PRIOR to the nineteenth century the whole of the world'ssupply of cinnamon came from Ceylon; and the monopolywas one of the most lucrative branches of the Dutch East India Company's trade. Until 1769 the Dutch were entirely dependent upon the cinnamon which grew wild in the jungles, over three-fifths of the annual supply being obtained from Kandy. The situation was unsatisfactory, since the Kandyans frequently refused to 'permit the cinnamon peelers to enter their country. Governor Falck in 1769 established a cinnamon garden at Maradana near Colombo; and by 1795 four smaller plantations had been formed at Negombo, Kalutara, Galle, and Matara. In addition, the Dutch encouraged the Sinhalese to form I an infinite number of small gardens'. The Dutch, however, never became more than partially independent of Kandyan supplies. I The cinnamon trade was a monopoly of the Company, and was preserved by a very stringent code of laws. The sale or export of a single stick of cinnamon except by the servants of Government, as well as the wilful injury of the tree, were punishable by death. 2 From 1691 to 1794, the date of the last Dutch shipment, the average annual export was limited to 400,000 lb., the estimated world consumption. The price was fixed at as high a figure as the market could be induced to pay, the profit on the sales averaging 200 per cent.3 The collection and export of cinnamon were controlled by a Cinnamon Department under a European Superintendent; while the native cinnamon peelers formed a separate and privileged caste. Their own native headmen supervised the work of collection and also

I Tennent, Ceylon, ti. 51 and 163; Anthonisz, Reptwt on the Dutch Rectwds, 79-81 ; Cordiner, Ceylon, i. 414-16. Before 1769 all save 1,500 to 1,700 of the annual Dutch export of about 5,000 bales was obtained from Kandy (Bertolacci, Ceylon, 240-2 and 248-50).