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of the country and are able to impart to instruction, this powerful arm of civilization a practical programme fitted to the needs of the people, and obtaining results by object lessons such as could never be had by the study of useless books, oftentimes even hurtful to the primitive people. Another means of drawing closer the natives is the mutual knowledge of languages, so that the European official should be able to make himself understood in the native cabin and the native to make use of our civilization as contained in our writings.

The administration of the sanitary service, of which the chief purpose is the prevention of diseases (vaccination, draining of marshes, prophylactic measures against the spread of venereal diseases and epidemics), should more than any other branch make use of a native organization. The education of native physicians and native midwives, particularly, is of urgent necessity and has been altogether too long neglected in all the colonies. But in this case as well matters should not be pushed too abruptly; care should be taken to avoid violent conflicts with strongly intrenched prejudices, but rather to gain confidence by benevolent assistance.

FAMILY AND RELIGIOUS CUSTOMS.

The organization of the family and the question of religion are not part of the topic to be discussed here (i. e., the question of native administrative organisms), but here again the experience of the past has taught us that liberty, toleration, and persuasion are doing more in hastening evolution toward a higher stage than the severity of the laws or violent breaches, which quite often only make the evil

Worse.

PUBLIC WORKS AN IMPORTANT FACTOR IN DEVELOPMENT.

Nothing is so effective in gaining the heart and confidence of the natives as useful public works, which if left to them could never have been executed. The construction of a system of railways that will enable them to market their products, the digging of canals which will bring fertilizing waters to their dried-up fields, the regulation of rivers which inundate their crops will do more for their civilization than the destruction by armed hand of their harvests, the burning of their villages, the mowing down of their men by our cannon. Appeal should be made to the natives for cooperation in the administration of public works, and in the case of irrigation works and distribution of the water supply care should be taken to preserve piously the vestiges of native organizations, created during centuries, for regulating this vital question. In the matter of distributing the water among the inhabitants of the same village, a large amount of autonomy might be left to them, while the Government should maintain an impartial control, especially when, as a consequence of the existence of European plantations or industries, conflicts might come up, chiefly by fault of the white people.

Irrespective of what may be the consequences, capital should be invited and aid should be given to it within certain limits, in order to make possible the improvement of these uncultivated countries and large areas. Without the fruitful aid of capital the plains and forests of North America would afford but a meager support to a few hundred thousand of Indians over an area which maintains at present over 75,000,000 of human beings. The franchises to the capitalists should be limited in accordance with the wants of the natives; the pumping out of millions to go abroad should be postponed as long as possible. In the matter of relations between the capitalists and the native administrations, the Government ought to play the role of an intermediary by guaranteeing to the natives their fundamental rights, and preventing any violation against their customary rights of property. The Government on its part must not set an example of spoliating the inhabitants by ceding hundreds of thousands of acres to the speculation of franchise grabbers, who do not give security that they will improve the land which they request as favors at the hands of the Government. The guardian ought to watch with jealous care over the common patrimony of the natives.

This is a rough summary sketch of what might be exacted from the administration of the colonies carried on for the primordial interests of the natives. For all this a European personnel, not too numerous, but select, is needed. It is criminal to charge with this noble task men who have not been prepared by long studies for the high duty they are to discharge, to leave place to chance and favoritism in the selection of the men, instead of making a severe choice among the best fitted, most capable, and most energetic of our young men. It is not so much the examination which ought to decide as the certainty of having found men of honorable character possessed of justice and a profound knowledge of the human heart. By having the control over the native administration they hold in their hands, as it were, the fate of millions of inhabitants of these distant countries.

THE RESULTS OF PRACTICAL EXPERIENCE.

All that which we have said of the duty of colonial governments to give a large and ever-increasing place to the natives in the administration is not a mere theory taking no account of reality, but a system which has stood its test and is based on the results of long-time experience.

