Dear Sir,

1. Some time ago, when you handed me a letter to your address from the Private Secretary to His Excellency the Viceroy of India, dated Simla the 2nd of July last, I readily undertook to assist you as soon as possible in collecting the information the Government of India was anxious to obtain regarding the economic condition and progress of Java, but the compilation of the necessary statistics and collecting other information has required much more time than I at first anticipated. For this delay in fulfilling my promise, 1 have in the first place to express my sincere regret.

2 The information desired by the Government of India more especially applies to the island of Java. I have endeavoured to limit my researches to this portion of the Dutch dominion in the Malay Archipelago accordingly, but although separate statistics of the commercial movement of Java might be produced, still in the regard to financial statistics no separate account being kept of the expenditure for Java and the other islands, I have thought it more to the point to extend my enquiry to the whole of the Netherlands Indian dominion, of which Java, although of less area than the other islands, is the most important and conspicuous as regards population, revenue and trade, as shown by the following statement:

3. Having thus defined the scope of my enquiry in reply to the questions put by the Government of India, I shall first consider the revenue and the expenditure of our colony, of which, as desired, a full statement shall be given in as minute detail as may prove practicable within reasonable limits, at the same time drawing special attention to any increase or reduction of taxation or alteration in system, practically involving an increase or reduction of the burden of taxation.

4. A general statement of the revenue and expenditure of the Government of Netherlands India for the years 1871-1893, the last year for which accounts arc available, will be found in appendix A, and from this statement the following table of the yearly surpluses or deficits has been compiled.