The Sun.
London, England, 1848-01-10 00:00:00

THE SUN,

cumb to the competition of Germany and the states
on the Baltic. These protestations ought, therefore,
to be a solemn warning to others, as to how dan-
gerous it is to foster by artificial means one particu:ar
branch of trade, which being once accustomed to
such protection sees in the withdrawal thereof its
ruin, because it feels that without its accustomed
i.rop it is not a march for a rival, grown strong by
the free development of its powers.
With regard to the Dutch navigation laws, matters
stand somewhat differently. An essential modifica-
tion or the total abrogation of these cannot be ex-
pected to take place within a short period; nor can it
be expected that the projected German measures will
exercise any influence over them, in as far as they are
connected with the colonial policy of the Nether-
lands. Whatever part of the laws is not directly
connected herewith is but of little importance.
The equalisation of the duties on goods im-
ported direct in German ships from German
ports has already been obtained by Prussia,
in virtue of the treaty of the 3d June, 1837, and
the other North German states would, if were de-
sirable, probably be able to obtain the same conces-
sion, without being ohliged to have recourse to a
navigation union ; but this concession would in re-
ality only be of importance to Hanover and Olden-
burgh, whose smaller vessels might in that case carry
on a more active coasting trade with the neighbour-
ing Dutch ports than they do at present. With
regard to the general commerce of Germany, and
particularly as a means of redress for the many
grievances occasioned by the colonial policy of
Holland, such a concession would be without advan-
tage. Here we must repeat what we observed when
speaking of the colonial trade of England—namely,
that the trade and navigation betweeen the mother
country and her colonies cannot properly be placed
on the same footing as foreign commerce, and
that particularly according to the principles of
the draft of the treaty which we are discussing, it
cannot be
.expected that a state should give up all
advantages 'enjoyed by ber flag and produce in
her own colonies. But supposing even that we
should venture to put forward such pretensions, the
Netherlands would certainly meet them with the
most strenuous opposition, and would indeed be
obliged to do so, as it is well known that the credit,
and conseqUently the political importance of' that
country, is mainly dependent upon the possession of
her colonies, and on- her present mode of rendering,
them profitable. The very extraordinary development
of the productiveness of Java is well known, as also
the preponderating share which the Government has
in the profits of the island. In 1845 the productions
of the island in coffee, sugar, and indigo, were divided
thus :

Government Property.
Coffee 109,000,0001b5.
Sugar .. ... 110,000,000
Indigo- 1,539,867
Private Property. •
Coffee ' 18,000,0001b5.
Sugar .. 33,000,000
Indigo ... 5,186
and cochineal, cinnamon, tobacco, and tea are almost
exclusively Government property. The sale of this
valuable amount of goods is entrusted by the Govern-
inent to. the Handelsmaatchappy, established in the
year 1823, and Which last year realised thereby
44,340,000 florins, and in the previous year 51,625,000
florins. The clear 'profits accruing to the Govern-
ment, in •1845; amounted to 33,000,000 florins. Pre,
vious to the establishment of the Allatschappy, the
Government obtained scarcely a sixth' part •of this
sum. During the past year the company paid in re-
turn freights from the colonies to Holland, 10,722,000
florins '(in freights to Java only 175,300 flurinS), and
in premiums to insurance offices more.than 1,000,000,
florins. The freights paid to the Dutch shipowners
by the Maatschappy, from its first establishment till.
the beginning of the last year amounted to 125,000,000,
and the. premiums paid to Dutch. insurers to
15,000,000 florins. The whole of Holland's commerce
is founded upon the • condition that this, company
shall take upon itself to land, store, and, in. the
mother country itself, all the colonial, produce con-
signed to it. The Government's right of, property in
the mill in Java, the monopoly of the Handelsmaats-
chappy, the employment of Dutch vessels for the
transport of .their goods, and of Dutch markets for.
the sale of the same, are so intimately connected with
each other, that it is difficult to conceive that any
concession could be made to German demands, with-
out endangering the whole system. The propriety
of allowing at least a part of the productions of Java
in possession of the Government to. be shipped direct
to the countries of consumption has repeatedly been
discussed, but the Government und_the Maatschappy,-
who alone can decide the spatter, have not been able
to master their fears lest the .home'markets might be
injured thereby ;. this also explains why several other
projects of theirs have not been put into execution,
such for instance as the erection of depots, and the
introduction of regular sales of Java coffee in Ham-
burgh, with a view to forming connexions with the
northern customers of this market, or for the direct
importation of Java produce into America, to help to
satisfy the enormous consumption of the United States.
