The Encumbered Author

Singapore was another colonial outpost created for the express purpose of trade by the British East India Company. Its founding by Sir Stamford Raffles has become the stuff of legend in romantic accounts of European travels to the east. Founded on the banks of the Singapore River in place of a fishing village in what was basically a swamp, Singapore became a heavy weight in international trade within a matter of years. The success of the new East India Company port was largely due to Sir Stamford Raffles declaring Singapore a free port. This meant vessels could use the port without paying taxes, making it a popular stop in the Malacca Straits. Unfortunately the free port status also came with a major problem for the administration of the colony. No taxes collected resulted in shortfalls in public funds for basic maintenance. Major General Farquhar solved this problem by making gambling, opium and prostitution legal in Singapore and taxing it heavily. This meant the port became a seething hotbed of iniquity and vice, while generating huge income for the British East India Company.