CHAPTER IX.

THE CULTURE SYSTEM.

Financial system previous to the British occupation--

Raffles' changes--Return of the Dutch--Financial

policy--Van den Bosch Governor-General--Introduction

of the culture system--Its application to sugar--To

other industries--Financial results of the system--

Its abandonment--Reasons of this--Present condition

of trade in Java--Financial outlook.

As I have already mentioned, the Colonial Government succeeded the Dutch

East India Company in the administration of Java towards the end of the

last century. During the period antecedent to the British occupation,

the revenue of the Government was derived from two monopolies: (1) that

of producing the more valuable crops, and (2) that of trading in all

products whatever. Meanwhile the mass of the natives were left entirely

to the mercy of the native princes, by whom they were subjected to all

manner of exactions.

The financial results of this state of things were seen in the fact that

in 1810 the gross revenue of Java was only three and a half million

florins,[16] a sum wholly inadequate to the requirements of

administration.

During the five years of British occupation (1811-1816) Sir Stamford

Raffles was Lieutenant-Governor. He at once introduced reforms. The

native princes were displaced; the village community, with its common

property and patriarchal government, was modified; a system of criminal

and civil justice, similar to that in force in India, in which a

European judge sat with native assessors, was introduced; the peasants

were given proprietary rights in the soil they cultivated; and complete

political and commercial liberty was established. An inquiry into the

nature of the respective rights in the soil of the cultivator, the

native princes, and the Government resulted in establishing the fact

that, of the subject territory the Government was sole owner of

seven-tenths. Of the remainder, two-tenths belonged to the Preanger

Regents, and one-tenth was occupied by private estates, chiefly in the

neighbourhood of Buitenzorg and Batavia. In order to teach the native

the western virtues of industry and independence, Raffles determined to

introduce the Ryotwarree system. The property in the land vested in the

Government was handed over to individual peasant proprietors. In return

for his land each proprietor was made individually and personally

responsible for the payment of his land tax, and his land was liable to

be sold in satisfaction of his public or private debts.

[Footnote 16: 12 florins = £1.]

Before the English administration the peasant had paid--(1) a land rent

for his rice lands to the native princes, amounting to a sum equivalent

to one-half of the produce of sawah (irrigated) and one-third of tegal

(unirrigated) lands; and (2) a tax of forced labour to the Dutch

Government, which took the form of unpaid labour in the cultivation of

the produce for export. Raffles abolished both, and in place of them he

established a fixed money payment equivalent to a much smaller

proportion of the produce of the land than had been paid before to the

native princes alone.

The Dutch regained their East Indian possessions by the Treaty of

London. On their return to Java, they restored the village community

with its joint ownership and joint liability, and abolished all

proprietary rights of the natives in the soil, only allowing ownership

of land to Europeans. They contend that this attempt of Raffles to apply

Western principles to an Eastern society had already proved disastrous.

The peasants, on the one hand, had not acquired the habits necessary for

the successful development of their holdings, but, on the other, through

their inability to pay the land rent, were becoming hopelessly involved

in debt to the Chinese and Arab money-lenders. The broad fact, however,

remains that during the short period of British rule the revenue rose

from three and a half to seven and a half million florins, and the

population from four to five and a half millions.

As the old monopolies from which the chief part of the revenue had

formerly been derived had been abolished by the policy of unrestricted

commerce introduced by Raffles, it was necessary to find some other

method of raising money. It was decided to retain the land tax as a

basis of revenue, but, in order to make it more profitable, a return was

made to the original principle of land tenure under native rule, by

which the cultivator paid one-fifth of his labour and one-fifth of his

produce in return for the usufruct of the land. One day of gratuitous

labour in seven (the European week) was substituted for one day in five

formerly given to the landlord. In certain districts, namely, those of

which the Dutch became possessed by treaty and not by conquest, this

contribution in kind and labour was paid to the native princes, and not

to the Government. On private estates, again, as the Government had

parted with their feudal rights in alienating the property, a tax of

three-fourths per cent, on the estimated value of the property was

substituted. This tax, called _verponding_, was at most equivalent to

one-fifth of the net yearly income.

As before, the produce due from the peasants cultivating Government

lands was commuted into a money payment assessed upon the rice crops;

but this payment was made, not by the individual peasants, but by the

_wedanas_, or village chiefs, on behalf of the whole community. Beside

the land tax, an additional source of income remained in the profit

arising from the sale of coffee, grown either by the Preanger Regents

and sold to the Government at prices fixed by treaty, or on the coffee

plantations established by Marshall Daendels, which were now restored.

