224 SOUTH AFRICA. 



and the loss of the Imperial expenditure since the 

 advent of responsible government was keenly felt, 

 as the Colonists began to find out that a white 

 elephant was a very expensive and dangerous 

 acquisition to maintain. 



In the sixties and in the beginning of the 

 seventies the Colony was fast drifting into absolute 

 insolvency. 



Capital flowed quickly out of the country; 

 immigration had entirely ceased ; the profits de- 

 rivable from agricultural and pastoral enterprise 

 were insufficient to meet the demands of the 

 Exchequer and other creditors ; people began to 

 see that in such a generally sterile country any 

 material increase in these productions might be a 

 matter of hope but not of expectancy. When 

 financial matters were nearing their very worst, the 

 richest diamond field was discovered in the Orange 

 Free State, a few miles out of the Colonial 

 boundary ; emigrants flocked in, capital accumu- 

 lated, the Imperial Government jumped the 

 diamondiferous territory in the manner previously 

 treated of in detail, Colonial bankruptcy was 

 avoided, and progress initiated in its stead. Then 

 extraordinary activity prevailed for some years at 



