RECOVERY IN SOUTH AFRICA

Otago Daily Times, Issue 22352, 28 August 1934, Page 6

RECOVERY IN SOUTH AFRICA

The Government of South Africa could not have chosen a more striking manner of advertising the return of prosperity to the Union than by its decision to repay to the British Government the remainder ,of its war debt, amounting to nearly eight millions. The recovery in the Union has been so rapid and uninterrupted as almost to justify the, adjective spectacular. True, agriculture, which constitutes the predominant industry, is still depressed. The Government during the past two years has given a very large measure of assistance to agriculturists, much of this being made available in productive works irrigation, land settlement, and measures to prevent soil erosion. Export subsidies, which weigh heavily on most of the foodstuffs of the country, have been retained in spite of improved conditions. The last financial statement, however, which was presented early in the year, was a most cheering document. The revenue for the year 1933-34 was well ahead of estimates, and after some two millions of accumulated deficit had been extinguished a surplus remained of £4,510,000, which was devoted to debt redemption and other public services. In the 1934-35 Budget provision is made for a surplus of £2,808,000, which for the most part the Government marked for future taxation remissions. Since these sanguine estimates were announced, South African revenues have continued to improve. Writing in April, a commentator considered it “safe to prophesy that, barring accidents, the estimate will be exceeded.’’ It may be assumed, from the most recent decision of the Government to complete the war debt payment, that, far from any accident having been experienced, South African finances continue buoyant. The main reason for the healthy condition of South African finances is, of course, the high premium on gold, and the agricultural situation is perhaps not as greatly improved as the revenue figures might at first indicate. The future, however, is definitely reassuring economically. The South African correspondent of the Economist summed up comprehensively in June with the observation that “bank deposits, savings bank deposits, Land Bank advances . , . building plans, general employment index, employees on relief work, motor car purchases, and other figures all show evidence of recovery.”