These two methods of raising revenue were resorted to by the Dutch upon

their return to the island, and continued in force during the period

1816-1833. They were wholly inadequate. Whether the Dutch were right or

not in characterizing Raffles' reforms as a failure, it is certain that

nothing could be more desperate than the state of the island in the

years immediately preceding the introduction of the culture system. At

the end of the period 1816-1833 both revenue and population seem to have

become stationary. The mass of the natives were becoming so impoverished

that they ceased to be able to keep a supply of domestic animals and

implements necessary for the cultivation of their lands. Apart from the

princes, there was no class, merchants or tradespeople, possessing any

wealth that could be taxed. Not only was the revenue stagnant, but,

owing to a war with the sultans of the interior, a debt of over

35,000,000 florins was incurred by the Government. In a word, the colony

seemed likely to become an intolerable burden to Holland. It was at this

crisis that General Van den Bosch proposed the culture system as a means

of rescuing the island from its financial and social difficulties.

The immediate object of the culture system was to extend the cultivation

of sugar, coffee, and other produce suited for European consumption; its

ultimate object was to develop the resources of the island. This latter

was, of course, the most important. Van den Bosch saw that the natives

would never be able to do this by themselves. In the first place, they

were still organized on the patriarchal model in village communities;

and, in the second, owing to the tropical climate and the extreme ease

with which life could be sustained in so fertile a country, they were

naturally indolent and unprogressive. He therefore proposed to organize

their labour under European supervision. By this method he thought that

he would be able both to raise the revenue and to improve the condition

of the peasants by teaching them to grow valuable produce in addition to

the rice crops on which they depended for subsistence. Van den Bosch

became Governor-General of Java and its dependencies in 1830. Before

leaving Holland he had made his proposals known, and obtained the

approval of the Netherlands Government. He took with him newly appointed

officials free from colonial traditions, and his reforms inspired such

confidence, that a number of well-educated and intelligent persons were

willing to emigrate with their families to Java in order to take up the

business of manufacturing the produce grown under the new system. Upon

his arrival in the island, a special branch cf the Colonial

Administration was created. The first work of the new department was to

found the sugar industry. It was necessary to supply the manufacturers

with both capital and income. Accordingly, a sum amounting to £14,000

was placed to the credit of each manufacturer in the books of the

department. Of this sum he was allowed to draw up to £125 per month for

the expenses of himself and his family during the first two years. From

the third year onwards he paid back one-tenth annually. Thus at the end

of twelve years the capital was repaid. The manufacturer was to apply

the capital so advanced to the construction of the sugar-mill, which was

to be fitted with the best European machinery, and worked by

water-power. Free labour, and timber from the Government plantations,

was supplied; and the customs duties upon the machinery and implements

imported were remitted. The building of the mills was supervised by the

_contrôleurs_, the officials of the new department, and had to be

carried out to their satisfaction. The department also undertook to see

that the peasants in the neighbourhood of each mill should have from

seven hundred to a thousand acres planted with sugar-canes by the time

the mills were in working order. In Java, as in other Eastern countries,

the landlord has the right of selecting the crop which the tenant is to

plant, and therefore the peasants saw nothing unusual in this action of

the Government. The contrôleurs ascertained, in the case of each

village, how much rice land was necessary for the subsistence of the

village, and they then ordered the remainder, usually one-fifth, to be

planted with sugar-canes. At the same time, they explained that the

value of the crop of sugar would be much greater than that of the rice

crop, and promised that the peasants should be paid not only for the

crops, but also for the labour of cutting the canes and carrying them to

the mill. When, at the end of two years, the mills had been built and

the plantations established, another advance was made by the department

to the manufacturers. This was capital sufficient to pay for the value

of the sugar crop, estimated as it stood, for the wages of the peasants,

and generally for the expenses of manufacture. This second advance was

at once repaid by the produce of the mill. At first the department

required the manufacturer to deliver the whole amount of produce to them

at a price one-third in excess of the cost of production. Subsequently

he was allowed the option of delivering the whole crop to Government, or

of delivering so much of the produce only as would pay for the interest

on the crop advance, together with the instalment of the original

capital annually due. Working on these terms, large profits were made by

the manufacturers, and there soon came to be a demand for such new

contracts as the Government had at their disposal.

[Illustration: A PRODUCE MILL. _Page_ 156.]

