Custer weekly chronicle. [volume] (Custer City, S.D.) 1890-1931, 1903-03-14
E GOLD STRIKE.
Second 5oer War Caused by Effort to
Reduce Waues of T~ransvaaI Miners.

Although the Boer war ended May 81,
1902, says the Wall Street Journal,
there has been no resumption of mining
in the Transvaal such as was carried
on previous to the outbreak Of hostil-
tiles In 1899. Before the war the Trans
wal was one of the worlds main
sources of gold supply. The output in
1889 amounted to aboue $73, 600, coo. The
practical suspension Of mining during
the conflict reduced the production to
SO, 900, 900 in 1901. There were seven
months Of peace in 1902, but the total
gold product was only $35, $50, 155, or less
than one-half the ante-bellum output.
The outlook for this yea is much
brighter. The product in January was
81, $40, 700, which was considerably
larger than in December, and which
indicated q probable total for 1903 in
excess Of $50, 900, 900, which is more
likely TO be increased than diminished.
One reason why there has been no
such activity in the Transvaal mines,
as existed before the Boer war, is
found In the extraordinary attempt of
the companies identified with the
Chamber Of Mines to bring about a re-
duction in the rate of wages for native
labor. This attempt had not even the
eXcuse of necessity. The mining COM
panies-or many of them-earned large
dividends before the war on the old
scale of wages, and the only reason for
reducing the wages was that such q
reduction would increase the profits. 1t
was a cold blooded proposition, based
upon the assumption that the native
aborers were unworthy of considera-
ton in the matter. 1t was argued that
these laborers, being lodged and fed by
the companies, had really no need of
fifty shillings a month, which had been
their average wage, and ought to be
content with thirty shillings a month.
This reduction, it Is estimated, would
have added about 81, 500, 900 to the yearly
profits of the companies. This attempt
to reduce wages was not only unjust to
the miners, who were fairly entitled to
the old scale, but, as Mr.. Goodbody
pointed out in his market letter of Fri
day, was based or a wrong economic
assumption that to cheaper the cost
Of gold production would be a gain to
the wealth Of the world. The effect
would be to cheaper gold and render it
more unstable as the basis of the
worlds credit.
Fortunately, the attempt of the 10
Transvaal companies that entered into
the agreement to reduce wages has
failed. Never has there been a more
extraordinary contest between capital
and labor. Our own strike in the coal
regions must take second place beside
this struggle in the Transvaal. 1t was
in reality a second Boer war, differing
from the other in that this was blood
less and that the victory was gained by
the Beers. There was no strike and no
boycott. The native labor preferred
to live off the proceeds of their little
patches Of farm land to working in the
mines at thirty shilllngs a month. No
amount of persuasion could induce them
to enter the mines. Finally the Cham
Der Of Mines has returned to the old
scale of wages, and from now on there
should be a steady increase in the gold
output, a fac Of the largest significance
to the markets of the world.