But, now that we have been at war, on what terms is peace to be arranged? In the Cape Colony the natives—as the Basutos, the Fingoes, and others—live in districts to themselves, not intermingled with the white man. The young men leave their homes, and go into the colony, and work for a time in the towns or on the farms; but their home is in Basutoland, Fingoland, etc. The same holds good in the Transvaal. The natives there are on the border; but Natal is the one exception to this rule; in this colony we live intermingled; and a few years ago we were regarded as living in the crater of a volcano. It was thought that the Natal natives, who outnumber the European settlers eighteenfold, might at any moment overwhelm us, so that Cape politicians and others refused to be connected with this colony. In 1876, however, before the rising of the natives on the frontier, I was bold enough to point out to my fellow-colonists that our supposed weakness was in reality our strength. And so it has proved. During the last two years Natal has been the oasis of South Africa; everywhere else the natives have either been in arms, or shown themselves disaffected, if we except the Fingoes; but the position in which they stand to the Kafir tribes around them compels them to be loyal, so they are scarcely to be taken into account. Whilst, then, throughout South Africa the natives have been a source of uneasiness, the overwhelming native population of Natal (360,000, against 22,000 whites) has been perfectly true to the Government, and the grounds of their loyalty are now, I think, recognised in Natal. They are these: 1. The natives are not, like Englishmen, self-reliant, but naturally dependent; consequently, they use the machinery of Government much more than we do. An Englishman dislikes appealing to a magistrate, as it implies a want of power to take care of himself or to govern his dependents. Not so the native; he habitually leans upon the magistrate. Thirty years ago in Natal the native leant upon his chief; now he has become familiar with the magistrate, who has become a necessity to him. I argue, therefore, that a people will not plot or even desire to throw off an authority which enters into their daily life. 2. Natives who have resided amongst white men feel the need of their presence. The native races cannot develop themselves—nor, when in some degree developed, can they stand by themselves—as their wills are weak, and intellectually they are lawyers, fond of argument, but without imagination; so they can neither plan nor construct. In their independent state they have no criminal law, no commercial code, no municipal one, no law of tenure of landed property; they possess only a few customs regulating marriage and the division of their cattle amongst the family; but, scattered amongst white men, they are able to expand.