The area of the territory ceded by
the original grants was estimated at 20,000 square
miles, but the additions which have been already mentioned
now bring it up to about 31,000 square miles, including
adjacent islands, so that it is somewhat larger than
Ceylon, which is credited with only 25,365 square
miles. In range of latitude, in temperature and
in rainfall, North Borneo presents many points of resemblance
to Ceylon, and it was at first thought that it might
be possible to attract to the new country some of
the surplus capital, energy and aptitude for planting
which had been the foundation of Ceylon’s prosperity.
Even the expression “The New
Ceylon” was employed as an alternative designation
for the country, and a description of it under that
title was published by the well known writer Mr.
JOSEPH HATTON.
These hopes have not so far been realized,
but on the other hand North Borneo is rapidly becoming
a second Sumatra, Dutchmen, Germans and some English
having discovered the suitability of its soil and climate
for producing tobacco of a quality fully equal to
the famed Deli leaf of that island.
The coast line of the territory is
about one thousand miles, and a glance at the map
will shew that it is furnished with capital harbours,
of which the principal are Gaya Bay on the West, Kudat
in Marudu Bay on the North, and Sandakan Harbour on
the East. There are several others, but at those
enumerated the Company have opened their principal
stations.
Of the three mentioned, the more striking
is that of Sandakan, which is 15 miles in length,
with a width varying from 11 miles, at its entrance,
to 5 miles at the broadest part. It is here that
the present capital is situated Sandakan,
a town containing a population of not more than 5,000
people, of whom perhaps thirty are Europeans and a
thousand Chinese., For its age, Sandakan has suffered
serious vicissitudes. It was founded by Mr. PRYER,
in 1878, well up the bay, but was soon afterwards
burnt to the ground. It was then transferred to
its present position, nearer the mouth of the harbour,
but in May, 1886, the whole of what was known as the
“Old Town” was utterly consumed by fire;
in about a couple of hours there being nothing left
of the atap-built shops and houses but the
charred piles and posts on which they had been raised
above the ground. When a fire has once laid hold
of an atap town, probably no exertions would much
avail to check it; certainly our Chinese held this
opinion, and it was impossible to get them to move
hand or foot in assisting the Europeans and Police
in their efforts to confine its ravages to as limited
an area as possible. They entertain the idea
that such futile efforts tend only to aggravate the
evil spirits and increase their fury. The Hindu
shopkeepers were successful in saving their quarter
of the town by means of looking glasses, long prayers
and chants. It is now forbidden to any one to
erect atap houses in the town, except in one specified
area to which such structures are confined. Most
of the present houses are of plank, with tile, or
corrugated iron roofs, and the majority of the shops
are built over the sea, on substantial wooden piles,
some of the principal “streets,” including
that to which the ambitious name of “The Praya”
has been given, being similarly constructed on piles
raised three or four feet above high water mark.
The reason is that, owing to the steep hills at the
back of the site, there is little available flat land
for building on, and, moreover, the pushing Chinese
trader always likes to get his shops as near as possible
to the sea the highway of the “prahus”
which bring him the products of the neighbouring rivers
and islands. In time, no doubt, the Sandakan
hills will be used to reclaim more land from the sea,
and the town will cease to be an amphibious one.
In the East there are, from a sanitary point of view,
some points of advantage in having a tide-way passing
under the houses. I should add that Sandakan is
a creation of the Company’s and not a native
town taken over by them. When Mr. PRYER first
hoisted his flag, there was only one solitary Chinaman
and no Europeans in the harbour, though at one time,
during the Spanish blockade of Sulu, a Singapore firm
had established a trading station, known as “Kampong
German,” using it as their head-quarters from
which to run the blockade of Sulu, which they successfully
did for some considerable time, to their no small
gain and advantage. The success attending the
Germans’ venture excited the emulation of the
Chinese traders of Labuan, who found their valuable
Sulu trade cut off and, through the good offices of
the Government of the Colony, they were enabled to
charter the Sultan of Brunai’s smart little yacht
the Sultana, and engaging the services as Captain
of an ex-member of the Labuan Legislative Council,
they endeavoured to enact the roll of blockade runner.
