A Century of Wrong

by Jan Christiaan Smuts

The character of the financial administration must have been erroneously represented to Her Majesty's Government if it was simply stated that defalcations to an amount of £18,590 had taken place. It would ex facie appear from such a statement that the above defalcations had taken place during the past year; as a matter of fact, the Inspection Department, which has only recently been called into existence, reported over financial matters covering the years 1884 to 1896.

It is unfair to characterise all deficiencies as defalcations, for from the nature of the case a deficiency does not always constitute a defalcation. The report specified the sub-divisions of monies which had yet to be accounted for. The first item in such deficiencies amounted originally to £12,000, and of this £6,000 was afterwards collected, and the balance was only brought forward; another item of £10,808 11s. was brought forward in its entirety, but £3,000 of this was eventually collected and accounted for, while continual efforts were made to secure the balance. Many items not brought forward were collected long before and accounted for, while during the inspection of last year it was found that a sum of £800 yet remained to be paid in out of the deficiencies, which balance has been accounted for.

The contention that advances to officials amounting to £2,398,506 16s. 8d. have remained unaccounted for is also absolutely incorrect; and the endeavour to pass this circumstance off as constituting defalcations on the part of officials bears ample witness to the strong desire to mislead which has actuated the informants of Her Majesty's Government.

Any person who is even superficially acquainted with financial administration will readily admit that this is due to a system of accounting which was followed until recently by Her Majesty's Government, and which obtains in some British Colonies, in Natal, for instance, at the present moment.

This system may deserve condemnation; it does not, however, necessarily follow that because the advances may not be speedily accounted for they have been embezzled, and it does not appear either from the report of the Inspector of Offices, or from the debates of the Volksraad, that such accusations were made. But in addition to this a sum of at least £1,968,306 is included in the aforesaid total of £2,398,506 16s. 8d. (but which is not comprised in the customary advances), such as Orphan Chamber £80,000, Indigent Burghers £150,000, Postal Orders £60,000, various loans to School Committees, Sanitary Boards, and for Waterworks, Hospitals, Committees, monies placed at interest in Europe, provisional loans to Railway Companies, purchases of food stuffs and mules in time of famine, and many others.

Items, too, of considerable importance appear in the advances, although they have really been accounted for up to within a pound or two, because for one reason or another it has not been possible to write off the exact total, the amounts still to be accounted for having dwindled to a very insignificant figure.

The contention that during 1896 a sum of £191,837 was paid out of the Secret Service Money is also absolutely unfounded, for in that amount a sum of £158,337 was included which was used for special Government Works, as was expressly stated in a foot-note on page 44 of the Estimates for 1897. The Secret Service Fund for that year (1896) did not amount to more than £33,500. This faulty information, supplied to Her Majesty's Government, is apparently taken from the said Estimates, it would seem with the fixed determination to ignore the explanatory foot-note on page 44.

It is incorrect to state that the system of granting concessions remains in full force. Where the Right Hon. the Secretary of State in his despatch refers to industrial concessions, this Government may remark that these are privileges granted in order to stimulate and protect local industry, and the contention that these concessions will develop into practical monopolies is not supported by any evidence; results will show that misleading information has been given here as well.

With regard to the question of education which has been dealt with in the dispatch of the Right Hon. the Colonial Secretary, this Government wishes to point out that the amount expended on education during the year 1898 was £226,219 4s. 8d. In the former year it was less. Of this amount £36,503 17s. 2d. was devoted to Education on the Gold Fields (for State as well as for subsidized schools). As the number of scholars under Act 15, 1896, as well as that of the teachers, have considerably increased, the amount during the current year will probably be £53,000. The conditions on which this money is given are certainly not such as to exclude the children of Uitlanders from its benefits. According to Volksraad Resolution of 1st June, 1892 (and amendments), schools where a foreign language was the medium of instruction were entitled to a subsidy of 20s. per pupil per quarter for the lower standard, and 25s. for the middle standard, provided that certain requirements as to knowledge of the official language of the country were complied with. These requirements are a standard lower than that for children of burghers in the country, who are taught in schools governed by Law No. 8 of 1892.

Few, if any, Uitlanders avail themselves of this offer; the few who have done so are now satisfied with it, and continue to enjoy the privileges of the resolution, although it was only renewed in 1898 for those schools which made a bona fide use of it. Law No. 15, 1896, made provision for the children of poor parents and strangers on the proclaimed gold fields entirely at State expense, and 13 schools have been established by this law—with 51 teachers and about 1,500 scholars—at Barberton, Pilgrims' Rest, Kaapsche Hoop, Johannesburg (5, viz., 1 in von Brandis Street, 1 at Braamfontein, 1 at Union Ground, 1 at Vredesdorp, and 1 in Market Street), Maraisburg, Krugersdorp, Randfontein, Klerksdorp, and Nigel. In addition to these, preparations are being made for State schools at the City and Suburban, Bertramstownship, Johannesburg, and at Roodepoort (Krugersdorp).