That same year a new governor-general, van den Bosch, was appointed. He was entrusted with the task of making the island a producer of the commodities required by the mother country and was given a free hand as to the means to be employed in accomplishing his purpose. The plan he put into effect was known as the “Cultural System” and its principal features were as follows: In the districts adapted to sugar cultivation, the natives were to contribute one-third of their arable land to be planted in cane as required. The natives were to till the fields, supply fuel and cattle for ploughing and transportation, and in consideration of this they were exempted from the free service due from them by law to the state. Payment for labor was to be made out of the proceeds of the crops after deducting the land tax. The crushing of the cane and its manufacture into sugar was done under contract by private individuals who were assisted by government money in the building of factories. The contractors turned over the sugar to the government at a fixed rate, at the same time repaying the money advanced to them. At the outset there was next to no profit for either the government or the producers, in fact the first few years showed an actual loss, so that it became a hard matter to induce anyone to undertake the manufacture of sugar on a contract basis. This led to a modification of the regulations and the manufacturers were permitted to sell a part of their output on their own account. In this way their interest was stimulated and there was a change for the better, attended by a profit both for the producer and the state. By 1870 the government, recognizing that the sugar industry was established on a sound footing, decided to withdraw from any participation in the manufacture and a new set of rules was formulated, under which the government’s direct connection with the industry was confined to the growing of the cane. The government then had to dispose of a portion of the land and the native labor at a just figure, and when once the cane crop was turned over to the contractor he had to take care of any further field work, together with the harvesting and transportation of the cane, out of his own funds without government help. Commencing with the year 1879, the government was to reduce its interest in the original contract plantations one-thirteenth annually, so that government participation in both cultivation and manufacture of sugar should terminate by 1891. It was stipulated that the manufacturers could make whatever disposition of their output they wished, and in lieu of rent for the land they planted to cane, they were to pay a fixed price for the cane, and in addition a premium based on the yield of the years 1864-69. On privately owned plantations the government exacted a tax of $10.00 for every 1.74 acres. This tax on privately grown cane was abolished in 1886 in order to stimulate the then languishing industry,