After a trip or two, however, the Sultana was
taken by the Spaniards, snugly at anchor in a Sulu
harbour, the Captain and Crew having time to make
their escape. As she was not under the British
flag, the poor Sultan could obtain no redress, although
the blockade was not recognised as effective by the
European Powers and English and German vessels, similarly
seized, had been restored to their owners. The
Sultana proved a convenient despatch boat for
the Spanish authorities. The Sultan of Sulu to
prove his friendship to the Labuan traders, had an
unfortunate man cut to pieces with krisses, on the
charge of having betrayed the vessel’s position
to the blockading cruisers.
Sandakan is one of the few places
in Borneo which has been opened and settled without
much fever and sickness ensuing, and this was due
chiefly to the soil being poor and sandy and to there
being an abundance of good, fresh, spring water.
It may be stated, as a general rule, that the richer
the soil the more deadly will be the fever the pioneers
will have to encounter when the primeval jungle is
first felled and the sun’s rays admitted to
the virgin soil.
Sandakan is the principal trading
station in the Company’s territory, but with
Hongkong only 1,200 miles distant in one direction,
Manila 600 miles in another, and Singapore 1,000 miles
in a third, North Borneo can never become an emporium
for the trade of the surrounding countries and islands,
and the Court of Directors must rest content with developing
their own local trade and pushing forward, by wise
and encouraging regulations, the planting interest,
which seems to have already taken firm root in the
country and which will prove to be the foundation of
its future prosperity. Gold and other minerals,
including coal, are known to exist, but the mineralogical
exploration of a country covered with forest and destitute
of roads is a work requiring time, and we are not
yet in a position to pronounce on North Borneo’s
expectations in regard to its mineral wealth.
The gold on the Segama River, on the
East coast, has been several times reported on, and
has been proved to exist in sufficient quantities to,
at any rate, well repay the labours of Chinese gold
diggers, but the district is difficult of access by
water, and the Chinese are deferring operations on
a large scale until the Government has constructed
a road into the district. A European Company
has obtained mineral concessions on the river, but
has not yet decided on its mode of operation, and
individual European diggers have tried their luck on
the fields, hitherto without meeting with much success,
owing to heavy rains, sickness and the difficulty
of getting up stores. The Company will probably
find that Chinese diggers will not only stand the climate
better, but will be more easily governed, be satisfied
with smaller returns, and contribute as much or more
than the Europeans to the Government Treasury, by
their consumption of opium, tobacco and other excisable
articles, by fees for gold licenses, and so forth.
Another source of natural wealth lies
in the virgin forest with which the greater portion
of the country is clothed, down to the water’s
edge. Many of the trees are valuable as timber,
especially the Billian, or Borneo iron-wood
tree, which is impervious to the attacks of white-ants
ashore and almost equally so to those of the teredo
navalis afloat, and is wonderfully enduring of
exposure to the tropical sun and the tropical downpours
of rain. I do not remember having ever come across
a bit of billian that showed signs of decay
during a residence of seventeen years in the East.
The wood is very heavy and sinks in water, so that,
in order to be shipped, it has to be floated on rafts
of soft wood, of which there is an abundance of excellent
quality, of which one kind the red serayah is
likely to come into demand by builders in England.
Other of the woods, such as mirabau, penagah
and rengas, have good grain and take a fine
polish, causing them to be suitable for the manufacture
of furniture. The large tree which yields the
Camphor barus of commerce also affords good
timber. It is a Dryobalanops, and is not
to be confused with the Cinnamomum camphora,
from which the ordinary “camphor” is obtained
and the wood of which retains the camphor smell and
is largely used by the Chinese in the manufacture of
boxes, the scented wood keeping off ants and other
insects which are a pest in the Far East. The
Borneo camphor tree is found only in Borneo and Sumatra.
