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Increase of import over 1859: government, 6,166,469 florins; private, 6,859,974 florins.

Excess of shipping for 1860: 255 vessels, 15,822 lasts.

Decrease of American shipping in 1861: arrivals, less 1,505 lasts; depar

tures, 3,867 lasts.

Total of vessels, arrivals and departures at Batavia from September 15, 1861, to September 15, 1862: arrived, 1,120; departed, 1,117. Arrived from the United States, 16; departures, 14; tonnage, 13,42075; wrecked, 2; value of cargoes, inward, $172,233; outward, $114,555. Five of the sixteen touched for war news. From Boston, 7; Singapore, 2; Hong Kong, 2; Australia, 2; New York, 1; New Castle, 1; coast 1 = 16. Bound for New York, 1; Shanghae, 1; Manila, 1; Singapore, 2; coast, 5; Bangkok, 1; sold, 2 = 13. Comparative statement of shipping, imports, and exports between the United States and Java from 1825 to 1860, from government records.

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Comparative statement of the quantity of produce cultivated in Java for 1860-'1 and 1861-'2, see a, b, c.

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1859 Imported from the United States to Java, 478,794 florins.
{Imported
Exported to the United States from Java, 1,292,382

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Coast-lights. The government is making every effort to extend the number of coast-lights and their efficiency at the most dangerous points of the coasts and archipelago, (see marine circular note, despatches No. 11 and No. 3.) These additions and proposed arrangements will assume more security and confidence on the coasts of Java and Sumatra, and throughout the more dangerous shores of the archipelago and the Indian ocean in completing a chain of beacons. Piracy has not yet been entirely suppressed, and several conflicts have taken place during the year. There is a regular line of mail steamers between this and Singapore and the ports of Java, connecting with the Peninsular and Oriental Company, consisting of steamers connecting the whole East India ports and important places, forming links in the grand chain of steam communication engirdling the world.

Telegram lines.-Java has also an efficient line of telegram throughout the whole island, and a submarine line to Singapore, though at present out of repair. Commerce. The commerce of Java is partially and nearly equally divided and conducted by the "Netherlandsche Handle Martschappe," or Netherland Trading Society, for account and risk of government, and by private merchants or enterprise as private trade is restricted. But government, as landlord of the greater part of the island, obtains a large proportion, and in some articles the whole of the produce of the crown lands, and it may thus be said to have a monopoly of much of the produce which it is contended should sell its produce to the merchant for export like other land-owners.

This trading society was established at Amsterdam in 1824, with a capital of thirty-seven millions of florins, say about forty-eight millions of dollars, and has a monopoly of the export of the crown lands produce, but is not a government institution, and is only a chartered joint stock company with limited liability, and is conducted by directors at Amsterdam, with its factories and agencies located at the chief ports of Java and Netherlands India, and conducting all the government business, that is, being charged with orders from government and materials wanted to be bought in Holland, and with the shipping and sale of all its produce in Holland.

The society originally advanced some fifteen millions of dollars to establish and conduct the celebrated culture system under General Von den Bosh, which has made its founder immortal, and the country prosperous, and the company successful, and as therefore sole agent for the government. Nevertheless, private trade is unrestricted and open to all upon the payment of customs dues act, with the exception of salt, fire-arms, opium, and ammunition. The import duties on foreign cottons and woollen goods is 25 per cent. ad valorem. From Holland by Dutch ships or those on the same footing, if accompanied with a certificate of Netherlands origin, the half import duties on metals, 24 per cent. Iron and steel, 12 per cent., with 30 per cent. augmented on invoice. Then on all import and export duties an import of 5 per cent. primage is added, which is

used by government for the improvement of seaports and canals. The present state of trade is large, and shows a state of great prosperity, and the consumption of goods per head has nearly doubled since 1825. Since which time the imports of merchandise has nearly quadrupled, while the population has only doubled, and which, if added to the treasure imported, gives $1 12 per head for the five years ended 1830, and $1 88 per head for the five years ended 1855, and $2.22 per head for the year ended 1857.

The largest increase of merchandise is from Europe, and is still increasing, while American merchandise has fallen, (see tables,) owing to decreased imports of cotton goods, say, especially brown drills, shirtings, &c.

The exports of merchandise during the same period has grown to about six times its former amount per annum.

The produce for export is therefore three times larger per head on the doubled population than the former produce above consumption, and the relative proportion of the exports to the population, for the five years ending 1830, is $1 08; for the five years ending 1855, $2 42; for the year ending 1857, $3 66.