The theories expounded just now have been applied almost as a whole in the immense Dutch colonies, which occupy an area equal to four times that of France, and where 34,000,000 of human beings live under Dutch rule. The Indian archipelago contains islands inhabited by nomadic tribes who live in hordes in the woods or do not leave their canoes. In other places a union of tribes has formed a State under a chief or king, whereas the great islands of the sound form to a large extent lands divided into communities with fixed borders. This is the case of the whole of Java, which has an area equal to three times that of Holland, and contains five times its population. In order to put some restriction on this altogether large subject we shall describe mainly the administration of this beautiful colony. All these regions of so different a character, which have been obtained either by conquest or the régime of protectorates or through voluntary submission, all these islands, where more than twenty different languages are spoken, where you have diversity of religion, race, civilization, interests, and history, all these different people are governed according to the same principle of leaving as much as possible the natives under the authority of their own chiefs without interfering either with their laws or customs except in a very few cases. In the same manner all the other Asiatic races that have come from China and Arabia, the Moors, the Singhalese, etc., remain under the authority of chiefs of their blood; and it is thus that a people of 5,000,000 is able to rule in peace 34,000,000 of natives, and that in Java for a population of 25,000,000 there is an army of but 10,000 Europeans, and that 200 European civil functionaries are an amply sufficient body.

In Java, where there are three quite distinct parts, three nations, and three different religions corresponding to the three countries of the Sundanese, Javanese, and Maduros, the native institutions have been kept intact, with only one exception. In the principalities of Solo and Djoedjo, which have preserved some sort of independence toward the Dutch Government, the ancient native institutions have disappeared, owing to the feudal tyranny exercised by their emperors. All over the island, however, the institutions which had sprung up within the people were preserved, the basis of colonial administration being everywhere the village community, the "dessa."

METHODS PURSUED IN JAVA.

"Dessa" is the name of the communal unit, forming a corporation, a legal person, having its own administration, finances, and domain. It includes the village proper (houses, gardens, and streams), the cultivable soil, the forests, and the waste land. The number of these communities amounts to about 30,000 for Java, with a population of 21,000,000. The "dessas" have their own organization, which is regulated by the native common law ("hadat"). There are even some which have their own penal code, containing provisions for fines, additional forcible labor, and other penalties, and which often prevents more misdeeds than our European laws. The "dessa" has a double sphere of activity, having charge of its own internal economy, as well as discharging duties toward the government, such as the maintenance of the police, the collection of taxes, the organization of the work technically known as the "culture," and that of the forcible labor (corvée). The free scope left to the community is quite considerable. Thus the "dessa" assesses the land tax (land rent) and assigns the days of work to the people who owe forcible labor. In the same way the maintenance of the police force is left in the hands of the "dessa." In all the "dessas" where the land is communal property, the task of dividing the fields is left entirely to the "dessa," and very often native institutions and customs regulate the law of inheritance.

The instructions given in the houses of prayer (langar) is left entirely to the discretion of the "dessa," being outside the direct interference of the state, while everything situated within the territory of the "dessa," such as communal highways and bridges, is constructed and maintained by the care of the inhabitants of the village themselves. Lastly, the government has left to the authority of the "dessa" everything pertaining to matters of religious worship, such as the maintenance of the houses of worship (langars), the payment of the native priests and defraying the cost of religions celebrations.

The government refrains from any interference and leaves to the "dessa" everything relating to communal interests, which are regulated and administered in accordance with native institutions. Paragraph 71 of the constitutional code for the East Indies formally proclaims this autonomy of the communes. The latter, however, can not enter into conflict with the decrees of the governor-general, nor with the native institutions or acquired rights. As a rule, then, the independence of the native institutions has been maintained, their ancient customs respected, the exceptions to these rules being but very few and rare. Such was the case in 1895, when the excessively large number of members of the village administration was reduced, the police-corvée lightened, and general rules laid down for the joining and separating of villages. This was a very important exception, and the result of an inquiry regarding the corvées must be regarded as an improvement; but outside of this the internal affairs of the "dessa" are left to the interested parties themselves.

