i'^oDrcTKiN AM) inXSlM riloN 



.•),1 



when advocatiiij; nKirascd production, die cosi UrtcoI' cnur> as 

 a prime factor. 



The relation between i)roducliun and consumption is scien- 

 tihc — that is. it is based on certain definite principles, among 

 which we need mention, for our purposes, only (a) the means 

 to buy. and {b) a fair payment tor the article bought. Pro- 

 diuction and consumption are so interwoven in their incidence 

 that any act. by legislation or otherwise, that seriously disturbs 

 the one must inevitably seriously affect the other. Over great 

 length of time a certain adjustment has taken ])lace between the 

 two; there may be tiaws and obstacles — distribution to be im- 

 proved, markets to be regulated, cultural methods to be bettered, 

 transport to be facilitated, co-o])eration to be organised, 

 and so on — but, broadly, that adjustment has a scientific basis, 

 namely, a certain quantity produced in order to supply at a 

 certain price the same quantity demanded at a certain price. And 

 whatever development or change takes place industrially — 

 whether by production of raw material or by utilisation of raw 

 material, or as the result of immigration, or as the conseciuence 

 of war — that adjustment commences automatically and imme- 

 diately. We may be able to improve the condition of the con- 

 sumer or the producer, or of both, but only enlargement of con- 

 suming power, as well as producing power, can bring about con- 

 stant development and progress ; and this can proceed in South 

 Africa along any or all of three avenues, namely, (i) natural 

 increase of population, (2) increase of, or new, demand beyond 

 our borders, and (3) stimulation of the wants of our large native 

 population. B-^fore I proceed to enlarge on these avenues, let 

 me invite attention to our external trade in agricultural products 

 during the h;si five years. Of the leading articles South Africa 

 exported : — - 



Article. 



Wool 



Mohair 



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