CHAPTER XVI

FINANCE—TRADE—INDUSTRIES

A general review of the financial, commercial, and industrial progress

of Sarawak will probably convey to our readers a better conception than

the foregoing history may have enabled them to form of the uniform

advance of Sarawak along the path of civilisation: for no better

evidence of the prosperity of a country can be advanced than the growth

of its trade and industries, dependent as this is upon security to life

and property and liberal laws.

Of the revenue before the Chinese rebellion there are no records, as all

the archives were then destroyed. Three years later, in 1860, the

revenue was so insignificant as to be quite inadequate to meet the needs

of the country, which then for the first time became involved in debt; a

debt which was unavoidably increased in subsequent years, until it had

reached a somewhat high figure for such a young and striving State, but

from which, however, it has now been freed by the exercise of prudent

economy, and by improvement in its finances.[353]

In 1870 the revenue amounted to And the expenditure to

$122,842 $126,161

1880 229,718 203,583

1890 413,113 362,779

1900 915,966 901,172

1907 1,441,195 1,359,274

On January 1st, 1908, the Government balances amounted to a little over

$800,000, and the only liability was for notes in circulation, amounting

to $190,796.

In 1875, fifty-six years after its foundation, the revenue of Singapore

was but $967,235, and that of Penang, then established for eighty-nine

years, $453,029.[354] In 1900, the Raj of Sarawak had been in existence

for fifty-eight years. Since 1875, the effect of the development of the

rich tin deposits of the Malayan States of the Peninsula has been to so

enormously enhance the commercial prosperity of the Straits Settlements

that the present revenues of the "sister colonies" have quite surpassed

anything that Sarawak may perhaps hope to acquire in a corresponding

number of years.

The trade is mainly in the hands of the Chinese merchants, mostly

country born, who are successfully carrying on thriving businesses of

which the foundations were laid by their fathers in the early days of

the raj. These merchants are of a highly respectable class, and they

take the interest of intelligent men in the welfare of the country,

which they have come to regard as their own. They rarely visit China—

some not at all. They are consulted by the Government in all matters in

which their interests are concerned.

The only European Firm is the Borneo Company Limited, and the career of

this Company has for over fifty years been so closely linked with that

of the State, and so much to the advantage of the latter, that it fully

merits more than a passing notice in these pages, without which this

history would not be complete.

For a considerable period Mr. J. C. Templer, the late Rajah's old

friend, laboured very hard to meet the ignorant and cruel criticism

which had been cast on the Rajah's great work, and, in order that the

development of Sarawak might have financial support, he interested

friends in the city in the matter, chiefly Mr. Robert Henderson of

Messrs. R. and J. Henderson.

After considerable negotiation, the Borneo Company Limited was

registered in May, 1856. The attention of the Company was turned

primarily to supporting the Rajah, and to developing the resources of

the country. The first Directors were Messrs. Robert Henderson

(Chairman), J. C. Templer, J. D. Nicol, John Smith, Francis Richardson

and John Harvey (Managing Director).

Most unfortunately, immediately after the formation of the Company

troubles arose which nearly overwhelmed the State. The Chinese

insurrection the next year, and the later political intrigues obscured

for a time the prosperity of Sarawak, and left the prospects of the

Company very black indeed, but it struggled on bravely; and it cannot be

doubted that its formation before the insurrection was a matter of great

value in the history of the country.

The Company, as soon as they received news of the insurrection,

instructed their Manager in Singapore to supply the Rajah with all the

arms, ammunition, and stores he might require, and it was their steamer,

named after himself, that arrived at such an opportune moment, and

enabled him to drive the rebels out of Kuching, and to cut short their

work of ruin far sooner than he could otherwise have done; and it was

the Company which not only subsequently advanced the Rajah the means he

so sorely needed to carry on the government, but headed a subscription

list started in England to relieve the Government of pressing wants,

with a donation of £1000. Long before this the Rajah's private fortune

had been exhausted.

Some appear to have formed the opinion that the Company were

subsequently inconsiderate in pressing for payment of the loan, but more

consideration should have been given to the position of the Directors as

being a fiduciary one to the shareholders, who had invested their money

in a commercial enterprise, and at that time by no means a prosperous

one.

