welcome all comers from Europe and America, not being adventurers or
wastrels--all and sundry who can contribute to the good of the country
and who are willing to become loyal citizens. It will be madness to
attempt to build up a South African nation from these islands alone.
England is a small country and the English are gradually ceasing--and
this tendency is certain to increase--to rear large families. In the
past, in our own land as well as in our realms beyond the seas, our
chief glory has been in our genius in amalgamating different strains,
bringing them all into the fold as patriotic Britons. The British Empire
is now more than ever a crucible wherein metals, precious and base, may
be wrought into a fine amalgam. Whether as a limb of a great and
regenerated British Empire, and therein my individual hopes lie, or as a
powerful republic on the pattern of the United States, there ought to be
no question as to the future of South Africa. Mr. Chamberlain said again
only the other day that the prosperity of South Africa in the not far
distant future would doubtless exceed the dreams of the most sanguine
visionary. So let it be. Many shrewd Americans are of the same mind. No
doubt the immediate expansion in South Africa's import trade is due to
military requirements, while the shrinkage of its export trade may be
attributed mainly to the war having put a stop to the recovery and
exportation of gold. The cost of living throughout South Africa, at
present extraordinarily high, is certain to be reduced to more
reasonable limits when the railways are permanently relieved from the
control of the military. It must be remembered, too, that while a fair
proportion of favoured individuals among the colonists have reaped huge
harvests by the war, a far greater number have been crippled and ruined
outright by it. It is not for me to deal with the problems of trade; but
I may say that even should some scheme of the favoured-nation kind be
extended to British imports by the South African Realm to be, that in
itself would not serve, nor will the spirit of patriotic preference for
British goods suffice to preserve the trade of South Africa for this
country. The matter rests with our manufacturers, exporters, and their
agents; and no one, not being a self-deceived egoist, can pretend that
the more alert, adaptive, and modern methods of American and German
houses are not certain, unless our countrymen turn over a new leaf, to
prove too much for our LAISSEZ-FAIRE, self-sufficiency, and careless
indifference.
In this matter the best men, be they English, German, or Yankee, will
win. But this is a home rather than a South African question. In any
case, we may expect soon to see a considerable influx of capitalists,
farmers, and traders, and they cannot but give an impetus to South
Africa's reviving fortunes, let political ineptitude do its worst. I
have endeavoured to show wherein lie the chief obstacles to progress in
the new colonies. In the old--Natal would in any case seem to have an
era of immediate prosperity before her--the future is darkened by
considerations all too apparent for the most optimistic or blind to
overlook or ignore. The Africander Bond and the Dutch Reformed Church
have not buried the hatchet. Throughout South Africa it is, of course,
the duty of the loyal South African of British origin or British
sympathies to endeavour to recognise at their best the many sterling
qualities of the Dutch, and to forgive with what charity he may their
besetting sins, condoning them as the resultants of environment and
circumstance. It is also their duty to recognise that the past mistakes
of Downing Street were chiefly due to lack of brain and thought, rather
than to lack of heart, and to determine to work with all true patriots
for the lasting good and welfare of South Africa.
Unhappily there is ample evidence to show that the Dutch Reformed Church
and the Africander Bond are as active for evil as ever. How great is the
terrorism exercised by the COMMISSIE VAN TOEZICHT (the Secret Council of
the Bond) is illustrated to-day by the abject recantation of the Rev.
Mr. Botha, a pastor who, having counselled his countrymen to submit to
the inevitable and accept British rule as far back as September 1901,
now stands in the white sheet of repentance, and abjectly craves to be
forgiven for what he calls his temporary weakness and backsliding!
Undoubtedly disloyalty to the British Empire throughout South Africa has
its _fons et origo_ not in the Transvaal but at the Cape. For the moment
the Bond lies low. It has gained everything it can hope to gain for the
present. This the most superficial student of Cape politics can see. The
problem of how to reconcile divergent elements at the Cape, and to make
the Cape Dutch as loyal to the Empire as the French Canadians to-day,
not that their loyalty is unimpeachable, is an extremely complicated
one. At the Cape it is by no means merely a question of Dutch _versus_
English or of Town _versus_ Country. Many of the most active enemies of
Great Britain are to be found in the houses of the old Dutch families
inhabiting the suburban districts of Cape Town--Wynburg, Rondebosch, and
so forth. It is also true that among those old Dutch families no more
loyal subjects of the king are to be found. Unhappily English
associations, close intercourse with Government House, intermarriage
with English families, and education at our universities or at the
Temple here, do not always ensure that the Dutch Africander will be
loyal to Great Britain. Even more to be regretted is the fact that many
colonists of pure British descent, birth even, are merely nominally
loyal to the Imperial connection, if as much as that. Their loyalty is
of the opportunist kind. Because of their hatred of the Dutch
propaganda, and because they fear that the Dutch, if left to themselves,
would become "top dog," they tolerate British institutions. We cannot
blame them over much for this attitude, when we remember how miserably
we have deserted our countrymen in the past; how we have left them to
the tender mercies of the Dutch; how we have neglected their warnings
and advice, and brought ruin and misery upon them because of our
short-sightedness and stiff-neckedness.
