Mr. Sluysken took over the government of the Cape Colony under circumstances of great difficulty. The credit of the East India Company was exhausted, and its debt was ten million pounds sterling. In February 1794 it was obliged to declare itself unable to meet the interest on its loans. To maintain a garrison capable of defending the country in case of attack was beyond its power.

In the colony gold and silver coin had disappeared, and in its stead was a quantity of cartoon money resting on no other security than the ability of the Company to redeem it at some future time. Under these circumstances, internal trade, except by means of barter, had almost ceased. Debts could be paid in paper, for it was a legal tender, and therefore no one cared to give credit. The prohibition of trade with foreigners had created such distress that its enforcement had been suspended for three years; but now very few foreigners called. The little merchandise in the country was sold at such excessively dear rates that individuals of moderate means were obliged to dispense with many of the ordinary comforts of life. Fortunately, the seasons from 1786 to 1796 were good, and there was no scarcity of food in the country; but there was hardly any market for the surplus, except such as was furnished by the agent of the English East India Company for the supply of St. Helena and, before the outbreak of hostilities, by the agent of the French governments at Mauritius and Bourbon.