138 PRODUCTION AND CONSUMPTION. 



HOW I come to the second avenue along which constant develop- 

 ment may proceed. Probably, because this demand exists, 

 therefore so much attention has been given in this countrv to — 

 or rather, should I say, so much has been spoken of — increasing 

 production. Demand — that is, markets — -should be .sought and 

 developed wherever situated. Every new demand met means a 

 new supply produced; and every production is at a profit or it 

 will cease. But encouragement of sale in another country is 

 discouragement of consumption in one's own country ; and it is 

 preferable that the necessary consumers be in one's own countrv 

 — (a) because consumers of certain articles are suppliers of 

 other articles, or are otherwise useful in occupations or pro- 

 fessions ; (b) because the cost of distribution between producer 

 and consumer is reduced when the distance between them is 

 lessened; and (c) because population enriches and strengthens 

 the State. 



The third avenue I have mentioned is our native population, 

 which, at the census-taking of 191 1. numbered 4,075,042. To a 

 great extent they are already producers either on their own 

 account or for others. Their educational and social advance- 

 ment must have, as a concomitant, increase of production by 

 themselves as well as by Europeans to meet the greater demand 

 which must ensue from such advancement. So far. however, 

 as their consumption of agricultural produce is concerned, pro- 

 gress of the native races can only change the demand, but can- 

 not increase it (except in proportion to the increase of native 

 population), since they have already sufficient food. They may 

 consume more meat and less milk, more vegetables and less 

 maize, and follow the Europeans' example of indulging in what 

 are termed luxuries. But their demand for manufactures rises 

 with civilisation, and, therefore, in the industrial development 

 of the country both as consumers and as producers they are a 

 valuable asset. In other words, increasing the natives' wants is 

 equivalent to increasing the po]>ulation to the extent that their 

 greater demand represents. Thus, if the wants of the native 

 po])ulation of 4.075,042 were increased by one-fourth, the 

 increase would be equivalent to the addition of i. 018, 760 natives 

 Jto that number; and if the consumption of three natives were 

 regarded as equal to that of one European, that addition would 

 be efjual, for consuming i^urposes. to an increase of Europeans, 

 engaged on the same laliour. of 339,5<^7- Such an addition to 

 our Euro]>ean po])ulation would be regarded, economically, as a 

 great gain to the .State. Such an increase in the natives' wants 

 would have a similar value, provided that socially, morally, and 

 in other ways the Europeans did not ])ermit themselves to sufifer 

 by the advancement of the natives. 



I have said that production and consumption bear a scientific 

 relation to one another. This relation is based on self-jjreserva- 

 tion, but afifected in the intermediate stages by a host of political, 

 social, industrial and physical influences labyrinthine in their 



