The increase in gold production in and around Johannesburg in 1887 generated a simultaneous
explosion of growth in local and foreign financial intermediaries such as banks, insurance
companies, and most significantly, the Stock Exchange. Initially serving a small pool of European
speculators in the South African Republic, the higher capital demands of the deep-level mining
revolution from 1890 elevated the JSE into a growing global network of stock exchanges,
communicating with those in the Cape Colony, Natal, Rhodesia, London, Paris, Istanbul and even
Melbourne. Although Pretoria tolerated Johannesburg’s financial industry, it became
increasingly concerned about how its growing cosmopolitan society could disrupt the Boers’
authority on the Republic.
By using the JSE to restructure who owned and controlled the means of production in
deep-level mining in the early 1890s, Johannesburg’s new capitalist class, the Randlords, were
able to establish and entrench themselves in an increasingly international market for South
African mining securities. By the end of the 19th century, JSE became a modern financial
institution increasingly preferring Victorian capitalism over Kruger’s economic patrimonialism.
Despite attempting to balance British financial interests with loyalty to Pretoria’s republicanism
before the outbreak of the South African War in 1899, the Exchange clearly sided with British
commercial, political and legal interests once its legitimacy amongst foreign investors was
challenged.
This proposed paper investigates the origins, diversity and political influence of global
financial networks entrenched inside the JSE for the period 1887-1902. Using neglected original
documentation from the JSE and partner financial intermediaries in Johannesburg, London and
Paris, the analysis of Johannesburg’s international financial networks and their interaction with
the JSE exposes new evidence on the political escalation of the Anglo-Afrikaner conflict in 1899.