The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-11-21

depression Il an utter want OF confidence
In the future OF the Oontry's principal
industry. although the gold mining OF
the Rand Is stil in its infancy, and II
systematically developed might be ex-
pected 10 maintain and v increase the
present yield Of gold for at least another
half century. Confidence has waned for
the reason that the Blanket reefs Of the
Rand, though continuous and more uni
form than assure reefs, are Of so low
agrad0 that they only yield a profit when
worked on an enormous scale and with
much cheaper labor than can be supplied
by white miners. Where is cheap and
effective labor to be obtained in view Of
the u-ncontrOverted truth that the coll
Ored labor indigenous to the region, sup
Piled by various black tribes collectively
described as ~Kafirs,' is expensive, in
efficient and untrustworthy2
Up 10 two years ago the managers OF
the Rand mines expended, with the n
ton Of the late Unionist Government at
Westminster, vast sums Of money in Sc
curing an adequate supply Of low priced,
hard working men from China. The Lib
eral Government, however, which came
into power early in 1908, and deemed
1t necessary to comply with the etac-
tons of the British Laborites. ordered
the Chinese labor contracts to be can
celled on the ground that the Chinese
workmen were kept in slavery. The
accusation Is now generally recognized
as unfounded, but the repatriation Of
the Chinese workmen is still required on
tho score Of their alleged immortality,
although the Roman Catholic Bishop Of
johannesburg has testified that their
morals compare favorably with those
Of the European navvies imported to do
railway work. According to the Mails
correspondent 1t is now frankly adj
mitted by a Labor leader in the Trans
vaal that it is not the vices but the vir-
tues OF the Chinese Of which the Labor
party is afraid.
The MGiTs correspondent does not
uphold or deny the propriety OF ex-
Guiding Chinese labor in the real or sup
posed interests of British workingmen.
He merely chronicles the fact that the
existing Government Of Great Britain is
confessedly too dependent on the work
ing class vote in the United Kingdom to
allow Chinese indentured labor to be
introduced into q British colony. He
proceeds, however, TO show the economi-
cal consequences Of the policy. There
! is, he reminds us, in the Transvaal just
one industry capable Of bearing, Of al
all events willing to bear, any substan-
tial taxation, to wit, gold mining. This
single industry pays eighty-five pei
cent. Of the country's whole revenue,
all the other Industries put together,
including even the sixty per cent. share
which accrue to the Colonial Govern
ment, contributing only fifteen per cent
In order TO keep up and develop this one
great industry vast sums of capital have
to be expended in order to assure the
receipt of future profits. By way OF
example the case Of the Jupiter Mine
is cited, which already has been SUM
TO a depth of 400 feet and upon which
IS, 900 will have TO be expended before
the crushing of the ore begins. II is moi
to be expected that shareholders will
consent TO risk such great sums and t.
wait years for dividends which, in view
Of changes in labor conditions, NAV
never be forthcoming. especially rs il
is notorious hat the average grade o.
the W-itwatersrand ores is so low thai
profits are quickly turned into losse'
unless every fraction of a penny Of ex.
penses per ton is carefully scrutinized.
Under the circumstances the NGir,
correspondent can see no ground for
return of confidence on the part of Euro
pean investors, and consequently In,
present stampede from the Transvaal i
likely to continue. '