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silver

1,962

put of the world in 1906 was valued at 84,000,000 pounds sterling, and of this the Transvaal produced 24.76 million pounds sterling. Three years before the Transvaal entered the field, the gold production of the world was 20.48 millions of pounds sterling (1882). Twenty years after the Transvaal had entered the field (1905) the world-output was 78.14 millions of pounds sterling. In 1918 the Transvaal supplied 46.1 per cent. of the world's gold.

If one takes the total mineral production of the Union of South Africa for a year like 1917, for example, one gets an idea of the mineral wealth of the country: antimony

12,428 mica ... ... £ 877 asbestos 87,364 salt ...

110,566 coal 3,275,608 nickel (191

38 coke ... 28,648

172,997 copper 1,126,040 soda ...

29,377 corundum

13,038 steatite (1914) diamonds

7,713,810 talc flint 1,120 tar (1915)

881 gold ... 38,307,675 tungsten

1,551 graphite 2,590 tin

346,016 gypsum 5,092 zinc (1915)

2,214 iron oxide 305 Pyrite (Fe) ...

4,463 kaolin 19 lead ...

3,761 lime ... ... 131,373 magnesite ...

2,050 manganese

641 misc.-cement, etc. 880,819 Total mineral production for 1917: £52,260,190, (1).

Rhodesia is exceedingly rich in gold. Asbestos is also extensively mined there. In 1909 the production of asbestos amounted to 272.50 tons; in 1919 the production amounted to 9,799.37 tons. German South-West Africa, which was annexed in July, 1915, is rich in diamonds and copper, while gold, coloured marble, sulphur, lead, tin and large deposits of iron are also found. In 1918 7,000 tons of copper ore were exported, while diamonds to the value of 749,000 pounds sterling were produced. The stones are small but of a very high grade.

Mining affords an occupation to very many people in South Africa. Of the total number of people employed in mining 71.59 per cent. are employed in gold-mining, 211,773 blacks and 23,397 whites; 13.35 per cent. are employed in diamond-mining, 39,501 blacks and 6,140 whites; coal-mining employs 10.75 per cent., 31,806 blacks and 1,597 whites. In

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1. See Board of Trade Journal, September 12, 1918, p. 344.

e 342,000 the Union, having seen frica in

culture, omslowly. Upomed to the poland, and

1911 some 342,000 persons of all races were employed in the mining industry of the Union, of whom 47,000 were Europeans.

d. Manufactures: After having seen what opportunities were offered to the population of South Africa in mining and agriculture, one is not surprised at all that manufactures developed so slowly. Up to 1846 the colonists were drilled under and became accustomed to the policy of producing raw materials for the colonizing nation, England, and getting their manufactured articles from that nation; after the abolition of mercantilism they had to tear themselves loose from this policy, and it is sometimes easier to get hold of something than to get rid of it. Something more than the ordinary course of events was required to force the people into the manufacturing line.' This extraordinary stimulus came with the Great European War.

There were at the beginning of the War some manufactures of old standing, for example, the making of carts and waggons, candles, jams, and a few others. Most of South Africa's manufacturing industries sprang up during the war. The production of leather more than doubled. This industry is further favoured by the fact that enough tanning extract is produced in the Union to more than overtake the expanding demand of the country. Almost enough cement is produced to satisfy the local demand. Dairy manufactures have increased considerably. The Union is self-sufficing in the production of matches and in beer. Dynamite, soap, rope, wine, spirits, furniture, brooms, brushes, biscuits, earthenware pipes, fire-bricks, shoes, blankets, cigarettes, cigars, and many other things are also produced. According to the Industrial Census of 1917 — 1918 the value of the gross production of industries equalled 60,828,440 pounds sterling. The total number of

Note: In 1917 there took place i. The first census of industrial production.

ii. The formation of a Federation of Industries affiliated with the British Empire Producers' Association.

iii. The formation of the Industrial Development Company, Ltd., to provide funds for new industrial enterprise.

iv. There has also been organized the Industrial Section of the Department of Mines and Industries with its Advisory Council of Industry, Statistical Committee and Scientific Advisory Board.

v. The first publication of the official monthly Journal of Industries.

vi. The flotation of companies to establish vitally important primary industries, notably the production of iron. (See concluding paragraphs, Ch. IX.) — Continued on next page.

factories in the Union amounted to 5,919, and these were established among the four provinces of the Union as follows: The Cape Province

2,775
Natal ...

864
...
Transvaal ...

1,879
Orange Free State

401 The average number of persons employed numbered 134,211, of whom 49,908 were whites. This points to the fact that the proportion of whites to blacks in factories is much greater than the proportion of whites to blacks working in the mines. This is no doubt due to the fact that mining — especially goldmining — is a much more unhealthy occupation than working in a factory. (1). The wages paid out in these factories amounted for the year 1917 — 1918 to 12,227,700 pounds sterling of which sum 9,021,512 pounds sterling were paid out to whites.

