The AcaacuLTURAL Crisis. 317 



THE AGRICULTURAL CRISIS. 



An American Investigation with Applicability to 

 South Africa. 



The chief industry of South Africa — agricultuic — is in a ciitical con- 

 (litiou, and while relief and huoyancy must come in the course of 

 time, the period that intervenes and that now, perhaps, is at it:s 

 lowest point, compels the utmost fortitude and care of the farmer if 

 he is to Aveather it successfully. And he is aware of it. TJnfor- 

 lunately, the much desired removal of present c )nditious does not lie 

 in any <|uick, decisive action that tlie farmer can enc(unpass, nor, 

 indeed, is it whidly in his hands that the remedy lies. Harassed and 

 laced with ruin, the farmer to-da\ is seeking- those steps that will 

 lead him to clear water, and in his endeavours he naturally looks for 

 guidance to those (Mitinsted with the development of his industry. 

 An endeavour w;is nnide to make the position clear in an article 

 puhlished in the jMaich, ]!)22, issue of the Jouindl. It outlined, 

 hriedy, the cause of Ihe (lei)ression, showed how it developed, and 

 what was the farmer's part in overcoming it. It i)ointed (Uit that the 

 law of demand and sui)ply would eventually bring that equilibrium 

 which is conduciA'e to i)ros])eTity, while the farmer should endeavour 

 liy evi^y means to reduce tlie cost of production, which can be 

 facilitated by co-operative huying. A sound system of co-operative 

 marketing was needed in order to eliminate unnecessary middlemen. 

 Above all, farmers were urged to stand united; by organization they 

 can help on the return to equilibriiim of demand and supply, for they 

 themselves produce the essentials of life. Since that article was 

 l)ublished, the Co-operation Act has been passed, whi(di, together with 

 other measures resulting from tlie session of Parliament just (jver, is 

 destined to speed the fanner fai- on the I'oad of organization audi 

 self-help. 



WlDMSCKMlAI) Dl'lI'iaiSSTON. 



Help may also be (il)t;iined by studying llie i)resent day ex- 

 l)eriences of other countries. i''or we are not alone in this gulf of low 

 agricultural prices : it is world wide. Periods of alternating great 

 prosperity and succeeding great depression occur with more or less 

 regularity among all modern nations that are organized. And it is 

 generally accepted that the i)rimary cause that arrests and swings 

 hack the pendulum from a period of expansion and prosperity, is the 

 exhaustion of credit and money capital, in the Avake of wdiich comes 

 loss of either foreign or domestic markets, or both. Few periods of 

 ])rosperity have been more swiftly succteded by one of depression than 

 was witnessed towards the close of the w'ar, and in the toils of which 

 we still find oui'selves. Following the unprecedented prices that 

 mounted during this period, the commencement of the break occurred 

 in Japan during the latter i)art of 1919, when occurred the fall in the 



