64 EXPEDITION TO MOLUCCA ISLANDS. 



toise shells, ivory wax and gold dust. About four years ago when 

 the Commissioners from Holland found the trade of Malacca so 

 much on the decline, they reduced the Civil and Military Esta- 

 blishments of it considerably ; the diminution of the trade, I under- 

 stand, in a great degree is owing to the vicinity of Penang, where 

 the Malays, finding a free sale for all their goods, naturally carry 

 them whenever they can escape the vigilance of the Dutch ; and 

 no doubt of it the prosperity of Penang is considerably indebted to 

 the monopoly of Malacca. How far it may be affected hereafter 

 by this monopoly being put an end to, it is hard to say ; certainly 

 Malacca is better situated for trade, particularly that carried on 

 by the Malays in their prows ; and it is the key of the straits, 

 since no ship can pass but in the sight of it, and I have little 

 doubt but it will soon recover its former consequence, when the 

 freedom of trade shall take effect, and the Dutch influence is 

 known to be at an end. It is probable that there will be found 

 advantages and trade sufficient to support both this and Penang. 

 This it is certainly necessary to keep, to prevent any other power 

 establishing themselves in it, and it is likely the Americans would 

 avail themselves of the circumstances of its being evacuated in a 

 short time, which might be attended with very inconvenient effects 

 to us hereafter : and as to Penang it possesses natural advantages 

 enough to ensure its prosperity, unless thrown off and disclaimed as 

 unworthy the protection of the Company ; and amongst its advan- 

 tages, I cannot help thinking its harbour for ships, and resources 

 for ship-building not the least, particularly as it is not at all im- 

 probable but the chief business done in that line may soon find 

 its way from Batavia thither, which indeed is sincerely to be wish- 

 ed, on the score of humanity, that baneful climate having so often 

 proved fatal to those whom either choice or necessity led thither, 

 for repairing their ships ; and as there is a possibility of our soon 

 becoming masters of that place, it might be worth attention to en- 

 deavour to establish the artificers in the ship-building line, at 

 Penang, which I haA^e already remarked is well calculated for a 

 Naval Arsenal. We should then have resources on both sides of 

 India, and ships meeting with accident on one side of the Penin- 

 sula, need not go to the other for repair. The trade of ships too is 

 very much increased in these Straits, within a few years back, 

 which is attended with the good effect of discouraging the propen- 



