There is, however, one incident in the colonial administration of Lord Derby on which it is necessary to dwell at somewhat greater length, for subsequent events have given it an unfortunate prominence and it has thrown some discredit on his statesmanship. I allude, of course, to the convention with the Transvaal in 1884. In the preceding convention, which had been signed in August 1881, complete self-government had been granted by England to the Transvaal 'subject to the suzerainty of her Majesty' and her successors, and also to a large number of carefully specified reservations and limitations. They comprised the complete control of the external relations of the Transvaal, including the conclusion of treaties and the conduct of diplomatic intercourse with foreign Powers, which could only be carried on through her Majesty's officers; the right of moving British troops in case of necessity through the Transvaal; a power of veto over all legislation affecting the interests of the native population. A number of articles prohibited slavery in the new State; protected with much detail the interests of the native population; secured complete religious liberty; established the right of all persons other than natives who conformed themselves to the laws of the State, to enter, travel, and reside in any part of the Transvaal, to acquire property and to carry on their business without being subject to any other taxation than that which was imposed on the citizens of the Transvaal; and placed British imports and exports on the same plane as those of the most-favoured nations. The limits of the new State were carefully defined and a British Resident was established in the Transvaal to superintend the carrying out of these provisions. There was no express provision in the convention for the political privileges of the English residents in the Transvaal, but the Government appear to have relied on a not very explicit verbal assurance given to the British Commissioners by President Kruger in May 1881. Asked about the rights of British subjects to complete free trade throughout the Transvaal, President Kruger answered that before the annexation 'they were on the same footing as the burghers'; that 'there was not the slightest difference in accordance with the Sand River convention'; that this state of things would be continued and that 'there would be equal protection for everybody.' Sir Evelyn Wood then added, 'and equal privileges?' 'We make no difference,' answered President Kruger, 'so far as burgher rights are concerned. There may perhaps be some slight difference in the case of a young person who has just come into the country.' It was subsequently explained that the words 'young person' did not refer to age, but to the time of residence in the Republic—according to the old Transvaal Constitution, a year's residence in the Republic was necessary for naturalisation. With this assurance the Government of 1881 appears to have been content. They believed in words expressly sanctioned by Mr. Gladstone, that the concession of limited independence to the Transvaal by the convention of 1881 would 'provide for the full liberty and equal treatment of the entire white population, guard the interests of the natives, and promote harmony and good-will among the various races in South Africa.'[43] As a matter of fact, the only change in the political position of the English residents in the Transvaal was that the period of naturalisation was extended from one to five years—a change which appears to have produced little or no commotion in the Republic.

The convention of 1881 was, however, extremely unpopular among a large section of the Boer population. Complete independence was their avowed object, and in order to attain it their first task was to abolish the suzerainty of Great Britain. Almost immediately after the convention was signed, the limitations of the Transvaal established by the convention were flagrantly disregarded by Transvaal filibusters, who proceeded with the tacit and even with the avowed countenance of their Government to place new sections of native territory under the exclusive protectorate of the Transvaal Government;[44] and a deputation, headed by President Kruger, came to England in 1883 for the purpose of negotiating with the Colonial Office for the abolition of the chief articles of the convention of 1881. They avowed with complete frankness that absolute independence would alone satisfy them, and that their desire was to revert to the Sand River convention of 1852, by which this independence had been recognised. This demand was absolutely rejected by the Imperial Government, but Lord Derby attempted to meet the objections of the Transvaal leaders by substituting for the articles of the convention of 1881 new articles in several respects more favourable to the pretensions of the Boers.

He, in the first place, made a sentimental concession to which it is probable he attached little importance, but which was regarded by the Boer population as a considerable step towards the achievement of their independence. The term 'Transvaal State,' which was accepted in the convention of 1881 as the designation of the new State, was dropped and the old title of 'South African Republic' was revived and recognised. The question of suzerainty was dealt with in a somewhat ambiguous fashion. The new convention purported only to substitute new articles in the place of those of the preceding convention; and it was afterwards argued that the old preamble, which asserted at once the internal independence of the Transvaal and the suzerainty of Great Britain, remained in force. In fact, however, this preamble was neither reprinted nor replaced in the new convention, and the term 'suzerainty,' which occurred in the original draft of the document, was deliberately expunged—it is said by Lord Derby himself. He considered the term wholly wanting in the precision which is desirable in a treaty arrangement, that it was capable of many different degrees of extension, and that the fact of the paramountcy of Great Britain over the new State might be sufficiently established without the use of an ambiguous word which excited the most bitter hostility in the Transvaal. His own words in defending his conduct in the House of Lords are perfectly clear. 'The word suzerainty,' he said, 'is a very vague word, and I do not think it is capable of any precise legal definition. Whatever we may understand by it, I think it is not very easy to define. But I apprehend whether you call it a protectorate, or a suzerainty, or the recognition of England as a paramount Power, the fact is that a certain controlling power is retained when the State which exercises this suzerainty has a right to veto any negotiation into which the dependent State may enter with foreign Powers. Whatever suzerainty meant in the convention of Pretoria (1881), the condition of things which it implies still remains; although the word is not actually employed, we have kept the substance. We have abstained from using the word because it was not capable of legal definition, and because it seemed to be a word which was likely to lead to misconception and misunderstanding.'

