shares. There arc 3,338 shareholders holding 500 shares or less, and of these 328 are widows.
These
figures will make it clear to you that gold-mining shares are not in
the hands of a small group of very wealthy persons, but are widely
distributed throughout the country in the hands of a large number of
small holders who, in addition to the taxation they pay as gold-mining
shareholders, have to bear their full share of all forms of taxation,
direct and indirect, like every other member of the community.
Gold-mining
shares arc recognized as a popular investment for all classes of the
population of South Africa. Whether or not this is due to the fact that
opportunities in this part of the world for other investments are
limited is beside the point; the fact remains that gold-mining shares
arc a very general and widely spread form of investment for savings and
to provide for days of retirement. A large section of the public is
directly interested in the mining industry, and this section can ill
aftord to see its income reduced through heavier taxation.
There
are other points of view also, from which it would seem inadvisable to
single out the gold-mining industry for special taxation. There must be
fair inducement to put money into mining enterprises, which, after all,
are wasting assets, and if measures arc taken which discourage this
possibility the main source of prosperity in South Africa will
disappear. Moreover, increased mining taxation can only result in
decreased revenue from other sources of taxation, and it will also
seriously affect the voluntary efforts which this country is making in
so many directions. . . .
The
problem of taxation continued to occupy his mind, and was, in fact, one
of the matters which he was to discuss publicly in the last year of his
life. Speaking at the annual general meeting of the Chamber of Mines on
24 June 1957, he was able to say that 'we who are concerned in the
gold-mining industry can take a very real pride in what has been
recorded here today'. The picture was not one 'of a stagnant or
declining industry'. He continued:
.
. . This situation would be a source of unqualified satisfaction were
it not for the anomaly that in spite of these achievements the industry
remains out of favour in the traditional spheres of investment, both
here and overseas. This is a matter of no small concern and one that
deserves the close attention of those who can influence the affairs of
the industry. Many of the relevant factors—such as political and racial
uncertainties, the attractions of alternative channels of investment,
the fixed price of our principal product and the continuing inflation
of costs—lie outside the industry's control, but there are certain
steps we can perhaps take in other directions which might improve the
position. I understand that consideration is being given in the
appropriate quarters to such steps and accordingly I will mention here
only two matters
