This statement shows that the average annual exportation of cinnamon on account of the company, from the year 1804 to 1806 inclusive, amounts to 290,018 lb.; and that from the year 1807 to 1814 inclusive it amounts to 370,913 lb., and the annual expense for this period to 14,2237. or about 9d. per lb.

For a number of years included in this period the premium upon bills drawn upon the company on account of the investment cannot be estimated at less than 30 per cent. This premium is evidently amply adequate to liquidate the expense incurred annually by government on account of the cultivation and preparation of cinna

mon.

In 1804 a considerable quantity of oil was distilled from the rejected cinnamon: the quantity I have not been able to ascertain.

The Ceylon government has for a number of years annually disposed of part of the rejected cinnamon to private merchants, and generally at about 2s. per lb. The

Rix-Dollars. £. 8. d. 122,270.... 13,042 2 8 132,021.... 14,082 4 10 155,845....16,623 9 4 130,728.. 13,944 6 5 135,397....14,444 6 11 145,443. 15,513 18 5 179,978.... 15,748 S 2 157,771... .13,387 9 3

...

merchants purchase it with the avowed purpose of supplying the Indian markets: great part of it, however, eventually reaches England under the denomination of casia.

Cinnamon oil to the amount of about 3,000 oz. has within these few months been prepared; a part of which has been forwarded to England.

By the foregoing statement, it will appear that the Ceylon government gain very considerably by the cultivation and preparation of cinnamon. Cinnamon being a staple commodity on Ceylon and the Malabar coast, and as these situations possess many peculiar and natural advantages for extending the commerce in this article of trade, it appears to be a great want of foresight or industry to look with an eye of indifference upon the rapidly increasing trade of China in cinnamon. The cultivation of cinnamon might be carried to any extent on Ceylon, and with every prospect of profit.

The cheapness of labour, in con

sequence

sequence of the degree of servitude under which the chalias are held, and the universal prepossession in favour of the Ceylon cinnamon, are peculiar and powerful advantages, which, if judiciously improved, may greatly contribute to repress the China cinnamon trade, and to make it a profitable enterprise for the possessors of Ceylon.

Captain Melborn mentions a circumstance which renders it almost unaccountable why the Malabar cinnamon is not a more powerful rival to the China trade in this article. He tells us that the Canton price current of casia in 1809 and 1810 was 20 Spanish dollars per pecul, or about 9d. per lb.; and that casia is exported from Mangalore at from eight to nine pagodas per candy, or about 2d. per lb.

In addition to the China cinnamon trade, we may now expect to have to combat with the Dutch in the commerce of this article. This people are intimately acquainted with the spice trade, and particularly with that of cinnamon. The enterprising and persevering character of the Dutch is proverbially known; and the possessors of Java have powerful means in their hands; so that we have no mean antagonist to oppose. Batavia may become the depôt of the cinnamon produced in Sumatra, the extensive island of Borneo, the Philippine and Sooloo islands; and should these islands not afford a sufficient quantity to supply all demands, cinnamon can be furnished to a very great extent from Tonquin and Cochin China. The English at one time cut consider

able quantities of cinnamon in Sumatra, and had chalias, whom they enticed from Ceylon, to prepare the bark. The quality of the cinnamon prepared by these people is stated to be equal to the finest in Ceylon. The Dutch, even when they had possession of the coasts of Ceylon, purchased the cinnamon produced in Sumatra, which they exported to foreign countries as Ceylon cinnamon.

To rival the excellence of the cultivated cinnamon of Ceylon, the Dutch will, in all probability, adopt measures for cultivating it in the island of Java, or in some of its immediate dependencies. A productive cultivation must be a work of time; and a period of 20 years will elapse before their exertions in cultivating cinnamon can greatly interfere with our present monopoly of that of the finest quality, for which we are chiefly indebted to the unwearied and judicious exertions of the Dutch.

