On the north-east coast there is a very mixed population of people from the Sulu Islands—some Malays, many Bajaus, and since the advent of the Company, several Chinese and a few Europeans and Madrasees. In Padas and Kalias and on the rivers to the south of Patatan, there are many Malays from Brunei; Kadayans, who are probably aborigines converted to Islam; many descendants of the ancient Chinese colony, who can still speak their old language, but dress and live like other natives of the island. From these curious mixtures of races are derived the industrious agriculturists of those districts. The native Borneans of whatever race have shown no power to augment the population. The deaths appear almost to equal the births, but that may arise from the great neglect of the children, and the inability of the natives to combat epidemics—smallpox and cholera sometimes sweeping them off by thousands. These causes of depopulation may lessen under the influence of civilisation, but not to a very great extent. The Company will have therefore to depend on the Chinese, and perhaps on the Japanese, for the future population, as their industry is undoubted, and the teeming millions of the parent countries can supply endless recruits. But it would be dangerous to rely upon these hard-working but turbulent people alone, and therefore a mixture of Javanese, Boyans and Tamils would be very desirable. The Company have very rightly based their prosperity on agriculture, and have done much to encourage subsidiary associations in their efforts to cultivate tobacco, and in some respects with very great success, as the produce has been of first-rate quality and fetches very high prices. In fact, the soil appears particularly adapted to this valuable plant, but, as always occurs when any new business is started, insufficient capital, and managers without any idea of economical working, nearly wrecked this promising industry. It now appears to have passed this trying stage and established itself on a firm basis, and its prospects are excellent.