Witwatersrand
and working costs will tend to be higher especially should the mines
prove to be hot. The areas are too far from the 'Rand' to enjoy its
advantages and yet so close to the 'Rand' that employees will expect
that the usual amenities and benefits provided on the 'Rand' be
extended to them also.
Under
favourable conditions a large and important gold-mining industry may
develop in the Free State, but, to date, the indications are that the
mines will be low grade while capital costs will be high. It will be
necessary for the State actively to foster the development of this
industry by helping with the provision of adequate transport
facilities, cheap and abundant water and power supplies, etc., and it
is in the general interest that it should be so since, based on the
experience of the 'Rand', over 80 per cent of the value of the products
of such an industry goes to the community by way of working costs and
to the State by way of direct and indirect taxation. Furthermore, when
the war is over, with large numbers of men being demobilized and with
munitions work all over the country and ship repair work at the ports
coming to an end, the country may be faced with the greatest
unemployment it has ever known. During this critical period, the
starting of any new industry or the expansion of any existing industry
not only directly offers employment to large numbers of Europeans and
Natives but, in the case of mining, indirectly provides employment
through secondary industries for further large numbers, because of the
numerous services it uses and the large quantities of locally produced
equipment and supplies which it consumes. The whole issue therefore
becomes a matter of great national importance.
Initial
work in exploring and developing the Free State gold occurrences could
provide employment for substantial numbers of Europeans and Natives at
a time when the provision of such employment will be most necessary.
Should an important mining industry develop in the Free State,
operations could be so co-ordinated that it would be ready to absorb
very substantial further numbers of Europeans as well as Native workers
about the time that extensive irrigation and other 'stop-gap' post-war
measures, which will doubtless have to be undertaken, are being
completed.
In
this way the Free State gold discoveries might fulfil a useful
function, but it should be realized that there is still a long way to
go before it can be said that there has been established a new
gold-field. Natural conditions are not favourable and many difficulties
will have to be overcome before the more promising discoveries even
reach the developing stage. The fact that the discoveries are scattered
is a further complication, and it is clear, therefore, that what is
wanted is assistance and encouragement and not an increase of risks,
nor the introduction of adverse changes in conditions, which would most
certainly act as deterrents. Any increase in Native wages will be
considered as an unfavourable factor, as it must affect the cost of
work in every
