trees are from three to eight years old a whole row is grubbed out
and new trees are planted in their place. From the trees that have been removed
tlie whole of the bark from the limbs, stem, and roots is stripped, jrounded up, and
put into bales for export to Europe. The exact method of jircparing quinine and
other products is kept a profound secret by the manufactui'crs. A Government
i-apu». plantation of these trees should certainly be started in Papua.

Vanilla.

This flavoring essence is obtained from the fermented and dried pods of
several species of the genus Vanilbi. The great bulk of this valuable product is
obtained from the V. PlarrifhUa, a native of Eastern Mexico. Tlie ]>lant is a
climbinu- orchid with fleshy stem and leaves, and attaches itself by a-rial rootlets to
the trunk of a tree.

The methods of cultivation vary in different countries. \\\ ]\Iexico the
orchid is ti'ained up the forest trees at a distance of ten or twelve feet apail. The
cuttiiH's — three to five feet in length — arc inserted in the soil to a depth of twelve
inches, the upper portions being fastened to the tree. The sli])S take a month to
root and do not bear for three years. In most other countries, including Java, the
voun"' i)lant is supported on a trellis so that any portion of it can be easily reached
by the hand. The reason for this is the necessity for artificial ferliHzation, as there
are no insects in any of the countries excc[)t Mexico that will effect the fertilization.
The species of bee that will fertilize vanilla ])lants has not been acclimatized
elsewhere. The fertilization has therefore to ))e done by hand, and if the |)lant
German New i„. h-aiucd u]) a tfcc thc flowcrs arc difficult to reach. In the German ])Ossessions
°""'"' ii, tlur Tacitic, I liave seen the vanilla plants trained up the trees. When the ))lant

flowers which it usually does in three years fi-om tlic time ol' planting, a little pollen
is taken from the stamen and drop])ed in the pistil. Only the finest tlowers of each
spike are fertilized, as too many pods tend to exhaust the plant. The pods are
from 6 to 12 inches long and half an inch in diameter, they fake; a month to attain
their full size and six montlis longer to ripen. A plant will usually live about fifteen
vcars. The exact time for cutting oft" the pod is when it will crackle if ])ressed

between the fingers. The fragrance is due to tlie j)resence of vanillin. This is not
present in the fleshy extei'ior of the pod, hut is secreted in the; interior, and hecomes
diffused and dcveh)ped hv fermentation. The amount of vanillin varies according to
the species and cultivation of the ])laiit. In .Java tin; yield is 2.7.') per cent., which
is unequalled elsewhere. The pods are fermented, di'ied, and exported to Europe.

Vanillin is not alone ol)taincd from vanilla. In Germany, it is ])roduced on a
consideral)le scale from (lie oil of cloves.

The plant is fairly hardy, and should he ti'ied in a small way hy the Govern- i-apua.
meiit in l*a])ua. The Ix'st method of ol)tainirig these orchids is to have thein sent in
a Wai-dian case. Heavy rains, while the plant is in ilower or pod, often injure the
crop.

('itronii;lt..\ Grass.

From Citronella grass (^Aiidropo<i;f>n uardus) a valuiii)le scented oil is obtained
that is used in the manufacture of superior soaps and other articles. In Java there
are several large |)lantations — one of those 1 inspected being nearly 1,000 acres
in extent.

The grass, if planted in good fertile s(jil, and enjoying a heavy r.-iiiilalj, grows
very quickly. From 10 acres a yield of 12 tons should l)e cut, and tour crops a year
can be taken off, totalling 48 tons. This will yield about one-half per cent, of oil, or
four hundredweights and four fifths, worth 3s. lOd. a kllogrannne, .say, £4G 16s.
The grass lasts twelve years before it is necessary to plant again. To obtain the oil
from the grass l)y distillation a small ]>lant is required consisting of one Ijoiler,
costing £250, and a tank aiul condenser with pipe connexion, co.sting £85. A round
tank, 16 feet in diameter, would be sufficiently large to treat four crops a year off
200 acres, if worked day and night.

While I Avould not recomnientl this as a principal crop in Papua, I think it should ''•'i''»
be cultivated, as in Java, as a catch crop between the rubber or coconut trees. The
profits from this crop would be sufficient to pay the cost of maintaining a young rubber
or coconut plantation until the trees began to bear. If a number of planters in
adjoining properties cultivated this grass, they might purciiase a joint ])lant for treating
the cro]), either with or without Government assistance.

Cloves.

Cloves are the unexpanded buds of the clove tree (^Carj/ophi/Uus Arnmaticus),
and belong to the natural order Myrtaceaj. The tree, which is an evergreen, is a native
of the Moluccas, or Spice Islaiuls, and grows to a height of .SO or 40 feet.

Cloves were one of the principal spices that at first drew the Portuguese, Spanish,
Dutch, and English traders to the waters of the Malay Archipelago. The spice is now
principally cultivated in Amboyna, one of the Spice Islands, and in Zanzibar ; also to
a less extent in Java, Sumatra, and the West Indies. The flower-buds are at first pale
in colour. They gradually change to green. When the buds are ready for collecting
they have again changed, this time to a bright red. The annual yield of each tree is
from two to five pounds of cloves. This cultivation, at present ])rices, is not very profit-
table, still, I think a few trees should be planted in the Experimental Gardens in i,,^^^
Papua.

suggested.

TAUT 111.

Papua.

A suniniarv of the policies and methods of development of the Federated
Malav States, Java, the Solomon Islands, and the German Possessions in the Pacific,
so far as thev are applicable to the Territory of Papua ; together with other sugges-
tions regarding its administration and development.

CHAPTER XI
A Policy of Development,
Methods su"-gested — Industries we should cultivate — Experimental Stations and
Nurseries — Land Laws.

Although I have only l)een requested to furnish a report on the Government
and Economic Development of the British and Dutch Possessions in the Malay Penin-
sula and the Malay Archipelago respectively, I feel that such a report Avould be
inconclusive and lacking completeness, were I not to devote a short space to the
special application of the information I have gathered, seeing that the object of my
reiwrt is to assist in laying, down definite lines of economic developnient in our new-
possession.

During the last four years, I have twice visited the Territory of Papua, and
have travelled tiirough, and carefully studied the method of Administration and
industrial development in the tropical possessions of three European Powers : — The
British Protectorates of the Solomon Islands and the Malay States, the German Pos-
sessions in the Pacific, and the Dutch Possessions in the Malay Archipelago.
These Dependencies lie all around our Possession, and possess natural conditions very
analagous to those in Papua.
Methort- As a result of this jiractical knowledge and investigation, I now submit, in

detail, a policy that I beheve will develop the natural resources of Papua, and bring us
in line with our more progressive neighbours, without necessitating larger financial
sacrifices on behalf of the Commonwealth : —

L Land Laws. — The inauguration of lilieral land laws by the grant of perpe-
tual leases to settlers with (juick possession. A peppercorn rental to be charged for
the first ten or fifteen years. These leases should be subject to revaluation at stated
periods, at the "unimproved or scruli " value of the land, and also subject to improve-
ment conditions. This system of land tenure is in operation in the Federated Malay

States.

2. Trampnrlation. — The immediate opening up of bridle tracks for pack-mule
carriao-e to places where European settlement exists, and to jilaces where such
settlement is prevented by inaccessibility. The tracks most frequented to be gradually
succeeded l)y roads for vehicular traffic as occasion permits.

