The total casualties in the Union Defence Forces up to December 23 were 755—334 during the fighting with rebels and 369 from the fighting with the Germans. The killed in the rebel campaign numbered seventy-eight and in the German engagements sixteen. The rebels killed in action numbered 170. The rounding up of rebel parties was still going on. On December 30, however, it was reported that Maritz, with Kemp second in command, had successfully attacked a Union force, 480 strong, near Schuit Drift on the 22nd, and had compelled it, with its reinforcements, to retire with the loss of ninety prisoners, a maxim, 80,000 rounds of ammunition, an ambulance and twenty-six empty waggons. As Maritz's force was described as 800 rebels, with four field guns and four maxims, and as the Union force lost only one man killed and one wounded, though it offered "a vigorous resistance," the despatch was clearly incomplete. On December 31 the Government put in force the provisions of the Defence Act, empowering them to commandeer men for military service, and it was officially admitted that dependence on voluntary service was inadequate in view of the German menace.
The war and the rebellion have reduced other events of the South African Union to relative insignificance. But there are matters of permanent interest which cannot here be left aside; and first in importance is the renewal of the strife between white Labour and Capital, a strife which shook Johannesburg to its foundations in the summer of 1913 (A.R., 1913, p. 416 sq.). The superficial cause of the renewal in January was the dismissal of sixty men from the Government railways, men paid by the day and subject to twenty-four hours' notice of dismissal. The real question, however, was whether the Trades Federation should control such dismissals and the administration of the railways. The dismissals were due to a policy of retrenchment. Mr. Poutsma, the secretary of the Railwaymen's Union, failing to get satisfaction at the hands of Mr. Burton, the Minister for Railways, threatened a strike. The Railway Union resolved to strike and the Executive of the Federation of Trades called upon all unionists and non-unionists to support them. Much anxiety was felt in view of the previous riots, when Imperial troops had to be brought into Johannesburg and there was serious rioting and loss of life; but by this time the Union Defence Forces had been organised and when the plans of the strikers were put into operation on January 9 the Government were prepared for emergencies. Simultaneously with the stoppage of the railways they called up the Citizen Defence Force in certain areas and let it be known they would call out the entire force if needs be. They also arrested a number of labour leaders, including Mr. Poutsma, on charges of having used seditious language, and lodged them in jail. By the following day there were 60,000 burghers under arms. The Trades Federation threatened a general strike of all trades and ordered a ballot to be taken. The Government, through the Railway Minister, reiterated their refusal to reinstate the men and drop the policy of retrenchment. They attempted to run a partial service, with which the strikers interfered where it was possible. The trouble spread throughout the Union and was complicated by an outbreak of Basutos at Jagersfontein Mine, the cause being the death of a Basuto, the result, it was alleged, of a kick by a white man employed by the management. The dismissal of the man was demanded and refused. The Basutos broke out of the compound, which they wrecked, and caused a panic in the town. Troops were brought on the scene and in the fighting eleven Basutos were killed and thirty-six wounded. A Committee of Public Safety was set up in Johannesburg, and the Government took a very serious view of the situation. There was a two-thirds majority of the Federated Trades for a general strike, which was proclaimed on the 13th. The miners were to come out the following day. The Government at once proclaimed martial law and mobilised 20,000 men on the Rand. Trouble was apprehended in the native compounds. The town was full of troops. Ministers went about with armed guards. Business was suspended. The president and secretary of the Federation of Trades, with some 200 of their supporters, barricaded themselves in the Trades Hall and successfully resisted arrest. There was an affray outside the hall in which the police used bayonets. The Trades Hall was besieged by a force of burghers with machine guns, and means were taken to impress the besieged with the Government's determination to effect the arrest of the leaders. On a field gun being placed in position the secretary of the Federation appeared at a window and after protesting against the display of force offered an unconditional surrender. With the arrests thus accomplished the situation became less alarming and in a few days the strike collapsed. Normal industrial conditions were quickly resumed and the citizen force demobilised. On the 21st the general strike was formally declared "off." By this time there was scarcely a Labour leader anywhere in the Union who was not under arrest. Among those arrested was Mr. Cresswell, a member of Parliament, who was sentenced to a month's imprisonment and a fine of 20l. for publishing a pamphlet; but this sentence was remitted on the ground that the Government did not desire to deprive the Labour party of its spokesmen in Parliament in the coming discussions. On the 27th it was announced that the Government had decided to deport ten of the principal labour leaders, Mr. Watson, president of the federation, Mr. Poutsma, secretary of the Railway Men's Society, Messrs. Bain, Mason, Crawford, Waterson, Kendall, McKerrell, Livingstone and Morgan. The men were secretly conveyed to Natal and put on board a steamer—the Umgeni—which sailed forthwith for England (pp. 12, 24, 35). Application on behalf of the men was made to the courts but without result. The deportation had taken place and the restraining power of the courts forestalled. The illegality caused profound resentment in South Africa.
