der its provisions over 7000
ex-rebels, who would otherwise have had no vote at the ensuing general
election, were readmitted to the franchise in 1907.

While the efforts made to develop the agricultural and mineral resources
of the country proved successful, the towns continued to suffer from the
inflation--over-buying, over-building and over-speculation--which marked
the war period. As a consequence, imports further declined during
1906-1907, and receipts being largely dependent on customs the result
was a considerably diminished revenue. The accounts for the year ending
30th of June 1907 showed a deficit of L640,455. The decline in revenue,
L4,000,000 in four years, while not a true reflection of the economic
condition of the country--yearly becoming more self-supporting by the
increase in home produce--caused general disquietude and injuriously
affected the position of the ministry. In the session of 1907 the
Opposition in the legislative council brought on a crisis by refusing to
grant supplies voted by the lower chamber. Dr Jameson contested the
constitutional right of the council so to act, and on his advice the
governor dissolved parliament in September. Before its dissolution
parliament passed an act imposing a profit tax of 10% on diamond- and
copper-mining companies earning over L50,000 per annum, and another act
establishing an agricultural credit bank.

_Mr Merriman, Premier_.--The elections for the legislative council were
held in January 1908 and resulted in a Bond victory. Its supporters, who
called themselves the South African party, the Progressives being
renamed Unionists, obtained 17 seats out of a total of 26. Dr Jameson
thereupon resigned (31st of January), and a ministry was formed with Mr
J.X. Merriman as premier and treasurer, and Mr J.W. Sauer as minister of
public works. Neither of these politicians was a member of the Bond, and
both had held office under Cecil Rhodes and W.P. Schreiner. They had,
however, been the leading parliamentary exponents of Bond policy for a
considerable time. The elections for the legislative assembly followed
in April and, partly in consequence of the reinfranchisement of the
ex-rebels, resulted in a decisive majority for the Merriman ministry.
There were returned 69 members of the South African party, 33 Unionists
and 5 Independents, among them the ex-premiers Sir Gordon Sprigg and Mr
Schreiner. The change of ministry was not accompanied by any relief in
the finan