Editing Orange Free State (section)

===Diamonds discovered===

The Basutoland difficulties were no sooner arranged than the Free Staters found themselves confronted with a serious difficulty on their western border. In the years 1870–1871 a large number of foreign diggers had settled on the diamond fields near the junction of the Vaal and Orange rivers, which were situated in part on land claimed by the [[Griqua people|Griqua]] chief [[Nicholas Waterboer]] and by the Orange Free State.<ref name="eb1911-text"/>

The Free State established a temporary government over the diamond fields, but the administration of this body was satisfactory neither to the Free State nor to the diggers. At this juncture Waterboer offered to place the territory under the administration of [[Queen Victoria]]. The offer was accepted, and on 27 October 1871 the district, together with some adjacent territory to which the Transvaal had laid claim, was proclaimed, under the name of [[Griqualand West]], British territory. Waterboer's claims were based on the treaty concluded by his father with the British in 1834, and on various arrangements with the Kok chiefs; the Free State based its claim on its purchase of Adam Kok's sovereign rights and on long occupation. The difference between proprietorship and sovereignty was confused or ignored. That Waterboer exercised no authority in the disputed district was admitted. When the British annexation took place a party in the Volksraad wished to go to war with Britain, but the counsels of President [[Johannes Brand]] prevailed. The Free State, however, did not abandon its claims. The matter involved no little irritation between the parties concerned until July 1876. It was then disposed of by [[Henry Herbert, 4th Earl of Carnarvon]], at that time [[Secretary of State for the Colonies]], who granted to the Free State a £90,000 payment "in full satisfaction of all claims which it considers it may possess to Griqualand West." Lord Carnarvon declined to entertain the proposal made by Mr Brand that the territory should be given up by Great Britain.<ref name="eb1911-text"/> In the opinion of historian [[George McCall Theal]], the annexation of Griqualand West was probably in the best interests of the Free State. "There was," he stated, "no alternative from British sovereignty other than an independent diamond field republic."<ref name="theal-eb1911"/>

At this time, largely owing to the struggle with the Basothos, the Free State Boers, like their Transvaal neighbors, had drifted into financial straits. A paper currency had been instituted, and the notes, known as "bluebacks", soon dropped to less than half their nominal value. Commerce was largely carried on by barter, and many cases of bankruptcy occurred in the state. The influx of British and other immigrants to the diamond fields, in the early 1870s, restored public credit and individual prosperity to the Boers of the Free State. The diamond fields offered a ready market for stock and other agricultural produce. Money flowed into the pockets of the farmers. Public credit was restored. "Bluebacks" recovered par value, and were called in and redeemed by the government. Valuable diamond mines were also discovered within the Free State, of which the one at [[Jagersfontein]] was the richest. Capital from [[Kimberley, Northern Cape|Kimberley]] and London was soon provided with which to work them.<ref name="eb1911-text"/>