But it is not alone the interests of the commercial
cities of Holland that oppose every alteration in the
system, considerations connected with the finances of
the country also interfere to prevent them. It is only
the produce of Java, and the manner in which it is
converted into money, which. render it possible for
the country to bear its enormous pelic debt ; besides,
the Handelsmaatschappy, in its relation to the state,
assumes the character of moneylender. •At the
annual meeting.of the company, in December last,
in which an increase of its capital from 23,000,000 to
33,500,999,-by the creation of new shares, and the
prnlongation of the existing state of affairs was de-
terniiped upon, the president explained the latter as
follows (according to the report in Allgeinein Han
delsblad of 11th December -146):—" Of the com-
pany's capital, 16,009,000; which had been advanced
to the Government at the rate Of 4 per cent. interest,
would.remain in its hands until 1874; ;ill the coffee,
sugar, and indigo belonging to the Government is to
serve as security for this loan, and is to continue as'
heretofore, to be exclusively consigned to the Maats-
chappy: all other colonial products, in as far as they
are sent to the mother country for account of th..
Government, are also to be consigned to the company;
the contract to this effect, having already been pro-
longed until 1854, is, in case the 10,090,000 are.not
paid by that time, to he further prolonged for twenty
years." That this prospect of a prolongation of their
contract until 1874 is likely to be realised must be
evident to all those who are acquainted with the posi-
ion of the Maatschappy with regard to the private'
relations of the Monarch, as well as to the state, and
with the extensive power of the King relative to the
revenues of the colonies.

Under such circumstances, it must he granted that
it could only be reasons of a very powerful nature
that would be likely to effect any essential change in
such a system. Mention is sometimes made of the
monetary affairs of Java, which are supposed to be in
so unfavourable a state that the Government will at
last be obliged to deviate from the course hitherto pur-
sued. If such internal causes of change really do
exist, they may be left to work out their effects; but
an influence from without, exercised with a view to
the advantage of a particular country, cannot be ex-
pected to effect much, least of all would there be any-
thing to hope from a measure like the differential
duties here in question, which,whether directed against
the Dutch colonial produce as such, or against the in-
direct importation of such produce frOm Dutch ports,
cannot, as has above been stated, affect cotton, indigo,
cochineal, &c., without injuring Germany herself.
Were the action of differential duties on the other hand
to be limited to Java coffee, which as to quantity and
quality has become so indispensable to us, no fuither
harm would thereby accrue to the Dutch, than that
in case the consumption in Germany should really be
reduced in consequence of the duties, they would have'
to look out for new outlets for their produce in the
northern countries of Europe and in America. As
to Java sugar, of which from 40,000,000 to
50,000,0001b5. are annually consumed in Germany,
it would probably be the German sugar-boilers and
not the Netherlands who would suffer most from
differential duties imposed upon it. The Nether-
lands need not, on the one hand, fear that so vast a
quantity of one article could be entirely driven out of
the German markets; and, on the other hand, they•
have reason to hope, that, in accordance with the'
first article of the Treaty of 1837 with Great Bri-
tain, and in consequence of the interpretation now
given to thd navigation laws, as well as of the treaty
with Russia, concluded in September, 1845, new and
important markets will be opened for their refined'
sugars in England and Russia, which will make
amends for any eventful losses in Germauy.
r
slurv"ei o p
Here our reasoning might indeed .be met with' the
Russia, that this very treaty so lately concluded with
to that
lmaot the Netherlandsretheoneco mayncludedw be forced
Belgium,ith
e
by retaliatory
their systeni measures into making 'exceptions in
ber, 1846,
does i
The. Russo -Dutch treaty •of Septem-
11deed contain in Article VII the•
peculiar concession,
allowed to participate that Russian 'ships shall be
In the coasting trade of Hol-
land ; that these Pala
psyhen, coming direct from
Rusia, shall pay less
corn direct from Russian .pilotage,
ports when laden with
tsn
shall not only be
placed on an equal footing with the national ships,
but even be favoured by a remission of 10 per 'cent
on the duty on goods paid by all other nations; ebnutt
even independent of the circumstance that Holland
has been induced to make these concessions b •
y• very
•
important advantages, conceded in return, with regard
to Dutch refined sugar, and to the indirect carrying,
trade with Dutch ships, this treaty would prove
nothing relative to the measures which we are here
discussing, because asregards the two pointi which
would be of the• greatest. importance_ to Germany,—
namely, the indirect navigation, and
.the trade with
the colonies, the Russians are only placed on an equal
',footing with the most favoured nations.