The camphor which is collected for export, principally
to China and India, by the natives, is found in a
solid state in the trunk, but only in a small percentage
of the trees, which are felled by the collectors.
The price of this camphor barus as it is termed,
is said to be nearly a hundred times as much as that
of the ordinary camphor, and it is used by the Chinese
and Indians principally for embalming purposes.
Billian and other woods enumerated are all found near
the coast and, generally, in convenient proximity
to some stream, and so easily available for export.
Sandakan harbour has some thirteen rivers and streams
running into it, and, as the native population is very
small, the jungle has been scarcely touched, and no
better locality could, therefore, be desired by a
timber merchant. Two European Timber Companies
are now doing a good business there, and the Chinese
also take their share of the trade. China affords
a ready and large market for Borneo timber, being
itself almost forestless, and for many years past
it has received iron-wood from Sarawak. Borneo
timber has also been exported to the Straits Settlements,
Australia and Mauritius, and I hear that an order
has been given for England. Iron wood is only
found in certain districts, notably in Sandakan Bay
and on the East coast, being rarely met with on the
West coast. I have seen a private letter from
an officer in command of a British man-of-war who
had some samples of it on board which came in very
usefully when certain bearings of the screw shaft
were giving out on a long voyage, and were found to
last three times as long as lignum vitae.
In process of time, as the country
is opened up by roads and railways, doubtless many
other valuable kinds of timber trees will be brought
to light in the interior.
A notice of Borneo Forests would be
incomplete without a reference to the mangroves,
which are such a prominent feature of the country as
one approaches it by sea, lining much of the coast
and forming, for mile after mile, the actual banks
of most of the rivers. Its thick, dark-green,
never changing foliage helps to give the new comer
that general impression of dull monotony in tropical
scenery, which, perhaps, no one, except the professed
botanist, whose trained and practical eye never misses
the smallest detail, ever quite shakes off.
The wood of the mangrove forms most
excellent firewood, and is often used by small steamers
as an economical fuel in lieu of coal, and is exported
to China in the timber ships. The bark is also
a separate article of export, being used as a dye
and for tanning, and is said to contain nearly 42%
of tannin.
The value of the general exports from
the territory is increasing every year, having been
$145,444 in 1881 and $525,879 in 1888. With the
exception of tobacco and pepper, the list is almost
entirely made up of the natural raw products of the
land and sea such as bees-wax, camphor,
damar, gutta percha, the sap of a large forest
tree destroyed in the process of collection of gutta,
India rubber, from a creeper likewise destroyed by
the collectors, rattans, well known to every school
boy, sago, timber, edible birds’-nests, seed-pearls,
Mother-o’-pearl shells in small quantities,
dried fish and dried sharks’-fins, trepang (sea-slug
or beche-de-mer), aga, or edible sea-weed,
tobacco (both Native and European grown), pepper,
and occasionally elephants’ tusks a
list which shews the country to be a rich store house
of natural productions, and one which will be added
to, as the land is brought under cultivation with
coffee, tea, sugar, cocoa, Manila hemp, pine apple
fibre, and other tropical products for which the soil,
and especially the rainfall, temperature and climatic
conditions generally, including entire freedom from
typhoons and earthquakes, eminently adapt it, and
many of which have already been tried with success
on an experimental scale. As regards pepper,
it has been previously shewn that North Borneo was
in former days an exporter of this spice. Sugar
has been grown by the natives for their own consumption
for many years, as also tapioca, rice and Indian corn.
It is not my object to give a detailed list of the
productions of the country, and I would refer any
reader who is anxious to be further enlightened on
these and kindred topics to the excellent “Hand-book
of British North Borneo,” prepared for the Colonial
and Indian Exhibition of 1886, at which the new Colony
was represented, and published by Messrs. WILLIAM CLOWES
& SONS.