'6. Director of Agrlcidture. — The appointment, without delay, of a thoroughly
])ractical expert in tropical plantation work, as the Director of Agriculture, at a salary
of from £400 to £500 a year.

4. Report by an Expert. — 'We should request the Government of either
Ceylon, the Federated Malay States, or the Straits Settlements, to allow tlieir Director
of Auriculture to visit Pajjua and report u])on its genera! plantation ])Ossi-
l)ilities, and those industries that siiould l)e specially encouraged. Such a report
would be exceedingly valuable as emanating from one with presumably higher
qualifications tlian those ])Ossessed by our l)irector, considering the wide diver-
"•ence in their renunieration. The Federated Malay States hist year obtained in
tiiis wav a valuable report fi'om Dr. Willis, the Director of the Royal Botanical
Gardens in Cevlon ; the former possession merely defraying his travelling and other

expenses.

5. Government E.iperiment'tl Stations and Nurseries. — Ihe creation of two
exiK'rimental stations and nurseries — one near the sea level, to ])e started as soon
possible ; the other to be estal)lished later at a considerable elevation.

6. Governme7itPla/itations.— P\anti\tion»oi'nihher and cocoimts near the sea
level, and plantations of cinchona, camphor, and giitta pcrclia at an elevation. These
to be worked in conjunction with the experimental stations.

7. Expert mental IHol^. — Sin;ill plantations and nufserius tliroiigliont I'apna at
the liead-(|nartc'rs of the resident niauistratcs and assistant resident magis-
trates wherever the coiintrv is siiitahh'. Tliese could he stocked f'ron! the principal
nurseries. The lal)our involved in proposals 5, Ci, and 7 could he larirely pi.-rfornied
hy native pi'ison labour as in the Sohjinon Islands.

8. Gold Miniuir. — Every possible assistance should be afforded in the de-
velopment of the immense area of auriferous eountrv in Papua. This is at present
the only important industry in our Possession, and the st)uree, directly and indirectly,
of nearly the whole of the revenue.

9. Handbook. — A j)ractical and concise handbook should be issued, as soon as
certain necessary reforms are instituted, for extensive distrii)Utioii, c<)ntaining- a short
resume of the steamer time-tables and fares, and information re<;ardinii' tlie natural
conditions, soil, climate, mineral areas, cost of living, labour supply, land laws ; al.so
particulars as to where seeds and economic, plants can be ol)taincd, and an estimate of
the cost of planting- areas with the most suitable trees and crops, and their probable
returns. Accompanying this handbook there should be a useful and informative ma[).

10. Library on Agriculture. — A small lilirary of standard technical works on
the cultivation of those plants mo.st suitable for Papua, together with Government
periodicals (that are ])rinted in the English language) from all tropical countries
where plantation industries are conducted on a commercial scale. A list of these
books appears in the Appendi.x to this report.

11. Mefeorolof^ical Oh.servalions. — T^bsei'vations regardiiigraiiifMll and tempera-
ture should be carefidly registered daily ;it the stations oi' tlie resident magistrates
and assistant resident magistrates, and the reports forwarded monthly to the seat of
Government for tabulation. A thorough knowledge of the climatic conditions of the
Possession, which vary according to the natural features of the country, is indispen-
sible for the scientific development of agriculture.

12. Indi<renou.s Plants. — 'As soon as the inaccessiliility of the country is in a
degree overcome, l)v the opening up of bridle tracks and roads, a determined effort
should be made to exploit the valuable forest timbers, such as ebony, sandalwood,
cedar, and teak ; the large forests of sago palm should l)e utilized for their valual)le
food supply, and the rubber industry should be stinuilated by making accessible the
indigenous rubbsr trees. The value of the fibre from the pandanus tree, which grows
in great rjuantities, should also be thoroughly tested.

13. A General Conference. — At least once a year a conference should be held
of all the higher executive and administrative officials of the Possession, to discuss
matters regarding legislation, administration. Government services, industrial develop-
ment, and tlie general policy for the future. This conference, which should be pui'ely
advisory in its nature, would tend to create an esprit de corps, and a greater homogeneity
in administration than exists at present, while a general expi-ession of information and
opinion froniall quarters of the Pos.scssion would have a di.stinct educational value for
each member. Such a conference is held twice a year in the Federated Malay States,
and triennially in the Protectorate of Sarawak.

14. The Health of the White Population. — This is a matter of supreme
importance, both from the point of view of those who are already in Papua, and of those
who wish to go there. A l)etter and more varied diet, and better medical attendance will,
I am convinced, largely mitigate the present condition of things, for which at present
the climate is wholly blamed. The health of the population can ])e much improved
by a good supply of wholesome fruit, and many of the fruit trees I have mentioned in
my report should be planted in Papua. Better medical attendance could l)e obtained
by the Government, giving a small salary, with private practice, to medical officers at
the Yodda and Gira gold-fields.

1.5. Sale of the s.s. " Merrie England.'' — Now that we have regular sul)sidized
and uusubsidized steamship services to all parts of Papua, except in the extreme west,
the Government yacht Merrie England, costing £7.317 a year in working expenses
(irrespective of repairs and maintenance) is unnecessary. She should be at once laid up
in Brisbane or Sydney, and sold as soon as a reasonable price c-an be obtained for her.

16. Ways and Means. — By disposing of the Jlerrie England a sum of at
least £5,000 a year could be saved. This, with other possible economies that could be
effected without impairing the efficiency of the Administration, togetlier with the
proceeds of the sale of the ves.sel, would provide sufficient funds to carry out the above
reforms, none of which involves large outlay.

Necessity of
learning from
others.

Dr. Trenb.

Rubber nnd

coconut

plantation

Other indiiBtrie:

Difficulty
rcgarfiinjf slow
returns from
pUntationa.

We are the last of the nations to take upon our shoulders the burden of a tropical
Dependency, and our task, coming so late in the daj^ is lightened l)y the fact that
almost every important problem of subordinate government in the tro])ics, and almost
every difHculty regarding economic develoiiment, has cither been solved or lias been the
subject of prolonged investigation. We are enabled, therefore, to initiate our policy of
development foi-tified bv the world's knowledge of tropical agriculture, instead of
having to acquire wisdom at the price of costly and often disastrous experiment. The
policy of the rulers of all progressive tropical dependencies to-day is to keep themselves
in touch with contcmporarv administration and the latest developments in agricultural
research throughout all countries sitiiated witliin the world's heat belt.

The mediods adopted by this "Intelligence Department" of the industrial army
are various and interesting, and may lie summed up under the following heads: —

1. By sending representatives to investigate and study tropical develop-

ment in other countries.

2. By obtaining standard technical works and Government periodicals from

all equatorial Possessions.

3. By engaging an expert with a wide knowledge of agricultural develop-

ment in the tropics to direct their energies.

4. Bv inviting those who have successfully inaugurated or expanded the

industries of other countries to visit them and suggest the general
lines of development most suitable for their territory and people.
After their acquisition of oversea territory, the United States sent
out two commissioners to inquire into the administration and
development of tropical dependencies, while Mv. Alleyne Ireland, the
Colonial Commissioner of the I'niversity of Chicago, has travelled to
almost all equatorial (■ountries, and written several valuable works
on tropical colonization. The authorities in Ceylon, in the German
Possessions in Java, and in the Federated Malay States, from time to
time send capable officers to investigate and report on cei'tain phases
of development in other tropical countries, and in this way their
energies are directed by the fullest knowledge.