At the head of the "dessa" is found an administrative body, numbering five men or more, according to the number of able-bodied men which the community contains. Generally they are elected by all the inhabitants, who take part in the payment of taxes or the discharge of forcible labor. The chief, whose name is different in the different parts of the island (such as bekel, djaro, petinggi, koewoe, loerah, etc.), represents the "dessa" before the native authorities, 'the district chiefs, and others, and discharges the duties imposed on him by the government, which, however, gives its orders to him only through the native authorities. He has the right to a part of the communal fields, that of exacting a few days of forcible labor for his own profit, but receives no other salary, except part of the taxes collected by him, and part of the coffee, the product of forcible culture, wherever it still exists. He does not pay the land tax, nor does he owe any forcible labor.

Besides him there is the council, or the administration, made up of at least four members, who divide the work among themselves in the following manner: First, the "kami toewa," who is the acting chief in case of the latter's absence or sickness and very often his successor. Second, the "kabajan," who calls to work those who owe the corvée, regulates their labor, gives notice of taxes due, and is also charged with the duty of communicating to the inhabitants the orders of the village chief. Third, the "tjarik," or "djoeroe toelis," who keeps the registers and assists the chief in the discharge of his duties. Fourth, the "modin," or the village priest, who is at the head of the village police, supervises the vaccination and other services of this sort.

NATIVE VILLAGE GOVERNMENT.

The institution of self-government on the part of the native villages is the basis and constitutes the force of the Dutch colonial government. Each violation of this rule, any attempt upon the popular institution, has had fatal consequences, and turned out to be a grave political error. Two examples are known to us which have proven very hard lessons.

The first happened in the year 1830. In order to obtain the millions coveted by the mother country, the Dutch government violated the ancient rights and old-time customs of the Javanese. The system of forcible culture introduced by the governor-general, Van den Bosch, respected neither the administration of the village nor the landed property of the natives. In order to assure themselves of the support of the Javanese aristocracy, corruption by the use of bribery was resorted to in the case of the "regents" and the "wedenos" (the native provincial and district chiefs), and the power of the village chiefs was increased; they were made servants, or messengers of the government, which they had never been before. Ruling in an autocratic manner, the local government demanded arbitrarily the resignation of some, giving their places to the favorites of European officials, often bad men and scoundrels of the worst kind. Providing that they were filling the storehouses of the government with coffee, sugar, or tobacco, nothing more was required of them. No one troubled himself to inquire into the fate of the natives, who were crushed by forcible labor and made victims of robbery and oppression. Before the year 1830 the village chiefs were honored and respected, but when they became only the instruments in the hands of a cruel, exploiting power they lost their esteem in the eyes of the poor villagers. It must be said that even they themselves were not spared; whenever the plantations were in an unsatisfactory state-when the crops diminished, they were put in prison or under arrest, and often they were outraged by being whipped in public in the presence of the inhabitants, their subjects. The result was that members of the noble families refused to serve as chiefs, and even at present the village chiefs have not yet recovered the esteem in which they were held in olden times. The baneful influence of the Dutch government, which demoralized the ancient native institutions, is being felt yet, although for many years it was attempted to redress the old injury.

Another violation of the principle of maintaining intact the native institutions took place at Sumatra, in the district of "Panangsche Bovenlanden" (Upper Padang). In this part, as well, there existed, based on ancient traditions, a democratic administration which had as its foundation the "sockoe" (the tribe or family group). When Dutch sovereignty was established the then existing institutions were maintained, and solemn promise was then given-this happened sixty-seven years ago-that they would be kept intact. The "hadat " " ruled supreme and the villagers were independent, being united quite often into federations for mutual help. When the "soekoe" grew too large it split up into "kampongs," which remained united by ties of blood. The "hadat," i. e., the native customs, institutions, and traditions dominated everything, and neither the kings (radjas) nor the Dutch Government dared to interfere. "Radja adil, radja di sambah-Radja lalin, radja di sanggah" (we bow before a just king, but chase a bad one) was their watchword.

Some years ago a governor-general had the unfortunate idea of establishing there, without opposition on the part of parliament, a new administration alongside and over and above that provided by the "hadat." He appointed so-called "panghoeloe's kopola" as chiefs of the "néjarie" and "laras" as district chiefs. Since then the fire has been smoldering in the ashes and an eruption is to be feared. The chain which ties the native population or the "dessa" to the European Government has some more links formed by native officials. Moreover, these latter are also admitted to the European administration. The "dessa" constitutes part of the district, at the head of which is found the "wedeno," and a number of districts united by historical bonds form a regency (province) with a regent at the head. Among all these native chiefs there are some who are merely confirmed or "recognized" by the Government, and otherswhich is the usual case in Java—that are appointed by the Government.

