ATA é REPORT—1905. 
introduction of slaves, especially in the early years of the British occupation, and 
the immigration of the Bantu. 
The revenue has partly been determined by the extravagance of early Governors. 
In Cape Colony there were three periods of direct taxation, followed by an incli- 
nation to substitute indirect taxation in 1842. Since then there have been two 
periods of direct taxation. Elsewhere the tradition of the old Colony has been 
strong, but the same tendency has shown itself. 
The growth of the debt has been rapid since 1863, and though it is far less per 
head than the New Zealand debt, it is far greater than the English debt, which 
is, on the one hand, less due to reproductive works, but, on the other, is held in the 
country. 
The figures show that, despite the changes of taxation, the relation of the 
revenue to the population has been remarkably steady. Since the beginning of the 
borrowing period taxation has increased in severity, but the expansion of the 
revenue has not been much more than is accounted for by the debt, and, consider- 
ing the progress that has been made among the natives, is disappointing. The 
finance of South Africa has been to some extent casual. The figures and the 
actual circumstances which they represent suggest the desirability of a definite 
policy deliberately calculated to foster the internal resources of the country. 
2. The Railways of South Africa. By J. W. Jaacer, MLA. 
The facts that South Africa has no navigable rivers, and is therefore solely 
dependent upon its railways for its traffic from the ports to the inland plateau, 
and that they are for the most part State-owned, make them an important factor 
in the economics of this sub-continent. 
Until 1870, when the diamond fields were discovered, there were only 653 miles 
of railway in South Africa; but in 1884 Kimberley was connected with all the 
ports of the Cape Colony. The financial results were, however, very unsatis- 
factory until the year 1887, when the Transvaal goldfields were opened up. 
Then commenced a period of great prosperity, which lasted till 1902. The two 
years following showed a falling-off in traffic, decrease in rates, and increase in 
expenditure, with the result that interest on the capital invested was only partly 
earned, Through the exercise of rigid economy, however, the railways have in 
the last twelve months again paid full interest. 
Natal has been greatly assisted by her coalfields, but otherwise the financial 
history of her railways is very similar to that of the Cape Colony. 
The Transvaal railways started in 1891 with the Rand tram, which has since 
been connected with all South African ports. They are worked jointly with those 
of the Orange River Colony, and show excellent financial results on account of the 
great volume of traffic and the high rates. 
There are several important railway problems in South Africa, such as the 
question of rates; and the difficulty that the commercial interests of the ports 
do not always agree with the financial interests of the different railway systems. 
On this account, and because a joint railway board would be independent of 
Parliamentary control, the federation of the South African railways should 
await the general federation of all the South African States. 
3. The Protection of Infant Industries. By H. O. Merepirta. 
This paper dealt with two questions :— 
1. Whether it is desirable to grant protection to young industries. 
2. What form, if any, should such protection take. 
Difficulties in reaching a conclusion as to the effects of the protection of infant 
industries (4) by the historical, and (6) by the theoretical, approach were dealt with. 