7^/i(' Industries ive s/iould Ctilfivate.

Dr. Treub, the Director of Agriculture in Java, when asked what industries we
should encourage in Papua, told me that our best course was to choose only a few
industries, those that were suitable for the conditions of the Possession, and were re-
liable and profitable, as nothing would be more injurious than to induce planters to
embark in industries that would prove a failure, and thus discredit the country. The
two industries that he thought most suitable for immediate cultivation in Papua were
rubl)er and coconut jilantations, as the country is well adapted for their culture, the
trees are hardy and easily grown, they require no skilled labour in their culture or in
the preparation of the ])roduct, they are little subject to disease, permanent in their
wealth-producing capacity, and most prolitalile. At the same time there were other
industries that should be cultivated, perhaps, not as a principal crop, but as ancillary
cultures, allowing their development to rest on ])roved results.

So far as the agricultural develo])ment of Papua is concerned, the Administra-
tion would, I think, be well advised in using every effort to induce planters to under-
take the cultivation of these two industries, as both are eminently suited for our rich
coastal lands, and the inaccessibility of the interior does not intrude as a deterrent
factor. As coconuts gi-ow best right on the sea coast, I would further suggest that
each planter be advised to cultivate both coconut and ruliber trees, the former on
the coast, and the latter inland, adjoining the coconut plantaticm. This mixed culti-
vation would 1)8 ])re feral lie to the settler relying on one industry only, the jiroduct of
which may fluctuate in value.

The greatest difficulty tliat jiresents itself to those desirous of encouraging
this class of cultivation is the fact that it entails continuous expenditure for at least
five or six years before any profit can lie I'caped, and in this age when almost every-
thing is subordinated to making wealth cpiickly, this aspect of the ((uestion acts as a
serious deterrent to the investment of capital in such industries.

I have therefore made it my sjiecial care to endeavour to discover a solution
of this difficulty, and I am confident that it is to lie found in the system adopted in
in the Malay States and elsewhere, of planting " catch crops" (i.e., crops that give a

quick return) l)etvveen tlie lubber and coconut trees. These crops (described fully
in Chnnters V. and X. of this Report) are maize, Liberian coffee, pepper, tapioca,
various fibres, citronella grass, tobacco, sarsaparilla, cocoa, bananas, sweet potatoes
and yarns. By a careful selection from these it siiould be quite possible to produce
annually sufficient revenue to meet the cost of maintaining the coconut and rubber
plantations until they are revenue producing.

Experimental Stations and State Nurseries.

Dr. Treub expressed the opinion that it would be advisable to liave two ur.Trmh.
experimental stations anil nurseries, one near the coast and the other at an altitude
not exceeding 2,000 feet, as some plants can only be successfully cultivated near the
sea level, while others r<M[uire a consi(ieral)le altitude for their prosperous growth.

Wiien I broachetl the idea of supplying from these nurseries not only all the sup,,iying
requirements of the Government, but also of the planters. Dr. Treub said that if <Jove™'Lcnt"
the nurseries were to fulfil l)oth these functions they must necessarily be of great """"^*'-
size if there were a large numl)er of planters, but if the planters were likely to be
few in number it would prove a great incentive to settlement. As settlement in all
probal)ilit\' will l)e slow at first, and only stimulated to large proportions by the
success of the pioneer planters, I believe a distribution of plants, possibly at a price
sufficient to cover the cost of j)roduction, would be a most important factor in
initiating development.

If these institutions are to fulfil the laro-est measure of usefulness in the '•"<»'!''" «' .

Ill li'r-n 1 .1.1 experimental

general developmental policy of i apua, great care must be exercised in the selection »'^''on.» »"<'
of a suitable locality. Many factors must be carefully considered such as climate,
soil, drainage, accessibility, elevation and proximity to the principal base of develop-
ment. The Government Hill Gardens should also be situated as near as possible to
those near the coast, to enable the Director of Agriculture to supervise both without
unnecessary delay and expense in travelling to and fro. It would also be an advan-
tage if the gardens were situated near the head-quarters of a Resident Magistrate, so
that the native prison labour would be easily available.

As soon as a suitable spot has been chosen for the coastal experimental station ^^e'riiand
and nurserv, an area of ground should be cleared and a lar2,e number of rubber seeds «'^?"n>entai

^,j*— '-, '■^ ^ Stations.

planted, so that in five months' time the Government would be in a position to distri-
bute plants to those who desired to cultivate rubber. For coconut plantations a
nursery is not necessary as the nuts are planted in their permanent position as soon
as the land is cleared. The other economic plants that flourish near the sea-level,
described in Chapters V. and X., should then be planted in plots for use as subsidiary Experimental
industries, either as catch crops for planters or for trial in small separate plantations. ''°
The most useful and easily grown of these should also be supplied to the various
Residents, and Assistant Residents, for their experimental plots, together with rubber
])lants or seeds, provided the soil in the locality is suitable, so that depots for the
supplv of plants would be established throughout the Possession.

It would not, 1 think, be advisable to commence another experimental station and "■» gardens,
nurserv at an altitude of 1,.500 to 2,000 feet, until the coastal ones and the coastal
plantation industries were well under way, as it is hopeless to expect much develop-
ment in the interior until the country is opened up by tracks or roads. When the
hill gardens are established they should be planted with tea, coffee (Liberian and
Arabian), cacao, gutta percha, camphor trees, &c. For cinchona, an altitude of
from 4,000 to 5,000 feet is required, which would necessitate the selection of a more
elevated situation.

Land Laws.
The further I have pushed my inquiries into the fields of troiiical administra- -easeUuid

1 v 1 1 AV^t Pill

tion and development the more I am convinced of the wisdom of the Federal Par-
liament in adopting the leasehold system of land tenure for our tropical dependency.
In both the Federated Malay States and Java — two of the most prosperous of tropical
possessions — no freehold land can be obtained on any consideration whatever. At
the same time, it is most essential that the leasehold instrument should be of a nature
that guarantees a good title to the land. Otherwise, the investor will shun the place,
and the investment of capital, by which alone substantial industries can be created,
will be prevented.

F.6615. E

eysteui.

Perpetual
leases.

Leases shouM be
granted on
exreptionally
easy terms.

Preferential
tariffs.

Practical
example.

Labour supply.

Undoubtedly the best means to secure this end is to grant perpetual leases
subject to revaluation at stated periods on the unimproved or "scrub value" of the
land Avitli improvement conditions attached. By this means we at once endow the
planter, without heavy initial cost, with a title equal to freehold so far as security
is concerned, and at the same time prevent the eyes of the country ])eing picked out,
and development prevented by the best and most accessible land being locked up
until the enero;ies of others have made it valual)le.

In other words, perpetual leases are the same as freehold, except that the
owner pays interest (as rent) on the capital value of the land instead of a lump sum.
This enables the settler to devote the whole of his capital to develo]3mental work, and
at the same time enables the Government always to insist that at least a portion of
the land shall be profita1)ly employed either for cultivation or pastoral purposes.

In sti'ongly urging that these leases shovild be granted on exceptionally easy
terms, I would instance the initial difficulty that must be experienced in attracting
settlers.

