Land settlement.
"This subject has for long occupied my attention," he wrote, "and, in a tentative way, a good deal has been done. But we have reached a point where little more progress can be made without a decision on the main issues. The question is, whether British colonisation is to be undertaken on a large and effective scale, under Government control and with Government assistance, or to be left to take care of itself, with whatever little help and sympathy an Administration, devoid of any general plan, and with no special funds devoted to the particular purpose, can give it.... The principal consideration is the necessity of avoiding a sharp contrast and antagonism in the character and sentiments of the population between the country districts and the towns. If we do nothing, we shall be confronted, sooner or later, with an industrial urban population, rapidly increasing, and almost wholly British in sentiment, and, on the other hand, a rural population, wholly Dutch, agriculturally unprogressive. It is not possible to contemplate such a state of affairs without grave misgivings. We shall have to reinstate the bulk of our prisoners upon their farms, and provide them with the means of starting life anew, but unless we at the same time introduce some new element we may be simply laying up the material for further trouble. The land will remain as neglected, the attitude of the rural population as unprogressive, and as much out of sympathy with British ideas as ever.... To satisfy these demands, it is clear that no small and makeshift scheme will suffice. Land settlement must be undertaken on a large scale; otherwise, however useful, it will be politically unimportant.
"The time is fast approaching when it will be absolutely necessary to raise loans for both new colonies to meet expenses arising immediately out of the war. I wish to place on record my profound conviction that unless, in raising these loans, we provide a substantial sum for the purchase of land and the settlement thereon of farmers of British race, an opportunity will be lost which will never recur, and the neglect of which will have the most prejudicial effect on the future peace and prosperity of South Africa. I do not, indeed, ask that these first loans should include a sum as large as may ultimately be required if land settlement is to assume the proportions which I contemplate. But, if our first considerable undertakings in this line are proving themselves successful, I foresee no difficulty in obtaining more money later on, should we require it. What I do fear is a check now, when we ought to be in a position to seize every possible opportunity of getting hold of land suitable to our purpose, and of retaining in the country such men as we want to put on it. If we lose the next year or two we lose the game, and without that power of acting promptly, which a ready command of money alone can give, we shall begin to throw away opportunities from this moment at which I am writing onwards.
"What I want to put plainly to His Majesty's Government are these two questions: (1) Are we to be allowed to go on purchasing good land, by voluntary agreement wherever possible, but compulsorily, if necessary? And, assuming this question to be answered in the affirmative, (2) what amount shall we be able to dispose of for this purpose in the immediate future?"[319]
It had been arranged during Lord Milner's last visit to England that the large expenditure inevitably arising out of the economic reconstruction and future development of the new colonies, should be provided by a loan secured upon their assets and revenues. The purposes for which this immediate outlay was especially required were the acquisition of the existing railways and the construction of new lines, land settlement, the repatriation of the Boers, and the compensation of loyalists for war losses both in the new colonies and in the Cape and Natal. Lord Milner now proposed that the Home Government should decide to appropriate, out of the funds to be thus raised, a sum of £3,000,000 to land settlement, and that of this sum £2,000,000 should be spent in the Transvaal and £1,000,000 in the Orange Colony. The "development" loan, as it was called, was not issued until after Mr. Chamberlain's visit to South Africa in the (South African) summer of 1902-3; but Lord Milner's proposal was approved in principle, and he was enabled to employ the limited resources at his disposal in the purchase of blocks of land suitable for the purposes of agriculture in both colonies.
Apart from the progress thus achieved in this matter of supreme importance, as Lord Milner deemed it, to the future of South Africa, the preparation of the administrative machinery, the matériel of transport, and the supplies of all kinds required for the repatriation of the Boers, was pushed forward with increasing activity. At the same time certain other administrative questions were brought by him to the consideration of the Home Government during these months (January to May, 1902), with the result that the ink was scarcely dry upon the Treaty of Surrender before he was able to ask for, and obtain, decisions upon them.
On the eve of peace.
The telegrams which passed between Lord Milner and the Colonial Office on these matters, during the weeks immediately preceding and following the Vereeniging surrender, are significant. Beside the clear thrust of Lord Milner's calculated energy, Mr. Chamberlain's efforts to keep pace with the needs of the situation sink into comparative inertia. On April 18th Lord Milner telegraphs the particulars of the 10 per cent. tax which he proposes to levy on the net produce of the mining industry. The rate is high—twice as high as the gold tax under the Republic—and will yield an annual revenue of £500,000 or £600,000 on a basis of the present normal production of the mines; but he believes that it will be "accepted without serious opposition, if it is imposed while the industry is rapidly advancing." And he expresses the hope that the explanation which he has furnished will be "sufficient to show the principles" of the tax, and that he may publicly announce the decision on this matter of such general economic importance at once. Mr. Chamberlain, however, requires further information; and we find Lord Milner telegraphing on June 2nd: "I trust you will now agree to the tax on the profits of gold mines; I am anxious to publish the Proclamation in next Friday's Gazette." And to this Mr. Chamberlain replies on June 4th, "I agree to the imposition of a 10 per cent. tax on the profits of gold mines." On June 2nd, that is, two days after the terms of surrender have been signed at Pretoria, Lord Milner sends a "most urgent" telegram on the immediate financial position:
"The departments are still very busy with the estimates of the new colonies and Constabulary. They are rather late this year, but that was quite unavoidable. The result promises to be good. We can pay for all normal expenditure and the 6,000 South African Constabulary out of revenue. But, as you know, there is nothing provided for the various extraordinary items which have been hitherto financed out of the £500,000 grant for relief and re-settlement. In all my estimates I have relied on a loan for this. As I understand, the loan is deferred. As the £500,000 is nearly exhausted, and it would be disastrous if land settlement, which latter is at last making good progress, were stopped, especially at this juncture, I would ask for immediate authority to spend another £500,000 on these purposes. This is independent of the amounts which will be required under the last clause of the Terms of Surrender, about which I will address you immediately. I earnestly hope that there may be no delay in acceding to this request. The work to be got through in the immediate future is so enormous that, unless we can get the fundamental questions of finance settled promptly, a breakdown is inevitable. It would be a great relief to my mind to feel that services already started and working well were provided for at least for some months ahead, before I plunge into the new and heavy job of restoring the Boer population, which will require all my attention in the immediate future."[320]
Mr. Chamberlain's reply comes on June 18th: