As the old monopolies from which the chief part of the revenue had
formerly been derived had been abolished by the policy of unrestricted
commerce introduced by Raffles, it was necessary to find some other
method of raising money. It was decided to retain the land tax as a
basis of revenue, but, in order to make it more profitable, a return was
made to the original principle of land tenure under native rule, by
which the cultivator paid one-fifth of his labour and one-fifth of his
produce in return for the usufruct of the land. One day of gratuitous
labour in seven (the European week) was substituted for one day in five
formerly given to the landlord. In certain districts, namely, those of
which the Dutch became possessed by treaty and not by conquest, this
contribution in kind and labour was paid to the native princes, and not
to the Government. On private estates, again, as the Government had
parted with their feudal rights in alienating the property, a tax of
three-fourths per cent, on the estimated value of the property was
substituted. This tax, called _verponding_, was at most equivalent to
one-fifth of the net yearly income.
As before, the produce due from the peasants cultivating Government
lands was commuted into a money payment assessed upon the rice crops;
but this payment was made, not by the individual peasants, but by the
_wedanas_, or village chiefs, on behalf of the whole community. Beside
the land tax, an additional source of income remained in the profit
arising from the sale of coffee, grown either by the Preanger Regents
and sold to the Government at prices fixed by treaty, or on the coffee
plantations established by Marshall Daendels, which were now restored.
These two methods of raising revenue were resorted to by the Dutch upon
their return to the island, and continued in force during the period
1816-1833. They were wholly inadequate. Whether the Dutch were right or
not in characterizing Raffles' reforms as a failure, it is certain that
nothing could be more desperate than the state of the island in the
years immediately preceding the introduction of the culture system. At
the end of the period 1816-1833 both revenue and population seem to have
become stationary. The mass of the natives were becoming so impoverished
that they ceased to be able to keep a supply of domestic animals and
implements necessary for the cultivation of their lands. Apart from the
princes, there was no class, merchants or tradespeople, possessing any
wealth that could be taxed. Not only was the revenue stagnant, but,
owing to a war with the sultans of the interior, a debt of over
35,000,000 florins was incurred by the Government. In a word, the colony
seemed likely to become an intolerable burden to Holland. It was at this
crisis that General Van den Bosch proposed the culture system as a means
of rescuing the island from its financial and social difficulties.
Public-domain text, read in full here on John Shaqi.
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