THESEGREGAliON ERA
ments of Canada and Australia, had begun to act independently in interna-
tional affairs, placing diplomats in major foreign capitals and separating
the officeof governor-general (head of state) from that of the British repre-
sentative in South Africa. Hertzog, like Smuts before him, also tried, but
failed, to persuade Britain to allow South Africa to incorporate Basuto-
land, Bechuanaland Protectorate, and Swaziland.!?
The Great Depression led to a realignment of political parties. After the
collapse of Wall Street in October 1929, South African exports plum-
meted. Australia, the major wool-producing. country in the Common-
wealth, followed Britain in devaluing its currency, leaving the South Af-
rican pound worth twice as much as the Australian, and making it almost
impossible to market South African wool. Nevertheless, the Hertzog ad-
ministration
adhered doggedly to the gold standard,
causing distress
among its main supporters, the farmers, until it finally devalued the South
African pound in December 1932. By then, the South African economy
had been greatly damaged. Negotiations then tookplace between the lead-
ers of the two major parties. In March 1933, they formed a coalition
government, with Hertzog as prime minister and Smuts as deputy prime