The articles of the previous convention relating to slavery, to native rights, to free trade, to religious liberty, to the rights of residence of foreigners in the Transvaal, reappear in the new convention, and the limits of the State were somewhat more fully defined, but the controlling power of Great Britain over the foreign policy of the Transvaal, though clearly reasserted, was somewhat limited in its scope. It was provided that the South African Republic should conclude no treaty or engagement with any State or nation other than the Orange Free State, or with any native tribe to the eastward or westward of the Republic, until the same had been approved by the Queen; that every such treaty should be at once submitted to her Majesty's Government for her consent, but that this consent should be presumed to have been granted if no notification to the contrary was received within six months. The desire of the Transvaal authorities to be recognised as representing an independent sovereign power was thus distinctly rejected, and the English Government positively refused a proposal to admit foreign arbitration in cases of dispute between England and the Transvaal.

This convention has been severely censured by later writers on the ground of the insufficiency and ambiguity of its assertion of the paramount authority of Great Britain over the Transvaal, and of its failure to do anything to supply the great deficiency in the preceding convention by an article securing political equality for the British population within it. A few years later, when an immense English immigration had taken place, not only with the consent but at the express invitation of the Transvaal Government; when the English element formed a large majority of the inhabitants of the State; when they paid an enormous preponderance of its taxation, and were the chief agents in developing its wealth and raising it from the position of a very poor pastoral community into that of a great and wealthy State, the Transvaal Government proceeded to impose upon the new emigrants disqualifications and disabilities which were utterly unknown when England conceded self-government to 'the inhabitants of the Transvaal.' They completely deprived the vast majority of political power or local self-government, and surrounded them at every turn with the most irritating disabilities. The Transvaal became the one part of South Africa where one white race was held in a position of inferiority to another. At a time when perfect equality was enjoyed by the Dutch population in our own colonies, the political disqualification of the English race was made the very corner-stone of the policy of the Transvaal Government. An annual revenue greatly in excess of what was required for its internal government was raised almost entirely from the taxation of an unrepresented class, to whom the prosperity of the State was mainly due, and it was employed in accumulating a great armament which could only be intended for use against England and for maintaining the subjection of an English population.

This was the position to which the paramount Power in South Africa, the Power which of its own free will had conceded a limited independence to the Transvaal, found itself reduced. And yet it was possible for the Boer Government to maintain that there was nothing in all this legislation which was inconsistent with the terms of the convention of 1884.

I do not think that the justice of this criticism can be wholly denied. The Transvaal authorities had already given clear intimation of their desire to emancipate themselves from all British control, and especially of their determination to disregard the limitations which had been imposed on the expansion of their State. There is, however, one very material fact to be remembered in judging the policy of Lord Derby. At the time of the convention of 1884 the English population in the Transvaal was a small, scattered, and powerless minority, and as their numbers were far too scanty to make them a danger to the State, there was not much reason to believe that the Transvaal authorities would repudiate their own assurances and subject them to oppressive disabilities. It was not until two years after the convention that the vast gold-mines of the Transvaal were discovered and all the conditions of the South African problem fundamentally changed. The gigantic immigration that ensued reversed the proportion between the two races. The revenue and the expenditure of the State multiplied more than fifteen fold in little more than ten years.[45] The Transvaal became the most powerful and wealthy State in South Africa, and the great preponderance of the Outlander element in numbers, wealth, energy, and industry rendered a conflict of races almost inevitable. No statesman could have foreseen this change, and a convention that might have allayed discontent if the gold-mines had never been discovered, proved wholly inefficient to meet it.

