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As an illustration of how a state monopoly may become a state duty, let us suppose that no gold existed in Australia, but that it had been found in immense quantities by one of our ships in some small and barren island. In this case it would plainly become the duty of the state to keep and work the mines for the public benefit, since by doing so, the gain would be fairly divided among the whole population by decrease of taxation; whereas by leaving it open to free trade while merely keeping the government of the island; we should certainly produce enormous evils during the first struggle for the precious metal, and should ultimately subside into the monopoly of some wealthy individual or great company, whose enormous revenue would not equally benefit the community. The nutmegs of Banda and the tin of Banca are to some extent parallel cases to this supposititious one, and I believe the Dutch Government will act most unwisely if they give up their monopoly.

Even the destruction of the nutmeg and clove trees in many islands, in order to restrict their cultivation to one or two where the monopoly could be easily guarded, usually made the theme of so much virtuous indignation against the Dutch, may be defended on similar principles, and is certainly not nearly so bad as many monopolies we ourselves have until very recently maintained. Nutmegs and cloves arc not necessaries of life; they are not even used as spices by the natives of the Moluccas, and no one was materially or permanently injured by the destruction of the trees, since there are a hundred other products that can be grown in the same islands, equally valuable and far more beneficial in a social point of view. It is a case exactly parallel to our prohibition of the growth of tobacco in England, for fiscal purposes, and is, morally and economically, neither better nor worse. The salt monopoly which we so long maintained in India was in much worse. As long as we keep up a system of excise and customs on articles of daily use, which requires an elaborate array of officers and coastguards to carry into effect, and which creates a number of purely legal crimes, it is the height of absurdity for us to affect indignation at the conduct of the Dutch, who carried out a much more justifiable, less hurtful, and more profitable system in their Eastern possessions.

I challenge objectors to point out any physical or moral evils that have actually resulted from the action of the Dutch Government in this matter; whereas such evils are the admitted results of every one of our monopolies and restrictions. The conditions of the two experiments are totally different. The true "political economy" of a higher race, when governing a lower race, has never yet been worked out. The application of our "political economy" to such cases invariably results in the extinction or degradation of the lower race; whence, we may consider it probable that one of the necessary conditions of its truth is the approximate mental and social unity of the society in which it is applied. I shall again refer to this subject in my chapter on Ternate, one of the most celebrated of the old spice-islands.

The natives of Banda are very much mixed, and it is probable that at least three-fourths of the population are mongrels, in various degrees of Malay, Papuan, Arab, Portuguese, and Dutch. The first two form the bases of the larger portion, and the dark skins, pronounced features, and more or less frizzly hair of the Papuans preponderates. There seems little doubt that the aborigines of Banda were Papuans, and a portion of them still exists in the Ke islands, where they emigrated when the Portuguese first took possession of their native island. It is such people as these that are often looked upon as transitional forms between two very distinct races, like the Malays and Papuans, whereas they are only examples of intermixture.

The animal productions of Banda, though very few, are interesting. The islands have perhaps no truly indigenous Mammalia but bats. The deer of the Moluccas and the pig have probably been introduced. A species of Cuscus or Eastern opossum is also found at Banda, and this may be truly indigenous in the sense of not having been introduced by man. Of birds, during my three visits of one or two days each, I collected eight kinds, and the Dutch collectors have added a few others. The most remarkable is a fine and very handsome fruit-pigeon, Carpophaga concinna, which feeds upon the nutmegs, or rather on the mace, and whose loud booming note is to be continually heard. This bird is found in the Ke and Matabello islands as well as Banda, but not in Ceram or any of the larger islands, which are inhabited by allied but very distinct species. A beautiful small fruit-dove, Ptilonopus diadematus, is also peculiar to Banda.