The institution of the regency dates back to olden times. The ancient Javanese sovereigns used to place at the head of their provinces members of noble families who were to rule in their name in consideration of some dues, support in case of war, and homage to be rendered on specified occasions. The position of these "Boe patis," as they were called, may be compared to that of vassals during the middle ages. Like the latter some of them became powerful and even established new kingdoms. The East India Company did not touch this native organization, but exacted from these provincial chiefs the dues and payments which they owed to their sovereigns in the shape of " contingents" and "forcible deliveries."

Under the French and English interregnum, Governors-General Daendels and Raffels broke the power of the regents by treating them as mere state officials. When the Dutch Government regained possession of its colonies it had nothing more pressing to do, for fear of revolts, than to restore them to their rank and power. An ordinance, dated May 9, 1820, No. 2, regulated the duties of the regents by starting with the following principle: "Regents should not be treated with contempt, for we shall never obtain strong influence, unless recourse be had to violence, except by governing in perfect conformity with the customs and traditions, the religion and language of the natives. Our functionaries are strangers who lack all the qualifications to bring us into closer touch with the natives and to transform our power into lasting attachment."

Paragraph I of these regulations says: "The regents are the highest in rank immediately following the resident;" and the latter (Paragraph II) "must treat them as younger brothers, for they are the intimate counselors of the resident." Their number was fixed according to historical precedents; good salaries and other advantages fitting their high position were decreed. It is owing to this wise colonial policy that the larger part of the Javanese regents remained loyal to us when the war in Java of 1825 to 1830 caused us great danger. This war, by the way, had been provoked by the clumsy interference into the affairs of the principality of Djoedjo.

Whereas formerly the influence of the regents was rather in the nature of gervile fear, the open support of the Dutch Government

made their power more real and lasting. Even when, in 1866, they were deprived of some of their advantages, particularly through the abolition of the personal corvées from which they derived some material advantage, they had no objections to make, "finding this measure just and necessary."

In order to have their support at the introduction of the system of "forcible culture," Governor-General van den Bosch made the office hereditary for their descendants, and article 69 of the constitution of India sanctioned this transformation by providing that "when the position of a regent in the island of Java becomes vacant, the successor should be chosen whenever possible from among the sons or near relatives of the former regent." In most cases, then, the office is even now held by the descendants of the high nobility, some of them being of royal blood. They have pompous titles, and they are sometimes rewarded by being granted still more majestic ones, while some insignia (gilded umbrellas and others) fitted to their rank, raised them still more in the eyes of the natives, by whom they are held in high respect and honor. Their instructions, formulated in 1859 and modified in 1886, declared them to be "the representatives of the native population before the European Government," and all native functionaries are subject to their order. They have no legislative power, but very wide administrative functions, as well as some rights of jurisdiction. The Dutch local functionaries have no direct power over the regent, as is the case in British India, where the collectors or subcollectors may compel the resignation of the native functionaries. Here they have no other chief except the resident.

LOYALTY OF THE NATIVES.

The Javanese regents, then, are loyal and attached to us, and by no means desire the expulsion of the Dutch from their country. By showing them confidence, by leaving them the honors which are due to them, by upholding their prestige, we have made of them indispensable intermediaries, enabling us to remain true to the oath which each Dutch functionary, from the lowest clerk up to the governor-general, must take, viz, "to protect the native population against all oppression, ill-treatment, illegal exactions, and extortions" (par. 55). We possess thus the great advantage of having the support and counsel of persons who know the native population, and who have merely to be controlled by civilized elements-the European functionaries. The father of the constitutional code, the veteran of our advanced colonial policy, former Minister Fransen van de Putte, stated it as early as May 24, 1862, in the lower chamber of the States-General of the Netherlands: "Whoever saps the power of the natives will destroy our own. Our purpose therefore should be to maintain the position and prestige of the native chiefs. The haughty attitude of the English officials, who regard the native Indians as an inferior race of humanity, does not behoove us. We Dutchmen see in them but our like, who must be guided, without, however, being made to feel the bridle."

