he continued interference of the Government in the coffee industry. The
reply of Baron Mackay, the colonial minister at the Hague, was in
substance as follows:--

The Achin war, he said, was the result of unavoidable circumstances, and
neither the Colonial nor the Home Government could be regarded as
responsible for the loss of revenue involved in it. He added, however,
that "excellent results were expected from the blockade system" now
adopted, and that there were already signs that the Atchinese would
before long be brought to terms. With regard to the sale of opium, he
assured the States-General that "every possible means were being taken
to reduce the sale of the drug, and to remedy its evil effects." He
frankly recognized the importance of the question of coffee-culture, but
at the same time urged the advisability of maintaining the system for
the present. It was not certain, in the first place, that the existing
system could be changed with advantage; and, in the second, "no product
in the immediate future could be looked for to replace coffee as a
source of revenue."

Undoubtedly the resources of Java are at the present time subjected to a
heavy strain. On the other hand, it must not be forgotten that (1) the
burden of the Achin war may be at any time removed, and (2) all public
works are being paid for out of current revenue without recourse to
loans. There is, therefore, no reasonable ground for supposing that the
present financial difficulties of the Colonial Government are more than
temporary. A glance at the balance-sheet of the island for the year 1889
shows to what an extent the difficulties are due to an increasing sense
of responsibility towards the natives, and to an intention to
eventually open all the industries of this singularly fertile island to
private enterprise.

HEADS OF REVENUE AND EXPENDITURE FOR 1889 IN
MILLION FLORINS.

_Revenue._ _Expenditure._

Taxes 40 Instruction 10

Monopolies 31 Army and navy 40

Sale of produce (of this Public works (of this
coffee contributes 37, railways cost 10) 20
sugar 2) 49
Administration, etc. 60
Other sources (railways,
school fees, etc.) 14
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