Even now the British colonist has many substantial excuses for averring
that loyalty does not pay. In view of these facts it behoves Great
Britain to admit frankly her past errors and to resolve, if she means to
retain her hold on South Africa, to order her footsteps differently in
the future. It behoves Great Britain, if she would avoid future risks of
triangular disloyalty and the grave disasters, local and international,
which might supervene on another period of neglect and snubbing, to
trust the men on the spot. It behoves her to govern South Africa firmly,
consistently, and unemotionally; to have done with Majubanimity and all
its works once and for all; all folly, such as paltering with the
language and education questions, whereby the sentiments and interests
of loyal British colonists are flouted and ignored. Great Britain must,
however, do everything that she can consistently do to bring the two
European races--English and Dutch--together. If she is to do this, if
England is to retain a firm grip on South Africa, we must continue
strong, let it be said rather we must renew our strength here in the
centre of the Empire. Within the next half-century it is probable that
the last ounce of gold will have been extracted from the Transvaal's
deepest deep levels. Within half that time the impending struggle of the
world Powers to establish themselves in unassailable positions will have
taken place. Germany is forced by an inexorable law of self-preservation
to find an outlet for her commerce and her people on the seas. Every
thinking German, from the Kaiser downwards, tells us as much frankly. We
can see it for ourselves. She must find employment, food, and raiment
for her highly prolific people, for their own land is by no means rich
in natural wealth. As to Africa, our hold on it depends entirely upon
the strength of our national grip. If our hand is growing flabby and
listless, and, alas! there are too many indications that such is the
case; if France is to gain her ends in the Mediterranean; if sentimental
views in regard to the natives are to prompt us to stand idly by while
such organisations as the so-called Ethiopian Church of the United
States working from the south, and the emissaries of a militant
Mahommedanism from the north, conspire informally to undermine their
loyalty, then our days in Africa are numbered. In the last event, our
hold on that continent in general and South Africa in particular depends
upon character, especially the character of our ruling classes. The
possibilities of this country in Africa are magnificent; but the
problems to be solved, if these possibilities are to be realised, must
appal and finally overcome all but the stoutest of heart. The world, and
South Africa with it, will fall to the nation which breeds and sustains
the best men.
THE FUTURE OF THE MINING INDUSTRY
BY F. T. NORRIS
The future prosperity of South Africa mainly depends upon the
development of her vast and indisputable gold wealth, for, albeit she
possesses other resources in undoubtedly lavish abundance, the means for
the utilisation of these latter are dependent, in a large measure, upon
the effective exploitation of her auriferous reserves. This fact was
explicitly stated by Sir David Barbour, the financial expert appointed
by the Imperial Government to report in 1901 on the resources of the
Transvaal, and that this impartial official opinion is echoed by all
competent observers prior to and since his investigations only confirms
its correctness. As to the magnitude to which the mining industries in
the Transvaal may ultimately attain opinions differ, but, says this
authority, and this view is confirmed by experts, it is certain that the
production of gold will continue to increase largely for some years at
least; that there will be a corresponding growth in the production of
coal, and it is possible, and perhaps probable, that valuable mines of
other minerals, and especially of diamonds, may be opened. He therefore
opines that, from an economic point of view, the prospects of the future
for a considerable period are quite satisfactory, and it is unnecessary
to speculate as to what may ultimately happen.
Public opinion on the Rand is unanimous that absolutely vital questions
for the mines' future are, for the moment, labour and taxation. A
comprehensive and impartial view of the circumstances of the mines must
force the conclusion that such contentions are perfectly sound.
