odern South
Africa may be said to have fairly started, and in spite of political
complications, arising from time to time, the progress of Cape Colony
down to the outbreak of the Transvaal War of 1899 was steadily forward.
The discovery of diamonds on the Orange river in 1867, followed
immediately afterwards by the discovery of diamonds on the Vaal river,
led to the rapid occupation and development of a tract of country which
had hitherto been but sparsely inhabited. In 1870 Dutoitspan and
Bultfontein diamond mines were discovered, and in 1871 the still richer
mines of Kimberley and De Beers. These four great deposits of mineral
wealth are still richly productive, and constitute the greatest
industrial asset which the colony possesses. At the time of the
beginning of the diamond industry, not only the territory of Cape Colony
and the Boer Republics, but all South Africa, was in a very depressed
condition. Ostrich-farming was in its infancy, and agriculture but
little developed. The Boers, except in the immediate vicinity of Cape
Town, were a primitive people. Their wants were few, they lacked
enterprise, and the trade of the colony was restricted. Even the British
colonists at that time were far from rich. The diamond industry
therefore offered considerable attractions, especially to colonists of
British origin. It was also the means at length of demonstrating the
fact that South Africa, barren and poor on the surface, was rich below
the surface. It takes ten acres of Karroo to feed a sheep, but it was
now seen that a few square yards of diamondiferous blue ground would
feed a dozen families. By the end of 1871 a large population had already
gathered at the diamond fields, and immigration continued steadily,
bringing new-comers to the rich fields. Among the first to seek a
fortune at the diamond fields was Cecil Rhodes.

In 1858 the scheme of Sir George Grey for the federation of the various
colonies and states of South Africa had been rejected, as has been
stated, by the home authorities. In 1874 the 4th earl of Carnarvon,
secretary of state for the colonies, who had been successful in aiding
to bring about the federation of Canada, turned his attention to a
similar scheme for the confederation of South Africa. The representative
government in Cape Colony had been replaced in 1872 by responsible, i.e.
self-government, and the new parliament at Cape Town resented the manner
in which Lord Carnarvon propounded his suggest