CAPE OF GOOD HOPE. 455 



colony have undergone many vicissitudes, and numerous experiments 

 have been made, all tending to produce a want of confidence. Govern- 

 ment, until within a few years, had the entire control of the discount 

 banks, and through them possessed a full knowledge of the affairs of 

 men in business, and it is said did not fail to use it in an arbitrary 

 manner, producing revulsions in the monetary affairs of the colony 

 that were highly prejudicial to the commercial community, causing 

 much distress, and in some cases ruin, of which many feel the effects 

 to this day. 



This state of things gave rise to the establishment of banks exclu- 

 sively under the control of private individuals : there are two of these 

 corporations, bearing the title of the " Cape, of Good Hope Bank," 

 with a capital of £70,000, and the " South African Bank," whose 

 capital amounts to £100,000; the capital of each is all paid in, and 

 no part of it can be withdrawn. The latter is not a bank of issue. 

 A general statement of their affairs is annually made to the pro- 

 prietors. Interest is paid on deposits remaining longer than a certain 

 specified time. Inviolable secrecy is observed with regard to indi- 

 vidual accounts, and each person connected with the institution signs 

 a promise to that effect. These banks afford every facility within the 

 bounds of prudence to those dealing with them, even carrying the 

 spirit of accommodation so far as to keep early hours for the benefit 

 of the agriculturists who frequent the market. 



This new system is found to work admirably, and pays handsome 

 dividends to the proprietors. It gratified me to learn that the public 

 of Cape Town is chiefly indebted to Isaac Chase, Esq., the United 

 States consul, for the adoption of this banking system. I had many 

 interesting conversations with him on the subject, and also conversed 

 with others, inhabitants of the colony, who expressed themselves 

 highly pleased with the success of these institutions, while at the 

 same time they acknowledged their obligations to our commercial 

 agent. 



Wine is the great staple of the colony; but many of the vine- 

 growers have been ruined, in consequence of the vacillating policy 

 pursued by the home government, with regard to this branch of 

 industry. Trusting to the promises made by the government, a vast 

 amount of capital was invested in the business, and the annual pro- 

 duction was in a short time tripled. This state of things continued 

 for about ten years ; but in the year 1825 a change of policy took 

 place, and the protection was diminished more than one-half; and at 

 the same time a further reduction was proposed in the bounty. As a 