Naturally, however, the dimensions of the latter factor have less weight
since the reduction of the customs tariff and the previous abolition of
monopolies, and, with the pending solution of the question of dynamite,
the mining industry is now not only in a vastly superior economic
condition than it ever was, but has been placed in a position to
sustain, not without some difficulty maybe at the outset, all the
prospective burdens of projected Imperial taxation. In saying "not
without difficulty," the crux of the present economic situation, as
looked at by the leading and responsible section of the mining industry
and competent individuals at large, is touched. For the judiciousness or
otherwise of the immediately heavy incidence of the share of the cost
of the war, which it may be contemplated to place on the Transvaal, is
what causes the present misgivings; and, with the operative capacity of
1898 still some ten to fifteen months ahead, the immediate call for
heavy contributions can only act as a drag upon progress. It is with
this consideration in view that the Chamber of Mines, in a recent letter
to Lord Milner, asked for a delay of five years before making a first
payment, in order to allow time for the industry to recover its former
level, and that other authorities have also entered their protests.
[Illustration: PROSPECTING FOR GOLD: PANNING A SAMPLE]
The inference that an immediate and heavy increase of taxation is to be
made to meet the war debt obligations may possibly be gratuitous, and
probabilities confirm this supposition, for it is at issue with the
Government expert's special recommendations. From this point of view,
Sir David Barbour's observations are worth reciting for their direct
bearing. He says: "The sound policy for the Transvaal is to so frame its
system of taxation as not to increase unnecessarily the initial capital
expenditure, or enhance the cost of working. I shall take it for granted
that it is not intended to impose excessive or crushing taxation on
either of the Colonies, or to exact such a share of their revenue as
would cripple or starve the Administration. Subject to these
considerations, I shall assume that any surplus of revenue over
expenditure, or any special assets that the Colonies may possess, can
fairly be taken towards meeting a portion of the cost of the war."
Further: "If the additional taxation which I recommend ... be imposed
... it may be anticipated that after two years from the conclusion of
peace that Colony will be in a position to set aside a portion of its
ordinary revenue towards meeting the cost of the war. I am unable at
present to form an estimate of the amount which it may be possible to
set aside in this way.... On the assumption that the contribution of the
Orange River Colony and the Transvaal towards the cost of the war is to
be limited to the amount which they can pay without imposing excessive
taxation or starving the Administration, it will be obvious from what is
said in the preceding portion of this report, and especially in
paragraph 62, that it is impossible at the present time to specify any
definite sum as that which ought to be paid. I suggest that the Imperial
Government should fix the maximum sum which, under any circumstances,
they would require to be paid. Such portions of the total amount of
contribution, so fixed as it may be found from time to time that the
Colonies can bear, should be made a charge against them. If, in the
course of time, it is found that the Colonies are unable to pay the
whole sum, under the conditions as to taxation and cost of
administration which I have already specified, the balance should be
written off." So far as the immediate incidence of war taxation is
concerned, it is therefore highly probable that the Government, who have
adopted their financial expert's views almost _in toto_ with regard to
fiscal reform, will do the same with regard to the levy of the war
contribution.
[Illustration: WASHING PLANT OF DE BEERS DIAMOND MINES AT KIMBERLEY
Photo by Wilson, Aberdeen]
But another phase of the same subject is revealed in the extent of the
contribution which the Transvaal should be called to bear compared with
that of the other South African Colonies. In the thoughts of some,
tinctured still perhaps with a touch of the recent bitterness of the
war, the Transvaal should bear the heaviest share; but it is to be
observed that this is not the opinion of the responsible heads of the
mining industry, who, while admitting the justness of assuming their
proper proportion of the proposed burdens, appropriately point out that
both the Orange River Colony and the Cape Colony (for a part of the
latter's population) were fellow-sharers in the beginnings and the
conduct of the war, and should bear a due portion of the resultant
financial burdens, while Natal, it is contended, cannot fairly be
allowed to escape contribution to the extent at least of the valuable
Transvaal territory which has been allotted to her. Pending formal
announcements of the Government's intentions--and it is to be observed a
contribution from the Orange River Colony is contemplated in Sir David
Barbour's report--many huge lump sums have been mentioned, which it is
proposed to levy on the Transvaal alone. Such reports naturally have not
only alarmed the mining industry, but disturbed the confidence of
international capitalists, upon whom the future development of the
wealth of the goldfields in the first place rests. The extent of the
alarm which is felt is shown by the Johannesburg Chamber of Mines as a
body pleading in their recent communication to Lord Milner for a
"reasonable sum" to be fixed, and by the rough estimates of this sum
propounded by others, as, for instance, Mr. Freeman Cohen, chairman of
the Potchefstroom Exploration and Gold Mining Company, who indicates
£30,000,000 as the specific figure, while Mr. Bleloch adventures the sum
of £35,000,000. This last gentleman's summing up of the situation is
that the mines can pay, and are willing and forward to pay, provided the
incidence at the first be made light, and that the burden of the
£55,000,000 estimate of the Government's financial expert be shared by
the other Colonies in the proportion, say, of £5,000,000 from each, to
lessen the burden on the mining industry as much as possible, especially
the low-grade section, and also as a matter of equity, and he advocates
in addition--to augment the disposable revenue--the levy of a 5 per
cent. tax on the profits of other industries (banks, &c.), the creation
of death dues and of a land tax; also the beneficial reservation to the
Government of portions of each new mining field to be opened.
