MISTAKEN POLICY

Evening Post, Volume CXII, Issue 138, 8 December 1931, Page 7

MISTAKEN POLICY

STICKING TO GOLD BASIS

SOUTH AFRICA SUFFERS

"I cannot help thinking that it was a mistaken policy for South Africa to remain on the gold basis when the English pound left it," declared General Smuts in an interview in London recently. "As'Great.Britain is and remains, by far the most important market fOr South African produce, we should have follow6d sterling, and thus escaped the adverse exchange against us. .

"This exchange has deprived the South African producer of whatever small profit is obtainable for his produce in the British market. This very small profit—if. any—on our wool, maize, fruit, and other produce has disappeared, and, in addition, wo are heavily handicapped in competition with those countries and Dominions which compete with us in the British market

and" are not on the gold standard. For instance, we stand little chance in. competition with Australian wool or South American fruit. .. .

Another prominent South African Party member declared that the bounty on exports would certainly help farmers considerably. "But as soon as the Government is out to make up the difference in the exchange rates,twe shall be off the gold standard," he added. "The 10 per cent.-subsidy will not help the farmers as much as the abandonment of the gold . standard would have done." " ' /■

Mr. T. P. N. Coctsee; the Nationals ist member for Albert; said that the wool farmers were on their last legs. "At first the Government simply did not want to help the primary producers," he said. "I have addressed no fewer than ten meetings during the last few weeks, and urged the Government to come off the gold basis. Now at last they have decided to help us by a 10 per cent, bounty on exports."

Mr. Coetsee stated that there was an immense amount of distress in his district Never before had so many farmers in the district taken to sowing wheat, merely because they could riot mako a living from their sheep. In the parts where a fair amount of rain had fallen, a good harvest might be expected. "It is impossible to sell either a sheep or wool in the Eastern Province," ho continued. . "The whole wool clip is still unsold." Mr. P. S. Hayward, the Nationalist member for Somerset, said that in his constituency rain had fallen, and the voldt was looking well. The principal difficulty of the farmers was, how to dispose of their wool. There was no market for mohair, and the clip of two years had yielded no revenue.

Mr. Hayward expressed the fear that institutions might find it necessary to call up their mortgages. -.•■■•■'

"Farmers are no doubt thankful for the Government's intended subsidy, but. they nevertheless still hope that South Africa will abandon the gold standard," said another Nationalist member...'.-.....