As for the peasants, they were undoubtedly benefited by the

introduction of the system. While the land rent continued to be

calculated as before, on a basis of the produce of ricefields, the value

of the sugar crop was so much greater than that of the rice, which it

partially displaced, that the money received for it amounted on the

average to twice the sum paid to Government for land rent on the whole

of the village land. Moreover, although the estimated price of the crop

was paid to the wedanas, or village chiefs, the wages for cutting and

carrying were paid to the peasants individually. The value of the crop,

the rate of wages, and the relations between the peasants and the

manufacturers generally, were settled by the contrôleurs.

In 1871, when the culture system was in full operation, there were

39,000 _bouws_, or 70,000 acres, under sugar-cane, giving employment to

222,000 native families, and ninety-seven sugar-mills had been started.

One-third of the produce was delivered to Government at the rate of

eight florins per picul,[17] and the remaining two-thirds were sold by

the manufacturers in open market. In the five years 1866-1870 the

Government profit on sugar amounted to rather more than 25,000,000

florins.

[Footnote 17: The picul = 135 lbs.]

Subsequently the cultivation of coffee, indigo, cochineal, tobacco,

pepper, tea, and cinchona was added to that of sugar. The system pursued

was not identical in the case of all produce. Cochineal, indigo, tea,

and tobacco were cultivated in a manner similar to that adopted for

sugar. But in the case of coffee, cinnamon, and pepper it was not found

necessary to have any manufacturers between the contrôleurs and the

peasants. Of these coffee, the most important, is grown on lands having

an elevation of from 2000 to 4500 feet. Each head of a family is

required to plant a certain number of trees in gardens (the maximum was

fixed in 1877 at fifty a year), and to keep a nursery of young trees to

replenish the plantations. These gardens and nurseries are all inspected

by native and European officials. The process of harvesting the berry is

similarly supervised, but after that is accomplished the peasants are

left to dry, clean, and sort the berries by themselves, and are allowed

to deliver the crop at the coffee stores at their own convenience.

Finally, private persons contract for periods of two or three years to

pack and transport the coffee to the central stores at the ports. Of the

coffee produced on Government account, one-fifth only is sold in Java,

and the remainder is sent home to Europe and sold there.

The culture system was so successful as a financial expedient, that

between the years 1831 and 1875 the colonial revenue yielded surpluses

to Holland amounting to 725,000,000 florins. This total seems the more

remarkable when we know that from 1838 onwards, the colonial revenue was

charged with 200,000,000 florins of the public debt of Holland, being

the proportion borne by Belgium before the separation of the two

countries, which took place at that date.

In 1876, however, the long series of surpluses ceased, and they have

since been replaced by deficits almost as continuous. These deficits

are due to three well-ascertained causes: (1) the Achin war, (2) public

works, and (3) the fall in the price of sugar and coffee. In order to

show that this remarkable change in the financial fortunes of Java is in

no way due to the culture system, it is necessary to go somewhat more

into detail.

(1) Before the outbreak of the Achin war in 1873, the average

expenditure of the Colonial Government for military purposes was

30,000,000 florins annually. During the period 1873-1884 this

expenditure rose to an average of 50,000,000 florins, and the total cost

of the war during that period amounted to 240,000,000 florins. Since

1884 the expenditure has been reduced by confining the operations of the

troops to such as are purely defensive; even then the average annual

expenditure has reached 40,000,000 florins.

(2) Since 1875 the construction of railways and of other public works,

notably the harbour works at Tanjong Priok, the port of Batavia, has

been undertaken by Government. Since the cost has been paid out of

current revenue, and not raised by loans, these works have necessitated

a further annual expenditure of 8,000,000 florins. The total sum spent

in public works between the years 1875-1884, amounting to 75,000,000

florins, is almost exactly equivalent to the deficit incurred during the

same period.

(3) In suffering from the competition of France in sugar, and of Brazil

in coffee, Java has not been peculiar. The British West Indian colonies

are at the present time most disastrously affected by the bounty-fed

sugar industry of France, and Ceylon is only just learning how to

compensate itself for the diminution of its coffee export by the

introduction of a new industry--tea.

As for the general progress of the island, it is sufficiently indicated

by the fact that since the date (1831) of the introduction of the

system, the population has increased from six to twenty-three millions,

and the revenue from thirty million florins to one hundred and

thirty-two.

Although the culture system has yielded such satisfactory results, it

has been gradually abandoned since 1871.