It must be recollected that the supply of good land in the tropics is in excess
of the demand, and that the whole tropical world is holding out the hand of welcome
to intending settlers, and that consequently planters can exercise the widest choice
as to their field of operations. It is necessary, therefore, for us to outbid other
countries in attracting settlers and capital in spite of the fact that they possess some
advantages that we will not or cannot supply.

Nations like the United States and France give substantial preference to
Colonial jJroducts, which in this era of fierce industrial competition is a privilege of
no small value. Others offer monetary advances to settlers at low rates of interest
to assist them in the expensive initiary stages of plantation work.

Another advantage which territories with established industries possess over
us is the greater inducement to establish plantations where others are already in
existence, as the cultivator has the example, advice, and assistance of those possessing
a thoroughly practical knowledge of that particular industry, while the life is rendered
more pleasant by the opportunities afforded for social intercourse. This difficulty
regarding the absence of practical example, advice, and assistance, I suggest, should
be overcome by the Government plantation, experimental stations, and nurseries,
and the efforts of a sympathetic administration.

Another initial difficulty is the belief tliat other countries possess a superior
and more reliable labour supply. While I believe the present labour supply in Papua
is a good one, and sufficient to meet all requirements, this prejudice can only be
removed by actual demonstration.

I have enumerated the difficulties in order to strengthen my plea for the most
liberal land laws. As against the advantages claimed by other countries, we must be
prepared to offer others that will more than compensate those who settle in our
territoiy. We must be prepared to offer the most liberal land laws in the tropics,
and the most liberal and enlightened administration. These advantages, combined
with a .splendid soil, equal and in some cases superior to that possessed by any of our
neighbours, except Java, and a heavy and well-distributed rainfall, constitute our
claims on those who contem])late entering into tropical agricultural pursuits, while
there is always a possibility of preference being accorded to those 2)roducts that are
not and cannot be successfullv cultivated in Australia.

CHAPTER XII.

Odr Policy Towards the Natives.

Safeguards we should Adopt — Native Labour Supply — Native Prison Labour — The
Education of the Natives — Coconut Planting by Natives.

Our first and most sacred duty is to ])rotect the rights and privileges of tlie
natives, and to use every means possil)le to j)romote their true welfare. To this end,
I would recommend that the following principles should be incorporated in our general
policy regarding native Government: —

L The natives should be confirmed in the possession of all the lands they at
present occupy, or are likely to z-equire, by hereditary succession as in Java.

'2. The natives should not he suhjectcd to any special taxation, at least until
they possess snffieient assets to meet the impost without eiit;iilinu- lianlshi|). Any
-departure from this principle would inevitably result in ioreed lahoni- for the
benefit of their employers. They at present pay at least two-thirds of the general
taxation.

;]. The natives should be directed to plant coconuts and other edilde crops
entirely for their own use and the use of their children. An ordinance enacted by
Sir William jNIcGregor is already in existence to this effect, although it has not been
gencrallv eidbrced since he left.

i. The natives should be directed to keep open the paths l)etween tlicir
village;-;. Tliis is also tlie subject of an existing ordinance, although it is not always
enforced.

."). The natives should not be allowed to receive advances or to borrow money
unless the consent of the Government is obtained in cacli case, nor should tiiey be allowed
to ])le(lge their labour, their land, or their chattels, for any purpose whatsoever unless
under Government sanction. This matter forms tlie subject of legislation in certain
British Possessions in the Pacific.

6. Every planter should be required to keep a medicine chest supplied with
simple remedies for the most prevalent complaints of the natives. The indentured
labourers should be regularly inspected by the local magistrate or assistant magistrate,
and an inquiry held if there are any complaints of ill-treatment or neglect. It should
also be insisted that their huts are rain-proof, and erected in a healthy position,
and that the floor is raised some feet from the ground.

Labour Supply.

As I have elsewhere stated, the importance of a good labour supply is second
only to that of soil and climate, and is one of the three indis])ensable factors in
successful tropical development.

The natives in many portions of the tropical belt are slothful and shiftless, or
their energies are of such a fitful nature that continuous effort is difficult of
attainment.

The policy of the British Government in such cases is to indenture more British syetem.
virile and energetic coolie labour from other parts — principally from India and China.
This policy, while excellent from a developmental stand-point, tends to injure the
native races by accentuating their listlessness, destroying their distinctive race
characteristics, and introducing diseases. The Dutch, on the other hand, have not ""'=*■ *y^^<^
encouraged the intrusion of coloured aliens, but have created an efficient labour
supply from the local material by certain legislative enactments, such as the forced
culture system and tlie corvee, by Avliich compulsory labour was exacted, either with
or without payment, in lieu of certain taxation that had been remitted.

Fortunately, the Papuan races, especially in the eastern portion of the ^^"^*5S''^
Possession, have shown that they will voluntarily undertake continuous, and often ^™'"J.^
arduous, work.

This is evidenced bv tlie fact that alreadv some 4,000 indentured natives are '".lenturcd
VForking satisfactorily m our Dependency.

They are principally engaged in mining operations and porterage work — two
of the most arduous and uncongenial employments to which natives of this character
could be put.

The carrying of loads, 40 pounds in weight, long distances to the goldfields,
in the interior of the mainland, is especially irksome and distasteful to the Papuan.
This latter employment can be largely obviated by cutting bridle tracks and sulisti-
tuting pack mules, a system that I have long advocated.

It is evident, therefore, that if large numbers of natives in the past have been n^ i cs.
found to voluntarily undertake such tasks, they will much more readily accept
service for plantation work, as they are accustomed to agricultural pursuits, and
prefer clearing scrub and planting to any other work.

The general statement that all natives in the tropics are indolent, except where
the congested state of the population has necessitated continuous labour from genera-
tion to generation, requires qualification in many instances.

The kanakas in the South Sea Islands all come from the tropics, and yet large Kanakas,
numbers of them have voluntarily accepted employment in Queensland and elsewhere,
and have proved themselves industrious workers.

r.6615. F

The labour supply for the German possessions in the Pacific is drawn almost
exclusively from New Guinea and the Pacific Islands within the tropics, and yet I
have heard no complaint of their inefficiency. In the Solomon Islands the lal)Our
supply is recruited locally, and the steady development of the industries alone proves
that no labour difficulty exists.

We are warranted, therefore, in believing that the local labour supply in Papua
will respond to all requirements. If the logic of events should prove this surmise to
be incorrect, and it is decided to go further afield for indentured labour, then the area
of selection should be strictly limited to the Pacific Islands, whose inhabitants can
claim some blood afRuity to the Papuans, and wdiose advent wouhl l)e less injurious
to the natives than the intrusion of anv other coloured race.

Industrial
tuition.

Native Prison Labour.

The question of employment of prison labour in the Government plantations,
exjierimental stations and nurseries is a reform that would be of distinct benefit to the
natives, and of great assistance to the Government in carrying out these necessary
undertakings without a large expenditure of revenue.

The native prisoners must be made to work, otherwise imprisonment instead of
being a punishment would be looked upon as a luxury. The only question, therefore,
is whether their labour shall be of value to the Government, or whether a great deal
of it shall be valueless.

