a sharp but apparently successful campaign. The administration of the region has been sharply criticised in England in consequence of the revelations by Mr. H. W. Nevinson, tending to show that the plantations are worked under a system of slavery (ANNUAL REGISTER, 1906, "Literature," p. 77), and certain English cocoa-manufacturers have declined to purchase the product on this account. The agitation was resented by the Portuguese and attributed to commercial jealousy. In consequence of the native troubles and other matters it was announced in Lisbon in November that the administration of the West African Colonies would be reorganised. The trade of Angola for 1906 is the subject of an interesting Foreign Office report by Mr. Consul Mackie, who enlarges on the wealth of the interior (Angola consists of 500,000 square miles of unexploited territory) and describes the railway scheme (the Lobito-Katanga Line) which is to link the west coast with the Cape to Cairo Railway. He points out that it may not, however, be an unmixed blessing to British trade, for it will enter into formidable competition with the British South African lines and divert traffic to Portuguese ports, where subsidised Portuguese and German steamships will have an advantage over unsubsidised British. It should be noticed that Boer emigrants trekked from the Transvaal after the war to Mossamedes, and are engaged in cattle farming, hunting, and transport during military operations. Of the 800 miles from Lobito to Katanga 50 are now open and 200 under construction and final surveys are made over the whole tracts. About midway between Benguela and Katanga a line will branch off for 650 miles to the Victoria Falls, thus bringing the Rand several days nearer to London than at present. The concession is held by Mr. Robert Williams and the railway is constructed by English capital and contractors. Six or seven years are expected to be sufficient for the completion of the railway. The journey of the Crown Prince Louis Philippe through the Portuguese colonial possessions has been already referred to (p. 360).

In German West Africa there was a native outbreak in the Adamawa region, near Lake Chad, but the local forces were adequate for its suppression. In German South-West Africa the Hottentot rebellion was gradually suppressed during the year, the German troops driving the remnants of the tribes out of their fastnesses; but whether the success was final cannot be said with certainty. The German casualties during the three and a half years' campaign numbered 2,348 officers and men killed and wounded. The native losses were very heavy, the Herreros being reported to have been annihilated. A son of Hendrik Witboi surrendered in the summer. Morenga was in British territory, and the Cape Government acted in concert with the German troops in securing his capture. In September reports were received and confirmed that Morenga was killed in an action at Witpan, in the Kalahari desert, with a British force

under Major Elliott-a service of much importance to the German authorities. One British corporal and one trooper were killed. The exploit was a brilliant one, and Morenga was only overtaken after a thirty hours' march without water.

The railway from Lüderitz Bay to Keetmanshoep was partly opened for military transport in July, leaving 100 kilometres yet to be constructed. A young German farmer, a reserve officer in the Guards Cuirassiers, was early in the year sentenced to three years' imprisonment for killing a native woman and causing the death of two others. Herr von Schuckmann, a former Consul-General at Capetown, was appointed Governor in May, his task that of reorganising the civil administration in harmony with the ideas of Herr Dernburg, of the German Colonial Department.

There was an unusual scarcity of trustworthy news from the Congo Free State in 1907. The negotiations for the transfer of the State to Belgium belong to the political history of that country; it is sufficient here to note that no change had occurred in 1907 in the status of the region. In Cd. 3450 (correspondence respecting the independent State of the Congo) will be found various despatches from Mr. Consul Michell, describing journeys taken in the interior during 1906, and action taken on behalf of certain British coloured subjects who had grievances against the Congo Government. The descriptions of things seen in the interior villages are severely impartial, as are those also of Mr. Vice-Consul Armstrong, and although they show unsatisfactory relations between the natives and their white rulers they report no "atrocities." 'atrocities." Many of the failures of the administration seem to be due to the inadequacy in the number of the white staff, whose districts are too large for effective supervision. There is a conflict of evidence as to whether the reform scheme (ANNUAL REGISTER, 1906, p. 428 seq.) is in beneficial operation, and it would seem that no marked changes will occur until after the settlement of the controversy in the Belgian Parliament. It should, however, be noted that the A.B.I.R. concession remained under special military occupation during the greater part of the year; and that Kiamfu, the chief responsible for the revolt in East Kwango district, was condemned in May to penal servitude for life. The Rev. E. Stannard, who was convicted of criminal libel in 1906, having accused an official of threatening natives, was acquitted by the Court of Appeal at Boma. He had been sentenced to fine and imprisonment, but had appealed and returned to England, the British Consul informing the Congo authorities that he would let the appeal go by default.

In French West Africa there have been rumours of Islamic unrest which culminated in October in reports that Wadai chiefs, with troops five thousand strong, had moved to attack the Arabs of Kanem and the French posts north of Lake Chad. The pacification of the Sahara has made such progress that the

mission under Captain Arnaud was able to cross the Sahara last year in 100 days without interference. It covered over 5,000 kilometres (3,125 miles), of which about one-fifth was traversed by railway. The policing of the French Western Soudan by troops would appear to have established complete security, save for incursions from the equatorial Soudan. Captain Cromie's Report says that the General Budget of French West Africa for 1907 is estimated to balance at 715,4801. Early in 1907 the French Republic guaranteed a loan of 4,000,000l.—in addition to a previous loan of 2,600,000l. for railways, harbours, telegraphs and other public works. The report abounds in evidence of French energy and expenditure in the grouped territories and speaks encouragingly of trade. The latest figures are those of 1905. The total value of the trade of Senegal and the Upper Senegal-Niger in 1905 was 3,486,030l. In 1903 it was slightly over 4,000,000l. In Dahomey also trade shows a decline. A treaty between Great Britain and France was published in February, defining the line of demarcation between the French and British possessions from the Gulf of Guinea to the Niger, together with a map in two sheets. In July an agreement was also concluded in furtherance of the Anglo-French arrangement respecting the Ivory and Gold Coast territories, and providing for the dredging of the Tanu River.