•
The concession contained in Ar'ide XV. of the
treaty concluded between -the Netherlands and Bel-
gium on the 20th of July, 1846, seems at
,first sight
more important than the one above mentioned; but it
is qnly apparently so. This article states that the
Belgians shall be allowed to import an amount of
8,000 tons (16,000,0001bs.) of the produce of the
Dutch possessions in India, direct thence into Bel-
gium, upon payment of the same export duties as are
imposed upon exports made in the ships of the mother
country, but with an addition of eleven per cent. on
the duty But as the Netheilands Government, on
the other hand, does not bind itself to offer for sale in
the colony a corresponding amount of its'produce, the
concession is practically almost reduced to nothing,
for the Government does not allow any of- its coffee
and indigo to be sold in Java; and with regard to
rice and sugar, the difference in the export. duty is
not 'so great as to prevent other nation, whose freights
are more moderate than the Dutch freights, from
competing with these and exporting to other coun-
, tries than Holland. This is proved by the already
existing direct importations from Java to the Hanse
Towns, and by the active part which the latter, and
particularly Hamburgh, take in that part of the trade
of Java to which private individuals are admitted.
According to what has just been stated; should
Germany even succeed in obtaining from the Nether-
lands the same concessions as have been granted to
Belgium by article 15 of the Belgian treaty (though
not in consequence of her system of differential
duties, but owing to circumstances which do not exist
in the same degree in Germany), we should not be
more benefitted thereby than is Belgium, unless it
were at the same time stipulated that the Maatsehappy
should be obliged to avail itself of German ships, as
well as Dutch ships for the transport of its goods,
and that the Government should be bound to sell
Java coffee and indigo to the Germans. But even,
irrespective of the facts, that the Government could
not impose any such obligation as the first-mentioned
on the Maattschappy, and that by the contract with
this company, which is binding until 1854, it is pre-
vented from subscribing to any such condition as the
last-mentioned, such an arrangement would hardly be
practicable; for Government could not of course
exclude from its sales in Java all other pur-
chasers than Germans ; the Whole amount
offered might, therefore, possibly be bought
up before the latter 'came into the market
and there would.be no other method of remedying
this than by reserving a certain-quantity of the pro-
duce from German purchasers, at prices fixed several
years in advance; a thing which would be utterly
unfeasible. .b.ven the admission of German manu-
factures into Java 'on equal terms with Dutch pro-
duce, would be-of little benefit to German industry,
because, as has already been mentioned, the con-
sumption of. such goods in that country is very
trifling, and will 'probably remain so for a long time
to come, owing, to the poverty of the natives, who,
reduced to almost slave-like toil, have no higher wants
than their own hOm'a-spun stuffs can supply. 'The
importation 'of mannfactured goods into Java employs
a very inconsiderable amount of capital, and is of no
importance to the shipowner. As has already been
shown, the out:freights paid by the Maatschappy last
year did not amount to more thin 175,300 florins
(while the return-freights amounted to more than
10,000,000), the value of the goods ' sent to the
colonies by the company, amounted, including their
hipelents of money, to no more 'than 8,500,000
florins ; white and raw cotton stuffs they sent
to the. amount of 4,000,000 florins ; dyed cot-
tons to the amount .of 500,000, and printed
cottons to ari amount 0e89,000 florins only; all other
goods were, transmitted in still smaller quantities.
Another circumstance which renders it still less pro-
bahle that any increase can be effected in the sale- of
our manufactures in this quarter is, that with regard
to the white and dyed cotton stuffs whi-ch are there
.excluslvely used, Grermanv would have to compete
with England aril SWitzerland. The superlative ad-
vantages possessed by England in this branch of
industry and trade have enabled her to compete so
successfully with the cotton manufactures of Holland,
though these are protected by premiums and high
duties, that the manufacturing establishments founded
in the mother country under the' pnwerful protection
of the 111itschaPpy, solely with a view of supplying
the colonies, have'not been able to keep their ground,
but nave mostly been abandoned after' a few years'
unsuccessful trial. In the year 1845 there was, ac-
cording to the official reports of the Dutch custom-
house authorities,. imported, 'altogether, into Java and
Madura, • Florins.