The edible birds’-nests are
already a source of considerable revenue to the Government,
who let out the collection of them for annual payments,
and also levy an export duty as they leave the country
for China, which is their only market. The nests
are about the size of those of the ordinary swallow
and are formed by innumerable hosts of swifts Collocalia
fuciphaga entirely from a secretion
of the glands of the throat. These swifts build
in caves, some of which are of very large dimensions,
and there are known to be some sixteen of them in
different parts of British North Borneo. With
only one exception, the caves occur in limestone rocks
and, generally, at no great distance from the sea,
though some have been discovered in the interior, on
the banks of the Kinabatangan River. The exception
above referred to is that of a small cave on a sand-stone
island at the entrance of Sandakan harbour. The
Collocalia fuciphaga appears to be pretty well
distributed over the Malayan islands, but of these,
Borneo and Java are the principal sources of supply.
Nests are also exported from the Andaman Islands, and
a revenue of L30,000 a year is said to be derived from
the nests in the small islands in the inland sea of
Tab Sab, inhabited by natives of Malay stock.
The finest caves, or rather series
of caves, as yet known in the Company’s territories
are those of Gomanton, a limestone hill situated at
the head of the Sapa Gaia, one of the streams running
into Sandakan harbour.
These grand caves, which are one of
the most interesting sights in the country, are, in
fine weather, easily accessible from the town of Sandakan,
by a water journey across the harbour and up the Sapa
Gaia, of about twelve miles, and by a road from the
point of debarkation to the entrance of the lower
caves, about eight miles in length.
The height of the hill is estimated
at 1,000 feet, and it contains two distinct series
of caves. The first series is on the “ground
floor” and is known as Simud Hitam, or
“black entrance.” The magnificent
porch, 250 feet high and 100 broad, which gives admittance
to this series, is on a level with the river bank,
and, on entering, you find yourself in a spacious
and lofty chamber well lighted from above by a large
open space, through which can be seen the entrance
to the upper set of caves, some 400 to 500 feet up
the hill side. In this chamber is a large deposit
of guano, formed principally by the myriads of bats
inhabiting the caves in joint occupancy with the edible-nest-forming
swifts. Passing through this first chamber and
turning a little to the right you come to a porch
leading into an extensive cave, which extends under
the upper series. This cave is filled half way
up to its roof, with an enormous deposit of guano,
which has been estimated to be 40 to 50 feet in depth.
How far the cave extends has not been ascertained,
as its exploration, until some of the deposit is removed,
would not be an easy task, for the explorer would
be compelled to walk along on the top of the guano,
which in some places is so soft that you sink in it
almost up to your waist. My friend Mr. C. A.
BAMPFYLDE, in whose company I first visited Gomanton,
and who, as “Commissioner of Birds-nest Caves,”
drew up a very interesting report on them, informed
me that, though he had found it impossible to explore
right to the end, he had been a long way in and was
confident that the cave was of very large size.
To reach the upper series of caves, you leave Simud
Hitam and clamber up the hill side a steep
but not difficult climb, as the jagged limestone affords
sure footing. The entrance to this series, known
as Simud Putih, or “white entrance,”
is estimated to be at an elevation of 300 feet above
sea level, and the porch by which you enter them is
about 30 feet high by about 50 wide. The floor
slopes steeply downwards and brings you into an enormous
cave, with smaller ones leading off it, all known to
the nest collectors by their different native names.
You soon come to a large black hole, which has never
been explored, but which is said to communicate with
the large guano cave below, which has been already
described. Passing on, you enter a dome-like cave,
the height of the roof or ceiling of which has been
estimated at 800 feet, but for the accuracy of this
guess I cannot vouch. The average height of the
cave before the domed portion is reached is supposed
to be about 150 feet, and Mr. BAMPFYLDE estimates
the total length, from the entrance to the furthest
point, at a fifth of a mile. The Simud Putih series
are badly lighted, there being only a few “holes”
in the roof of the dome, so that torches or lights
of some kind are required. There are large deposits
of guano in these caves also, which could be easily
worked by lowering quantities down into the Simud
Hitam caves below, the floor of which, as already
stated, is on a level with the river bank, so that
a tramway could be laid right into them and the guano
be carried down to the port of shipment, at the mouth
of the Sapa Gaia River. Samples of the guano
have been sent home, and have been analysed by Messrs.