It was owing to his efforts that all ranks and civil functions were formally declared to be open to the natives. It should be stated, though, that although the law does not present any obstacles there are yet very few natives who have entered the ranks of the European civil administration. But this is a mere question of time. Even at present they are offered positions in the departments of Posts and Telegraphs, Railways and Public Works, and the near future will see them take up the new functions left open to such natives as have proved to have the necessary capacity for their proper discharge.

The regent, being the highest functionary, the direct chief of the native population and the confidential adviser of the resident, has under his orders in each district the “wedeno," who is under instructions almost identical with those of the regent, his chief. The "wedenos" have to inform the regent about everything proceeding amidst the native population. They have under them the assistant "wedenos," chiefs of the subdistricts, while many lower officials (clerks, scribes, mantris,") are holding places in the native administrative machinery and are being paid out of the public funds. In the other islands of the archipelago there exists an analagous organization, modified a little in conformity with local conditions. It would take us too far, however, to go into more details.

RELATIONS OF THE HOME GOVERNMENT TO THAT IN THE COLONIES.

There remains now the question of the relations between the European Government and the native administration. We shall discuss this topic only in so far as it bears on the general subject of this report.

The governor-general is the head of the central government of the East Indies. He alone decides both questions of legislative as well as administrative character. He alone is responsible for the entire colonial government of Dutch India. He is appointed and discharged by decree of the Queen of the Netherlands. "The instruction" which is to regulate his power is secret, but he is responsible for the exercise of it to the Queen through the ministry of the colonies. He has the right to issue "ordinances" regarding all matters that are not regulated by law or royal decree. He is the commander in chief of the colonial army, he appoints the officers and civil functionaries, fixes their salaries, terms of tenure, and pensions. The protection of the native population against arbitrary acts of whomsoever is one of the most important duties of the governor-general (article 55 of the constitutional code). He is to see that all the administrative functionaries conform conscientiously to the ordinances, and he is to watch that the natives find everywhere the occasion to freely present their complaints (article 55).

The governor-general appoints the residents and governors, who rule in his name. It is he again who gives them their instructions; it is he that chooses the regents from among the native population and gives them his instructions, as well as to the "wedenos." Article 71 imposes the obligation on the governor-general to see to it that the rights of the native communes of elect ing their own chiefs and administrators be not abridged.

The power which the governor-general delegates to the residents or governors depends in each particular case on the larger or smaller amount of autonomy left to the native administration, i. e., the chiefs and the kings. There are several islands or countries in which a large amount of independence and self-government has been left to the kings, and this independence guaranteed by a contract having the force of law. In such a case the only duty of the resident is to see to the true observance of the contract, and to arrange in an amicable manner modifications of detail whenever the need therefor appears; such are also the relations in the island of Java with the Sultanates of Solo and Djocdjo, where the residents must always respect existing institutions. In all other residencies of Java the resident has under his direct orders all the civil functionaries, European as well as native, representing thus the government in his province. He appears in turn in the parts of legislator, judge, and administrator, and is the supreme chief of all civil functionaries. In each subdivision of the twelve residencies of Java an assistant resident is found, who is entirely subject to the resident, whose orders he has to execute; he has so very little personal power that it has not been thought necessary to formulate for him an instruction or set of regulations. He possesses no legal power over the regent, to whom he has but to transmit the orders and counsels of the resident.

These divisions are again subdivided into “divisions of control," at the head of which is found a "comptroller of internal administration." The comptroller has no administrative functions; the only thing he is charged with is to control the various branches of administration and to furnish information required by his superiors. Being in daily contact with the native chiefs and the population, he is able to make a thorough study of the regents, submit useful suggestions, and, what is most important, to protect at all times, in accordance with his oath, the interests of the natives, and to guarantee their rights.

