48 presidential address section p.. 



Gkdld.* 



Gold has long 'been, and will without doubt continue for 

 many a year to be the principal mineral product of the Union. The 

 total recorded output to date is approximately 134.435,000 ounces 

 — 4609.75 short tons — valued at £571,350,200. Much the 

 greater part oi. this has been contributed by the Witwatersrand 

 goldfield, the output of which during the past five years has 

 averaged over £37,500,000 per annum. The output for 1917. 

 namely 8,822,431 ounces, worth £37,475.303, f represented 42.34 

 per cent, of the gold output of the world. The high-water mark 

 of production on the Witwatersrand was reached in 1916. when 

 gold to the value of £38.492.070 was produced. It is not likely, 

 for various reasons, that this figure will ever be reached again. 

 Had it not been for the war, and ifor the serious shortage of 

 native labour in recent years, it is not improbable, however, that 

 the 40-million level would have been exceeded. 



At the present time the industry is faced with one of the 

 gravest crises in its history. As a result of ever-increasing costs, 

 no fewer than 14 low-grade mines, responsible in 191 7 for 

 almost 19 per cent, of the total output of the Witwatersrand, 

 are either actually being worked at a loss or barely repaying 

 exploitation, and it is quite evident that, unless relief in some 

 form be forthcoming, most of these mines will sooner or later 

 have to suspend operations. 



This, in addition to being fraught with the most serious con- 

 sequences to a large section of the community, would result not 

 only in a very considerable decrease in the current output, when, 

 according to the highest authorities, it is absolutely essential to 

 the successful prosecution of the financial side of the war that 

 gold production should be maintained at its highest possible level, 

 but in the ultimate output of the Witwatersrand, as it is certain 

 that a number of the properties referred to, if now closed down, 

 would never be reopened. 



The inadequacy of the supply of native labour and the 

 shortage of glycerine have undoubtedly contributed towards 

 bringing about this very serious state of affairs, but at the root 

 of the trouble lies the fact that whereas the price of almost every 

 commodity incidental to its production has risen enormously 

 as a result of the war, that of gold itself is arbitrarily fixed. As 

 1 matter of fact, the mines, in consequence of the increase in 

 freight, insurance and refining charges, only receive £4 3s. 6.84d. 

 per ounce compared with the standard value of £4 4s. ii.45d., 

 and owing to the depreciation of the British currency given in 

 payment the actual value received is much less. 



As the producers, if they were allowed to dispose of their 

 gold in the best Allied markets, would obtain much better terms 

 than they now do, a case 'for equitable adjustment undoubtedly 



* I am indebted for assistance in the preparation of this section of the 

 address to Sir Robert Kotze and Mr. Samuel Evans. 



t The output of the Heidelberg district is included in this total. 