It is very evident that our interest strongly points out that we should exert the powerful means which circumstances have placed in our power to cultivate, collect, and export, a greatly increased quantity of cinnamon, with the view of supplying the markets of both Europe and America; so as to render the trade less immediately profitable to our rivals, and less encouraging for them to attempt eventually to monopolize the commerce of this very important article.

This plan is evidently more laudable, and promises to be as successful as measures of restraint. The conduct of the Dutch in their attempts

attempts to preserve the monopoly of the clove and nutmeg trade should be regarded as a beacon to prevent us from splitting upon the same rock. They were anxious to engross the trade in these articles; it is our interest, exclusive of the produce of our own settlements, to reduce the cinnamon annually exported. They discovered that cloves and nutmegs were not confined to the islands and establishment which owned their sway. We know that, although Ceylon produces cinnamon of a quality unequalled, yet we also know that the plant abounds in the eastern islands, and that they afford large quantities of a secondary quality. We have also strong reasons to believe that these islands would afford cinnamon which would rival the finest on Ceylon, were an equal attention extended to its culture and preparation.

The Dutch used every means in their power to limit the produce and diminish the exportation of cloves and nutmegs. This was done to increase the value of these articles. These restrictive measures led to smuggling the cultivation of cloves and nutmegs in different countries, and to voyages to ascertain whether they grew in islands and situations which had not been sufficiently explored.

We, on the other hand, have not collected and exported all the cinnamon which we might have done; and in so far as we have from inattention or indifference, omitted to supply the demands of Europe and America with Ceylon cinnamon, this neglect has contributed to encourage the impor

tation of cinnamon from China, which is now very generally substituted for the finest Ceylon cinnamon.

The means adopted by the Dutch to obtain the exclusive trade in cloves and nutmegs are worthy of attention, because, from the similarity of our prospects, their failure may teach us to avoid the same ineffectual or hurtful measures, and perhaps open our eyes to a more liberal, and not improbably to a more efficient and advantageous policy. Shortly after they had established themselves in the Moluccas, they attempted to confine the growth of the clove trees to the islands of Amboina, Honimoa, Oma, and Noussalant; and the nutmeg tree to the island of Banda. To carry their intentions into effect, they employed extirpators to destroy the clove and nutmeg trees that grew in the neighbouring islands which owned their sway; and they paid an annual tribute to the kings of Ternate, Tidor, and Bonton, to permit and assist the extirpators to destroy the trees which abounded in the Archipelago, of which they were masters. When the crop of cloves and nutmegs was abundant, they burned large quantities, sometimes in the islands where they were produced, and sometimes after they had been landed in Holland. The contraband trade between the spice islands and the large island of Celebes they never could prevent. The English had generally an establishment, either on the main land of Borneo, or some of its dependencies; by which means they were always readily supplied by the natives with whatever spices they required,

required, as they paid a higher price for them than the Dutch.

The

Captain Forrest ascertained that the nutmeg tree grew in New Guinea, and transplanted a number of plants to the Philippine islands. The French have succeeded in introducing the clove and nutmeg trees into the isles of France and Bourbon. They have likewise introduced them into Guiana and Cayenne. In the year 1785 there were 10,416 clove trees on the Isle of France. English also have cultivated the clove tree in the West India islands. Martinico in the year 1797 imported into London 380 lb. and the year following 200 lb.; St. Kitt's, 2981 lb. The extreme cupidity of the Dutch eventually ruined their own prospects. Had they been contented with moderate profits, the incitement to a contraband trade would have been much diminished, and foreign nations would have had fewer incentives to incur much expense and labour in cultivating spices in their own establishments. Our situation with regard to the cinnamon trade is in many respects similar to that of the Duch in the commerce of cloves and nutmegs : we have too long gazed with a frigid indifference upon the rapidly increasing cinnamon trade of the Chinese, and treated with contempt their commerce in this article. Should it not rather have excited us to adopt effectual means to supply the demands of the western world from our own establishments? Even admitting that the cinnamon exported from China is inferior to the produce of Ceylon, its quality however is such as to serve as a substitute, and may

eventually rival the best we can produce. The third quality of the Ceylon cinnamon is by many considered equal, if not superior, to that brought from China, and could in all probability be supplied at as low, if not a lower, price. This quality of cinnamon might in Ceylon be collected to an almost unlimited quantity. A large importation of this sort into the London market, and sold at a moderate profit, would in all probability soon lessen the demand for that imported from China.

