PRESIDENTIAL ADDRESS SECTION B. 5I 



recovered is contained in the gold ibullion, of which it forms 

 roughly lo per cent. Small quantities of silver are also con- 

 tained in the copper ores of Little Namaqualand, and in the 

 lead ores worked at different localities in the Transvaal, but in 

 regard to this no figures are available. It will be noted that, 

 while the weight of the silver produced in 19 17 was lower by 

 14,450.8 ounces than that produced in 1913, the value was 

 almost 50 per cent, higher, owing to the great advance in the 

 price of the metal. 



Diamonds. 



The production of diamonds in the territories embraced in 

 the Union of South Aifrica from the year 1867, when the first 

 discovery was made, to the end of April, 1918, reached the enor- 

 mous total of 137,868,630 carats — 31 short tons — of a declared 

 value of £216,165,760.* The latter figure is certainly very much 

 below what the diamonds actually realised in Europe and 

 America, and probably not much more than one-half of what 

 they were finally sold for in a cut state. 



The industry ranks next to gold-mining in importance. The 

 output reached its maximum in 1913, when there were produced 

 5,163,547 carats, valued at £11.389,807. It is common know- 

 ledge, however, that there was a considerable over-production 

 of diamonds in that year, and the average annual output for the 

 period 1910-1912, namely, £9,596,804, gives a fairer indication 

 of the pre-war rate of production. As a result of the outbreak 

 of hostilities the output dropped in 1914 to 2,801.017 carats, 

 valued at £5,487,194, and in 191 5 to 103,3)86 carats, valued at 

 £399,810 — the lowest figures on record in the period 1870-1918. 



Within the past two years there has been a remarkable 

 recovery, and the value of the output, of which about 86.5 per 

 cent, is contributed by the mines and 13.5 per cent, by the 

 alluvial fields, is now rapidly approaching its normal pre-war 

 level. 



This is mainly a result of the agreement, in regard to the 

 production and sale of diamonds, reached by the principal com- 

 panies, which has placed the industry on a sounder basis than 

 it has ever been. The policy oif judiciously feeding the market, 

 or. in other words, of carefully adjusting the output to the 

 amount of money that the world is prepared or inclined to ex- 

 pend on the purchase of diamonds, has led to a very considerable 

 increase in the price of the gems, as is evidenced by the follow- 

 ing figures : — 



* This figure is very ccnsiderably in excess of that given under the 

 heading, '' Progressive Totals of Mineral Production," in the last Annual 

 Report of the Government Mining Engineers. The " Progressive Totals." 

 however, do not take into account the diamond production of the Cape 

 Colony previous to 1883 — prior to which date no accurate data are avail- 

 able — or that of the Orange Free State previous to 1904- 



