thin the lute--the
rift of insolvency, which eventually wrecked South African
independence--began to be observable.

Mr. Nixon, who took great pains to acquaint himself with the true
state of the country, says "that the intestine disturbances and the
incessant Kaffir wars had well-nigh exhausted the finances of the
Republic. The exchequer was only tardily replenished under a loose
system of taxation. The Boers have never been good taxpayers, and no
Government has been able to enforce the proper payment of taxes due
to the State. A decade after its establishment the Republic was
practically insolvent. Even as early as 1857 the Government was
compelled to issue _mandaten_, or bills, wherewith to raise money to
buy ammunition, and to pay its servants. In 1866 a regular issue of
paper money was sanctioned by the Volksraad. This was followed by
further issues, until, in 1867, a Finance Commission found that
there were more notes in circulation than had been authorised by the
Volksraad. Nevertheless, the financial requirements of the State
became so pressing that still more issues had to be made, and in
1870 there were over L73,000 worth of notes in circulation. The
notes were declared a legal tender, but the Government were unable
to keep up their value by artificial methods. They fell to a low
ebb, and passed from hand to hand at a discount of about 75 per
cent, from their nominal value."

In 1867 occurred two events which served to change the whole
political and financial outlook of the Transvaal. Diamonds were
discovered in the district of Kimberley. Gold was unearthed in
Lydenburg. From that hour a procession of European miners began
slowly to march north from the Cape. A highway was opened up between
the two promising districts, and diggers of every race, pioneers
bent on the propagation of modern ideas, teachers, missionaries, and
traders of all kinds, attracted by the promise of wealth, flocked to
the scene and settled themselves among the trekkers.

ZULU DISTURBANCES

After this period, when, as stated before, small but promising
quantities of gold had been unearthed, it was no longer possible to
prevent parties of miners and speculators from trickling into the
Transvaal, to the annoyance of its inhabitants. Outside, too, there
were troubles, disputes, and skirmishes with the Zulus, and further
north was waged a fierce fight between the Boers and the chief of
the Bapedi, one Sekukuni, whose father had signed