ceding and following
the Vereeniging surrender, are significant. Beside the clear thrust of
Lord Milner's calculated energy, Mr. Chamberlain's efforts to keep
pace with the needs of the situation sink into comparative inertia. On
April 18th Lord Milner telegraphs the particulars of the 10 per cent.
tax which he proposes to levy on the net produce of the mining
industry. The rate is high--twice as high as the gold tax under the
Republic--and will yield an annual revenue of L500,000 or L600,000 on
a basis of the present normal production of the mines; but he believes
that it will be "accepted without serious opposition, if it is imposed
while the industry is rapidly advancing." And he expresses the hope
that the explanation which he has furnished will be "sufficient to
show the principles" of the tax, and that he may publicly announce the
decision on this matter of such general economic importance at once.
Mr. Chamberlain, however, requires further information; and we find
Lord Milner telegraphing on June 2nd: "I trust you will now agree to
the tax on the profits of gold mines; I am anxious to publish the
Proclamation in next Friday's _Gazette_." And to this Mr. Chamberlain
replies on June 4th, "I agree to the imposition of a 10 per cent. tax
on the profits of gold mines." On June 2nd, that is, two days after
the terms of surrender have been signed at Pretoria, Lord Milner sends
a "most urgent" telegram on the immediate financial position:

"The departments are still very busy with the estimates of the
new colonies and Constabulary. They are rather late this year,
but that was quite unavoidable. The result promises to be good.
We can pay for all normal expenditure and the 6,000 South African
Constabulary out of revenue. But, as you know, there is nothing
provided for the various extraordinary items which have been
hitherto financed out of the L500,000 grant for relief and
re-settlement. In all my estimates I have relied on a loan for
this. As I understand, the loan is deferred. As the L500,000 is
nearly exhausted, and it would be disastrous if land settlement,
which latter is at last making good progress, were stopped,
especially at this juncture, I would ask for immediate authority
to spend another L500,000 on these purposes. This is independent
of the amounts which will be required under the last clause of
the Terms of Surrender, about which I wi