Just below my house is the fort， built by the Portuguese， below which is an open space to the peach， and beyond this the native town extends for about a mile to the north-east. About the centre of it is the palace of the Sultan， now a large untidy， half-ruinous building of stone. This chief is pensioned by the Dutch Government， but retains the sovereignty over the native population of the island， and of the northern part of Gilolo. The sultans of Ternate and Tidore were once celebrated through the East for their power and regal magnificence. When Drake visited Ternate in 1579， the Portuguese had been driven out of the island， although they still had a settlement at Tidore. He gives a glowing account of the Sultan： "The King had a very rich canopy with embossings of gold borne over him， and was guarded with twelve lances. From the waist to the ground was all cloth of gold， and that very rich； in the attire of his head were finely wreathed in， diverse rings of plaited gold， of an inch or more in breadth， which made a fair and princely show， somewhat resembling a crown in form； about his neck he had a chain of perfect gold， the links very great and one fold double； on his left hand was a diamond， an emerald， a ruby， and a turky； on his right hand in one ring a big and perfect turky， and in another ring many diamonds of a smaller size."All this glitter of barbaric gold was the produce of the spice trade， of which the Sultans kept the monopoly， and by which they became wealthy. Ternate， with the small islands in a line south of it， as far as Batchian， constitute the ancient Moluccas， the native country of the clove， as well as the only part in which it was cultivated. Nutmegs and mace were procured from the natives of New Guinea and the adjacent islands， where they grew wild； and the profits on spice cargoes were so enormous， that the European traders were glad to give gold and jewels， and the finest manufactures of Europe or of India， in exchange. When the Dutch established their influence in these seas， and relieved the native princes from their Portuguese oppressors， they saw that the easiest way to repay themselves would be to get this spice trade into their own hands. For this purpose they adopted the wise principle of concentrating the culture of these valuable products in those spots only of which they could have complete control. To do this effectually it was necessary to abolish the culture and trade in all other places， which they succeeded in doing by treaty with the native rulers. These agreed to have all the spice trees in their possessions destroyed. They gave up large though fluctuating revenues， but they gained in return a fixed subsidy， ******* from the constant attacks and harsh oppressions of the Portuguese， and a continuance of their regal power and exclusive authority over their own subjects， which is maintained in all the islands except Ternate to this day.
It is no doubt supposed by most Englishmen， who have been accustomed to look upon this act of the Dutch with vague horror， as something utterly unprincipled and barbarous， that the native population suffered grievously by this destruction of such valuable property. But it is certain that this was not the case.
The Sultans kept this lucrative trade entirely in their own hands as a rigid monopoly， and they would take care not to give， their subjects more than would amount to their usual wages， while： they would surely exact as large a quantity of spice as they could possibly obtain. Drake and other early voyagers always seem to have purchased their spice-cargoes from the Sultans and Rajahs， and not from the cultivators. Now the absorption of so much labour in the cultivation of this one product must necessarily have raised the price of food and other necessaries； and when it was abolished， more rice would be grown， more sago made， more fish caught， and more tortoise-shell， rattan， gum-dammer， and other valuable products of the seas and the forests would be obtained. I believe， therefore， that this abolition of the spice trade in the Moluccas was actually beneficial to the inhabitants， and that it was an act both wise in itself and morally and politically justifiable.
In the selection of the places in which to carry on the cultivation， the Dutch were not altogether fortunate or wise.
Banda was chosen for nutmegs， and was eminently successful， since ü； continues to this day to produce a large supply of this spice， and to yield a considerable revenue. Amboyna was fixed upon for establishing the clove cultivation； but the soil and climate， although apparently very similar to that of its native islands， is not favourable， and for some years the Government have actually been paying to the cultivators a higher rate than they could purchase cloves elsewhere， owing to a great fall in the price since the rate of payment was fixed for a term of years by the Dutch Government， and which rate is still most honourably paid.