The South African Parliament was opened by Lord Gladstone on January 30. The Governor-General's inaugural speech dealt with the strike in cautious but yet definite language. The extension of the trouble to all trades "finally convinced my Ministers that the safety and well-being of the whole Union made the declaration of martial law imperative.... The measures taken and the effective display of force by the citizens of the Union happily succeeded in preventing any serious disturbance and in restoring order without bloodshed. Certain measures will be submitted to you in connexion with the action taken by my Ministers during the exceptional conditions to which I have referred." Nothing, however, was said of the deportations. On February 2 a Bill was introduced by General Smuts indemnifying the Government and its servants for all acts done under martial law and prohibiting the return of the deported persons. Sir Thomas Smartt, the leader of the Opposition, who had supported the Administration during the trouble, asked for an explanation of the Government's acts. Mr. Cresswell, the leader of the Labour party, condemned the deportations and accused the Government of a conspiracy with the capitalists to run the country in their own interests. A Ministerial statement was made on the second reading, which was moved by General Smuts. It occupied several hours in delivery. As to the first part it was an elaborate and rhetorical survey of the industrial troubles of the country and an indictment of the Labour party as "Syndicalists." General Smuts suggested that the natives on the Rand had been drawn into the movement. On one mine 1,500 assegais had been found. He made no attempt to dispute the illegality of the deportations. There had been three revolutionary attempts within six months, and after anxious consideration Ministers resolved to strike down by deportation ringleaders whose acts and speeches and associations showed they had committed themselves to a conspiracy against constituted order. Why not a trial? His reply to that was that the situation was novel and not less treasonable and perilous because the acts had not come within the law of treason. Having regard to the supreme interests of the State the Government "could not run the ordinary risks of the law courts." He acquitted Lord Gladstone of any responsibility for the deportations; the decision to deport was that of the Cabinet alone. At a later stage General Smuts issued a return of thirty-eight outrages during the January disturbances, in several instances dynamite and other explosives being used. The leader of the Opposition, while criticising the Government, declined the responsibility, seeing that deportation was accomplished, of giving a vote which would enable the deportees to return to the country. The debates were continued until February 24, when, after an all-night sitting, the second reading was carried by 95 votes to 11. Meanwhile the deportees had landed in England (p. [35]). After a hard fight in Committee the Indemnity Bill was passed.
Among other legislation passed were a Riotous Assemblies Act, an Act for the Protection of Workmen's Weekly Wages and an Industrial Dispute Act, setting up a system of conciliation. During the Session the Report was issued of the Commission on labour, wages and economic conditions in the Union. This document showed that the cost of living on the Rand was 40 per cent. higher than in the United States and 80 per cent. higher than anywhere in Europe; wages were put at 40 per cent. higher, than in the United States and 225 per cent. higher than in any European country. The Commission recommended the establishment of an Advisory Council to deal with native questions, and an Industrial Commission to administer labour legislation, the extension of which was advised. The Commission found that competition of skilled white workers with natives and Indians is negligible, and advised that barriers should not be placed in the way of non-white labour by the State. They concluded that the Government ought not to lay down a minimum subsistence wage and that employers should "recognise" trade unions. They advised legal protection for non-unionists and declared that strikes among the white workers had caused unrest among the natives. One effect of the deportations and the debates on the Indemnity Bill was to be seen in the stimulation of political activity among the Labour men, who gained a majority of one in the elections for the Transvaal Provincial Council.
At a Party Congress in January General Hertzog, who seceded with his followers from the National party, decided to form a new party. This was done. A general election is due in 1915. General Hertzog's position as a party leader was unassailable in the Orange Free State until the time of the war.
The Budget of the Union showed that the expenditure for 1913-14 was 16,481,000l. and the revenue 15,794,000l., a deficit of 687,000l. The Finance Minister said the funded debt on March 31, 1914, amounted to 117,671,000l., and the floating debt to 7,308,000l., against 105,856,000l. and 11,972,000l. respectively. On March 31, 1913, the total debt was 124,980,000l., as compared with 116,502,000l. at the time of the Union. He estimated the expenditure for 1914-15 at 16,668,000l., an increase of 187,000l. as compared with 1913-14, for which the service of the public debt and the provincial administrations were largely responsible. He estimated the revenue at 15,707,000l., excluding the Bewaarplaatsen, leaving a deficit of 961,000l. Half of the Bewaarplaatsen, however, would be available to meet this, and the actual deficit would be 711,000l. These estimates were made in April—before the war, when the finances of the Union were strengthened by a loan of 7,000,000l. from the Imperial Government. The Government policy of economy and retrenchment was checked by the January industrial troubles and later in the year by war and rebellion.
The Times Capetown correspondent reported on December 26 that Treasury figures indicated that the deficit at the end of the financial year 1915 would be between 2,500,000l. and 3,000,000l., apart from war expenditure. The deficit was mainly due to the stoppage of the diamond industry and the heavy fall in customs and other revenue. The cost of the war and the rebellion in November was over 1,000,000l., and the 2,000,000l. voted in September for operations against German South-West Africa had been exhausted by the end of that month.
