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NETHERLANDS-INDIA

Diamonds occur in Borneo; gold and silver in Sumatra, Celebes, Borneo and Java; copper ores in Java, Celebes and Borneo; iron ores in Celebes, Sumatra, Borneo and Java; tin placers of great importance in Bangka, Belitoeng and Singkep, and small alluvial tin deposits in Sumatra and on soine other islands; lead ores in Sumatra, Celebes, Borneo and Lombole; zinc ores in Java and Sumatra; lignites and coal of better quality in Borneo, Sumatra and Java, manganese ore of very pure quality in Java. Salt of excellent quality is made in Madoera and also on some other islands by solar evapora- tion of sea water. The production of mineral oil in Java, Sumatra and Borneo is a very profitable one.

The possession of the soil by the natives is strongly protected by law. As a general rule the ground cannot be sold to foreigners, not even to Dutchmen, nor to their descendants who are born in India. The Government is authorized to dispose of un- cultivated grounds and grant parts of them for a certain period to foreigners (erfpacht.)

REVENUE AND FINANCE

The revenue of the colony is derived from different taxes, viz., import and export duties, excise, ground taxes, capitation tax as an equivalent for abolished Statute Labour of natives, personal tax, income tax, corporation profits tax, slaughter tax, licences, succession duties, stamp duties, duty on public sales, transfer and assignment duty, monopolies (opium, salt, pawn-shops), mines (tin, coal and gold), forests railways, mining, and agricultural concessions.

The salt required for the Government monopoly is made in Madoera, where the people are obliged to deliver it into the Government godowns at a fixed rate per kojang. and to a smaller extent in Java (Gresih) where the salt is produced under Government's management.

By gradually extending the sphere of prohibitory measures, the use of opium is declining, together with the profits the Government derived from the régie system.

The pawnshop-monopoly, also, is gradually being extended all over the archipelago much to the benefit of the lower classes.

The tin mines of Bangka are controlled by the Government. Chinese labour is extensively used for working the tinplacers, also for transportation and melting the tin concentrate, and for various other purposes. Some of the placer-diggings are under the direct management of the Government; others are operated by European or Chinese contractors. Electric power is supplied to all the main districts by a few up to date steam power plants.

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The monetary system of Netherlands-India consists of gold coins of the value o ten and five guilders, silver coins of two guilders and a half, of one guilder, and of half guilder (these coins are the same as those in the Netherlands); besides silver coinsof f.05

d ₤.025, and f.010, bearing Malay and Javanese inscriptions; nickel coins of f.005, an copper coins of f.0025 (23 cent), f.001 (one cent), and f.0005 (cent). Moreover, the Government issues currency notes of f.2.50 and f.1. The issue of bank-notes is a mono poly of the Java Bank. Since the beginning of the world-war the gold standard ha been practically suspended. In May, 1925, the gold standard was restored by a declaration of the Government and the Java Bank.

ARMY AND Navy

The Army of Netherlands-India numbers 1,127 officers, 32,155 non-commissioned officers and men-all volunteers; and 26,000 militia. It is separate from and inde- pendent of the Netherlands Army. The Commander-in-Chief and all the Generals are appointed by the Queen. Besides the Army there are different armed troops

viz.:-

a.-The Legion of the Native Prince Mangkoe Nagară, consisting of infantry numbering about 960 men. In case of war this Legion is at the command of the Government.

b.-The Barisan, being native infantry of Madoera, about 1,610 men, de- signed to maintain peace in the island and to participate in campaigns in case of

war.

c.-Volunteer-corps.

d.-Police soldiers, numbering 6,000 men.

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