That the whole weight of the taxation of the Transvaal should not be
made to fall upon one industry is, of course, consonant with reason,
policy, and equity. Pending the pronouncement of its actual intentions,
and in view of the alarmist rumours which are spread about, it behoves
the Government, to allay the very natural apprehensions entertained, to
give an early and explicit outline of its proposals, and in this
connection the projected visit of the Right Hon. J. Chamberlain to the
Colonies is of the best augury. From his place in Parliament that
statesman has already disclaimed, on several occasions, proposals anent
the immediate imposition of heavy taxes attributed to the Imperial
Government, and the probabilities are that those recently published in
London are as baseless as they are vague.
The dependence, to a large extent, of the development of the mining
industry on the fostering and assistance, or otherwise, accorded by the
existing Government is a point too painfully brought home to the Rand
mining industry by past experience to need demonstration; wherefore the
sound common-sense statesmanship of those now responsible for the
prosperity of the Empire is a valuable guarantee that the various
problems now absorbing the attention of the industry will be treated in
a fair, just, and liberal manner.
The Rand mining industry, at the moment, is undoubtedly in the throes of
one of those periodic waves of depression incident to all great
gold-mining fields, though to the Rand in a less degree than to the
others, on account of the certain results which may be reckoned upon
from the stable nature of its geological formation. Capital required for
its development is in many cases being withheld, investors looking
askance at its demands with obvious misgivings. This attitude is
undoubtedly due to impatience, and disappointment that progress has not
been more rapid since peace has been declared.
[Illustration: THE INFANCY OF A GOLD-MINE: WINDING QUARTZ WITH A WHIM]
Apparently it was assumed that only a cessation of hostilities was
needed for the mines to hurry up and resume their old-time rate of
production and prosperity. Such an assumption ignores the real
difficulties of reconstituting a country and its industries, devastated
and disorganised for three years by war, and setting up an entirely new
order of things. As a matter of fact, the progress actually achieved has
been marvellous, and as much, or even more, than could have been
expected in like cases. It has apparently been forgotten that civil
government has only within a few weeks replaced the military in the main
administrative channels. The railway network of the sub-continent has
only been thrown open to the free transport of merchants' goods within
the past month, and the limitation of transit to the Rand, and the
interior generally, is a most serious matter, by reason of the fact that
the trunk railways from the coast are only single lines. For the
clearance at the ports of the accumulations of mining machinery, mining
stores, building materials, foodstuffs, and general merchandise, months
are required, and this clearance must take place ere the railway traffic
can fall back into its normal grooves. Abundance of labour, too--always
a crucial question with mining operations, whether they be on the Rand,
in Rhodesia, or elsewhere in the sub-continent--is, for a variety of
causes, not yet available, although measures have been taken by the
Government and the mining industry, acting in concert, which have placed
this subject on a more satisfactory footing than it ever enjoyed. Other
advances have been made in the improvement of the status of the
industry, such, for instance, as the reduction of the customs duties,
which enormously improve the industry's chances of future remunerative
working. Some desiderata are certainly unfulfilled, such as reduced
railway rates; but the instalment of reforms made affords a fair basis
on which working can be resumed with admirable chances of remuneration
and profit. This being so, the unreasonableness of the show of
impatience that progress has not been more rapid, and the undeservedness
of the distrust with which the industry is professed to be regarded in
some quarters, are obvious. A sober view of the situation of the
Transvaal at the present moment must undoubtedly force the confession
that the amount of solid work done in solving the many problems
simultaneously surging up for solution in a new colony besides
mining,--repatriation, resettlement, &c.--and in rebuilding generally
the body politic, is of substantial volume, and that the progress
hitherto made, in removing the difficulties which beset the mining
industry, are sufficient augury that whatever remains unalleviated will
receive its due and satisfactory attention in the near future.