Since the Company was formed over £200,000 has been paid to the

Government for mining royalties, and during the same period £2,000,000

has been paid out in wages, which has tended to the prosperity and

advantage of the country.

Until 1898, no balance of profit had been made by the Company from

Sarawak; indeed, there was a very considerable deficit, which had been

met from the profits of their other operations.[355] This persistence in

the original policy of the founders of the Company for forty years

without return has, however, been rewarded by considerable success in

the last decade. The enterprise that brought this success, the

extraction of gold from poor grade ores by the cyanide process, is

noticed further on, and we will conclude this notice of the Company by a

quotation from a speech by the Rajah given thirty years after the

foundation of the raj.

The Company has held fast and stuck to its work through the perils

and dangers and the adversity which Sarawak has experienced and

encountered. It has shown a solid and stolid example to other

merchants, and has formed a basis for mercantile operations; and the

importance of the presence in a new State of such a large and

influential body as the Borneo Company cannot be overrated.

Owing to the absolute lack of security to life and property, both within

and without, before the accession of Sir James Brooke to the raj,

Sarawak had no trade. After 1842 a small trade began to spring up, but

the Lanun and Balenini pirates and the Sea-Dayaks rendered the pursuit

of trade very difficult and dangerous. The lessons administered to the

latter by the Rajah and Sir Henry Keppel caused these to confine

themselves for some time to their homes, and the Foreign exports rose to

$60,000 in 1847. Then the coast again became insecure, and it was not

until after the battle of Beting Maru, in 1849, that trade made any

considerable advance, and it continued to increase until the Chinese

insurrection brought the country to the verge of ruin. A brief respite

followed, and then came the internal political troubles, and renewed

activity on the part of the Lanun and Balenini pirates. But in 1862, the

authority of the Rajah was paramount from Cape Datu to Kedurong Point,

and the defeat of the pirates off Bintulu in the middle of this year

freed the Sarawak coast for ever from these pests. So in 1862 the

increase in the value of the trade was over fifty per cent. In 1860, the

Foreign imports and exports amounted to $574,097; in 1880 to $2,284,495;

in 1900 to $9,065,715; and in 1905 to $13,422,267. Since 1905, in common

with all countries, the State has been suffering from commercial

depression, and in 1907 the decrease in the imports was $709,162, and in

the exports $823,682, compared with 1905, though only $2276 and $166,285

as compared with 1906. But though the exports have fallen off in value,

there has been an increase in the quantities of the products exported.

As prices fluctuate, the industrial progress of a country is, therefore,

better gauged by the quantity rather than by the value of its products,

and in 1907, 7000 tons more sago flour, 800 tons more pepper, 7000 oz.

more gold, and 150 tons more gutta and india-rubber were exported than

in 1905.

Practically Singapore has the benefit of the whole of the Sarawak trade,

which is borne in two steamers of 900 tons each under the Sarawak flag,

owned by the Sarawak and Singapore S.S. Company, and these maintain a

weekly communication between Kuching and Singapore. The coasting trade

is carried in three smaller steamers owned by the same Company. There is

a small trade in timber with Hong Kong; and a few junks come yearly from

Siam and Cochin China.

Agriculture is the foremost industry, and as it is a permanent one, only

requiring wise and liberal measures to foster and encourage it, Sarawak

is in this respect fortunate, for the natural products of a country,

such as minerals and jungle produce, must in time be worked out; and the

future of a country is therefore more dependent upon its industries than

on its natural products.

In 1907, the value of the cultivated products exported was $3,133,565.

Of these sago may be said to be the staple product, and the markets of

the world are mainly supplied by Sarawak with this commodity. From it

Borneo derives its Eastern name, Pulo-Ka-lamanta-an (the island of raw

sago).[356] The palm, the pith of which is the raw or crude sago, is

indigenous, and there are many varieties growing wild all over the

island that yield excellent sago. On the low, marshy banks of the

rivers, lying between Kalaka and Kedurong Point, are miles upon miles of

what might be termed jungles of the cultivated palm, where fifty years

ago there were but patchy plantations. The raw sago as extracted by the

Melanaus is purchased by the Chinese and shipped to the sago factories

in Kuching, where it is converted into sago flour, in which form it is

exported to Singapore. How the cultivation of the sago palm is

increasing, the following figures will show:—

1870 exported [357]tons, value $128,025

1887 exported 8,734 tons, value 314,536

1897 exported 14,330 tons, value 689,702

1907 exported 20,388 tons, value 964,266

In 1847-48, only 2,000 tons were imported into Singapore, practically

all from Borneo.