When at Malta, en route for East Africa, Mr. Winston Churchill received in October a deputation of the elected members of the Council, who set up a claim for a larger share in the affairs of the island. Mr. Churchill promised to convey their views to Lord Elgin, but could give no pledge. He said it was the wish of the Imperial Government that the Maltese people should have the fullest voice in the administration; but he reminded the deputation of the friction of the past, and said that unless evidence were forthcoming that it was unlikely to recur the Imperial Government could not reopen the constitutional question. It rested with them to show continued evidence of the spirit that had actuated them in the past to return to their duties and pass the estimates; meanwhile the door was not closed to their wishes. There are no incidents of importance to record. The Report for 1906-7 shows a revenue of 513,5947. and expenditure 446,8491. The total value of imports was 1,219,8191., of which 239,000l. came from British countries; exports were of the value of 6,250,7871., of which the United Kingdom took 1,743,2411. and British possessions 324,6771. With regard to the languages controversy it should be recorded that out of 5,621 parents invited to select the language of colloquial instruction for their children, 93.6 per cent. chose English. There was no change in the political situation, but "every year the births exceed the deaths by over 2,000," says the Lieutenant-Governor, "and unless an outlet is found for the surplus population the situation will in a few years' time become acute.'

H. WHATES.

CHAPTER VIII.

AMERICA.

1. THE UNITED STATES OF AMERICA.

THE year began in the United States with the business of the country apparently never in a more prosperous condition, with a demand for all forms of manufactured articles that taxed production to the utmost, with labour in such demand that it could exact wages in some instances higher than ever before paid; and it closed with business depressed, with many factories running on half time and men seeking work. The extraordinary speculation and inflation that gained tremendous headway during the last few years culminated in October in a panic that swept banks and trust companies into the hands of receivers, destroyed the paper value of securities by hundreds of millions, caused banks all over the country to suspend cash payments and resort to "clearing-house certificates," drove gold into hiding, and forced the importation of 20,000,000l. in gold to prevent even greater and more far-reaching disaster.

Authorities differ as to the cause of the panic; some of them ascribe it to political agitation and ill-considered legislation to satisfy Radical demands, others to the natural reaction from artificial conditions and the too rapid conversion of fluid into fixed capital. Vast sums had been spent in extending existing railway lines, and increasing transportation facilities, in municipal improvements, in the building of factories and mills; and as the temperament of the American is optimistic, the nation was in a mood to anticipate the future and to believe that prosperity must continue without halt. As usual in such cases, the public was ready to subscribe for the stock of any company placed on the market that offered an extravagant return. Hundreds of millions were sunk in bogus mining and other companies, savings were drawn out of banks and put in real property, the speculation in which was at one time so rampant that the banks took concerted action to discourage it; on the Stock Exchange there was a mad scramble for shares; financial institutions paid more attention to the financing of enterprises that promised large profits to their promoters than to the legitimate demands of trade.

President Roosevelt had been active in his prosecution of the trusts and certain railway officials. The Legislatures of the various States began to agitate in favour of reduced passenger tariffs and a closer supervision over the affairs of the railways, which found its expression later in legislation that the companies asserted would seriously diminish their revenues and force some of them into insolvency, as the law practically compelled them to do business at a loss. The suspicion and doubts

thus raised made it impossible for the railway companies to issue new stock to carry on the improvements then in progress, and they were compelled to borrow money on short-term notes at a high rate of interest.

In March there had been a sharp fall in prices on the New York Stock Exchange, accompanied by the usual high rate of interest on call loans, which is always symptomatic of a money stringency caused by fear. Business at that time was very good, factories were running night and day to fill orders, the crop outlook was favourable, the tide of immigration was at its flood. Outside of New York the fall in the prices of securities was described as "a gamblers' panic" which could have no effect on the real prosperity of the country. The situation, however, was regarded as serious enough for the Treasury to take measures to relieve the strain.

Matters gradually became normal and continued so until midsummer, when there was another heavy fall in securities, and the feeling of apprehension was intensified by distinct evidence of decreased industrial activity. Some heavy failures began to shake confidence. Matters continued in this shape. until October, the prices of stocks going lower day by day, when on October 22 the Knickerbocker Trust Company of New York, one of the largest banking institutions of that city, with deposits of nearly 15,000,000l., after paying out 1,600,000l. to depositors, was unable to obtain assistance from other banks, and closed its doors. A week before a meteoric speculator had been compelled to resign the presidency of one of the national banks of New York city, because he had used the resources of the bank to promote his private speculations. Suspicion was directed against other affiliated banks, and some of their officers were forced to resign. Rumour attacked the solvency of other banks and banking institutions, and the public became nervous and was in a mood to be thrown into panic at the slightest suggestion of danger.

The suspension of the Knickerbocker Trust Company was really the beginning of the panic. The next day receivers were appointed for three of the Westinghouse concerns, the great manufacturers of electrical machinery, and the Pittsburg Stock Exchange closed its doors. The closing of the Knickerbocker Trust Company set up a run on the Trust Company of America, and rapidly spread to the Lincoln Trust Company. For a week long lines of depositors stood in front of the two banking houses, many of them remaining in place day and night, snatching such sleep as they could, and eating at long intervals, counting fatigue as nothing compared to the chance of losing their place in line and the risk of coming too late to get their money. The lines assumed such proportions that the police resorted to the extraordinary device of giving to each man a ticket with his number, which enabled him to leave the line for a brief period without forfeiting his place. In that week the Trust Company of