About a thousand of these men have lately gone over to our little colony of Labuan, to settle there as planters, and the heavy forest is falling in all directions before them. Having mentioned this island, I will make a few remarks upon it. Labuan possesses one of the finest forests I have seen in Borneo, and is admirably situated for three objects—to suppress piracy, to influence the neighbouring countries, and to increase commerce by many means. Among the last, I may mention the numerous coal seams which are found in the island; that they have not been yet developed is no matter of surprise to those who are familiar with the early management; and that they will be hereafter of the utmost importance is the confident belief of those who are best acquainted with the island. My own opinion is, that the working will prove a most lucrative speculation, if proper care be taken in the choice of those who are to conduct the affairs of the new Labuan coal company.

No better spot could be chosen as one of the stations for the telegraph wires on their way’ to China. From Singapore, stated in round numbers, to Sarawak is 400 miles; to Labuan, 350 miles; to Manilla, 600 miles; to Hong Kong, 600 miles more. If Manilla be avoided, a station might be formed on one of the isles off Palawan.

Labuan, managed by an officer who made himself well acquainted with the character of the people inhabiting the neighbouring countries, might, with a slight support from the navy, exert great influence. I must mention one good Labuan has already done: it has changed the character of slavery. Formerly, the Bornean masters could treat their dependants as harshly as they pleased; now it is a common saying, “If we are not gentle towards our slaves, they will run to Labuan.” In fact, latterly very little restraint was laid on the freest intercourse with this island on the part of the masters, as far as concerned the males; but the females they tried by every means to prevent leaving. Yet hundreds of women visit Labuan, and can stay there if they please.

The trade of our colony is small, though it is increasing, while that of Brunei is rapidly decreasing, and recent arrangements will tend to accelerate its fall. I should mention that there are many districts in the neighbourhood of Labuan in which pepper is cultivated, and this produce is slowly increasing in quantity in the market; but could the Governor of Labuan have the means at his disposal to influence the neighbouring coast, the pepper cultivation would rapidly advance. It is now grown in the districts of Kalias, Bundu, Tanah Merah, Qualla Lama, Membakut, Papar, Mengkabong, and Tawaran.

Sago at present is the principal export, though some valuable products, as white birds’ nests, camphor, wax, rattans, and occasionally pearls are brought from the north. No place could be better situated than Labuan to draw to it the trade of the Sulu archipelago and of the north-east coast of Borneo, and its doing so will depend on the amount of influence it is permitted to exercise.

It is a curious circumstance, that the natives of many of the districts to the north of Labuan assert that before civil strife and pirates drove trade from their coasts, they used to supply the Chinese and Javanese markets with a large amount of cotton. This plant is still cultivated, though to a very limited extent.

I have referred to the very fine forest which clothes the surface of Labuan: among the forest trees are the camphor and the damar; the former produces the valuable Kapur barus of commerce, and is a very handsome tree, rising in a fine stem ninety or a hundred feet before it throws out a branch, and then presents a well-shaped head, with dense foliage. Its timber is lasting, and is much liked for planks and beams of houses. In the forests of Labuan I have often come across fine trees felled by the natives in search of the camphor, as this product can only be obtained by destroying the tree, as it exists in a concrete form in the interstices of the trunk. But I have heard natives say, that occasionally they cut down one which has a decayed portion, and in this they find the finest camphor. It is possible that these decayed portions may arise from former seekers cutting holes in the tree to discover whether there were sufficient camphor to render it worth while to fell the tree, a practice they carry on to the present day. An oil is also collected from this tree, which rubbed over a chest of drawers will effectually prevent the invasion of insects.

This method of obtaining the camphor is very wasteful compared to the way gamboge is collected. I have never seen an account given of it, so I will introduce it here:—The tree is found in Kambodia, the province of Chantibun in Siam, the islands on the eastern coast of the Gulf of Siam, and the southern part of Cochin China. The small plants which were brought to Bangkok were woody, with thick ovate leaves; the tree in full growth is large, measuring often five feet in circumference, and rising to a considerable height. At the commencement of the rainy season, the gamboge seekers start for the forest in search of the trees, which are occasionally plentiful. Having found a full-grown one, they make a spiral incision in the back round half its circumference, and place a joint of bamboo to catch the sap, which percolates slowly from it for many months. When it first issues from the tree, it looks like a yellowish fluid, which after passing through a viscous state, hardens into the gamboge of commerce with a crystal-like fracture. The flowers of the tree are said to resemble those of the egg-plant, and the fruit is small and globular. The time of gathering it depends much on the fancy of the people, as some declare that it is injurious to seek it in wet weather, and prefer the very driest months. The trees grow both in the valleys and on the mountains, and an average one will yield three joints of bamboo, twenty inches in length, by one and a half in diameter. The tree appears to suffer no injury if the gamboge be collected every other year, but if it be tapped each season, it shortens its life. Like every other nation, the Kambodians are fond of adding adulterations, and mix with it rice, flour and sand, while others pulverise the bark, to add to its weight; but this last operation is soon found out, as it imparts to the article a greenish tinge.

The damar trees in Labuan are remarkably fine. I have seen one measured one hundred and twenty feet to the first branch, and eighteen feet in circumference above twenty feet from the ground. Labuan is also stocked with excellent trees for spars. I may add that petroleum is found in considerable quantities floating on the surface of water in the jungle; but I think no examination has been made as to the probable yield of these oil-springs.

Before concluding my observations on Labuan, I may remark it possesses a very excellent harbour, of easy approach. The great success of our colony will depend, however, on its yield of coal.