In times immemorial pepper was very extensively cultivated in Borneo. In

the middle ages this cultivation attracted particular attention to the

island; and to obtain a control over the pepper trade by depriving the

Turks of their control over the trade in spices was one of the main

incentives to the discovery of a route to the East by the Cape. By many

the introduction of pepper into Borneo is attributed to the Chinese, and

from them the natives are supposed to have learnt its cultivation, but

this is doubtful, as pepper is not a product of China, and was probably

introduced by the Hindus; but that the Chinese, finding the industry a

profitable one, improved and extended the cultivation of pepper, there

can be no doubt. What the export of pepper was in the days when the

Malayan Sultanates were at their prime it is impossible to determine,

but that it must have been very considerable is indicated by the fact

that as late as 1809 Hunt estimated the export from Bruni at 3500 tons,

and at that time the country had been brought to the verge of ruin by

misrule and oppression, which led to the gradual extinction of the

Chinese colony, and to the deprival of all incentive to the Muruts and

Bisayas to carry on an industry for which they had once been famous—

indeed, Hunt notices that he saw _numbers of abandoned gardens_, and his

observations were restricted to a very limited area. In spite of the

harmful restrictions of the Dutch, in the south at Banjermasin, two

hundred years ago, the export was still from 2000 to 3000 tons.[358] Had

different conditions prevailed, had native industry been encouraged

instead of having been suppressed, then truly might Borneo have become

the "Insula Bonæ Fortunæ" of Ptolemy.

But Sarawak is placing Borneo once more to the fore amongst the pepper

producing countries of the far East, and in 1907 exported 5177 tons, as

against 400 tons in 1886. After many previous failures the foundations

of this large industry, which is entirely in the hands of the Chinese,

were laid in 1876 by the Rajah in conjunction with certain local Chinese

merchants.

As with sago and pepper, Borneo is essentially a rubber producing

country, and it is to be hoped when the time arrives, and as yet it

appears to be far from being in view, that the natural product is worked

out, it will be more than replaced by cultivated rubber. The Borneo

Company have laid out extensive plantations, that give promise of a

paying and lasting industry.

With the exception of the cultivation of sago, agriculture in Sarawak

is, and will remain dependent upon imported labour. It is not in the

nature of the Malay, whose wants are so few and simple that they are

procured by a minimum of exertion, to undertake any work requiring

persistent and diligent labour; and no more is it in the nature of the

Sea-Dayak, though he is not afraid of hard work. Having finished his

farming and gathered his harvest the latter prefers an occupation that,

whilst bringing in a fair profit, will gratify his proneness for

roaming. The native methods of rice growing are crude and wasteful, and

attempts to improve these have failed, as have all attempts to introduce

Chinese for the purpose of cultivating rice, with the idea of

establishing an agricultural industry for which there is so much room

and need in Sarawak. The Malays and Dayaks, like the Kayans and

Melanaus, produce barely enough rice for their own consumption, and rice

figures as the biggest item in the imports of a country which is capable

of producing a considerable quantity more than it needs.

Sugar cane grows well, but enterprise in its production has probably

been damped by the failure, through mismanagement, of an English

Company, which, in 1864, started a large plantation on about the very

worst soil that could have been selected. Tobacco planting proved to be

a failure, and a costly experiment to the Government. Coffee and tea

grow well on high ground, but the country has little elevated plateau

land suitable for its cultivation. Gambir is a paying product, but the

cultivation of pepper has proved more attractive to the Chinese, though

the production of gambir has been fairly well maintained at over 1000

tons yearly. Tapioca, cotton (which in former days was largely exported

from Bruni), the cocoa-nut, the areca or pinang, and the oil or soap

palms all grow well. Ramie is being cultivated by an English Company in

the Lawas, and experiments have shown that this plant will grow well.

The sisal aloe grows freely, and on poor soil. Pine-apples are largely

cultivated for canning. The fruits and vegetables common to all

countries in the Malayan Archipelago abound in Sarawak.

