In 1792 a Commission came out from Holland to investigate the affairs and government of the now decadent and bankrupt Company; and shortly afterwards the widespread colonial system of that famous organization was taken over by the Home Government of Holland, or, as it became under French influence, the Batavian Republic. Minor reforms were introduced at the Cape, but they were not sufficient to meet the current conditions of corruption and stagnation, and by 1795, when Cape Town capitulated to Admiral Elphinstone and General Craig, during one of the varied phases of the Napoleonic wars and European combinations against England, much of the interior Colony was in a state of rebellion, and two little republics had been established amongst the settlers away to the north and east of the capital. Thus ended a system of Government which the late Judge Watermeyer, of Cape Town, has declared was "in all things political purely despotic; in all things commercial purely monopolistic;" and which the Historiographer to the Cape Government has summarized in the words:[3] "It governed South Africa with a view to its own interests, its method of paying its officials was bad, its system of taxation was worse, in the decline of its prosperity it tolerated many gross abuses." [3] George M. Theal, LL. D., in "Story of the Nations' Series." [Sidenote: Preliminary Period of British Rule] In this way were laid the foundations of character and custom upon which have been built the developments of the nineteenth century in South Africa. So far, however, there had been no real antagonism felt towards Great Britain, no apparent reason for its creation and no direct cause for its application. But, with the entrance of Holland into the league against England in 1795 and the evolution of India as an important dependency of the Island Kingdom, had come the first real clash of English and Dutch interests in South Africa through the capture of Cape Town. This preliminary period of British rule in the country lasted until 1803. Everything possible was done to conciliate the Dutch population, which in the country districts refused at first to have anything to do with, or to in any way acknowledge, the new Government. The people of Cape Town were treated with generosity. Officials taking the oath of allegiance were, as a rule, retained in their posts; the depreciated currency, amounting to a quarter of a million pounds sterling, was accepted by the authorities at its full nominal value; some very obnoxious taxes were abolished and a popularly chosen Council or burgher Senate was established in the capital. More important than all, the announcement was made that anyone might now buy and sell as he would, deal with whom he chose in a business way, and come and go as suited him upon land and water. The farmers were invited to Cape Town to trade as they might wish, and to lay any matters they desired before the Governor.