Revenue and expenditure of the Union is divided into two distinct
iunds, the ordinary or general, and the railway and harbours.
The following table shows the ordinary revenue and expenditure, for three typical financial years:
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I9I3-4
1916-7
1920-1
Revenue Expendi- ture .
15,980,000 14,289,000
18,617,000 15,490,000
28,381,000 28,890,000
The chief sources of revenue for the year 1919-20, were as follows: customs, 5,010,000; interest, 4,277,000; income, super, and dividend taxes, 4,050,000; posts, telegraphs and telephones, 2,031,000; excise, 1,228,000, and mining revenue, 1,023,000. The native poll and hut taxes produced altogether, 830,000. Among the main items of expenditure for the same period were: public debt, 6,940,000; provincial administrations, 3,520,000; justice, 3,209,000; postal, etc., services, 2,144,000; defence, 1,575,000; pensions, 1,200,000; interior, 1,019,000; agriculture, 861,000, and public works, 614,000.
Railway and harbour finance is controlled by a board presided over by a cabinet minister. The management of harbours and railways is required to be upon business principles. The following table shows receipts and expenditure for these services in the years named :
1913
1916
1918-9
Harbours (receipts) . (expenditure) Railways (receipts) . " (expenditure)
1,039,000 900,000 12,388,000 8,964,000
1,031,000 656,000 13,257,000 8,891,000
939,000 479,866 11,680,000 15,282,000
The war expenditure of the Union was met out of loan funds, the total charge on such funds amounting on March 31 1920 to 29,736,000. At the same date the public debt of the Union was 1/3.905,000.
THE SOUTH-WEST PROTECTORATE
After the surrender, in July 1915, of the German forces in S.W. Africa Gen. P. S. Beves was appointed military governor of the protectorate. 1 None of the German inhabitants was then repatriated and while the regular troops were placed in intern- ment camps the civilians were allowed to return to their homes and continue their ordinary business. Mr. (afterwards Sir) E. H. L. Gorges, Secretary of the Interior in the Union, who had at Gen. Botha's request already drawn up a scheme for the future administration of the protectorate was made chief civil secretary. On Oct. 30 1915, on Gen. Beves's departure the two offices named were abolished and the functions of both taken over by Mr. Gorges with the title of Administrator. This post he retained until nearly the close of the military occupation period, which lasted till the end of 1920. Martial law remained in force but in a mild form and the administration was on civilian lines. At the beginning of 1917 it was found necessary to send an expedition to Ovamboland, the northern and most populous part of the protectorate, where German authority had been very slight. A chief named Mandume proved recalcitrant and two battalions, the first and the fourth of the S.A. Mounted Rifle- men, together with a composite regiment of military constabulary were sent against him, Col. de Jager being in command. The expedition, despite fever, flood and dense forest, as well as the opposition of the natives, was successful. Excellent relations were afterwards established with the Ovambo.
In the rest of the protectorate S.A. rule was from the first welcomed by the natives, and the Germans gave no serious trouble. Until nearly the close of the World War they believed that the British occupation was temporary, being confident in the ultimate victory of Germany. This was evidenced by the fact that the German banks and traders maintained a rate of exchange of 24 marks to the sterling until Nov. 1918 the month of the Armistice. Instances were known of farmers selling their stock for sterling and converting it into paper marks. Where the artificial rate of exchange broke down serious losses followed. The Germans, however, continued to entertain false hopes, and after the Armistice they wrote to President Wilson asking his help on " self-determination " lines. They desired, they said, to become an autonomous republic leagued to the German re- public, and this solution, they gratuitously added, would, they believed, meet the wishes of the natives. In 1919 the German
1 For earlier events see GERMAN SOUTH-WEST AFRICA.
soldiers about 5,800 in all together with some 600 " un- desirables" were repatriated. This still left, according to official figures, over 9,000 Germans in the protectorate. These Ger- man settlers continued hostile to Union rule, and obnoxious to authority. Lord Buxton, then governor-general of the Union, who visited Windhuk, the capital, in Oct. 1919, took occasion to inform them that the severance from Germany was irrevocable, and that the protectorate would in future form an integral part of the Union. Gen. Smuts when on an official visit to the territory in Sept. 1920 used similar language. The Germans had informed him that the country should be administered as " an independent province," and that the German civil code should continue, arguing that the introduction of the Roman-Dutch law would be " a retrogression of centuries." They also asked for the recogni- tion of German as an official language, and the maintenance by the State of the German schools, but were refused.
