CONDITIONS IN AFRICA

Hokitika Guardian, 6 June 1925, Page 4

CONDITIONS IN AFRICA

IBy 1,. 11. Morgan, British Chamber of Commerce, i Recent reports from the sub-conti-nent lay particular stress on three important recent developments, viz: The large extension of the cotton growing industry, the discovery of very large deposits of platinil'eron.s .ground iu "the Transvaal, and the decision of the Union Government to revert to gold payments on July Ist next. 1, have given pride of place to the growing of cotton, because I feel that the developments in that direction aie going to have a most important hearing on the future of the whole Subv ontineut. dhe area to he placed under cotton in the Union of South AI mm is never likely to exceed 1,000,00') acres, owing to limitations m connection with suitable land and water supple. hut the possibilities iu front of Rnrtugucso Territory, particularly the Rroviitec; of Mozambique, will not he restricted by these considerations. T would not suggest that South A! lira will become a serious competitor with the United Slates, hut it must lie remembered that a large supply of native Libor at a moderate rate of wage is available and it seems reasonable to anticipate that South Alrien will he able to grow cotton three or four cuius per pound cheaper than can the southern states of this country. As i (interns platinum, the recent discoveries indicate that very large deposits of platiniforous ground assaying Irani a trace to over twenty pennyweights per ton exisi: exploitat on has not yet proceeded far enough to determine what amount ol payable mi-ouiul exists, hut one field has been traced for SI) miles and the bulk of this appears to he payable even should platinum under n> some shrinkage in value. T!m discoveries, particularly those in the l.ydenbiirg district, are generally regarded as the most important that have taken place in (he Sub-Continent iu the last twenty years and everything seems to point to the establishment of a new and imuortaut industry :n tlm Transvaal. The decision of the Union Governmcni to revert to payments in gold on

Inly Ist next has been received by the financial and commercial communities with mixed feelings. It is of course rm oguiveii that it is all important that the re-eslahlishment of the gold standard throughout the civilized world is of great importance to a country like South Africa which produces (!0 per i ui. of the yellow metal. The <onLrovcrsial point is with regard to the data selected: seeing that. South Africa is a British Dominion and that I.ondon is its principal market many economists leel that dislocation of trade would he less likrlv to he felt if South Africa awaited Loudon's return to a gold basis before taking the step her--e!f. With British sterling holding steady a! 1.7.'-' or thereabouts, the point js nut one of much importance, but, should sterling fall severely, an unlikely c\ent iu mv oinuion. the cliect on Smith African local imimil'aefttrers and on Ilm export trade would he deleterious. However, tlm Union Government have definitely decided to fake the-step and establish for the country the reputation of being the first British Dominion to revert to gold payments after the great war. The experiment will, I feel sure, he watched sympathetically and he sup,ported whole-heartedly by the South A! rieau community. I impend a letter received by one oi" the mem Iters of the Africa and near East Committee which I quote in full as I fee! that it contains much of interest .

V ! I;ave ret eived a Titer from Mr Gilbert MrXicol. a prominent tesideiit of Durban and one of the leading automobile men in South Africa. front w hicll I quote the following : Conditions generally in South Africa have improved somewhat and the fanners should have a good veal' in IdtUi, is tlm meale cop arc very promising. ’Ill" sugar industry is verv oiiliil and the sugar market at the lime of writing is not ouiy good, hut buoyant. 'I he cotton industry is coming on by leap and hounds and r.v feel that a big I mure is in store for cotton _growers. At the present time huge tracts of l.in l are h. iiig opened up in ZuliiInnd and -ritb'i's are preparing the ground for cotton. During tli - la-l year i|itite a huge quantity of eotfon was tilaeed on the market and fetched gecd pri.es, I he (on eranicnt has inf ..-rested themselves in this industry and tile doing everything possible to assist settlers and ;ot ton fanners. I call eonlideul ly say that (otton will he an important imiin ttv in Natal in the very near future, and will he a remunerative oreuJiaLieu for those who have invested their moneys and energies.