VOELCKER & CO. It is rich in ammonia and nitrogen
and has been valued at L5 to L7 a ton in England.
The bat-guano is said to be richer as a manure than
that derived from the swifts. To ascend to the
top of Gomanton, one has to emerge from the Simud
Putih entrance and, by means of a ladder, reach an
overhanging ledge, whence a not very difficult climb
brings one to the cleared summit, from which a fine
view of the surrounding country is obtained, including
Kina-balu, the sacred mountain of North Borneo.
On this summit will be found the holes already described
as helping to somewhat lighten the darkness of the
dome-shaped cave, on the roof of which we are in fact
now standing. It is through these holes that the
natives lower themselves into the caves, by means of
rattan ladders and, in a most marvellous manner, gain
a footing on the ceiling and construct cane stages,
by means of which they can reach any part of the roof
and, either by hand or by a suitable pole to the end
of which is attached a lighted candle, secure the
wealth-giving luxury for the epicures of China.
There are two principal seasons for collecting the
nests, and care has to be taken that the collection
is made punctually at the proper time, before the
eggs are all hatched, otherwise the nests become dirty
and fouled with feathers, &c., and discoloured and
injured by the damp, thereby losing much of their
market value. Again, if the nests are not collected
for a season, the birds do not build many new ones
in the following season, but make use of the old ones,
which thereby become comparatively valueless.
There are, roughly speaking, three
qualities of nests, sufficiently described by their
names white, red, and black the
best quality of each fetching, at Sandakan, per catty
of 1-1/3 lbs., $16, $7 and 8 cents respectively.
The question as to the true cause
of the difference in the nests has not yet been satisfactorily
solved. Some allege that the red and black nests
are simply white ones deteriorated by not having been
collected in due season. I myself incline to
agree with the natives that the nests are formed by
different birds, for the fact that, in one set of caves,
black nests are always found together in one part,
and white ones in another, though both are collected
with equal care and punctuality, seems almost inexplicable
under the first theory. It is true that the different
kinds of nests are not found in the same season, and
it is just possible that the red and black nests may
be the second efforts at building made by the swifts
after the collectors have disturbed them by gathering
their first, white ones. In the inferior nests,
feathers are found mixed up with the gelatinous
matter forming the walls, as though the glands were
unable to secrete a sufficient quantity of material,
and the bird had to eke it out with its own feathers.
In the substance of the white nests no feathers are
found.
Then, again, it is sometimes found
in the case of two distinct caves, situated at no
great distance apart, that the one yields almost entirely
white nests, and the other nearly all red, or black
ones, though the collections are made with equal regularity
in each. The natives, as I have said, seem to
think that there are two kinds of birds, and the Hon.
R. ABERCROMBY reports that, when he visited Gomanton,
they shewed him eggs of different size and explained
that one was laid by the white-nest bird and the other
by the black-nest builder. Sir HUGH LOW, in his
work on Sarawak, published in 1848, asserts that there
are “two different and quite dissimilar kinds
of birds, though both are swallows” (he should
have said swifts), and that the one which produces
the white nest is larger and of more lively colours,
with a white belly, and is found on the sea-coast,
while the other is smaller and darker and found more
in the interior. He admits, however, that though
he had opportunities of observing the former, he had
not been able to procure a specimen.
The question is one which should be
easily settled on the spot, and I recommend it to
the consideration of the authorities of the British
North Borneo Museum, which has been established at
Sandakan.
