cial situation. While the country districts remained fairly
prosperous (agricultural and pastoral products increasing), the transit
trade and the urban industries continued to decline. The depression was
accentuated by the financial crisis in America, which affected adversely
the wool trade, and in a more marked degree the diamond trade, leading
to the partial stoppage of the Kimberley mines. (The "slump" in the
diamond trade is shown by a comparison of the value of diamonds exported
from the Cape in the years 1907 and 1908; in 1907 they were valued at
L8,973,148, in 1908 at L4,796,655.) This seriously diminished the
revenue returns, and the public accounts for the year 1907-1908 showed a
deficit of L996,000, and a prospective deficit for the ensuing year of
an almost equal amount. To balance the budget, Mr Merriman proposed
drastic remedies, including the suspension of the sinking fund, the
reduction of salaries of all civil servants, and taxes on incomes of L50
per annum. Partly in consequence of the serious economic situation the
renewed movement for the closer union of the various South African
colonies, formally initiated by Dr Jameson in 1907, received the support
of the Cape parliament. During 1907-1908 a national convention decided
upon unification, and in 1910 the Union of South Africa was established
(see SOUTH AFRICA: _History_).

_Leading Personalities_.--The public life of Cape Colony has produced
many men of singular ability and accomplishments. The careers of Cecil
Rhodes, of Jan Hendrik Hofmeyr, and of Dr L.S. Jameson have been
sufficiently indicated (see also their separate biographies). Sir Gordon
Sprigg, four times premier, was associated with the Cape parliament from
1873 to 1904, and was once more elected to that assembly in 1908. In and
out of office his zeal was unflagging, and if he lacked those qualities
which inspire enthusiasm and are requisite in a great leader, he was at
least a model of industry. Among other prominent politicians were Sir
James Rose-Innes, Mr J.X. Merriman and Mr W.P. Schreiner. The two last
named both held the premiership; their attitude and views have been
indicated in the historical sketch. Sir James Rose-Innes, a lawyer whose
intellectual gifts and patriotism have never been impugned, was not a
"party man," and this made him, on more than one occasion, a somewhat
difficult political ally. On the native question he held a consistently
strong attitude, defending their righ