In the year 1808, however, in common with all the other departments on the island, this important one was newly organized by Marshal Daendels, who placing the highest value on the forests, and determining to prevent the abuses which had previously existed, removed all the population which had formerly been engaged in the forests in the different parts of the island from the controul of the native regent, as well as the local European authority, and placed them, with the villages and lands to which they were attached, under a separate board or administration for the forest department. This change effectually secured government in the monopoly, and succeeded in the prevention of the abuses which had formerly existed: but in the degree that it had this effect, it also operated to the serious injury of general commerce and the domestic comfort of the inhabitants; for every one was now obliged to buy the timber from government, at a high monopoly rate fixed by general regulation, and the timber could only be obtained in comparatively small quantities, seldom of the dimensions required, and only at the fixed staples. Ship-building, and even boat-building, which had before been carried to the greatest extent along the whole coast, was discontinued, and the cottage of the native, which had formerly cost a few rupees, now cost ten times the amount if built of desirable materials. Under the administration of the Board of Forest, whose residence was fixed at _Semárang_, and who were altogether independent of the local authorities, was now placed a population of nearly one hundred thousand souls, exclusively devoted to the labours of the forests; and as no revenue had been given up by the arrangement, and a small annual delivery of iron, salt, and gunpowder, to the foresters, was the only payment made, considerable profit was expected to result from it to the government. It was found, however, after the establishment of the British government, that the timber which had been cut, and of which there was an immense quantity on hand, was not of a description required for the building of coasting vessels, and could not compete in Bengal with that of Pegu, without such a reduction in the monopoly price, as added to the loss occasioned by so large a proportion of the population, who were set apart for this duty and contributed nothing else to the revenue, the extent of the establishment necessary to enable the government to be the sole timber merchant, and the abuses connected with it, would amount to more than all the profits that had been calculated on. The coasting trade was perishing for want of vessels, and the forest department was a losing concern. Under these circumstances, it was judged expedient to include the population of the _Blándongs_ in the general arrangements for the release of the peasantry from feudal bondage, and the establishment of a fixed rent from the land, in lieu of all services and payment formerly rendered.