The annual value of the nests of Gomanton,
when properly collected, has been reckoned at $23,000,
but I consider this an excessive estimate. My
friend Mr. A. COOK, the Treasurer of the Territory,
to whose zeal and perseverance the Company owes much,
has arranged with the Buludupih tribe to collect these
nests on payment to the Government of a royalty of
$7,500 per annum, which is in addition to the export
duty at the rate of 10% ad valorem paid by
the Chinese exporters.
The swifts and bats the
latter about the size of the ordinary English bat avail
themselves of the shelter afforded by the caves without
incommoding one another, for, by a sort of Box and
Cox arrangement, the former occupy the caves during
the night and the latter by day.
Standing at the Simud Putih entrance
about 5 P. M., the visitor will suddenly hear a whirring
sound from below, which is caused by the myriads of
bats issuing, for their nocturnal banquet, from the
Simud Itam caves, through the wide open space that
has been described. They come out in a regularly
ascending continuous spiral or corkscrew coil, revolving
from left to right in a very rapid and regular manner.
When the top of the spiral coil reaches a certain
height, a colony of bats breaks off, and continuing
to revolve in a well kept ring from left to right
gradually ascends higher and higher, until all of a
sudden the whole detachment dashes off in the direction
of the sea, towards the mangrove swamps and the nipas.
Sometimes these detached colonies reverse the direction
of their revolutions after leaving the main body,
and, instead of from left to right, revolve from right
to left. Some of them continue for a long time
revolving in a circle, and attain a great height before
darting off in quest of food, while others make up
their minds more expeditiously, after a few revolutions.
Amongst the bats, three white ones were, on the occasion
of my visit, very conspicuous, and our followers styled
them the Raja, his wife and child. Hawks and
sea-eagles are quickly attracted to the spot, but only
hover on the outskirts of the revolving coil, occasionally
snapping up a prize. I also noticed several hornbills,
but they appeared to have been only attracted by curiosity.
Mr. BAMPFYLDE informed me that, on a previous visit,
he had seen a large green snake settled on an overhanging
branch near which the bats passed and that occasionally
he managed to secure a victim. I timed the bats
and found that they took almost exactly fifty minutes
to come out of the caves, a thick stream of them issuing
all that time and at a great pace, and the reader
can endeavour to form for himself some idea of their
vast numbers. They had all got out by ten minutes
to six in the evening, and at about six o’clock
the swifts began to come home to roost. They
came in in detached, independent parties, and I found
it impossible to time them, as some of them kept very
late hours. I slept in the Simud Putih cave on
this occasion, and found that next morning the bats
returned about 5 A.M., and that the swifts went out
an hour afterwards.
As shewing the mode of formation of
these caves, I may add that I noticed, imbedded in
a boulder of rock in the upper caves, two pieces of
coral and several fossil marine shells, bivalves and
others.
The noise made by the bats going out
for their evening promenade resembled a combination
of that of the surf breaking on a distant shore and
of steam being gently blown off from a vessel which
has just come to anchor.
There are other interesting series
of caves, and one that of Madai, in Darvel
Bay on the East coast was visited by the
late Lady BRASSEY and Miss BRASSEY in April, 1887,
when British North Borneo was honoured by a visit
of the celebrated yacht the Sunbeam, with Lord
BRASSEY and his family on board.
I accompanied the party on the trip
to Madai, and shall not easily forget the pluck and
energy with which Lady BRASSEY, then in bad health,
surmounted the difficulties of the jungle track, and
insisted upon seeing all that was to be seen; or the
gallant style in which Miss BRASSEY unwearied after
her long tramp through the forest, led the way over
the slippery boulders in the dark caves.
The Chinese ascribe great strengthening
powers to the soup made of the birds’-nests,
which they boil down into a syrup with barley sugar,
and sip out of tea cups. The gelatinous looking
material of which the substance of the nests is composed
is in itself almost flavourless.
It is also with the object of increasing
their bodily powers that these epicures consume the
uninviting sea-slug or beche-de-mer,
and dried sharks’-fins and cuttle fish.