There are generally in the various prisons of Papua some two or three humlred
natives. Instead of these being employed in necessary and reproductive work many
of them are occupied in cutting cane grass with a sheath knife, and in other voca-
tions that are unnecessary, or which couid be performed much better l>y other methods.
If their energies were directed into useful and productive channels a valuable and inex-
pensive labour force would be available to overcome those initial difficulties which pri-
vate enterprise is powerless to accomplish.

No work is more suited to the native than plantation employment, as the great
majority of them were agriculturists before the advent of the white man. But besides
this being suitable work from an industrial standpoint, it is valualde as an educational
factor. The prisoners are taught how to grow various food supplies, and acquire a taste
and liking for those particular products. When they are gradually drafted back to
their various villages certain useful food plants should be given to them to cultivate,
and in this way the cultivation of valuable products would he disseminated in the

Industrial
education in
Ceylon and the
West Indies.

various villages.

NATIVE EDUCATION.

This leads me to the larger question of native education. The finances would
not admit of anything like the establisliment of State schools, and tliis class of educa-
tion can be well left in the hands of the missionaries. I am strongly of opinion that
industrial education is more beneficial to the Papuans (who are in a comparatively primi-
tive stage of evolution) than a knowledge of the three " r's." At the same time I <]o
not wisli to disparage in any way the valuable work that is being accomph'shed liy the
missionaries, many of whom combine industrial with scholastic education.

The most dangerous symptom in the life of the Papuan native is his ever
increasing lethargy, which unless checked will lead to mental and jihysical deterioration.
A native, who has obtained a school education is less inclined to manual work than his
unsophisticated l)rotlK'r; he is inclined to class himself with the white man, and as tiie
latter never undertakes manual work, such as is done by the natives, the tendency is
for the educated native to look down on this class of labour.

This tciiden(;y is by no means confined to Papua, but is the almost invariable
rule throughout the tropics. A strenuous ett'ort is now lieing made in Ceylon and the
West Indies to educate the native children in agricultural industries, l)y a system of
School Gardens and Nature-study lessons, organized under the Department of Public
Instruction. The object sought to be attained is the diversification of Agricultural
Industries in the native villages, and to this end small experimental gardens are also
established in the princi])al native settlements. While the authorities in Pajma would
be unable to enter .systematically into this system of education at present, I am confi-
dent the missionaries would readily assist in this good work if seeds and young plants
weresu])plied to them from the Government Nurseries.

111 Java, natives avIio are educated lor oHiciiil positioiis are encouraged to
undertake a two years' course at the Agricultural College, so that they may lie
enaliled to instruct their countrymen in the proper methods of husbandry.

The Director of Agriculture for the Netheihinds East Indies told me tliat he Dr. Treub
hoped to be able to establish an experimental Garden at Mereuke, on the soutli coast
of Dutch New Guinea, near our border, not so much for the purpose of creating plan-
tation industries as to teach the natives how to grow vahial)le food supplies.

Coconut Planting by Natives.

One of the most diHicult problems confronting tropical administration is to
induce a slothful native population to engage in useful labour without compelling them
to work for the benefit of others, either with or without payment.

This problem was partially solved l)y Sir William McGregor, twelve years ago, •^jjj^^"^"
when he adopted in a modified form the forced culture system, with this inijiortant
difference, that, while the natives were directed to plant coconut trees, liotli the
plantation and the jiroducts thereof were to be absolutely the property of the Papuans
and their posterity, instead of being, as in the Dutch system, largely the ])roperty of
the Government.

The system would have entailed no hardshi]) on the native, and its advan- Adv^anUKes ot
taffes are threefold. (1) It would have provided the coastal natives with an adequate Mcoregor's
food supply, and thus have protected them against those periodic famines to which
they are now liable. (2) The light work entailed in this cultivation would have pre-
vented the natives from sinking into that state of sloth and lethargy that each annual
report from Papua deplores. (3) It would have enabled them to sell the surplus
product, and thus provide themselves with certain necessities and comforts that would
have improved their condition of life. Sir William jMcGregor left Papua three years
after this ivgulation came into force, and, unfortunately, it has never been enforced by
succeeding Administrators, except in one magisterial district, during the last eighteen
months. Had this wise and useful regulation been enforced, the coasts of Papua
would now have been waving with coconut palms, and the natives would have bene-
fited in every way, while the export of native grown copra would have assumed large
dimensions as in the Solomon Islands. This regulaticm should again be put into
general operation all along the coasts, and the provision should l)e amplified by the
addition of other useful food plants, especially in the interior where coconuts cannot
be so successfully cultivated.

Another regulation instituted by Sir William McGregor directed the natives Necessity (or
to keep open the tracks ln'tween their villages. This would have provided another the tracks,
light employment for them, and would have been of advantage in creating greater
comnninitv of interests, and promoting more friendly relations between the neigh-
bouring trilies, while it would have rendered the country more accessible to the white
man, and enaliled law and order to be more easilv maintained

70
APPENDIX.

BIBLIOGRAPHY.

A library of technical books dealiu^ with plant industries is absolutely essential for the scientific
direction of tropical agriculture. It is even more necessary when the scene of operation (as in Papua) is
isolated, and precludes access to large public libraries. Without such a library the settlers are groping in
the dark, cut off from all knowledge of the results of the immense amount of research and experiment that
is being carried out in all parts of the world regarding plantation industries and the preparation of the
products. Dr. Willis, the Director of the Royal Botanical Gardens of Ceylon, writing of the Agricultural
Department of the Malay States says : — " The libiary is one of the most important items in the equipment
of such a Department, however small. When the Department is in full working order proliably £200 per
annum will be none too much to allow for it, as there are many scores of technical and agricultural journals
which must be taken in, besides many new books, and a vast quantity of back numbers of important
journals, standard works, and so on "

Mr. Carruthers, F.L.S., the Director of Agriculture and Government Botanist of the Federated
Malay States, in supplying me with the following list of books specially suitable for tropical agricultural
and botanical libraries, writes : — "I am forming an Agricultural and Botanical Library here and, with my
private library, which is incorporated, have now some 1,500 to 2,000 works. I hope to increase it largely
this year."

List of standard works necessarj' in cotmeetion with the development of Tropical Agriculture : —

Tropical Agriculture, Nicholls. Macmillan, London, 189T.

Textile Fibres ot Commerce, W. Hannan. Chas. Griffin and Co., London, 1902.

Uses of Plants, E. G. Boulger. Roper and Drowlev, London, 1884.

Diseases of Plants, Tubeuf, translated by Smith. Longmans, 1897.

Kirchner & Boltshauser. Atlas der Krankheiten und Beahadgungen, Stuttgart.

(The text is in German, but the pictures tell their own story.)
Manual of Flowering Plants and Ferns, J. C. Willis, M.A. Cambridge University Press.
Treasury of Botany, 2 vols. Longmans, Green and Co., Loudon, 1899.

JOURNALS.

" Tropical Agriculturist " and all the American Agricultural Departmental publications and text
books. " The Agricultural Journal of India" (Thacker, Spink and Co., Calcutta,) and all their publications

Some of the best works on tropical agriculture in Mr. Carruthers' library are in German — these I
have not included.

Mr. H. N. Ridley, M.A., F.L.S., Director of the Botanical Gardens of the Straits Settlements also
supplied me with a list of necessary books and periodicals : —

" The Agricultural Bulletin " of the States, monthly, 8s. 2d. per annum. H. N. Ridley, Singapore.

