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FROM CRISIS TO CHAIRMANSHIP OF DE BEERS 213
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There
were powerful forces making for a settlement. The Syndicate was
experiencing the full effect, not only of the Namaqualand discoveries,
but of increasing world production. It is true that the 'Meren-sky'
claims were worked out and that the problem there was one of disposing of a stock, but elsewhere in Africa there was an increasing flow of diamonds:
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So
long as world trade held up, the Syndicate could hope to limit its
risks, but already in July 1929 Louis Oppenheimer was pointing out to
the De Beers board that 'business will probably ... be quiet for some
months to come' and the Kimberley directors were writing to London on
25 July, in regard to the proposals then before them,
that
in a business of the nature of that under discussion there are of
course many factors which require careful consideration, and not the
least of these is that of the general financial position of the world .
. . and possibly the attitude of the directors in London towards the
proposals now before us is dictated by that consideration. We hear and
read of rumours of an impending rise in the Bank of England rate and
this, of course, is most disturbing. . . ,13
13 On 10 July 1929 Ernest Oppenheimer was also warning the South African Assembly:
'.
. . In short, there is at the present moment a considerable falling off
in the demand for diamonds and the diamond trade requires the most
careful handling to prevent the present lull from assuming serious
dimensions. I want to be most careful not to say anything which might
aggravate the present position because it would be the greatest
disservice to the trade to discuss details across the floor of the
House. There can be no doubt that there is a great nervousness in the
trade at the present moment, and that there are some problems which
require tackling before complete prosperity can be restored or even to
prevent a temporary crisis. For that reason I would appeal to the
Government to call at an early date a fresh inter-producers' conference
under the aegis of the Ministers of Mines and Finance, which could
discuss the trade fully, and I am quite sure put the trade on a sound
basis, thus restoring confidence and prosperity. The calling of such a
conference would dispel the feeling which has been created that there
is not alone no co-operation but that there is antagonism between the
Government and the producing companies. . . .'
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