By the treaty of Versailles Germany had renounced sovereignty over the protectorate, and in accordance with its provisions the Supreme Council in May 1919 assigned the mandate for the territory to the Union of S. Africa. An Act was passed by the Union Parliament in Sept. 1919 to give effect to the mandatory powers; finally the mandate was confirmed by the Council of the League of Nations on Dec. 17 1920. On Jan. 3 1921, martial law was withdrawn and Mr. Gysbert Hofmeyer, who had succeeded Sir Howard Gorges as Administrator in Oct. 1920, was given a nominated advisory council of six members. This council met for the first time on Feb. 2 1921.
Settlers and Industries. In general the laws in force in, and the economic policy of, the Union was applied to the protectorate from the early days of Sir Howard Gorges's rule. Walfish Bay, the only good harbour on the S.W. coast, had languished. It had formed a small British enclave in what was German territory, and without hinterland, served only the purpose from which it got its name a whaling station. Swakopmund was an artificial and poor port. The Union authorities built a line (22 m. long) from Walfish Bay to Swakopmund, and thus gave the protectorate its natural sea outlet. The whole length of the line from Walfish Bay to Windhuk was relaid on the standard S.A. gauge of 3 ft. 6 inches. In 1921 the Railways and Harbour Board undertook the construction of a line (132 m. long) eastward from Windhuk to Gobabis.
While no crown lands were alienated up to 1921 temporary licenses were granted and many members of the army of occupation on demobilization settled in the country with their families. A fairly large British-Dutch population soon grew up, evidenced sufficiently by the fact that in 1920 there were 975 children attending Govern- ment schools. 2 The new settlers were chiefly engaged in stock raising and farming; the copper, tin, and diamond mines were already in beneficial occupation, largely with British capital. The Otavi mines in the years 1916-8 produced 100,000 tons of copper ore, valued at 600,000. The expectation that the Liideritzbucht (Luderitz Bay) diamond fields would be thrown open to all comers was not realized. At the end of 1915 some of the companies on the diamond field were allowed to resume work; between Oct. 1915 and Jan. 1919 diamonds valued at 1,900,000 were obtained. Later the whole diamond field came under the control of one company, which entered into a work- ing arrangement with De Beers and other diamond mining com- panies in the Union. The depression in trade led, in 1921, to the temporary closing of the mines. Depending upon diamonds for pros- perity, was, declared Mr. Hofmeyer, like building on sand.
Trade and Revenue. During the war external trade was all over- land with the Union, trade being facilitated by the line built in 1915 from Prieska to Kalkfontein to connect the two railway systems. Customs duties were those in force in the Union, with free trade between the Union and the protectorate. During 1918 the value of imports was 1,031,000, about one half being S.A. produce. Of the total imports 409,000 represented the value of food and drink, and 181,000 cotton goods. The value of exports in 1918 was 817,000. The chief items were, diamonds 652,000, copper ore 55,000, cattle and small stock 57,000, horns, hides and skins 35,000.
The revenue of the protectorate in the financial year 19178 was 295,000; and in 1918-9 377,000, of which 275,000 was from the tax on diamonds. The expenditure for the two years named was 650,000 and 744,000 ; as to more than three-fourths the expendi- ture was on the upkeep of the garrison.
Native Affairs. Nowhere else had German methods of dealing with the natives been more ruthless than in S.W. Africa. The result of an examination of German judicial and administrative methods and documents was made public in 1918. It showed that not only
2 The German settlers had separate schools. Efforts were made in 1921 to induce them to abandon these schools. They were offered " mother-tongue " instruction up to standard VI., coupled with the compulsory learning of either English or Dutch.