The principal industries according to the number of factories stood more or less as follows: Factories where foods, drinks and condiments were treated, prepared or preserved, 1,733; cutlery, some kinds of engineering machinery and metals, 719; clothing, textile fabrics, and so forth, 655; vehicles, fittings for and parts of same, 594.

The manufacture of iron has just begun. Speaking of African competition in his “Coal, Iron and War,” Eckel says: “As a future home for large aggregations of purely European type it (Africa) also offers great possibilities in two widely separated regions. Of these South Africa has the advantage that, in future, it may become independent in the matter of coal and iron supply, since it has sufficient raw materials to be considered a possible producer, though hardly a heavy exporter of such products. (2). Both South Africa and Australia seem to have enough iron-ore, in addition to their coal, to become important industrial factors in world-commerce." (3).

The natural result of this industrial awakening is of course that all over the country cries are heard for protection

1. Gold-mining with its fine dust promotes miner's phthisis, a dreaded disease. For wages see 0.Y.B. No. 3, p. 635.

2. p. 335.
3. p. 328.

Note continued: — See Board of Trade Journal, Sept. 19, 1918.

In 1921 the Government also appointed a Customs Tariff Board of 5 members to bring about a co-operation between the Industrial Section of the Mines Department and the Customs Department. See Board of Trade Journal, June 23, 1921, p. 705.

and more protection, as also cries against dumping. Before South Africa started on a manufacturing career there was a continuous endeavour to increase the preference on British goods. Now it is suggested in the Report of the South African Federated Chamber of Industries on the Revision of the Tariff, that "in the event of the present rebate to Great Britain and British Dominions being increased, the net duty protecting the interests of the Union manufacturers shall not be less than :at present in existence.” (1). In other words, the preference might be increased, but at the expense of the countries discriminated against, because in order to increase preference, and at the same time leave South African industries as well protected as before, it means that the general tariff will have to be raised. : The Report further states that the “dumping clause" at present in operation is inadequate. (2). No dumping whatever should be allowed, as that “cripples South African industries.” The Report also suggests that “all raw materials which are not produced in South Africa in commercial quantitities and used for manufactures in South Africa,” should be allowed duty-free importation. Likewise, partly-manufactured articles should be allowed duty-free when they are used for the manufacture of commodities in South Africa. Machinery was also recommended for duty-free importation. (3).

1. Board of Trade Journal, April 29th, 1920, p. 593.

2. Under section 8 of the Customs Tariff Act of 1914 it is provided: — “In case of goods imported into the Union of a kind or class made or produced in the Union, if the export or actual selling price to an importer in the Union be less than the “true current value” of the same goods when sold for home consumption in the usual and ordinary course in the country from which they were exported to the Union at the time of their exportation thereto, there may, in addition to the duties otherwise prescribed, be charged, levied, collected and paid on those goods on importation into the Union, a special customs duty (or dumping duty) equal to the difference between the said selling price of the goods for export and the true current value thereof for home consumption, provided that the special customs duty shall not in any case exceed 15 per cent. ad valorem.”

3. Machinery for manufacturing, mining, book-binding, printing and other industrial purposes pay 3 per cent. ad valorem import duty under the general tariff, and nothing under the preferential tariff. The above-mentioned plea for duty-free importation of machinery seems to point to the fact that the manufacturers became aware of

The preference stipulation in the above-mentioned Report reminds one of the agitation in Canada when the wool manufacturers found that the preference clause in the Canadian tariff did not give them sufficient protection against their English competitors, and the tariff was ultimately modified between 1904 and 1906, so as to suit their purposes. As to the importation of machinery it seems that here again artificial manipulation will play an important part. A new organization known as the “South African Association of British Manufacturers and their Agents” has lately been established in Johannesburg. One of the objects of the Association is “to see to: it that when the time is ripe for particular industries to be located in South Africa, British capital and British plant are: available for their development.” (1). This attitude is not strange at all. The British manufacturers, favoured by the. preferential tariff on machinery, do a large business by being enabled in this artificial way to supply South Africa with mining as well as manufacturing machinery. Note, for example, the total value of machinery and stores purchased by the mines of the Union in the following years : (2).

1911

14,071,108 pounds sterling. 1912

12,600,047 . » 1913

13,362,905 , , 1914

12,224,535 » Normally the diamond industry alone spends annually

1. Board of Trade Journal, June 24, 1920, p. 824.

2. Report to the Board of Trade on the Trade of the Union. of South Africa and Rhodesia for 1914, pp. 22, 23.

the fact that they have to get their machinery to a great extent from the United States of America, and that such a duty is inconvenient. It will be well for the agricultural element in the country to become wise too. In 1919 the importation of agricultural tractors stood as follows: — Country of origin.

Number.

Value (pounds stg.) United Kingdom

1,096 Canada

21

4,239 United States of America 2695

47,977

See Board of Trade Journal, May, 27, 1920. See also British Parliamentary Papers for 1916, Vol. 63, p. 186.

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