toms." At this conference it
is worthy of note that Mr Hofmeyr propounded a sort of "Zollverein"
scheme, in which imperial customs were to be levied independently of the
duties payable on all goods entering the empire from abroad. In making
the proposition he stated that his objects were "to promote the union of
the empire, and at the same time to obtain revenue for the purposes of
general defence." The scheme was not at the time found practicable. But
its authorship, as well as the sentiments accompanying it, created a
favourable view of Mr Hofmeyr's attitude. In the year 1888, in spite of
the failure of statesmen and high commissioners to bring about political
confederation, the members of the Cape parliament set about the
establishment of a South African Customs Union. A Customs Union Bill was
passed, and this in itself constituted a considerable development of the
idea of federation. Shortly after the passing of the bill the Orange
Free State entered the union. An endeavour was also made then, and for
many years afterwards, to get the Transvaal to join. But President
Kruger, consistently pursuing his own policy, hoped through the Delagoa
Bay railway to make the South African Republic entirely independent of
Cape Colony. The endeavour to bring about a customs union which would
embrace the Transvaal was also little to the taste of President Kruger's
Hollander advisers, interested as they were in the schemes of the
Netherlands Railway Company, who owned the railways of the Transvaal.

_Diamonds and Railways._--Another event of considerable commercial
importance to the Cape Colony, and indeed to South Africa, was the
amalgamation of the diamond-mining companies, chiefly brought about by
Cecil Rhodes, Alfred Beit and "Barney" Barnato, in 1889. One of the
principal and most beneficent results of the discovery and development
of the diamond mines was the great impetus which it gave to railway
extension. Lines were opened up to Worcester and Beaufort West, to
Graham's Town, Graaff Reinet and Queenstown. Kimberley was reached in
1885. In 1890 the line was extended northwards on the western frontier
of the Transvaal as far as Vryburg in Bechuanaland. In 1889 the Free
State entered into an arrangement with the Cape Colony whereby the main
trunk railway was extended to Bloemfontein, the Free State receiving
half the profits. Subsequently the Free State bought at cost price the
portion of the railway in its own territory. In 1891