A GLOOMY picture.

Dominion, Volume 1, Issue 200, 18 May 1908, Page 11

A GLOOMY picture.

SOUTH AFRICAN DEPRESSION. VIEWS OF A CAPE COLONIST. iMr. W. 'Black, the Capetown architect ind City Councillor, . who is visiting this city, has a dismal tale. to ' Vtell 1 of ;'depression"iri- South Africa. Speaking ; to a Dominion reporter last , ovening, ho said; .that; many-of those who were considered the; . shrewdest, business 1 men in- Cape Colony had ' -. .. fallen victims to'the financial crisis. Tho. ~ ir. • slump was partly 'due to. the fact that money • had in^the 1 past, flowed 'into 'the colony intorjents' from British and foreign sources,. so : that-finance became mere child's >play. ■ ''People 1 gambled in property; and' shares ■jwith:-aninsignificantly ••'.small.; margin of • -•cover,"- said Mr. Blacky "and . cit> and 1 suburban, values at Capetown have shrunk, ' MHhat';itiiS''iiiipdssible' to sell holdings for 1 oven one-tonth of their original, pre-boom-values, and all: municipal rates and taxes are'?so terribly inflat&l that property owners j. r aro desirous.-of'realising' ,at any price. . 'To :. .'tske^a'caso' Sow in ".'my': mind, ' a." certain' speculator bought a small .-.central property in Capetown-for. £3500. Tho City Corporatio'n assessed"tfy'o.valuo for.irating purposes ;■ at, £2500, but,.'the'' slump' set in, and the ; ' purchaser could .not: sell. : Evontiially, tho Official''Assignee' put the land- to the ham-.' .. . mer, and it sold for £850, , . A Fool's Paradise. "Another instance. , A "prop'orty- owner ' who, like,.many others, lived in a'sort of fool's paradise-beforo the depression, was : ■ then v drawing •■£2632 :-a year from- a ' block • of city buiklings;'; tho; rental of .which' does . not now. amount' to inoroi than the rates,, taxes; and insurance. This property cost £23,500, and was afterwards sold for £5000. That was only'oncof many similar trans-, actions. The/Master of the Insolvent Court has had to stop in and prevent many sales taking; place ' at: figures .',much; below the ■ bsistirig:;on ;the'''properties..' It. is ,-i no uncommon thing for . a bondholder' ,to take back his property, and pay the trans- : ■'•' fer dues for a quarter of the amount of tho original mortgage. : ; ; On tho Rand. "In Johannesburg the distress is too'awful for words. I'"amilies have- kept them-: selves from .starvation by selling 'their few. • sticks of "furniture. Property has fallen .as much as in Capetown. People at Johannesburg havo been very improvident, and have lived, more of'less;, a. life of.continual > excitement and - -speculation.. ■ The., share ', ;market ..was ; the oonst-ant topic of . conversa- • . tioh, and V every ' .ruse- 'or ; subterfuge ; that' : could wile the coin out-of the pockets' of tho /unwary was 'adopted. What was not lost in: property went in scrip/ ;: '.'•■■ Over-capitalisation. "The slump in ; mining is partly diie-to, tho fact that most of the mines were over- ■ capitalised- at' flotation..Further, .a i great;, number of the mines , yield only such low- ; :: grade ores that' they will not pay for any-'- : thing- more than ;, the . wages of j Clijiiamen ; : .at ! a few shillings a day.- I hope legislation obtains, in this.liapp'y: country/ ( of New Zoa-' ■ land to prevent sheep :and cattle, ranches boing .floated as gold mines; In ;any case, ; I : liopo you]- people-.will keep. an;'_ eyo on ovcr-capitalisation,'' lest' "they e.-rperience tho : . same'.troubles as South Africa." ' An Agricultural Sevlval. ! Asked whether thero was no silver- lining to. these dark cloutls, Mr. Black said that ■ the present dopressiori : in ~tlio'.'.'citie3 • v/ould > result'eventually in .incalculable benefit .to they wholo country,, btcause it ivas causing ah - intenso desire; for- settlement on tho land. People we're turning their thoughts to tho; more .genuine''pursuits of. agricul-" tural" and pastoral production. The r(wit-i"n, had already had solid results, for £20,000, worth'of grain, grown, frqm -Algerian seed,; had recently been exported from Capo Colony—a small beginning,-which-yet might grow into ; something that' would do 'much -. to' right the .. also/'.on tho; - co-operative principle,.'was "spreading;. Tho Bottlement that was expected to' follow tho war had not. como. That was tho fault of • the Government, which had promised farms for the troopers,' J)ut' : was ho.t^re,iidy ; with ! any for-' carrying, out ,sucß. a policy, j Tho 'agricultural roviyal,: however.' begun,. arid it of the situation. : Tho diamond '-industry , would no doubt fevivo later on, jahff'b'ecomo; ■ as lucrative as!over. .Perhaps, in a few years' time,. South . Africa woxikl r.ot;'alto- . gether regret tho troubles-which their :sountry was now undergoing." / .