" Tropical Agriculturist," Ceylon, £2 a year.

Various agricultural bulletins published in the West Indies. These can be obtained from Sir
Daniel Morris, High Commissioner for the West Indies, Barbadues. The Queensland " Agricultural
Journal." "Pearson's India Rubber World," weekly, 122 Liberty street, New York ; best journal published
on this subject.

The Philippine "Journal of Agriculture," Agricultural Department, Manilla.

" Bulletin of the Imperial Institute," London.

" The Agricultural Journal of India," Agricultural Research Institute, I'usa, Bengal.

"Watt's Dictionary of Economic Products of India," Indian Museum, Calcutta. Tiiis treats of all
agricultural plants in the tropics.

GEMRAL INDEX.

(Note. — F.M.S. is an abbreviation for Federated Malay
States.)

Achiii war (Java) ... ... ... ... ... 47

Administration (F.M.S.) ... ... ... n, 21

Administration jjava) ... ... ... ... 44

Administrative classification (F.M.S.) ... ... 12

Adult males (Java) ... ... ... ... 51

Age of retirement (F.M.S.) ... ... ... n

Age of retirement (Java) ... ... ... ... 48

Aj^ricultura,! College (Java) ... ... ... 56

Agricultural Department (F.M.S.) ... ... ... 13

Agricultural Department (Java) ... ... 46, 54

Agricultural development (Java) ... ... ... 53

Agricultural develo|)ment (F.M.S.) ... ... 23

Alien racas (F.M.S.) ... ... ... ... iS

Alien races (Java) ... ... ... ... ... 4r

Alienation of land (F.M.S.) ... ... ... 2^

Alienation of land (Java) ... ... ... ... 47

Alluvial soil (F.M.S.) ... ... ... ... 15

Analysis of soil (Java) ... ... ... ... 50

Applications for land (F.M.S.) ... ... 11, 23

Applications for land (Java) ... ... ... 47

Area under cultivation (F.M.S.) ... ... ... 23

Area under cultivation (Java) ... ... ... 53

Area under occupation (F.M.S.) ... ... ... ir

Area (Java) ... ... ... ... ... 40

Aspirant Controleur (Java) ... ... ... 48

Assistant Residents (Java) ... ... ... 42, 48

Assisted immigration (F.M.S.) ... ... ... 20

Auctions (Java) ... ... ... ... 44, 46

Australian horses (F.M.S.) ... ... ... 22

Australian horses (Java) ... ... ... ... 52

Bael Fruit -(F.M.S.)
Bamboos (F.M.S.) ...

Banks (F.M.S.)

Bekel (Java)

Bengalis (F.M.S.)...

Beri-Beri (Java)

Bibliograpliy

Botanical Gardens (F.M.S.)

Botanical Gardens (Java) ...

Botanical research institutes (Java) ...

Bridle tracks (F.M.S.)

British policy (F.M.S.) ...

British Residents (F.M.S.)...

British system re labour (F.M.S.)

British treatment of Malays (F.M.S.)

BulTaloes (F.M.S.)

Buffaloes (Java)

Cacao (Java)

Camphor (F.M.S.)...

Carruthers, J. B. (F.M.S.)...

Carruthers, J. B. (Java) ...

Cassia alata (F.M.S.)

Castor oil (F.M.S.)

Cattle (F.M.S.) ...

Cattle (Java)

(^entral organization (F.M.S.)

Central organization (Java)...

Character of country (F.M.S.)

Character of country (Java)

Chief Secretary (Java)

Chiefs of Departments (Java)

Chinese (F.M.S.) ...

Chinese (Java)

Chinese miners (F.M.S.)

Chinese wages (F.M.S.)

Chinese indenture system (F.M.S.) ...

Chinese free labour (F.M.S.)

Chinese tribute system (F.M.S.)

Chinese co-operative system '(F.M.S.)

Cinchona (Java) ...

39
40
22

42
20

52
70
23

5S
37
23
50
39
39
22

52
7
41
15
40
41
41
18

... iS

... 19

59, 60

4'.

Citronella grass (Java)
Civil Service (F.M.S.)
Civil Service — The (Java) ...
Civil Service e.\aminations (F.M.S.)
Civil Service examinations (Java) ...
Civil Service — Age retirement (F.M.S.)
Civil Service — Age retirement (Java)
Civil Service pensions (F.M.S.)
Civil Service pensions (Java)
Classification — Administrative (F.M.S.)
Classification — Clerical (F.M.S.)

Climate (F.M.S.)

Climate (Java)

Cloves (Java)

Coal mines (Java) ...

Coca (F.M.S.)

Coconuts (F.M.S.) ...

Coconuts, yield (F.M.S.) ...

Coconuts, method of planting (F.M.S.)

Coconuts, pests (F.M.S.) ...

Coconuts, cost of planting (F'.M.S.)

Coconuts (Papua) ...

Coffee (F.M.S.)

Coffee, cost of planting (F.M.S.) ...

Coffee (Java)

Comparison F.M.S. and Papua (F.M.S.) ...

Comparison, Java and Papua (Java)

Conference British Residents (F.M.S.)

Controleurs (Java)...

Co-operative system of employment (F.M.S.)

Corvee (Java)

Cost of Departments (Java)

Cotton (F.M.S.) ...

Councils— State (F.M.S.) ...

Culture system (Java)

Cutirency (F.M.S.)

Custom duties (F.M.S.) ...

Custom duties (Java)

Defence (F.M.S.) ...

Defence (Java)

Departments (F.M.S.)

Departments, cost of (Java)

Development (F.M.S.)

Development (Java)

Difficulties regarding plantations (Papua)

Director of Agriculture (F.M.S.) ...

Director of Agriculture (Java)

Director of Agriculture (Papua) ...

Direct taxation (F.M.S.) ...

Direct taxation (Java)

Diseases (F.M.S.)...

District officers (F.M.S.) ...

Djokjakarta (Java)

Doctors (F.M.S.) ...

Drainage (F.M.S.)...

Drugs (F.M.S.) ...

Dutch rule (Java) ...

Dutch system re labour (Java)

Duties — Customs (F.M.S.) ...

Duties — Customs (Java)

Duties— Export (F.M.S.) ...

Duties — Export (Java)

Ecclesiastical hierarchy (F.M.S.)
Economic conditions (F.M.S.)
Economic conditions (Java)...
Education (Java) ...
Education Department (F.M.S.)
Education of natives (Papua)
Elective representation (Java)
Ethnological divergencies (Java)
Examinations (F.M.S.)
Examinations (Java)
Expenditure (F.M.S.)

...

49
61

44.

...

64,

33
69

45i 46)

35
S3

53
8

42.

:::

23.

37
S

... 15

... 52

... 13

... 46

20, 21

53. 54

... 64

... 23

... 54

... 62

... 9

... 44

... 16

... 7

••■ 43

... 21

... 15

••• 39

... 40

... 17

... 9

••• 45

... 9

••■ 45

... 15

... 49

... 52

13, 22

... 68

... 42

... 41

II, 1}

... 47

... 9

Expenditure (Java)

Experimental gardens (F.M.S.)
Experimental gardens (Java)
E>perimcntal plots (Papua)
Experimental stations (Papua)
Export duties (F.M.S.) ...
Export duties (Java)
E.xports (F.M.S.) ...
Exports — Value of (Java)

Federal laws (F.M.S.)
Federal Departments (F.M.S.)
Federated Malay States (Java)
Fertility of soil (F.M.S.)
Fertility of soil (Java)

Fibres (F.M.S.)