The land regulations are liberal and fair. _Bona fide_ planters receive

every encouragement, though none is held out to speculators in land. The

indiscriminate alienation of large tracts of land for unlimited periods

and for indefinite purposes is an unsound policy, which does not find

favour in Sarawak. It leads to land being locked up, sometimes for a

long period, and to placing ultimately in the hands of a foreign

speculator profits which the State should reap, and to the natives it

causes many hardships. In 1890, such a concession was granted to a

company by the Dutch Government in the province of Sambas, quite

independently of any consideration for existing and long-established

rights of the natives, the real owners of the soil. This act drove many

families over the borders into Sarawak, when rudely awakened to the fact

that except by the permission of the employees of a company, only to be

obtained by payment, they could not farm, neither could they fish or

hunt, nor could they obtain the many necessities of life with which the

jungle supplies them.

In his report upon Borneo for 1899, Mr. Consul Keyser writes:—

I should here like to dispel, once and for all, the idea so often

heard suggested that the Ruler of Sarawak is averse to progress and

the introduction of European capital. That the Rajah is anxious to

discourage that undesirable class of adventurer, who descends upon

undeveloped countries to fill his own purse regardless of the

result, it is true. The fate of the adjacent country of Bruni, whose

ruin and decay are not entirely disconnected with the unfulfilled

promises and specious tales of selfish speculators, is in itself

ample justification, if one were needed, for this attitude.

At the same time, no _bona fide_ investor need fear to visit Sarawak

if he is prepared to deal fairly with the natives and conform to the

usages of the country. Such a man would be sure of welcome, and he

himself equally certain of success.

Land is usually granted at a small rental in large or small areas, in

accordance with the capital and the objects of the grantee. The

proportion of the land which is to be brought under cultivation in

successive years is agreed upon. Any portion of the land that the

grantee may have failed to bring under cultivation within the stipulated

time, or, having cultivated, has abandoned it, reverts to the State;

though in the former case circumstances occasionally arise which justify

some latitude to the planter. But all land brought under cultivation

becomes the absolute property of a planter or his assigns, and remains

so, _as long as it is maintained under cultivation_. Abandonment of a

plantation is abandonment of the land, and it then reverts to the State;

and the State thus remains the real owner of the land, though not of the

plantation on it. This system is obviously of advantage to the planter.

He obtains his land, which he may select where he chooses, for next to

nothing, and he runs no risk of losing capital sunk in the purchase of

what might prove to be an unprofitable property, and therefore one that

is unsaleable. And it secures to the State a sufficient guarantee that

the land will be cultivated and kept under proper cultivation.

Practically the whole of the Chinese pepper and gambir planters hold

their land under these terms, and they are as secure in the possession

of their gardens, and the right to alienate them, as if they had bought

the land. Land is sold only for special purposes, such as for buildings

and gardens in a town or its suburbs.

[Illustration:

A PEPPER GARDEN.]

Jungle produce, in spite of seemingly natural predictions that it must

soon be worked out, which have been yearly repeated for many years past,

figures yet as a very important item in the export trade, and its

collection not only remains a considerable industry, but is apparently

still a growing one. The exports have risen in value from $267,480 in

1877 to $1,626,427 in 1907, which is just double that of ten years

previously. The products are, in the order of their value, gutta,

india-rubber, cutch, rattans, timber and barks, edible birds'-nests,

camphor, and beeswax.

The supposed mineral wealth of Sarawak first brought it into notice. It

was known to produce gold and diamonds, though so did other Bornean

States, but in addition antimony ore was brought to the Singapore market

in native prahus from Sarawak, and that was not a production of any

other part of Borneo. It excited the interest of Europeans as well as

the cupidity of the Bruni Rajahs, but to the former, Sarawak was not a

safe place with which to trade, and the latter soon drove its people

into rebellion by forced labour at the antimony mines, and the supply

then ceased. After the accession of the late Rajah this natural product

was nationalised and became the main source of revenue, but

subsequently, with all other minerals, excepting gold, it was leased to

the Borneo Company. Since the days of large production in Sarawak,

antimony has been worked in many other countries, and this has sent the

value down, so that it is only very occasionally that the price of

antimony in consuming markets will admit of any export of the metal. The

large deposits that previously existed have apparently been exhausted,

but fresh rich deposits may still be found, though, as with cinnabar,

which was once largely worked by the Company at one place, the discovery

of these isolated pockets is greatly a matter of chance. Antimony has

been found in many other parts of the State, though not yet in paying

quantities, and cinnabar has been found here and there on the gravel

shallows of rivers, an indication of the existence, though not a

sufficient one to point to the position of other lodes.