In shipping and tonnage there has also been a corresponding increase. The country rigged boats have increased one-half in number, and European national coasters have doubled.

Piracy, once so prevalent in these seas, and the terror of small vessels, had been almost entirely suppressed by the vigor and punishment of the govern ment, but it has lately again commenced to annoy the shipping, and several engagements had taken place between the pirates and the Dutch navy during the year, in which the Dutch have been quite successful.

Dutch vessels are said to be ten times more numerous, with a tonnage fourteen times larger than in 1825, while European ships and tonnage are five times larger than in 1825.

REVENUE.

As the subject of taxation and revenue is now being discussed, and demanding attention, a few items and statistics from this consulate may not be uninteresting, as you will thus see an immense revenue is raised from this island, giving a large surplus to Holland annually, by which Netherlands and India pay an annual reversion of from $11,000,000 to $20,000,000, raised by taxation, from about 11,000,000 of inhabitants, at the rate of about $1 56 per head, which, in addition of from $23,000,000 to $25,000,000, derived from the cultivation of about half of the crown lands of Java and Madura, with about $2,500,000 from the tin mines of Banca, the coffee of Sanda, and the spirits of the Mollucas. Thus, from 1817 to 1823, the average rate of revenue per head was $1 713, producing about 48,000,000 florins, say $19,200,000. But by this new, or culture system, about 60,000,000 florins are added to the local imports, without taxation, making the real income in 1856 42,500,000.

By the introduction of this culture system the revenue has more than quadrupled in amount, and more than doubled in the rate per head of the population. The expenditure has, also, in the meanwhile, doubled, but still bearing a yearly surplus of revenue.

The gross revenue is also said to have risen rapidly from an average of 24,000,000 of florins to upwards of 115,000,000 florins in 1857. Thus the Dutch East India revenue was in 1857 only 47,500,000, and is increasing at the rate of $5,000,000 annually. The relative revenue has also risen from an average rate of $1 713 from 1817 to 1857 to $4 05 per head, with the relative rate of taxation revenue under $1 68 per head, and the gross revenue varying from $2 88 to $3 88 since 1848, notwithstanding the expenditure has risen from 26,500,000 florins to from 50,000,000 to 70,000,000 florins. The net surplus in 1857 was over $17,500,000, or more than two-thirds of the gross revenue of $47,500,000.

Thus we see that two-thirds of the revenue is derived from the culture system and sale of proceeds in Holland of the cultral produce, or about $2 273 per head, nearly one-third more than the taxation of the country, and be tabulated thus:

Population 11,290,450, or 218 souls per square mile.

Area of Java and Madura, 51,790 square miles.

Direct taxation: land tax, $4,449,934, or 373 per cent.
Indirect taxation: for necessaries, $2,169,590,

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for luxuries... 11,617,060, or $1 17 per head.
Reserved by taxation.....
18,236,385,

Reserved without taxation, $24,661,725, or $2 09 per head.
Reserved of cultured product, $42,897,301, or $3 643 per head.
Total of expenditure $31,160,866, or $2 643 per head.
Surplus, $11,736,243.

Notwithstanding the local taxation has been diminished, the increased products and prospects of the country in 1857 brought it up to 48,000,000 of florins, or during seven years the cultural system raised the gross amount from 30,000,000 to over 93,000,000 of florins, and the net revenue from nothing to over 40,000,000 florins, enabling the government to make numerous reductions in local taxes, so that Holland not only derives her revenue from Java, but, to a great extent, is kept by her, with fair prospects of continual. Nevertheless, experience and financial science here prove and confirm that direct taxes are preferable to indirect ones, and less costly to the community in the end. I also call attention to the Java culture system, especially as I am inclined to think it may be of great benefit and general application, if rightly applied, relative to the emancipated slaves of the United States, from which both they and the country might alike reap a great benefit. The tables A and B, annexed, may give you a good showing, claimed to be the result of the cultural system by which Holland builds her railroads and home improvements, as well as liquidating the great debt the secession of Belgium entailed upon her. This system has been eminently successful, for the culture revenue has been equal to the total expenditure; and she has abolished slavery by emancipation in Java, with no detriment or condition, but with benefit and honor to all. While the produce and trade of Java have increased with a rapidity unsurpassed, perhaps, by any colony. (See the elaborate reports of General Von den Bosh, public documents of Java, and "Java, or How to Manage a Colony," by J. W. B. Mooney, which might be studied by our statesmen.)

Tables showing the amount overpaid by Java to Holland from 1838 to 1857, inclusive, after deducting the yearly interest on the Dutch East India debt.

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