Zululand is peculiarly adapted Li cotton growing, and in con versa tim

v. itli cxnoi!-*, lln-y look forwai'll to a very bright future and stair lliai this type of farming will eveiitiiallv reai-h the liinii'iisioiis ol ||*.e sugar industry, if not exceed ii. It is wry pleasing Lo wrile you in this strain, and personally speaking, we tire very optimistic as far as the lotion industry is com erm-d. Foal is being produced in to., large a quantity to make the market an attractive one. hut very la roc shipments of coal have left Xatal during the last lew months. As you are probably aware, the Fnimi Castle Company have their own coal mines here in Xatal for the purpose ~l supplying their own requirements, hut hom independent owners we learn lliai ’.cry 0,.0d orders are being received from India and Ceylon. i he Fllermann Biieknall Line take a lot of coal from here .and ship it to ] I’erim. and in many cases their ships j are supplied with hunker requirements I front this place. | iho (kivernmcnt have at last man-] a fil'd t■ i es ■ t tin' dry dock opened here, t and I understand that our dry dock is one of the three la roost outside the British Isles. This should give shippirn; iiimpanies facilities for repairing, their boats in Smith Africa, when the necessity arises, instead of moving off to England, America and Australia. Naturally the dock will he a source of revenue to our town. i In' wool crop has been very good this year, and good prices have lieen obtained lor good classes of wool. In

ill" (kivornnient have at last managed to g,-t iht' dry dock opened here, and I understand that our dry dock is one of the three hugest outside the British Mas. This should give shipping iiimpanies facilities for repairing their boats in South Africa, when the necessity arises, instead of moving off to England, America and Australia. Naturally the dock will he a source of revenue to our town.

i lie wool crop has been very good this year, and good prices have been obtained tor good classes of wool. In this connection it is pleasing to say that -Sir A. Bailey, one of our magnates. has bought- a Hock of the linest sheep in Australia, and I notice that the Australian papers have commented on this fact and have warned their (lovernment that they can expect South Alrica to become a serious competitor in the wool business before many years pass. 1 hey go so tar as to say that they should not allow their best and most valuable Merino stock to leave their shores.

M 00l is naturally being produced in greater quantities every year, and today this is one ol the most important industries in South Africa, and particularly lor Natal. as seventy-live per cent "I the wool is now sold in Durban. We have resident buyers here from all the different countries, who buy the wool and ship to their respective lines. On examining the Census Bocords in connection with Stock’, we find that the

number of cattle in South Africa runs into very large figures, but unfortun-

ately the grade of oxen that wo have here does not compare favourably with those of the Argentine and other beef producing countries. At the moment it is pleasing to record that we are shipping quantifies ol meat to England and Italy. In conversation with a .Member of the Cabinet, the writer learns that there is every possibility of severe protective tariffs being introduced, and we think that it is the intention of the Government to give local maiutlaettrer.s every protection. I am glad to say that the steel manufacturing plant at Newcastle, in northern Natal, which was established some time ago hut has been closed down lor the last three years, has now been reopened ; fresh capital having been secured. Newcastle can look forward to a prosperous time, a.s large quantities of raw material are easily secured in and around Newcastle. As a matter of fact, if freights were not prohibitive, the English Steel Masters would very soon acquire till hearing ground in this part of the country. 'The Bark imlustrv is going along steadily and has 10covered from, the slump which existed for some time past. As you probably know, Natal supplies roughly sixty per cent, of the world’s requirements. The manufacture of fertilizers is going ahead here, and only a small quantity of this article is being imported. The by-products of the coal concern at ! I Inha lie (Northern Natal) supply the Fertilizer Industry with what it requires in the wav oi Ammonia. Just lately prospelcors have louiul Asbestos iu payable quantities in the Northern Transvaal, and it is worthy of mention that we are mining this product in the Tugela Yallcy which is situated in the heart of Natal. \Ye notice from time to time shipments of this article going through our port. For some time past we have been busy oil the question of good roads. As you know, our reads in South Arfica leave much to he desired, but (he " Nigger in the wood pile” seems to he rather the lack of funds, hut this serious diliiculty. in all probability, will hr over;cine by floating loans. 'I hi- I undei'ilstood the Government propose doing.”