By the London price current of Jan. 10, 1815, we find the different qualities of cinnamon quoted at from Ss. 3d. per lb. to 13s. 3d. The finest quality is becoming lower in price. In the same price current casia is quoted at from 40l. to 451. per cwt. or from about 7s. to Ss. per lb. Inferring that the third sort of Ceylon cinnamon is of as good a quality, and will fetch as high a price as the Chinese cinnamon, the purchasers of the rejected Ceylon cinnamon must have found a good market, and have at least lately made a profitable speculation. Cinnamon oil is quoted at from 25s. to 26s. per oz. Το procure an ounce of cinnamon oil about 11 lb. of cinnamon are required. While the oil fetches this price only, the Ceylon government cannot, considering the expenses incurred, realise much more than 1s. 6d. per lb. for the cinnamon used in distillation; and it will evidently appear that when 2s. per lb. can be obtained, there is in general very little encouragement to expend much cinnamon in making oil.

The most certain, and undoubtedly

edly the most avowable means of acquiring or preserving a monopoly of an article of commerce is to furnish it in abundance, at a comparatively cheap rate. The exportation of the third quality of cinnamon would very considerably contribute to this desirable end. Great part of the small quantity which has been exported has found its way into Europe and America under the denomination of casia. The duty levied upon that which has in trade been styled casia, should be the same as is levied upon cinnamon; or the duty upon the third quality of cinnamon should be reduced to that which is paid upon the importation of the casia of commerce. The exportation of cinnamon of this quality to England would at any time have been of importance to the trade of Ceylon; but in consequence of the recent entire subjugation of the interior of the islands, this measure becomes of infinitely greater consequence. By the fortunate termination of the Kandian war, the sources and opportunities for collecting and preparing cinnamon are greatly increased. The enlarged quantity procurable will, however, be chiefly of the third sort; and without some means be adopted for collecting and exporting this quality of cinnamon, it will appear like neglecting one of the many advantages which promise to follow this very important acquisition. With the exception of the narrow indented valleys which intersect the hills and mountains, great part of the interior of Ceylon is covered with lofty trees and low brushwood in the most luxuriant degree of vegetation. The most

rugged and difficultly accessible mountains and situations abound more with large trees than those hills or eminences whose declivity is more gradual, and whose surface is more even. This arises chiefly from the chena or dry grain cultivation, which is much practised upon the most accessible of the hills in the interior. Chenas are cultivated by cutting down a number of the large trees and all the brushwood upon the declivity or top of a hill. The trunks and branches of the large trees and the shrubby bushes are burned, and the ashes spread upon the ground, which is eventually sown with dry grain. The roots of the trees and bushes are allowed to remain. One crop only is reaped. The spot of partially cleared ground becomes in a few years covered with underwood and young trees. The space of from 15 to 20 years elapses generally before the ground is again cleared, and another crop sown. This statement will readily account for a circumstance confirmed by the chalias, that on the rugged and difficultly accessible hills large cinnamon trees, which afford cinnamon of coarse quality, are found, and that cinnamon plants of an age well adapted for yielding fine cinnamon are obtained upon the recently cultivated chenas. These patches of high ground cultivation form, however, but a small proportion, when compared to the uncultivated and uncultivable, rugged, and precipitous mountains, with which the interior of the island abounds. It may likewise be mentioned that the cinnamon plant is less hardy than many of those which grow in the same jungle with it; and that

when