Forest Departments (F.M.S.)
Forestry Department (Java)
Forest products (F.M.S.) ...
Forest timbers (F.M.S.) ...
Free hospitals (F.M.S.) ...
Free labour (F.M.S.)
Free medicine (Java)
Fruits (F.M.S.) ...

tiambier (F.M.S.) ...
Gambling (F.M.S.)
General conference (Papua)
General development (F.M.S.)
Geological conditions (Java)
Geological Department (F.M.S.) ...
German possessions
Ginger (F.M.S.) ...

Goats (F.M.S \ ...

Gold (F.M.S.)
Gold-mining (Papua)
Government and legislation (F.M.S.)
Government and legislation (Java) ...
Government coffee plantations (Java)
Government doctors (F.M.S.)
Government doctors (Java) ...
Government experimental stations (Papua)
Government loans (F.M.S.)
Government pawnshops (Java)
Government plantations (Java)
Government plantations (Papua)
Government sanatoria (F.M.S.)
Governor-General (Java) ...
Gutta percha (F.M.S.)

... 46
... 23
••• 54
63. 65
62, 65
... 9
... 44
... 26
... 54

J..

5'.

5°. 59

... 15

... 49

... 38

... 13

... 56

... 24

... 21

... 19

... 52

... 25

49
13
60
40

45>

62,

6.5

4.5'

Javanese (F.M.S. J
Javanese (Java)

Kanakas (Papua)
Kapoc (F.M.S.)
Kathi (F.M.S.)
Katuah (F.M.S.)
Keiiren (Java)
Kola nuts (F.M.
Kosara (F.M.S.)

Laboratories (Java)

Labour — Chinese (F.M.S.)

Labour conditions (F.M.S.)

Labour conditions (Java) ...

Labour— Tamil (F.M.S.)

Labour supply (Papua)

Labour tax (Java) ...

Lalang grass (F.M.S.)

Land applications (F.M.S.)

Land applications (Java) ...

Land laws (F.M.S.)

Land laws (Java) ...

Land laws — Communal holdings (Java)

Land laws — Hereditary rights (Java)

Land laws — Freehold (Java)

Land laws — Leasehold (Java)

Land laws (Papua)

Land tax (Java) ...

Lands Department (F.M.S.)

Laws (Java)

Leasehold system (Java)

Leasehold system (Papua) ...

Leases — Perpetual (F.M.S.)

Legislation (F.M.S.)

Legislation (Java) ...

Library on agriculture (F.M.S.)

Library on agriculture (Java)

Library on agriculture (Papua)

Library — Scientific (Java) ...

Live stock (F.M.S.)

Live stock (Java)

Loans (Java)

Loans — Government (F.M.S.)

Loerah (Java)

Lunatic asylums (Java)

20
40

67
38

43
37
39

••• 55

... 18

16, 19

... so

19, 20

66, 67

44' 45

... 35

II. 23

... 47

10, 22

... 47

62, 65

44. 45
... 14

■ ■■ 43

... 47

... 65

... 10
...7.8

... 44

... 70

... 56

... 63

... 56

... 22

... 52

... 43

... 23

... 42

... 52

(F.

) •••
M.S.)

Hand-book (F.M.S.)
Hand-book (Papua)
Headman (Java) ...
Herbarium (Java) ...
Hill gardens (Java)
Hill gardens (Papua)
Hindoo dvnasties (Java
Historical' (F.M.S.)
Historical (Java)
Horses, Australian
Horses (Java)
Hospitals (F.M.S.)
Hospitals (Java) .
Hotels (F.M.S.) .

Important changes in system of Government (Java)

Import duties (F.M.S.)

Import duties (Java)

Improvement conditions (F.M.S.) ...

Income tax (Java) ...

Indenture system of employment (F.M

Indentured Papuans (Papua)

Indian Council (Java)

Indian immigration (F.M.S.)

Indipenons plants (Paptia)

Indigo (F.M.S.) ...

Indigo (Java)

Indolence of tropical races (F.M.S.)

Industrial education (Java)

Industrial education (Papua)

Industries (Papua)...

Irrigation (F.M.S.)

Irrigation (Java)

.S.'

24
63
42

;6
54
65
41

4'
22

52
21

... 43
9

... 45
10

44. 45

ifi

... 67

... 41

... n
.- 63

... 37

... 53

... 17

... <;6

... 68

... 64

... 24

• .• 53

Maize (F.M.S.) ...
Malay art (F.M.S.)
Malay listlessness (F.M.S.)
Malav stork (Java)

Malay— The (F.M.S.)

Manilla hemp (F.M.S.)

Marine Department (F.M.S.)

McGregor, .Sir Wm. (Papua)

Medical Department (F.M.S.)

Medical Research Institute (F.M.S.)

Medicine — Free (Java)

" Merrie England " (Papua)

Meteorological observations (F.M.S.)

Meteorological observations (Papua)

Meteorological observations (Java)

Method of development (Papua) ...

Mclhod of legislation (F.M.S.)

Method of legislation (Java)

Military (F.M.S.)

Military (Java)

Mineral development (F.M.S.)

Minerals (F.M.S.)...

Mines Department (F.M.S.)

Mining laws (F.M.S.)

Mining — Method of (F.M.S.)

Minor regulations (Java) ...

Motor-car service (F.M.S.)...

Mountain soils (F.M.S.) ...

Mountain soils (Java)

Mountain soils (Papua)

Municipal government (Java)

Murva (F.M.S.) ...

Museums (F.M.S.)

Museums (Java)

... 3S

... 17

... 18

... 40

... 17

..• 39

... 13

... 69

... 13

... 52

... 63

... 16

... 63

... 49

... 62

... 8

•.. 43

... 15

... 52

... 25

... 14

... II

... 19

... 43

... 21

... 15

... 43

... 38

14, 22

••• 55

Native education (T.M.S.) ...

Native cducatioT (Java)

Native education (Papua) ...

Native labour (F.M.S.)

Native labour (Java)

Native hibour (Papua)

Native labour, wages (Java)

Native labour, working hours (Java)

Native labour, skilled (Java)

Native organization (F.M.S.)

Native organization (Java) ...

Native prison labour (Papua)

Native tracks (Papua)

Natives (Papua)

Natives cannot sell land (Java)

Necessity of learning from others (Papua)

Novel tariff regulation (Java)

Nurseries (Papua) ...

Nutmegs (F.M.S.)

Official titles (Java)
Opium (F.M.S.) ...
Opium (Java)
Opium farm (F.M.S.)
Ordinances (Java) ...
Other industries (Papua)

.. 22

... 68

... 18

... 50

66, 67

... 51

... 5?

... 8

... 42

... 68
....69

66. 67

... 47

... 64

.•• 45

62, 65

•■• ^-

... 4S
... 9
44. 46

9
■■• 4.3
... 64

Papua 10, n, 15, 20, 24, 25,

40. 5>. 5.i> 59. 60, 6i.
Pathological Institute (F.M.S.)
Pawnshop farms (Java)
Pawnshops (Java) ...
Peat land (F.M.S.)
Penghutu (F.M.S.)
Pensions (F.M.S.)... . ...