To conclude my brief sketch of Sandakan
Harbour and of the Capital, it should be stated that,
in addition to being within easy distance of Hongkong,
it lies but little off the usual route of vessels proceeding
from China to Australian ports, and can be reached
by half a day’s deviation of the ordinary track.
Should, unfortunately, war arise with
Russia, there is little doubt their East Asiatic squadron
would endeavour both to harass the Australian trade
and to damage, as much as possible, the coast towns,
in which case the advantages of Sandakan, midway between
China and Australia, as a base of operations for the
British protecting fleet would at once become manifest.
It is somewhat unfortunate that a bar has formed just
outside the entrance of the harbour, with a depth of
water of four fathoms at low water, spring tides,
so that ironclads of the largest size would be denied
admittance.
There are at present, no steamers
sailing direct from Borneo to England, and nearly
all the commerce from British North Borneo ports is
carried by local steamers to that great emporium of
the trade of the Malayan countries, Singapore, distant
from Sandakan a thousand miles, and it is a curious
fact, that though many of the exports are ultimately
intended for the China market, e.g., edible
birds’-nests, the Chinese traders find it pays
them better to send their produce to Singapore in the
first instance, instead of direct to Hongkong.
This is partly accounted for by the further fact that,
though the Government has spent considerable sum in
endeavouring to attract Chinamen from China, the large
proportion of our Chinese traders and of the Chinese
population generally has come to us via Singapore,
after as it were having undergone there an education
in the knowledge of Malayan affairs.
As further illustrating the commercial
and strategical advantages of the harbours of British
North Borneo, it should be noted that the course recommended
by the Admiralty instructions for vessels proceeding
to China from the Straits, via the Palawan
passage, brings them within ninety miles of the harbours
of the West Coast.
As to postal matters, British North
Borneo, though not in the Postal Union, has entered
into arrangements for the exchange of direct closed
mails with the English Post Office, London, with which
latter also, as well as with Singapore and India,
a system of Parcel Post and of Post Office Orders
has been established.
The postal and inland revenue stamps,
distinguished by the lion, which has been adopted
as the Company’s badge, are well executed and
in considerable demand with stamp collectors, owing
to their rarity.
The Government also issues its own
copper coinage, one cent and half-cent pieces, manufactured
in Birmingham and of the same intrinsic value as those
of Hongkong and the Straits Settlements.
The revenue derived from its issue
is an important item to the Colony’s finances,
and considerable quantities have been put into circulation,
not only within the limits of the Company’s territory,
but also in Brunai and in the British Colony of Labuan,
where it has been proclaimed a legal tender on the
condition of the Company, in return for the profit
which they reap by its issue in the island, contributing
to the impoverished Colonial Treasury the yearly sum
of $3,000.
Trade, however, is still, to a great
extent, carried on by a system of barter with the
Natives. The primitive currency medium in vogue
under the native regime has been described in the
Chapters on Brunai.
The silver currency is the Mexican
and Spanish Dollar and the Japanese Yen, supplemented
by the small silver coinage of the Straits Settlements.
The Company has not yet minted any silver coinage,
as the profit thereon is small, but in the absence
of a bank, the Treasury, for the convenience of traders
and planters, carries on banking business to a certain
extent, and issues bank notes of the values of $1,
$5 and $25, cash reserves equal to one-third of the
value of the notes in circulation being maintained.
Sir ALFRED DENT is taking steps to
form a Banking Company at Sandakan, the establishment
of which would materially assist in the development
of the resources of the territory.
British North Borneo is not in telegraphic
communication with any part of the world, except of
course through Singapore, nor are there any local
telegraphs. The question, however, of supplementing
the existing cable between the Straits Settlements
and China by another touching at British territory
in Borneo has more than once been mooted, and may yet
become a fait accompli. The Spanish Government
appear to have decided to unite Sulu by telegraphic
communication with the rest of the world, via
Manila, and this will bring Sandakan within 180 miles
of the telegraphic station.