Rise and Fall of the Nutmeg Monopoly

From The Spice Islands Voyage: The Quest for Alfred Wallace, the Man Who Shared Darwin's Discovery of Evolution, by Tim Severin (Carroll & Graf, 1997), pp. 117-119:

The conditions of soil and climate on Banda were so perfect for nutmeg trees that most of the trees were planted naturally by the same species of Tine and very handsome fruit pigeons' which Wallace observed. These birds had such a wide-opening beak that they could swallow an entire nutmeg fruit and pass the round seed undamaged through the gut, so that it grew where it fell. The labourers had to keep the saplings free of weeds, tend the tall kenari trees which provided essential shade for the nutmeg trees, and pick the fruit. Obligingly, in that warm equatorial climate, the nutmegs gave their crop all year long. It is calculated that, in nearly two centuries of colonial rule, Holland produced a billion guilders' worth of these spices from their tiny Banda holdings. The income from the Banda spice monopoly so dominated Dutch foreign policy that Holland offered the island of Manhattan to the British if they would drop their claim to the minuscule islet of Run in the Bandas barely three kilometres long and one and a half kilometres wide. Even more remarkably, Run itself grew no nutmeg trees. The Dutch ripped them up in order to concentrate virtually the entire world production of nutmeg and mace on the other Bandas.

Slavery in the Dutch Indies was not abolished until 1862, so there must have been slaves on Banda when Wallace visited there in the late 1800s. Yet he says nothing about them and – astonishingly for an Owenite socialist – he voiced his strong approval of the Dutch system of monopoly plantation though he knew this opinion would raise hackles in Victorian England. State monopolies, he argued, were the only way for a colony to be viable. The mother country had to find some way of paying the huge cost of its colonial efforts, bringing education, peace and a 'civilising influence' to unruly native peoples, and if the state controlled a lucrative monopoly, that cost could be met. It was far better, Wallace argued, for the state to reap the profits than to allow the local economy to pass into the hands of private businesses, who would exploit the natives and give nothing in return. The only condition which Wallace put forward was that the monopoly should be of a product not essential to the natives, who must be able to live without it. In this respect, of course, nutmeg was ideal; it was a luxury, not a subsistence food.

In truth, by Wallace's time the state's monopoly in nutmeg was in tatters. Nutmegs were being grown illegally elsewhere in the Moluccas, and the French had established nutmeg plantations in Mauritius, using seeds smuggled in from the Spice Islands. Corruption had been so widespread among the superintending officials in Banda and Amsterdam that tight control of the nutmeg trade was a sham. The Dutch authorities abandoned the system within a decade of Wallace's visit, and handed over ownership of Banda's nutmeg gardens to the perkiniers, the planters who had previously held them on licence. They in their turn would go under, unable to survive in world competition. The nutmeg plantations fell into neglect and Banda began a long, slow slide into obscurity while, ironically, the impoverished planters came to be replaced by a new generation of Bandanese orang kaya who re-established the age-old trade links. Twenty years after Wallace's visit, the wealthiest man on the islands was a Javanese Arab trader, Bin Saleh Baadilla, who traded in pearls and bird products. His warehouse contained skins of Birds of Paradise prepared by the natives of Kai, Aru and New Guinea, as well as the feathers of other exotic and coloured species from the rainforest. Where his predecessors had sent the bird-skins to decorate the fans and turbans of a few Indian and Malay potentates, Bin Saleh now had a larger and more voracious market. He shipped his bird-skins to the milliners of Europe, who at the peak of the fashion craze were said to be importing 50,000 bird-skins a year to provide decorations for ladies' hats.