Pensions (Java)
Pepper (F.M.S.) ...
Perpetual leases (F.M.S.)
Perpetual leases (Papua) ...
Personal service (Java)
Piece-work (Java) ...
Pioneer planting (F.M.S.) ...
Plantation difficulties (Papua)
Plantation industries (F.M.S.)
Plantation industries (Java)
Police Department (F.M.S.)
Policy of development (F.M.S
Policy of development (Java)
Policy of development (Papua
Policy towards natives
Policy towards natives
Policy towards natives
Poll ' ta.K (Java) ...

29. 30. 32. 36. 37. 38. i').

(F.M.S.)

(Java)

(Papua)

Population (F.M.S.)

Population (Java) ...

Post and Telegraph Department (F.M.S.

Preferential tariffs (Papua)

Principal exports (Java)

Printing (F.M.S.) ...

Printing Department (F.M.S.)

Printing works (Java)

Prison labour (Java)

Prison labour (Papua)

Prisons Department (F.M.S.)

Property law — Women's (F.M.S.) ...

Property tax (Java)

Provincial administration (F.M.S.)

Provincial Government (Java)

Public Debt (F.M.S.)

Public debt (Java) ...

Public Service appointments (Jav.T

Public works (F.M.S.)

... 21

44. 46

... 15

... 8

... 48

... 36

... 10

... 66

... so

... 51

... 24

... 64

... 26

... 56

... 14

... 21

■■• 54

... 62

... 17

40, 50

. 66

14. 45

... 16

... 40

14. 21

... 66

- 54

... 14

... :;6

... 46

... 68

... 14

Report by expert (Papua) ...
Report— Dr. Willis (F.M.S.)
Residents— British (F.M.S.)
Residents (Java)
Revaiii.ilions (F.M.S.)
Revenue (F.M.S.) ...
Revenue (Java)
Rice (F.M.S.)
Ridley, H. N.
Roads (F..\I.S.) ...
Roads (Java)
Royal decrees (Java)
Royalty on tin (Java)

Rubber (F.M.S.)

Rubber— World's output (F.M.
Rubber— Value of yield (F.M
Rubber— Forest (F.M.S.) ...
Rubber— Plantation (F.M.S.)-
Rubber — Limits of expansion

44. 45

va)

Railway Department (F.M.S.
Railway revenue (Java)
Railways (F.M.S.)
Railways (Java)
Rainfall (F.M.S.)...
Rainfall (Java)
Ramie (F.M.S.) ...
Regents (Java)
Regulations (Java)...
Rentals (F.M.S.) ...
Rentals (Java)

46
41
•4

... 14

44. 46

... 21

... 51

... 16

... 4Q

... ,,S

... 42

••■ 43

(F.M.S.)

Rubber — Increased demand (F.M.S.)
Rubber for street paving (F.M.S.)
Rubber— World's demand (F.M.S.)...
Rubber — Possible substitute (F.M.S.)
Rubber — Price of ...
Rubber — Market fluctuations (F.M.S.)
Rubber — Method of culture (F.M.S.)
Rubber— Seeds for Papua (F.M.S.)...
Rubber — Preparation of nursery (F.M.S.)
Rubber — Tapping (F.M.S.)...
Rubber — Preparation of latex (F.M.S.)
Rubber — Diseases and pests (F.M.S.)
Rubber — Ficus elastica (F.M.S.)
Rubber — Cost of planting (F.M.S.)...
Rubber (Papua)

Sago (F.M.S.)

Salaries, administrative service (F.M.S.)

Salaries administrative service (Java)

Salaries of Sultans (F.M.S.)

Sale of " Merrie England " (Papua)

Salt monopoly (Java)

Sanatoria (F.M.S.)

Sarsapanlla (F.M.S.)

Savings Bank (F.M.S.) ...

Sheep (F.M.S.) ... ... ... .:.

Sheep (Java)

Shipping facilities (F.M.S.)
Shipping facilities (Java) ...
Sisal hemp (F.M.S.)
Skilled labour (Java)
Slaughter-house tax (Java) ...
Soendanese (Java) ...
Soerabaja Council (Java) ...
Soerakarta (Java) ...

Soils (F.M.S.) ...

Soils (Java)

Solomon Islands ... ... -..31. 32, 62,

Solution of labour difficulty (F.M.S.)

Special concessions (F.M.S.)

Spirits (F.M.S.) ...

Staff appointments (F.M.S.)

State coal mines (Java)

State Councils (F.M.S.)

State hotels (F.M.S.)

State tin mines (Java)

Stock (F.M.S.)

Sugar (F.M.S.)

Sugar (Java)

Sugar — Cost of production (Java) ...

Sugar tax (Java) ...

Sultans (F.M.S.) ...

Sultans (Java)

.Sultans — Subsidy to (Java)...

Superintendent experimental garden (F.M.S.)

.Surface formations (Java) ...

Survey Department — Revenue (F.M.S.)

Survey Department — Trigonometrical (F.M.S.)

Survey fees (F.M.S.)

System of government (F.M.S.)

System of government (Java)

System of taxation (F. M.S.I

System of taxation (Java)

Tamil labour (F.M.S.)
Tapioca (F.M.S.) ...
Taxation— Direct (F.M.S.)...
Taxation (Java)
Taxation — System of (F.M.S.)
Tea (F.M.S.)

. t .

42.

7
48

44.

24.

...

21,

44.

43
46
26

...

27
28

...

.30

3'
64

42,

48
8

44.

63
46

...

44.

49.
6j, 68,

5°
69
18

44.

46
8

44.

53.

57.

57
58

44.

4=;

14,

1 22

•4

4':

. 43

... I<^

■■- 3.5
o
... 44
... 9
23. 38

Technical periodicals (Java)

Telegraph lines (F.M.S.) .

Telegraph lines (Java)

Temperature (F.M.S.)

Temperature (Java)

Timbers— Forest (F.M.S.) .

Timbers — Forest (Java)

Tin (F.M.S.)

Tin— Duty on (F.M.S.)

Tin mines (Java) ..

Tobacco (F.M.S.) .

Tobacco (Java)

Town lots (F.M.S.)

Tracks should be kept open (Papua)

Transportation (F.M.S.)

Transportation (Java)

Transportation (Papua)

Treasury (F.M.S.)...

Treub — Doctor (Java)

Tribute system of employment (F.M.S.

Tronah mines (F.M.S.)

Tropical development (F.M.S.)

25
9

44>

50
II
69
21
■;i
62

,i4> 64,

65,

Value of exports (Java)
Vanilla (Java)
Vehicle tax (Java)...
Verponding (Java)
Veterinary Department (Java)
Village headman (Java)
Volcanic soil (Java)

Wages (F.M.S.) ...

Wages (Java) ... ' ...

Wages of Chinese (F.M.S.)

Water buffaloes (F.M.S.) ...

Water buffaloes (Java)

Ways and means (Papua) ...

Wedanas (Java)

Willis— Dr. J. C. (F.M.S.)

Wolfram (F.M.S.)...

Women's property law (F.M.S.)

Working hours (Java)

54
60

44.

45
56
42
53

19.

...

52
63

...

24,

Printed and Published for the GovEnvsir.NT of the CoMMO>f\vE.M-TH of Aubtrama by J. Kemp,
Acting Govoriiment Priiitef for the State of Victoria.