MARKKTS. 175 



miles away. The wheat growers of Mahnesbury first supj)hed 

 the village of Malmesbury, next Capetown and afterwards Kini- 

 berley, Bloemfontein, and Johannesburg. The maize grower of 

 Krmelo first supplied the village of Ermelo, then Johannesburg, 

 and latterly the United Kingdom and other European countries. 

 It may be of greatest advantage to a country to market one 

 product within its borders and another beyond them. Again, 

 a more advantageous market might be found nearer than the 

 present most profitable one. The United States of America 

 exported meat to the United Kingdom until its own demand 

 absorbed the whole of its supply and more. 



The distance of a market from the producer de])ends on de- 

 mand as afi:'ected by the cost of reaching that market. This cost 

 is paid wholly by the consumer if the demand exceeds or is equal 

 to the supply ; but if the supply exceeds the demand the cost will 

 be paid partly by the producer and partly by the consumer, or 

 wholly by the producer, according to the extent to which supply 

 exceeds demand. It is therefore to the advantage of the i^ro- 

 ducer that such cost is as low as possible. Take the case of 

 maize. The railway rate for export maize is los. per ton, and 

 in normal times the freight rate to England is also los. per ton. 

 A reduction of either of these rates or both will benefit the pro- 

 ducer to the extent of that reduction, if the demand remain the 

 same ; and if that demand were in South Africa, the ])roducer 

 would rea[) the advantage of the elimination of freight and a few 

 minor charges. 



It is more profitable to a country to have a market which 

 stimulates greater production than to have one which does not ; 

 it is still more profitable to a country to have that market within 

 its borders than outside them. An internal market is under the 

 control of the country itself; and if the products of that country 

 compete with those of other countries they dq so under the most 

 advantageous conditions. On the other hand, if they compete 

 in a foreign market, transport charges to the centre of demand 

 may be greater ; import duties may be imposed ; climatic condi- 

 tions may be adverse ; and even other considerations may militate 

 against the producer's interests. 



There are agricultural products which the country can or 

 does raise in excess of its requirements. The production and 

 marketing of such commodities undergo a circular evolution. 

 When production and local consumption balance, prices are 

 stationary. When production tends to exceed local consump- 

 tion, and prices in consequence recede, an external market is 

 looked for. From an external market follow enhanced prices ; 

 from enhanced prices follows improvement in methods of pro- 

 duction ; from this improvement, greater production from the 

 same area ; from such greater production, the same return from 

 a smaller area and the farming of smaller holdings ; from smaller 

 holdings, increase in producing po])nlation, or clo;-.t:r setilemont; 

 from closer settlement, lessening of the cost of production ; from 

 cheaper production, the absorption of a larger consuming popula- 