From the Netterlands; goods to the amount
of

.. 9325,702
„ England: ' . , ... —. 5,851,388
„ Germany .. - .. ... 352,489
Besides England and the NetheelitOs, it is princi-
pally Spain that we desire to influence ; arifkit would
indeed be of great importance to us, oti! ccount of
fiti Cuba, could the Spanish Government ;
minced to
treat the German flag somewhat more istourably ;
but the projected retaliatory measures are, in this base
as in all others that we have mentioned, and particu-
larly with regard to Cuba, more likely to injure Ger-
many herself than her opponent. On the one hand
the geograghical position as well as the produce of
Cuba are of such a nature that the Government need
entertain• no fears as to the disposal of the latter;
while for Germany and the German transit trade
with the eastern countries, the.supplies drawn from
Cuba are of the utmost importance, particularly if
indirect imports of colonial goods should be prevented
from coming into our markets. On the other hand, it
is not so much the advantage enjoyed by the Spanish
flag in the trade from Cuba to Germany, which is here
in question, as it is the privilege which this flag
enjoys with regard to exportations from Germany,
to Cuba. ' 'Tie additional duty imposed .on im-
ports into Cuba under foreign flags, is the
principal measure which works to the advantage of
the Spanish flag; and this we cannot therefore (as long
as the system of protection exists) dispense with,
for our exports to Cuba. Should we, 'by the intro-
duction of differential duties, succeed in increasing
the number of German ships which bring us our sup-
plies from Havannah, we should, at the same time and
in an equal m-asure, drive away the Spanish 'ships
from our ports, and thus diminish our opportunities
of transmitting German manufacture to Cuba; for to
410 this under the German flag; which would subject
the goods to a differential duty of 7,8, and 9 per
cent. of their vahie, would be almost impossible. The
exclusion of the Spanish flag from our trade with
Cuba, would be the same as raising the price of Ger-
man produce in the Spanish colony, or, in other
words, would act as a premium in favour of English
manufactures, which the Spanish ships from Cuba
may fetch from England without being molested by
differential duties. With, referenee hereto, we must
also take into consideration, that not all Spanish ships
which go from Ger nany to Cuba have first come
from Cuba to Germany. Among the 48 ships dis-
patched from Cuba to Germany in 1845, there
were only seven Spanish ; yet twelve Spanish vessels
left Harnburgh for Cuba that year—another proof
against the assertion which we have above re-
futed, that the exports of the produce of a
country are generally made in its own ships, and
that measures operating in favour of the latter would
be sure to benefit the former. In addition to what
h.is already been adduced, the absence of the Spanish
flag from our ports would be attended by-the loss of
many other advantages connected with their presence
there. The fact that there are always some Spanish
vessels in Hamburgh, taking in cargoes, draws much
business to this port. Thus, Russian sailcloths, as
well as the produce of other countries, are introduced
into Cuba by way of Hamburgh. But though these
and otner collateral circumstances may be of minor
importance, surely the danger which we have pointed
out, that the exclusion of the Spanish flag from Ger-
many may act in favour of British industry, i's of
sufficient consequence to induce us to advise against
the introduction of differential duties, which threaten
to realise this danger. But' should the differential
duties not be rendered so burdensome as to cause the
entire withdrawal of Spanish ship from our ports, the
Spanish Goiernment would probably, as' Cuba is at
.no loss to dispose of her produce, not consider the in-
creased expenses of transport caused by our differen-
tial duties, for which, iri the end, the German con-
sumer alone would suffer, sufficiently dangerous to be
induced thereby to make any changes in its own cus-
toms, regulations, particularly as it has never yet
made, such changes in compliance with the navigation
laws of othei countries. Germah ships at the Ha-
vannah are not placed inamore unfavourable position
than _aiglish, Propel; Belgian, &c., ships.
.. lis regards the transatlantic trade, the same may
he said, pf France,as we have just said of Spain. Dif-
ficulties placed in the way •of the importation of
transatlantic, produce into our ports, under the French
flag, would be of very little importanbe to the latter,
because, even under existing circumstericOs, as we
have above shown, it tikes little or no part in this
trade (among the 411 ships that came to Hamburgh
in 1845, from counties out of Europe, there were only
two French -vessels) ; and the compaiatively small
amount .of produce raised in the French colonies can
be 'readily disposed of in France. As regards the
trade between the. European ports of France and
Germany., the French Government must however
look oarrovvly, to the interests of its, shipowners,
for this trade is mostly carried on under the
French flag, and differential duties affecting French
ships or. French . produce might therefore pro-
duce some effect; and indeed the French Government
has 'already , been induced by several 'other states
(England, North America, Denmark, Raiisia, Meek-
lenburg).to make numerous exceptione in her protec-
tive system in favour- of the flags of those countries.
Here it might, ttiprefore, be possible to effect some
thing for the, other . German states, also; some
concessions
might likewise be obtained from' Belgium
and Portugal„ not indeed with regard to trade with
countries okkt.
of., Europe, in which their ships take
little or no part,
but with regard to our trade with