Without possessing any authority proper, these functionaries are in a position to improve the well-being of the natives by conscientiously discharging their duties of control and advice. There are 121 of them in Java, besides 39 "comptroller candidates," who form, so to say, the bridge which connects the native administration with that of the Europeans.

As regards the native functionaries, all those who are not elected by the people nor appointed by the governor-general, they receive appointment at the hands of the resident of their province.

CIVIL SERVICE IN THE COLONY.

For a population of 34,000,000 people the total number of the civil service amounts to 431 European functionaries and 2,862 native functionaries, whose combined salaries do not exceed the sum of 17,000,000 francs. The number of European officials, although restricted, is still much larger than in British India; steps should be taken to diminish it, while increasing, at the same time, the number and power of the natives in the service of the Government. Some of the comptrollers, who at present all belong to the white race, might very well gradually be replaced by natives taken from among the most intelligent of their race; the contact with the people would in

such a way become more intimate. Provided they come up to the just demands of capacity, character, and morality, there is every reason to believe that they will discharge their duties at least just as well, if not better, than the present office-holders, who, after all, are but intruders, having come from distant parts.

Furthermore, there is no doubt that the number of assistant residents, another doleful remnant of the time of the "forced-culture" system, is altogether too large. Formerly the regent, whom in 1819 the commissioners-general called "an often useful and always indispensable intermediary," ruled the regency single-handed; since, however, the regent would often inconvenience the resident in the ruthless application of the "forced culture" they were not put alongside of each other, but instead of it the resident was given an assistant and sort of substitute, who, while belonging to the exploiting race, presented yet a more pliable official. At present their number might very well be diminished, and later, though not so very soon, the office might be altogether abolished. We would then have arrived at a state of things under which a native comptroller would be in direct relations with the regent of the same race, in accordance with the principle that as many natives as possible should be admitted to the administrative service as soon as they show themselves capable thereof. This proof of full and complete confidence shown to the best of them would elevate all, and they will make it a point of honor and interest to help with all their might in bringing about a realization of present ideals which may become a reality within no distant future.

It must be admitted that last year a step backward was taken when the employment of the "patihs" was abolished. The "patih" is, as a rule, a native of high descent, attached to the regent to serve as his lieutenant, who may replace him everywhere and in all cases, and who transmits the orders of the regent to the authorities whom these orders concern. It is intended to abolish this institution, although it is bound to become more necessary when the functions and labors of the regent, the immediate chief of the "patih," will be increased. One reason of this measure was the desire to improve the revenues of the European officials, and the means of making economies were sought in curtailing the expenditures for salaries of the native employees of the government. This mode of action will be regretted later on, for this arbitrary and unjust measure has caused a good deal of discontent among the interested parties. The prestige of the regents will suffer from it, the lower ranks will have less chance of honorable and well-remunerated employment, while the proceeding on the whole is opposed to the old-time principle "that the natives should be governed through and by their chief." Since 1897 the population of Java has increased from 18,000,000 to 27,000,000 people, i. e., 50 per cent, the salaries of the native administration remaining stationary, whereas those of the Europeans have increased to a large extent. The "megangs," i. e., the assistants and clerks of the functionaries, from among whom the native authorities are selected, have to work without pay for years and provide for the needs of their families either by receiving help from relatives or contracting loans with usurers. A system in which part of the government machinery is made to move through unpaid help stands convicted in advance. Bitter complaints have been heard. As one of the regents said, "It can well be seen that the children of the country do not count any more in the eyes of the government; the Europeans amass fortunes and leave the country to forget it, whereas we natives have more and more to content ourselves with nothing." These expressions are worth while meditating about; for while an open revolt is not to be feared, passive resistance and silent revolt may spring up and cause us cruel embarrassments. It is absolutely necessary to use a policy which should assure us the sympathies of this highly important part of the colonial administrative machinery. Instead of repelling them we should attract them, instead of diminishing their prestige we should increase their influence, instead of rousing suspicions we should gain their confidence. Very often lack of deference was shown toward the native authorities; young comptrollers would sometimes treat with ridiculous haughtiness these men of esteem; instead of arousing their spirit of initiative, the Europeans too often stifled it by treating them as sort of figureheads, which they surely are not and ought not to be. To be sure these cases are but exceptions, but they happen all the same, and are likely to chill these sensative natures normally open to the sentiment of honor. It should never be forgotten that we are but strangers and temporary intruders, and that the native remains in his own land of birth, which he knows better than we, and which we should not be able to rule for any length of time without his assistance. The native authoritives are indispensable links in the chain of our power; we should be careful to hold them in honor if we wish to keep our colonies.

