A frequently alluded to fallacy when discussing the state of the economy in this era is the primacy of physical items whether it is a precious metal such as gold or agricultural products such as cotton or wool. Logistics constraints are only considered when they are an extreme impediment to the smooth flow of these physical items. However, seldom mentioned is the centrality of banks and banking practices which oils that process. Without all of the components of the process operating like the proverbial well-oiled machine, economic progress is not possible.

As previous blogs have focussed upon the both the hazards, horrors and cost of wagon transport from the hinterland and the stupendous surge in wool production over two decades, neither will feature as the dramatis personae but rather they will be assigned a cameo role in this article.

Remarkably, the Eastern Cape and Port Elizabeth led the charge in establishing banks. By the 1870s, the Eastern Cape sported 24 banks whereas the rest of the Cape Colony had one; lIkewise Natal and the Orange Free State and the Transvaal none.

Main picture:  1866 painting of Port Elizabeth by Thomas Bowler

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