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 Dr Jameson’s programme was largely one of material development. In the words of the speech opening the 1905 session of parliament, “without a considerable development of our agricultural and pastoral resources our position as a self-sustaining colony cannot be assured.” This reliance on its own resources was the more necessary for the Cape because of the keen rivalry of Natal and Delagoa Bay for the carrying trade of the Transvaal. The opening up of backward districts by railways was vigorously pursued, and in other ways great efforts were made to assist agriculture. These efforts to help the country districts met with cordial recognition from the Dutch farmers, and the release, in May 1904, of all rebel prisoners was another step towards reconciliation. On the exclusion of Chinese from the colony the Bond party were also in agreement with the ministry. An education act passed in 1905 established school boards on a popular franchise and provided for the gradual introduction of compulsory education. The cultivation of friendly relations with the neighbouring colonies was also one of the leading objects of Dr Jameson’s policy. The Bond, on its side, sought to draw closer to Het Volk, the Boer organization in the Transvaal, and similar bodies, and at its 1906 congress, held in March that year at Ceres, a resolution with that aim was passed, the design being to unify, in accordance with the original conception of the Bond, Dutch sentiment and action throughout South Africa.

Native affairs proved a source of considerable anxiety. In January 1905 an inter-colonial native affairs commission reported on the native question as it affected South Africa as a whole, proposals being made for an alteration of the laws in Cape Colony respecting the franchise exercised by natives. In the opinion of the commission the possession of the franchise by the Cape natives under existing conditions was sure to create in time an intolerable situation, and was an unwise and dangerous thing. (The registration of 1905 showed that there were over 23,000 coloured voters in the colony.) The commission proposed separate voting by natives only for a fixed number of members of the legislature—the plan adopted in New Zealand with the Maori voters. The privileged position of the Cape native was seen to be an obstacle to the federation of South Africa. The discussion which followed, based partly on the reports that the ministry contemplated disfranchising the natives, led, however, to no immediate results.

Another disturbing factor in connexion with native affairs was the revolt of the Hottentots and Hereros in German South-West Africa (q.v.). In 1904 and the following years large numbers of refugees, including some of the most important chiefs, fled into British territory, and charges were made in Germany that sufficient control over these refugees was not exercised by the Cape government. This trouble, however, came to an end in September 1907. In that month Morenga, a chief who had been interned by the colonial authorities, but had escaped and recommenced hostilities against the Germans, was once more on the British side of the frontier and, refusing to surrender, was pursued by the Cape Mounted Police and killed after a smart action. The revolt in the German protectorate had been, nearly a year before the death of Morenga, the indirect occasion of a “Boer raid” into Cape Colony. In November 1906 a small party of Transvaal Boers, who had been employed by the Germans against the Hottentots, entered the colony under the leadership of a man named Ferreira, and began raiding farms and forcibly enrolling recruits. Within a week the filibusters were all captured. Ferreira and four companions were tried for murder and convicted, February 1907, the death sentences being commuted to terms of penal servitude.

As the result of an inter-colonial conference held in Pietermaritzburg in the early months of 1906, a new customs convention of a strongly protective character came into force on the 1st of June of that year. At the same time the rebate on goods from Great Britain and reciprocating colonies was increased. The session of parliament which sanctioned this change was notable for the attention devoted to irrigation and railway schemes. But one important measure of a political character was passed in 1906, namely an amnesty act. Under its provisions over 7000 ex-rebels, who would otherwise have had no vote at the ensuing general election, were readmitted to the franchise in 1907.

While the efforts made to develop the agricultural and mineral resources of the country proved successful, the towns continued to suffer from the inflation—over-buying, over-building and over-speculation—which marked the war period. As a consequence, imports further declined during 1906–1907, and receipts being largely dependent on customs the result was a considerably diminished revenue. The accounts for the year ending 30th of June 1907 showed a deficit of £640,455. The decline in revenue, £4,000,000 in four years, while not a true reflection of the economic condition of the country—yearly becoming more self-supporting by the increase in home produce—caused general disquietude and injuriously affected the position of the ministry. In the session of 1907 the Opposition in the legislative council brought on a crisis by refusing to grant supplies voted by the lower chamber. Dr Jameson contested the constitutional right of the council so to act, and on his advice the governor dissolved parliament in September. Before its dissolution parliament passed an act imposing a profit tax of 10% on diamond- and copper-mining companies earning over £50,000 per annum, and another act establishing an agricultural credit bank.

Mr Merriman, Premier.—The elections for the legislative council were held in January 1908 and resulted in a Bond victory. Its supporters, who called themselves the South African party, the Progressives being renamed Unionists, obtained 17 seats out of a total of 26. Dr Jameson thereupon resigned (31st of January), and a ministry was formed with Mr J. X. Merriman as premier and treasurer, and Mr J. W. Sauer as minister of public works. Neither of these politicians was a member of the Bond, and both had held office under Cecil Rhodes and W. P. Schreiner. They had, however, been the leading parliamentary exponents of Bond policy for a considerable time. The elections for the legislative assembly followed in April and, partly in consequence of the reinfranchisement of the ex-rebels, resulted in a decisive majority for the Merriman ministry. There were returned 69 members of the South African party, 33 Unionists and 5 Independents, among them the ex-premiers Sir Gordon Sprigg and Mr Schreiner. The change of ministry was not accompanied by any relief in the financial situation. While the country districts remained fairly prosperous (agricultural and pastoral products increasing), the transit trade and the urban industries continued to decline. The depression was accentuated by the financial crisis in America, which affected adversely the wool trade, and in a more marked degree the diamond trade, leading to the partial stoppage of the Kimberley mines. (The “slump” in the diamond trade is shown by a comparison of the value of diamonds exported from the Cape in the years 1907 and 1908; in 1907 they were valued at £8,973,148, in 1908 at £4,796,655.) This seriously diminished the revenue returns, and the public accounts for the year 1907–1908 showed a deficit of £996,000, and a prospective deficit for the ensuing year of an almost equal amount. To balance the budget, Mr Merriman proposed drastic remedies, including the suspension of the sinking fund, the reduction of salaries of all civil servants, and taxes on incomes of £50 per annum. Partly in consequence of the serious economic situation the renewed movement for the closer union of the various South African colonies, formally initiated by Dr Jameson in 1907, received the support of the Cape parliament. During 1907–1908 a national convention decided upon unification, and in 1910 the Union of South Africa was established (see : History).

Leading Personalities.—The public life of Cape Colony has produced many men of singular ability and accomplishments. The careers of Cecil Rhodes, of Jan Hendrik Hofmeyr, and of Dr L. S. Jameson have been sufficiently indicated (see also their separate biographies). Sir Gordon Sprigg, four times premier, was associated with the Cape parliament from 1873 to 1904, and was once more elected to that assembly in 1908. In and out of office his zeal was unflagging, and if he lacked those