At first, when they were not known as they deserved to be, some persons fresh from the Mother Country, to whom South African morals and intrigues were unknown, took to heart the position as well as the complaints of those refugees. Hearing them continually mention cases in which rebel Dutch had, in this way or that, shown their want of allegiance to the British Government, conclusions were jumped at that there must exist a reason for these recriminations and allegations, and that British officials were in reality too anxious to conciliate the anti-English elements in the Colony, to the detriment of the loyalists, whose feelings of patriotism they considered, as a matter of course, required no reward and scarcely any encouragement. These people, unequipped with the truth, took up with a warmth which it certainly did not deserve the cause of these loyalists, sought their advice, and formed a totally wrong and even absurd opinion both as to South African politics and the conduct of the representatives of the Queen in Cape Town.
All the misrepresentation and misunderstanding which took place increasingly, led to animosity on the part of the Dutch. Rightly or wrongly, it was taken as a matter of course that Rhodes favoured the idea of a total annihilation of the Cape Dutch. And as he was considered a kind of demigod by so many the idea was widely circulated, and became at last deeply rooted in the minds of most of the white population of South Africa, who, without being able to say why, considered it in consequence a part of its duty to exaggerate in the direction of advocating severity toward the Dutch. This did not contribute to smoothen matters, and it grew into a very real danger, inimical to the conclusion of an honourable and permanent peace. Federation, which at one time had been ardently wished for almost everywhere, became a new cause for anxiety as soon as it was known that Rhodes was in favour of it. People fancied that his ambitions lay in the direction of a kind of dictatorship exercised by himself over the whole of South Africa, a dictatorship which would make him in effect master of the country.
This, however, was the last thing which the financiers on the Rand wished. Indeed, they became quite alarmed at the thought that it might become possible, and hastened to explain to Sir Alfred Milner the peril which such a thing, if it ever happened, would constitute for the community at large. Their constant attendance upon Sir Alfred, however, gave rise to the idea that these financiers wanted to have it all their own way with him and with the Cabinet at home, and that they meant to confiscate the Transvaal to their own profit.