Agricultural Banks. 531 



3,000,000 rix-dollar notes in circulation in 1822, and which had 

 greatly depreciated. Value of rix-dollar gradually falls from 4/- 

 to 1/6, which represents the Cape dollar. Proclamation of 1825 

 establishing the British currency at the Cape, etc. Relative value 

 of paper rix-dollar with British money. Nothing done to introduce 

 the precious metals. Inconvertible, sterling promissory notes intro- 

 duced to retire old rix-dollar notes, or " cartoon money." 



The J7 years' period of depression, discontent and distress at the 

 Cape. Proclamation of 1830, calling in the depreciated, redundant, 

 inconvertible paper money. Proves to be a dead letter. Animated 

 and eloquent debates in Cape Legislative Council of 1840, 1841, and 

 1843 on paper currency. Strong and sustained agitation for complete 

 and linal withdrawal of the inconvertible paper money. Concerted 

 action on part of both British and Dutch colonists. 



John Bardwell Ebden. The most prominent colonist of his day. 

 Hamilton Ross and Advocate Cloete, both prominent members of the 

 Cape Legislative Council. 



Flon. William Porter, the Cape Attorney- General, was 

 eloquent, high-principled, philanthropic, and disinterested. Called 

 upon to defend actions of Government in regard to the paper 

 currency. Discharges his responsible brief m no servile spirit. 

 Conspicuous for his independence of thought and action. Opposed, 

 on occasion, prevailing views of the Council, and not afraid to be 

 found in a minority. Was ever courteous, and always gave valid 

 reason for the faith that was in him. 



Debates in the Council on the paper currency practically intellec- 

 tual duels between the Attorney-General and Mr. Ebden. Comparison 

 of Mr. Porter's intellectual and dialectical powers with those of Mr. 

 Ebden. Their profound knowledge of principles of currency, finance 

 and economics. The lawyer and the metaphysician ; the practical 

 business man with strong philosophical pre-possession. 



The monopoly of the Lombard and Discount Bank withdrawn by 

 Ordinance No. 5 of 1842. Public Banks established on the joint 

 stock principle by leading colonists. 



Cape of Good Hope Bank founded by J. B. Ebden in 1836. 

 South African Bank started in 1838. The Directors, as a whole, 

 were British and Dutch, respectively. 



Lombard and Discount Bank finally wound up on 31st January, 

 1843. Chequered history of South Africa's first and only State 

 Bank. 



Proposed State Bank for Cape Colony. Various attempts to 

 start a State or National Bank in Cape Colony. Elaborate constitu- 

 tions suggested or outlined. No satisfactory method suggested for 

 providing the necessary capital. Promoters evinced no desire or 

 intention to personally subscribe even moderate amount of required 

 capital. 



Various Methods of Raising Capital for Agricultural or Land 

 Banks, etc. 