It was entirely owing to the first Rajah that the Chinese had been able

to settle on the gold-fields in Upper Sarawak and to establish a large

and profitable mining industry; and it was entirely owing to their own

supreme folly and ingratitude that that industry was destroyed. It was

revived again after a time, but never to the extent of what it had been.

As the visible outcrops of gold gave out, the Chinese turned their

attention to the more profitable occupation of pepper-planting, and, ten

years ago, the mining district of Upper Sarawak had been changed into an

agricultural one—gold-mining had almost ceased, the cinnabar mines at

Tegora had long been worked out, and but little antimony was mined,

whilst pepper gardens had sprung up everywhere.

[Illustration:

CHINESE SLUICING FOR GOLD.]

The Borneo Company had from time to time spent considerable sums on

experimental work on the gold deposits, but, owing to the character of

the ore, no method of working was found practicable on a mercantile

scale until the discovery of the cyanide process. But even treatment by

cyanide in any way then used was not found successful with Sarawak ore,

and the method ultimately adopted was formulated by the Company's

engineers themselves. The result has been considerable success, and it

is gratifying that after so many years of steady work through many

difficulties and disappointments, the Company have been able to place on

a prosperous footing an industry which has brought them good fortune,

and which is proving to be of so great advantage to the country.

[Illustration:

BROOKETON COAL MINES.]

Sarawak possesses extensive coal-fields, and anthracite and steam and

cannel-coal have been found throughout the country; but so far coal has

been mined only at Semunjan in the Sadong river.[359] This colliery has

been worked for many years by the Government. The coal is of good

steaming quality, leaving little ash, and there is plenty of it. Like

the Brooketon Mine, this mine would pay if a market could be found for

the coal. The average yearly output is now about 20,000 tons, a little

more than sufficient to supply local steamers. At Selantik, up the

Lingga river, very extensive coal seams have been proved; but to work

these a large outlay would have to be incurred in the construction of a

long railway over the swampy land lying between the Selantik hill and

the nearest place in the river where steamers could load.

Diamonds are found in the upper reaches of the Sarawak river, and these

are brilliant and of good water; the largest known to have been found is

seventy-two carats, and was named "The Star of Sarawak." Diamonds have

never been sought for in a systematic manner.

Iron ore abounds; and, as has already been noticed, it is smelted by the

Kayans and Kenyahs for the manufacture of weapons and tools.

Sarawak has no mechanical industries of importance or capable of much

development. Many Melanaus are able carpenters, boatbuilders, and

blacksmiths. Amongst Malays are to be found some good shipbuilders and

coppersmiths, and a few fairly skilful as silver and goldsmiths, but

almost all the skilled labour is in the hands of the Chinese. In such

domestic arts as weaving cotton and silk cloths, and plaiting mats,

baskets, and hats, the native women are expert, and produce very

excellent work.

[Illustration:

THE BORNEO COMPANY'S CYANIDE WORKS AT BAU.]

-----

Footnote 353:

From 1876 the finances of the State were in the able hands of Mr.

Charles S. Pearse (who joined in 1875), until 1898, when he retired.

This most important post has since been well filled by the present

Treasurer, Mr. F. H. Dallas.

Footnote 354:

These figures are taken, being the only ones at hand.

Footnote 355:

The Borneo Company have branches at Batavia, Singapore, and in Siam;

formerly also in China and India. The head office is in London.

Footnote 356:

Chap. 1. page 1.

Footnote 357:

Quantity not given in published trade returns.

Footnote 358:

Captain Beeckman, _op. cit._

Footnote 359:

The Brooketon Colliery leased to the Sarawak Government is in Bruni

territory. In Chap. XV. will be found a full account of this mine.

[Illustration:

ST. JOSEPH'S CHURCH (R.C.) ST. THOMAS' DIOCESAN CHURCH (S.P.G.)]

A History of Sarawak under Its Two White Rajahs 1839-1908 · 第 17 / 18 章