Though in a politician of the stamp of Lord Derby the change from a very liberal conservatism to a very conservative liberalism involved little real modification of opinion, it necessarily involved some change of attitude, and on some questions he spoke with a freedom which would have been impossible as a member of the Conservative party. On Church questions, for example, while strongly maintaining that the country was not ripe for the disestablishment of the Church in England, he declared that in his opinion the exclusive alliance of one religious denomination among many with the State could not be permanently maintained side by side with a democratic representation—that disestablishment and at least partial disendowment must ultimately come; that if the representatives of Scotland desired the disestablishment of their Church, it was not for Englishmen to oppose them; and that Wales had a strong claim to be separately dealt with. 'The Welsh people constitute in many respects a distinct nationality, and I do not see why we should refuse to Welsh loyalty what we have granted to Irish sedition.' On the subject of endowments indeed as early as 1875 his view was that of most moderate Liberals. 'To my mind, so far as right is concerned, the Legislature may do what it chooses in regard to any endowment, without injustice, provided only that the rights of living individuals are respected. How far it is politic to use that power is another matter.... Respect the founder's object, but use your own discretion as to the means. If you don't do the first, you will have no new endowments. If you neglect the last, those which you have will be of no use.'[46] He maintained that the question of local government had in England become one of pressing importance, and that the administration of county affairs must be put into the hands of elective bodies. He would give those local parliaments very large power—but he most urgently insisted on the importance of one restriction. The new bodies must not be given an unlimited power of mortgaging the future. The gradual reduction of the National Debt had been for some years one of the chief aims of enlightened politicians, but all that had been done in this direction would be undone if, side by side with the National Debt, there grew up a municipal debt of perhaps equal amount. In this tendency to municipal extravagance he saw one of the gravest menaces to property. 'The growth of Socialism throughout Europe has followed very closely on the gigantic increase of national indebtedness during the present century, and men who begin to feel the pressure intolerable are apt to raise questions, more easily stated than solved, as to the right of any State to impose burdens in perpetuity for the benefit of one generation.' He urged that every local body which contracted a debt should be under a statutory obligation to provide for its repayment in fifty or sixty years at latest.

The growth of municipal indebtedness; the excessive tendency to increase the functions of the State; the disaffection of Ireland and the contingency of an isolated and disloyal body of some eighty Irish representatives offering their services to any party which would consent to carry out their designs, appeared to Lord Derby the chief dangers of English domestic politics. The last danger was very speedily realised, and the sudden conversion of Mr. Gladstone to Home Rule produced one more change in the attitude of Lord Derby. On this question he had never flinched or wavered, and he at once took his place in the front rank of the Liberal Unionists, whom for some time he led in the House of Lords. I do not know that the Unionist case has ever been more powerfully put forward than in his speeches on the subject, and the eminently judicial character of his mind, and his entire freedom from all mere party bias, gave a special weight to his advocacy. With this exception he took little part in party politics during the last years of his life, but he devoted himself largely to social questions, and among other things served with great assiduity and ability on the Labour Commission. His last speech was delivered at Manchester on the unveiling of the statue of Mr. Bright in October 1891. His last public work was that of presiding over the Labour Commission in May 1892. In the preceding year an attack of influenza, followed by a relapse, had shattered a health which had hitherto been robust. Other complications ensued, and he passed away at Knowsley on April 21, 1893, in his sixty-seventh year.

The foregoing sketch will, I hope, have given a sufficient idea of his public character. Few men have made a greater sacrifice of ambition to a conscientious conviction than he did, when, rather than support a measure which might lead to war, he abandoned the Conservative Ministry in 1878. He was then the fully recognised successor of Lord Beaconsfield, and if he had adopted a different course he would in a short time have been, beyond all doubt, Prime Minister of England. On the whole, however, the severance from old friends cost him, I believe, far more than the sacrifice of his political prospects. Whatever he may have been in his youth, he was certainly not in mature life an ambitious man. With the great position he held in England the world had little to offer him, and the self-knowledge which was not the least of his many remarkable gifts showed him that party conflict was not the sphere in which Nature intended him to move. With many of the qualities of the highest statesmanship he wanted some necessary ingredients of a great statesman. He wanted the power of appealing to the imagination and moving the passions. He wanted more decision of character, more power of initiative, more capacity of bearing lightly the weight of a great responsibility. His belief that the House of Lords must always ultimately yield to the House of Commons aggravated a weakness of resolution which was deeply rooted in his nature. There were moments when his inveterate moderation tended to exasperate, and he was accused, not altogether without reason, of sometimes making admirable speeches, pointing out in the clearest terms all the evils and dangers of a measure, and then concluding by exhorting the House of Lords to vote for it, introducing mitigating amendments in Committee. The measures he treated in this way usually, as he had predicted, became law, but this was not the attitude of a great leader. During a considerable part of his career, like a very large proportion of moderate men in England, he was in the embarrassing position of agreeing substantially with the home policy of one party and with the foreign policy of the other. After the death of Lord Palmerston an element of passion was infused into public life which was very uncongenial to his temperament, and English politics passed into phases in which caution, character, judgment, and knowledge were less prized than brilliant strokes that appealed to the popular imagination, clever coalitions, a skilful barter of principles for votes. In spheres governed by such methods Lord Derby was very useful, but he was not likely to play a foremost part.