The reason for this change of policy is the feeling that the system,

though necessary originally to develop the resources of the island, is

at variance with the best interests of the natives, and hinders the

introduction of private enterprise and capital. Increased commercial

prosperity is expected to compensate for the loss of revenue caused by

the withdrawal of the Government from the work of production. In the

mean time, it has been found necessary to impose various new and direct

taxes. The most important of these is a poll tax on the natives, which

has taken the place of the personal services formerly rendered by them

on the Government plantations. Originally imposed in 1871, it yielded

two and a half million florins in 1886. Another compensating source of

revenue is the growth of the verponding. As already mentioned, this is a

tax of three-fourths per cent, on the capital value of house property

and industrial plant. It is assessed every three years, and therefore is

an accurate test of the growth of private wealth invested in the colony.

In the fifteen years from 1871 to 1886, the amount yielded by this tax

showed a growth of seventy-five per cent.

It is not necessary to detail the various steps by which the Dutch have

carried out this policy of abandonment. It is sufficient to note the

general result.

To-day all industries, with the exception of coffee, opium, and salt,

are free. In the production of the two latter, opium and salt, the

Colonial Government maintains a complete monopoly; in the case of coffee

they compete with the planters. The extent of the shares respectively

taken by the Government and private enterprise in the trade of the

island is exhibited by the following returns for 1889:--

IMPORTS. EXPORTS.

Government 13,009,445 florins 33,072,175 florins

Private persons 160,375,326 " 164,590,439 "

----------- -----------

Total 173,384,771 " 197,662,614 "

The Government still produces two-thirds of the coffee crop. In 1889 the

amount produced respectively by the Government and the planters was

578,000 and 356,000 piculs.

Of the two chief industries of the island, sugar and coffee, the exports

in 1890 amounted in value to fifty and fifteen million florins

respectively. To these must be added two new industries--tea and

cinchona bark. The former is only in its infancy, and is confined to the

immediate neighbourhood of Soekaboemi, the head-quarters of the planting

interest in Java. Here there are two important estates, Sinagar and

Parakan Salak, which are from 12,000 to 15,000 acres in extent. The

latter industry is especially hopeful. In 1890 the area of cinchona

plantations was 22,500 acres, and 6,000,000 pounds of bark, containing

four per cent, of sulphate of quinine, was exported. This amount is

equivalent to half the world's supply for the year.

Of the import trade it is not necessary to say more than that the most

important item is that of the various cotton goods, coming mainly from

this country, which serve the natives with material for clothing

suitable for their tropical climate. It is also important to remember

that there are a quarter of a million Chinese residents in the island,

by whom all the retail, and part of the wholesale, trade is conducted.

Last year the administration of Java was the subject of a severe

criticism in the Netherlands Parliament. The complaints were chiefly

directed against the conduct of the Achin war, the opium monopoly, and

the continued interference of the Government in the coffee industry. The

reply of Baron Mackay, the colonial minister at the Hague, was in

substance as follows:--

The Achin war, he said, was the result of unavoidable circumstances, and

neither the Colonial nor the Home Government could be regarded as

responsible for the loss of revenue involved in it. He added, however,

that "excellent results were expected from the blockade system" now

adopted, and that there were already signs that the Atchinese would

before long be brought to terms. With regard to the sale of opium, he

assured the States-General that "every possible means were being taken

to reduce the sale of the drug, and to remedy its evil effects." He

frankly recognized the importance of the question of coffee-culture, but

at the same time urged the advisability of maintaining the system for

the present. It was not certain, in the first place, that the existing

system could be changed with advantage; and, in the second, "no product

in the immediate future could be looked for to replace coffee as a

source of revenue."

Undoubtedly the resources of Java are at the present time subjected to a

heavy strain. On the other hand, it must not be forgotten that (1) the

burden of the Achin war may be at any time removed, and (2) all public

works are being paid for out of current revenue without recourse to

loans. There is, therefore, no reasonable ground for supposing that the

present financial difficulties of the Colonial Government are more than

temporary. A glance at the balance-sheet of the island for the year 1889

shows to what an extent the difficulties are due to an increasing sense

of responsibility towards the natives, and to an intention to

eventually open all the industries of this singularly fertile island to

private enterprise.

HEADS OF REVENUE AND EXPENDITURE FOR 1889 IN

MILLION FLORINS.

_Revenue._ _Expenditure._

Taxes 40 Instruction 10

Monopolies 31 Army and navy 40

Sale of produce (of this Public works (of this

coffee contributes 37, railways cost 10) 20

sugar 2) 49

Administration, etc. 60

Other sources (railways,

school fees, etc.) 14

--- ---

In round numbers 134 130

When the natives have been educated and the industries of the island

freed from unnatural restrictions, financial and commercial prosperity

will return to Java.

A Visit to Java With an Account of the Founding of Singapore · 第 9 / 15 章