HIGH GOLD PRICE

New Zealand Herald, Volume LXXV, Issue 23021, 26 April 1938, Page 7

HIGH GOLD PRICE

BOON TO SOUTH AFRICA UNPRECEDENTED PROSPERITY GREAT BUILDING ACTIVITY [by telegraph—OWN" correspondent] WELLINGTON, Monday "South Africa is enjoying a period of prosperity unprecedented in her history," said Mr. J. W. Radford, a Johannesburg visitor to Wellington by the Franconia. "As long as America goes on buying gold at £7 an ounce, itwill mean good times for South Africa." Gold was now very nearly as high as it had ever been, said Mr. Radford. The limit it had ever reached, he believed, was about £7 4s an ounce. As long as there continued to be such a premium, it meant that many mines which would otherwise be shut down, were in a very prosperous condition. It seemed to him, however, that sooner or later Britain or America would reach saturation point, where no more gold could economically be absorbed, and tho result would be that a restriction would have to be placed on the output of gold.

That was what had had to be done in the case of diamonds, with the result that only one mine was now operating and the market price was being artificially maintained. Diamonds, however, were a luxury industry, and gold, a necessity, would never be as hard hit. This boom in gold was reflected throughout South African industry, Mr. Radford continued. The buildiflg trade alone showed how things stood? In Johannesburg recently plans had been passed for new buildings to the capital value of £1.000,000 a month, although, of course, they could not continue putting up buildings at that rata indefinitely. Already the progress in Johannesburg in proportion to the European population had been amazing. There was no native difficulty at Johannesburg, said Mr. Radford. There was the best of good feeling between Europeans and the natives. There was a big native population. On a single mine 8000 natives were employed. They were well treated and lived on the fat of the land. They were paid Is 8d a shift and were given good food and a glass of beer a day. Many natives earned 4s 6d a day and the minimum was Is 4d. They were well satisfied and there was no trouble there, nor did they clash with the white labour.