Banking— Wint trade. CAPE OF GOOD HOl'E. Catlle.-laport mile. Hftl 



to leave the colony; and I was to! J it was neces- 

 sary to pay a tax to take a bath. 



The whole revenue raised amount* to 130,000/., 

 and the expenditures do not exceed 1 25.000/. 



In order to lessen the weight of the taxation, it 

 was in agitation at the time of our visit to increase 

 the duties on imports which ore about three per 

 .■.nt. nd valorem, on English articles, ami ten per 

 cent, on foreign goods. 



The circulation is a paper one nf the denomina- 

 tiou of rix-dollars, valued at one shilling and six- 

 pence. There are no notes less than twelve rix- 

 dollars, equal to a pound. The monetary concerns 

 of the 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 con- 

 trol nf the discount banks, and through them pos- 

 sessed 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 establish- 

 ment of banks exclusively under the control of 

 private individuals; there are two of these corpo- 

 rations bearing the title of the " Capo of Good 

 Hank," with a capital of "0,000/., and the 

 '* South African Bank," whose capital amounts to 

 100,000/,; the capital of each k all paid in, and no 

 part of it can be withdrawn. The latter h not a 

 bank of issue. A general statement of their affairs 

 is annually made to the proprietors. Interest is 

 paid on deposits remaining longer than a certain 

 specified time. Inviolable secresy is observed with 

 regard to individual accounts, and each person 

 connected with the institution signs a promise to 

 that efl'eet. 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 huurs for the benefit of the agri- 

 culturists 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 bank- 

 ing system. 1 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 acknow- 

 ledged 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 iudiudry. Trusting to the promises made by 

 the government, a vast amount of capital was in- 

 vested in the business, and the annual production 

 was in a short time tripled. This state of things 

 continued for about ten years ; but in the year 

 1U25 a change of policy took place, and the protec- 

 tion was diminished more than one-half ; and at 

 the same time a further reduction was proposed in 

 the bounty. As a natural consequence, 1 depreci- 

 ation in all the wine estates took place, and the 

 loss of much property ensued. This was made 



more unpleasant to the Cape colonists by a propo- 

 sition to put a duty on Cape wines, that would have 

 the effect of placing them at a higher duty than 

 those of foreign wines. The colonists are still very 

 sensitive upon the subject of wine, and the treat- 

 ment they have received ; not oidy have they to 

 complain of bad faith on the part of the govern- 

 ment, but tho constant efforts of others to decry 

 their wines, Home of which are produced of as fine 

 a quality as those in any other part of the world ; 

 but there is some foundation for the disparaging 

 reports that have been circulated, for quantities 

 have certainly been sent abroad that had been very 

 much adulterated. 



The Cape colony, both as to soil and climate, is 

 well adapted to the raising of all descriptions of 

 wines, from the li^lit Herman and French, to those 

 of Madeira and Sherry. 



In consequence of the reverses the colonists 

 have met with in Lhe wine trade, they have be- 

 gun to turn their attention to the rising of sheep; 

 the colony has been found to be well adapted to 

 those producing fine wool, and the investments 

 that have been made in them bid fair to be pro- 

 fitable. 



Wheat and maize are also cultivated, particu- 

 larly on tho mountains near tho Cape, where 

 these grains grow in great perfection, and are 

 raised in sufficient quantities to meet tho con- 

 sumption of the colony, and to be exported in con- 

 siderable quantity to tho Mauritius. The wheat 

 now used is of a hard and flinty kiud, and effec- 

 tually resists the attacks of insects, as well as the 

 rust, which were formerly troublesome. 



The other chief productions are fruit, oil, and 

 provisions- 

 One great obstacle is opposed to this colony ever 

 becoming a great producer of wool, and lliat is the 

 immense distances and the rim Pit total want of 

 communications. So bad are the roads and so 

 great the hindrances, that the wonder is, not that 

 there is so little internal trade, but how transpor- 

 tation is effected at all. Were it not for the energy 

 and perseverance of the early colonists, and the 

 hardy breed of cattle that they possess, communi- 

 cation between distant parts of the colony would 

 be nearly impossible. Some opinion may be formed 

 of the state of the roads and the difficulties to 

 surmount, by the fact that fourteen pair of oxen 

 are frequently attached to a small wagon. 



The ox used in Africa seems to me to be of 

 an entirely different breed from the animal we 

 are accustomed to see in our country. Their 

 legs are much longer in proportion to their 

 bodies, lank and bare bones, with immense horiiB ; 

 and their gait, instead of a slow walk, in often a 

 trot. 



The whole of the foreign trade of the colony 

 passes through Cape Town. The value of im- 

 ports is estimated at one and a half million 

 sterling, and that of exports amounts to upwards 

 of a million. The vessels engaged in this trade 

 number about six hundred, whose tonnage 

 amounts to one hundred and eighty thousand tons. 

 The total revenue from customs, in the year 

 )b"40, was forty-two thousand eight hundred *and 

 seventy-seven pounds. The exports consist of 

 wine, wool, ivory, whale-oil, hides, tallow, and 

 aloes. These are either brought to Cape Town 

 from the interior in wagons, or in small vessels 