The Indian grievances, which assumed dangerous proportions towards the end of 1913 and continued to be an embarrassment during the early months of 1914, were composed by the passing of a relief measure through the Union Parliament before the Prorogation in July. The Bill was founded on the recommendations of the Commission appointed in consequence of the strike disorders in Natal and the passive resistance movement under the leadership of Mr. Gandhi. At the outset the Commission met with Indian hostility, Mr. Gandhi taking the view that some of its members were partisans; but he modified this attitude when Lord Hardinge welcomed the appointment of the Commission and sent an Anglo-Indian of distinction, Sir Benjamin Robertson, to follow the proceedings in the interests of India. The Report advised the abolition of the 3l. licence and made recommendations on the marriage question and administrative matters. It created a favourable impression in India as well as in South Africa and the Act founded upon it was regarded by Mr. Gandhi as the Magna Carta of Indian liberty in South Africa. On leaving Africa in July he told the Indians that their difficulties were not over, but spoke of the settlement as "generous." He appealed to Europeans to take a humanitarian view of the Indian question and told the Indians that their future under the settlement depended on themselves. There was no further news, the war obliterating the subject.
In Rhodesia the elections to the Legislative Council in March resulted in the return of pro-Charter candidates. As the six non-elected members are appointed by the British South Africa Company the Council was thus pledged to the maintenance of the existing form of Government, subject to the action of the Imperial authorities, who had the right to review, on October 29, 1914, the administrative powers of the Company. The anti-Charterists were composed of groups in favour of responsible Government, or of Crown Colony Government as a step to that, or of inclusion in the South Africa Union, though this last expedient had few advocates. The groups combined on a "common platform," the chief feature of which was "to make an immediate and definite move in favour of responsible Government by urging the Imperial Government as an initial step to assume provisional control of the Executive, preliminary to arranging with the British South Africa Company the price to be paid for such public works and buildings as would be required, and granting a Constitution, in accordance with the wishes of the people." The pro-Charter candidates received 3,324 votes and their opponents 1,733. The elections were a complete victory for the Company and were held to demonstrate the unripeness of the country for a responsible system. On October 8 the Secretary of State for the Colonies issued a document saying that the question of the future administration of the territories had been under the careful consideration of His Majesty's Government. The Charter, dated October 29, 1889, reserved to the Crown the power at the end of twenty-five years, and at the end of every successive period of ten years, to add to or repeal any of the provisions, but only in relation to so much of the Charter as related to administrative and public matters. Failing the exercise of this power the Charter was automatically extended for another ten years. His Majesty's Government were advised that there was no power in the Charter or elsewhere to shorten or vary the periods. The Directors of the Company had, however, informed the Secretary of State that they would not regard the non-exercise of the right to review by His Majesty's Government as any bar to the establishment of responsible Government should the time appear to be ripe for such a step within the ten years ensuing, and that if, during those ten years, the inhabitants of Southern Rhodesia should find that they were, financially and in other respects, strong enough to assume, with the concurrence of the Imperial Government, the burden of administration, they, the directors, "would be most willing that effect be given to that desire." In view of that statement and the desire of the newly elected Legislative Council for a continuance of the Company's administration, His Majesty's Government had decided not to advise His Majesty to exercise the powers reserved under Article 33 of the Charter, and its provisions would not accordingly be modified. His Majesty would, however, in due course be advised to issue a Supplemental Charter giving effect to the arrangement to which the Directors had agreed and to render possible the establishment of responsible Government in Southern Rhodesia, should the Legislative Council desire it and the Imperial Government concur within the ten years. This announcement closed the controversy, with what satisfaction to Rhodesians is not yet known. The settlers have since had more important matters in hand. Some returned to this country to join the forces of the Crown and many were formed into contingents for the prosecution with the Union of the war in South Africa.
The vexed question of the Chartered Company's claim to the ownership of all land not already transferred to other proprietors, and the contrary claim that the Company holds such land only as trustee for administrative purposes, was put in the way of judicial settlement. The Imperial Government had declined to pronounce on the matter, holding that it was one of the laws determinable only by the courts. In March, however, Mr. Harcourt, the Secretary of State for the Colonies, proposed to the Company that the claim should be referred to the Judicial Committee of the Privy Council. The newly elected Legislative Council of Southern Rhodesia therefore passed a resolution on April 17 contesting the Company's claim to all unalienated land. It appointed a Committee of three to collect evidence and voted 5,000l. for Counsel's fees and other expenses. On July 16 the Order of Reference to the Judicial Committee was published. It recited that the Secretary of State for the Colonies had that day communicated the resolution passed by the Legislative Council of Southern Rhodesia on April 17, 1914, claiming on behalf of the inhabitants and people: (1) that the ownership of the unalienated land in Southern Rhodesia was not vested in and had never been acquired by the British South Africa Company as their commercial or private property, and that any powers of dealing with land that were possessed by it belonged to it solely as the governing body of the territory; (2) that any ownership of the said land that the Company might have acquired was vested in them as an administrative and public asset only; and (3) that on the Company ceasing to be the Government of the territory, all unalienated lands should become the property of the Government, taking the place of the Company as public domain.