The
gold-mining industry, in the handling of its gold, has done everything
within its power to give the decision to remain on the gold standard
the most favourable chance of justifying itself. We have, however, come
to the conclusion, in the light of recent developments and the present
situation, that the interests of the country as a whole will be best
served without impairment of our credit or our status at home or abroad
by leaving the present gold standard and linking South African currency
to sterling. Notwithstanding the possibility of temporary fluctuations,
sterling may now be regarded with greater confidence than there can be
confidence in our ability to maintain an independent monetary position.
In
coming to this conclusion, and in announcing the views we entertain, I
wish, on behalf of the Gold Producers' Committee—and I am sure I may do
so on behalf of the Chamber of Mines as a whole—to state that we fully
appreciate the complexity of the problem with which the country is
confronted, the anxiety of the Government to do what it conceives to
be in the best interests of South Africa and the greatness of the
responsibility devolving upon those in whose hands the decision lies.
The fact that our present views are not in accordance with the policy
being followed by the Government docs not mean that there will be any
modification by the industry of the readiness it has hitherto displayed
to help and co-operate where it is possible to do so. The existing
situation is a difficult one: even greater difFiculties may still lie
ahead.
The statement of the Gold Producers' Committee was carried item, con., with one abstention.
♦ VII ♦
Though
the Government firmly adhered to its attitude, it was driven by the
accumulating difficulties of the situation to agree to the appointment
of a select committee of the House of Assembly in February 1932, the
terms of reference being
to inquire into and report upon:
1.
whether and to what extent the interests and the welfare of the
Union demanded the maintenance of the gold standard, and
2.
in what way and manner a departure from that standard . . . would
affect the interests and welfare of the country.
It
was, clearly, the duty of Ernest Oppenheimer, as head of a large mining
house, to intervene in the debate on the motion to set up this
committee. He addressed the Assembly on 8 February 1932 and made a
powerful speech. He had, naturally, to face the charge of
inconsistency, but he met this easily enough:
