The construction of the Indian Empire would of itself suffice to make an age memorable, but it does not end the catalogue of the achievements of British imperialism in this tremendous period. As a result of the participation of Holland in the war on the side of France, the Dutch colony at the Cape of Good Hope was occupied by Britain. It was first occupied in 1798, restored for a brief period in 1801, reoccupied in 1806, and finally retained under the treaty settlement of 1815. The Cape was, in fact, the most important acquisition secured to Britain by that treaty; and it is worth noting that while the other great powers who had joined in the final overthrow of Napoleon helped themselves without hesitation to immense and valuable territories, Britain, which had alone maintained the struggle from beginning to end without flagging, actually paid the sum of 2,000,000 pounds to Holland as a compensation for this thinly peopled settlement. She retained it mainly because of its value as a calling-station on the way to India. But it imposed upon her an imperial problem of a very difficult kind. As in Canada, she had to deal here with an alien race of European origin and proud traditions; but this racial problem was accentuated by the further problem of dealing with a preponderant and growing negro population. How were justice, peace, liberty, and equality of rights to be established in such a field?
It was, then, an astonishing new empire which had grown up round Britain during the period when the world was becoming convinced that colonial empires were not worth acquiring, because they could not last. It was an empire of continents or sub-continents— Canada, Australia, India, South Africa—not to speak of innumerable scattered islands and trading-posts dotted over all the seas of the world, which had either survived from an earlier period, or been acquired in order that they might serve as naval bases. It was spread round the whole globe; it included almost every variety of soil, products, and climate; it was inhabited by peoples of the most varying types; it presented an infinite variety of political and racial problems. In 1825 this empire was the only extra-European empire of importance still controlled by any of the historic imperial powers of Western Europe. And at the opening of the nineteenth century, when extra-European empires seemed to have gone out of fashion, the greatest of all imperial questions was the question whether the political capacity of the British peoples, having failed to solve the comparatively simple problem of finding a mode of organisation which could hold together communities so closely akin as those of America and the parent islands, would be capable of achieving any land of effective organisation for this new astounding fabric, while at the same time securing to all its members that liberty and variety of development which in the case of America had only been fully secured at the cost of disruption.