if
it is accepted . . . that a sterling basis should be the objective of
national monetary policy, the reaching of that level and the
maintenance of that level should be made the subject of the earliest
concerted measures by the Government, die South African Reserve Bank
and the commercial banks . . . the means exist . . . they are capable
of early and effective application . . . the taking of them is
unquestionably desirable, and . . . the co-operation of the mining
industry will, as hitherto, be readily forthcoming in support of any
measures designed to save the public interest in this supremely
important direction.
Mr.
John Martin, who presided, then proceeded to deal with the impact of
the abandonment of the gold standard on the mining industry. Much of
what he had to say was not new, but he emphasized that
assuming
. . . that the Government of the day will reject any short-sighted
policy having a confiscatory tendency, it is possible to say that
departure from the gold standard does not mean some more temporary
benefit or stimulus to the mining industry, but affords the opportunity
of effecting a far-reaching improvement in operating results, expansion
of scope, working of ore of lower grade and extension of life.
He
then outlined the policy which, in the opinion of the Gold Producers'
Committee, should be pursued in the hght of the new circumstances:
.
. . While efficiency in working and economy in costs will remain of
paramount importance, departure from the gold standard will provide the
means of achieving much of what has so long been hoped for and aimed
at. The increased price of gold will ensure a substantially higher
scale of working profits for the mines. It is self-evident that, if the
mines were to continue to work only ore of the same average grade as
before, the highest level of immediate profits would be maintained. The
Gold Producers' Committee is, however, confident that under the new
conditions something in the nature of a new mining policy will be
evolved, under which full advantage will be taken by the individual
mines of the opportunity to lower pay limits, increase ore reserves,
accelerate the development of the ore bodies at present being worked,
and undertake the exploration and development of additional reefs,
bringing into profitable production large quantities of ore that
previously had to be regarded as unpayable. It now becomes the duty
and the responsibility of the gold-mining industry to endeavour to give
the fullest measure of practical effect to the principles on this
subject, the acceptance of which it has urged and reiterated in its
representations to successive governments and innumerable commissions
of inquiry.
Inability
to raise sufficient fresh capital to sink additional deep-level shafts
and for other major purposes has been a serious factor in limiting the
scale