COOPERATION OF NATIVES AN IMPORTANT FACTOR OF SUCCESSFUL MANAGEMENT.

It is seen, then, that the régime which is the strong part and has proven the success of Dutch colonial policy, is that of leaving to the native administration its free development and growth. Notwithstanding some errors and deviations, the rule adopted has been that of maintaining the native institutions. Wherever the principles of "leaving the native people in the enjoyment of their own jurisdiction" has been discarded public order and justice have not gained. Our punishments are not adapted to the character and ideas of the people-they leave the Javanese indifferent, and inspire him with aversion against us-nor have they had repressive influence. Wherever our European jurisdiction has not penetrated crimes are of lesser occurrence than in parts which live otherwise under the same conditions, but where this jurisdiction has been artificially implanted. Happily, article 75 of the constitution of India shows here as well the right path, which should be followed henceforward more consistently than heretofore. Following this article the European judge is to impose punishments "in accordance with the laws, institutions, and customs of the natives."

In establishing taxes we have, especially in the case of the more important ones-i. e., the corvées and the capitation tax-followed the old Asiatic custom, regulating them, particularly the corvée, in a less iniquitous manner, and imitating the "jirjat" or "hassil" of the Islam. In case of conflict between the doctrines of the Koran and the native institutions we have not hesitated to prefer the latter. Whenever the religious observances of the "dessa," the right of inheritance, the institutions of marriage, and the penal code were concerned, the dangers of Islamism were braved, a broad spirit of toleration and respect for the usages and religious beliefs of the natives was shown. We have respected their system of land tenure and ownership by ceding to the Europeans only the virgin lands. We have taken over the management of the wild forest, partly destroyed and neglected, with the result that they yield now a revenue of 6,000,000 francs to the community. By fixing the maximum of acreage of the rice fields which can be rented for sugar and indigo plantations we have protected the native against encroachments on the part of capitalists and against his own improvidence.

Since the Government imposes upon the governor-general the duty of "encouraging agriculture by all means in his power," we have created experiment stations in order to render native agriculture more remunerative. The creation of a system of agricultural credit will be necessary in order to combat usury, this sore threatening to eat up the well-being of the natives.

These, then, are the net results of the Dutch colonial policy. To be sure, its history contains some dark-even bloody-pages, but the general principle which underlies it shines forth in golden letters: That "in order to rule, without appealing to violence, the millions of inhabitants of colonies, the native administrative organisms must needs be maintained to a large degree.

THE FLAG AND TRADE.

A SUMMARY REVIEW OF THE TRADE OF THE CHIEF COLONIAL EMPIRES.
[By A. W. Flux, M. A.-Read before the Royal Statistical Society of Great Britain, June 20, 1899.]

[From Journal of Statistical Society, London, 1899, Vol. LXII.]

The manufacturing populations of western Europe and of the United States of America are becoming increasingly conscious of the extent to which the continued development of their industries, on the present lines, involves a search for new markets for their products. This desire for new markets has influenced the trend of politics, and it is not the least of the motives which lie behind the policy of imperial expansion. Districts in which the need for the products of modern machine industry has not hitherto been felt must be brought under the influence of some civilized power, so that their inhabitants may become purchasers of goods for which merchants can not easily find customers elsewhere.

GOOD GOVERNMENT BRINGS PROSPERITY.

It is possible that the interposition of an outside authority, armed with the best of modern weapons of war, may relieve savage populations from many evils from which they suffer. Intertribal warfare, slavery, disease, restrain the development of the resources of these countries. Good government can easily lead to such increase of wealth and population as to convert savage tribes into good customers for the manufactures of Lancashire or Fall River or other busy industrial centers. If such markets for standard lines of products can be secured, expansion of production on lines similar to those which long experience has already smoothed may present a prospect of profit. Without such extension of demand the increase of producing power threatens a competition which will ruinously reduce profits. The avoidance of such cutthroat competition is difficult. If new buyers for old classes of products can not be found, a refuge is to find buyers of new products, to exploit a demand as yet unknown, and in regard to which it can not be certain that it may not even be found nonexistent. That way lies risk which it takes a man of somewhat exceptional qualities to face. Some even refuse to admit that there is a possibility of utilizing productive energy in that way. They know that a little veneer of civilization will convert the African into a user of certain well-known goods, that the influence of Western habits will arouse a desire in the Chinaman for Western commodities, but they doubt the existence of undeveloped possibilities in their fellow-countrymen-possibilities of becoming capable of offering an equivalent in exchange for satisfaction as yet untasted. The evocation of a greater producing power in response to new satisfactions, if possible, requires that the appropriate attractions should be discovered and that means of supplying them with profit should also be discovered. It is much more to the point, more practical, or appears so, to urge on the extension of markets for well-known goods, so long as large areas of the earth's surface are not brought under the influence of civilization. Our descendants may be left to solve the problems which the complete exploitation of all existing virgin markets will bring with it, just as our descendants are left the problem of maintaining the position of our country when the exhaustion of our best supplies of coal have sacrificed so much of supremacy as depends on having the best coal supplies.

SEARCH FOR NEW MARKETS.

The demand for new markets needs no extended explanation; it is an obvious fact. Together with this demand comes the desire to control the new markets in the interest of the reproducers of some particular nation. The prevalent exclusion of foreigners, by discriminating customs duties, from the benefits of exploiting new markets in a colony or dependency, is at once a means of reserving trade for a particular group of merchants and a stimulus to others, belonging to other nations, to demand the control of any unoccupied portions of the earth's surface, so as to prevent them from falling under an influence which may prove exclusive in its operation. Even if the "open door" be maintained in any particular case, there is a widespread confidence that trade follows the flag, and hence a desire that the flag which proclaims the controlling power may be that of the country of which one is oneself a citizen, if one be a trader, or in sympathy with the trading classes.

TRADE AND the flag.

The object of this paper is to illustrate, so far as the details available to the writer permit, the extent to which trade has actually grown up under the flag. The relative importance of the trade of each of the chief colony-owning countries with its colonies and with other countries will be considered on the one hand, and the relative importance in the trade of the colonies of that section of the trade which is carried on with the sovereign State on the other. In making these comparisons, some of the countries included in the list of "Colonial systems of the world" given in the "Monthly summary of commerce and finance of the United States" for December last, may be omitted. Austria-Hungary, Russia, Turkey, and China will not be profitably included in such an inquiry as I propose, neither will Italy afford information of any considerable value. The United States is, except in regard to its ownership of Hawaii, too recently in possession of a colonial empire for the history of its colonial trade to be regarded from the same point of view as that of other countries. Something will have to be said of its trade with colonies of other powers, but that is a different matter. The German colonial empire is also of so recent acquisition that it will not contribute much of value to the comparative statistics sought. Denmark's colonies are small in extent, and in situation peculiar, from the point of view of trade, and, though included in the inquiry, do not afford a very important section of the material. There remain then as subjects of inquiry and comparison the colonial empires of Spain (to be considered as it was before the recent war), Portugal, Holland, France, and Britain [a term which I shall crave leave to use in place of the more cumbrous expression--the United Kingdom of Great Britain and Ireland].

The first side of the comparison will occupy no great space or time; a summary statement is sufficient. It shows the average amount of the import and export trade of each of the countries concerned in the two quinquennia 1887-1891 and 1892-1896; the figures for 1897 not being available as yet for all the countries, the latest date of comparison is more remote than one could wish. The imports and exports to colonies and dependencies are stated for comparison with the total.

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1Special imports into France, Holland, and Germany. Total imports in other cases. Bullion and specie not included.
Total exports from Spain. Bullion and specie excluded in all cases.

Total trade, including bullion and specie.

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