504
SIR ERNEST OPPENHEIMER
decision
by Great Britain, South Africa followed suit on 28 December 1932. So
far from there having been an influx of capital, there developed a
'flight' from the South African pound, and in order to cope with the
increasing balance of trade difficulties, Government was forced to levy
special anti-dumping duties and give export subsidies up to maxima of
25 and 35 per cent in certain cases.19
The
initial inclination of the representatives of the gold-mining industry
was to support the action of Government. At the quarterly meeting of
the Chamber of Mines held on 28 September 1931—a week after Great
Britain had gone off gold—the chairman, Mr. John Martin, urged that
in our view, the decision announced ...
by the Government that the Union would remain on the gold standard was,
in the circumstances of the times, a wise and necessary decision. The
abandonment of the gold standard by this country would, in its effect
upon the gold-mining industry, produce a premium on gold, but it is not
upon the basis of any such presumed attraction for this industry or
any other industry that so vital a matter of national policy should be
argued or decided. . . .20
But
by November opinion was altering. On the 13 th of that month, a special
meeting of the chamber was called, Mr. John Martin again presiding.
From the standpoint of the gold-mining industry the crucial problem was
that of the low-grade mines: an all-round cutting of costs might meet
the situation but 'the country is not following a policy consistent
with these essentials of gold standard maintenance'. On the other hand,
the
premium on gold that would follow the departure of South Africa from
the gold standard and the linking of our currency with sterling would
... be much more than sufficient to meet any justifiable claims
involving an increase of working costs and other charges. The net
benefit to the industry and to the country would be immediate and great.
A
'unique' opportunity existed to prolong the life of the industry. Nor
would the policy suggested, while benefiting the gold-mining industry,
be adverse to the interests of other producers, particularly the
farmers. They were competing with others whose currencies had been
greatly depreciated, and subsidies and import controls could not meet
the needs of the case. He summed up:
19 For details, vide 14 Official Year Book of the Union of South Africa, pp. 1058-9.
20 42/x? annual report of the Transvaal Chamber of Mines, p. 139. For the proceedings at the special meeting of the chamber referred to in text, vide pp. 141-53.
