THE NORTHWARD EXPANSION 441
emerged
from depression: re-armament demands probably played an important role.
But the movement neither of production nor of prices was governed
wholly by the 'natural laws of supply and demand': repeated efforts at
organized restriction also played a role. These efforts at controlling
production, as well as the general world situation, affected the
Rhodesian producers generally, as well as the relative position of the
two groups.
By the end of 1934, actual Rhodesian production was about 9 per cent41
of total world production, being in the neighbourhood of 131,000 short
tons. Discussions in London and in the United States during late 1934
and in early 1935 produced a more systematic restriction scheme than
that attempted in the earlier days of the depression. Such producers
as joined (they were said at the time to represent 75 per cent of
primary production outside the U.S.A., Russia and Japan) were assigned
a 'basic quota' in absolute amounts, and restriction was expressed in
terms of percentages, the basic quota being, of course, represented by
100. The agreement of 28 March 1935 provided for an over-all reduction
of 240,000 tons per year as from 1 June 1935.42 The
percentage degree of restriction gradually fell as time went on, until
by January 1937 unhmited production was allowed. In 1937 and 1938 the
quotas were at their lowest, 95 per cent of basic quota, and unhmited
production was again allowed for a short while in the autumn months of
193 8.43
These
restriction measures naturally affected the Rhokana and the Selection
Trust mines. Both groups had one mine already in production—N'Kana and
Roan Antelope—but Mufulira was coming into production and N'Changa was
not yet at that stage; in fact, as a result of the restriction
agreements, in 1932, it was decided to discontinue all work at
N'Changa. As regards the specific case of Mufulira, at the 7th ordinary
general meeting of the Mufulira Copper Mines Limited, held on 22
October 1936, Chester Beatty explained that:
.
. . The agreement for the restriction of copper output, arrived at in
March 1935 between the principal copper producers, limited production
to a level of 70 per cent of agreed standard quotas as from 1 May 1935.
In the last few months three decreases have been made in the rate of
curtailment, each of 5 per cent, so that production by the companies
within the restriction scheme is increased to 85 per cent of standard
quotas as from 15
41 44 Mineral Industry, p.
112. The world share of the United States (with its South American
subsidiaries) had fallen from 68 per cent in 1929 to 45 per cent in
1935.
42 Op. cit., p. 113.
43 For details, vide 47 Mineral Industry, p. 124.
