The capital of Sarawak is Kuching, and, considering the circumstances of the country, the rise of this free port has been rapid. When Sir James Brooke first reached the spot, there were few inhabitants except the Malay rajahs and their followers, who subsequently for the most part removed to Brunei, the residence of the sultan. I saw Kuching in the year 1848, when it was but a small place, with few Chinese or Kling shops, and perhaps not over 6,000 Malay inhabitants; there was little trade, the native prahus were small, and I saw some few of them. The jungle surrounded the town and hemmed in the houses, and the Chinese gardeners had scarcely made an impression on the place. As confidence was inspired, so the town increased, and now, including the outlying parishes, its population numbers not less than 15,000. The commerce of the place has kept pace with it, and from a rare schooner finding its way over to return with a paltry cargo, the trade has risen till an examination of the books convinced me that it was in 1860 above 250,000_l._ of exports and imports. The articles constituting the exports are for the most part the produce of the jungle; the principal exception is sago, which is imported from the districts to the east of Cape Sirik, to be manufactured at Kuching into the sago-pearl and flour of commerce. The trade in this article has for many years been injured by the constant disturbances, ending in a state of chronic civil war, which desolated the producing districts. Now, however, that they have been ceded to Sarawak, and a firm government established, a great development should take place in this branch of trade. An article which might become of great value is cotton: it is cultivated among many of the tribes residing within the Sarawak territories, particularly by the Dayaks of Seribas and Sakarang, who manufacture from it a durable cloth. The Cotton Supply Association is sending out some Egyptian seed, which, if it arrive in good condition, may tend to increase the produce. I am convinced, however, that no cultivation will have great success in Borneo which does not at first depend on imported labour, and as China is near, the supply could be easily and regularly obtained. The amount of rice produced will also greatly depend on imported labour; at present the natives but rarely export any, and during some seasons scarcely produce sufficient for the consumption of the people. There is one thing to be observed, however, that as the country is becoming year by year more settled, the inhabitants in the same ratio give greater attention to acquiring wealth. The Sea Dayaks are very acquisitive, and would soon imitate the Chinese methods of cultivation. I have elsewhere remarked that the agriculture to the north of the capital is far superior to anything found in Sarawak or its neighbourhood, and this has most probably arisen from the large number of Chinese who formerly inhabited that country.