COMMERCE IN MAIZE GRAIN 521 



499. Natal Government Enterprise. — Until the year 1907 CHAP. 

 the possibility of the South African maize crop as an article XI1 " 

 for oversea export was not thoroughly appreciated. As long- 

 as the local markets consumed more than was produced, 

 there was little incentive to look abroad, and farmers were 

 content to grow only enough for local requirements. In an 

 unfavourable season this resulted in prices rising to 20s., 40s., 

 and even 60s. per muid, while in a season favourable to the 

 crop they were known to fall to 5s. and even 4s. 6d. per muid 

 because there was no outlet for the surplus. Maize was there- 

 fore a very speculative crop. The writer well remembers, on 

 his arrival in the Transvaal, being told by a well-known busi- 

 ness man, who is also a farmer, that maize was not a white 

 man's crop, but was only fit for Kaffirs to grow. 



Four causes finally contributed to the establishment of the 

 export trade in South African maize: (1) a "bumper" crop in 

 1907, which threatened to bring local prices below a paying 

 basis (3s. and 2s. 6d. per muid were publicly suggested 1 as 

 possible prices) ; (2) the financial depression following the close 

 of the Boer War which put business men on the qui vive for 

 new openings ; (3) the high maize prices prevailing in Europe 

 (IT 490), which made it possible to export at a profit and thus 

 stimulated production in South Africa ; and (4) the wisdom and 

 foresight of the several South African Governments in render- 

 ing practical assistance and encouragement to start an export 

 trade, by offering reduced rates and other facilities. In addi- 

 tion to these, the exhibits at the South African Products 

 Exhibition held in London, in February, 1907, undoubtedly 

 led English merchants to make inquiry in South Africa. 



The fact that the railways were under Government con- 

 trol enabled them to reduce railage rates to a nominal figure 

 in order to meet the exigencies of the situation. Severe 

 criticisms were levelled at the Governments for their action ; 

 they were accused of paternalism and interference with private 

 enterprise ; but whatever mistakes may have been made, the 

 results have certainly justified the action taken, and credit 

 should be given where it has been so well earned. Anyone 

 who looks into the matter with an unbiased mind, and who 

 knows anything of the vicissitudes, difficulties, discourage- 



1 N.A.J. , Vol. XI, No. 2, p. 137, Feb., 1908. 



