The sun., 1919-10-22
Financial Resources of Great
Country outlined by a Lead
ing Banker.
LESSONS FROM GERMANY
Development Of Japan Also
Contains Useful Hints for
New Enterprise.


South Africa
PART i.
INhave been asked to give my views
on The financial resources in South Az
RIGA available for Industrial expansion.
and I gladly attempt the task. for sew
eral reasons The present date marks
period in the history Of South Africa
frsught with possibilities for the future
of the State, to which. am convinced.
those who come after us will look upon
as a most interesting period In our an
nails
The enterprise of many of our citizens
whose intelligence, perseverance ana
pluck have during the last twenty years
developed such industries as are already
established in the country has focused
the minds of a large section of the peo-
pie on the possibilities of industries gem
orally In this up to now almost purely
agricultural and mining country and
have enlisted would almost say
foiced--a conviction on all thinking men
that the age of experiment has passed
and that the time for action on scale
hitherto not contemplated has arrived.
A tribute In this respect. and hand
somt one, must be paid to the educative
activities of the Department or Indus
tries of the Union and to the breadth
Of view and expansive sympathy which
the Minister OF that Department ana
the Government OF the Union as
body have extended to the question and
their actions, viewed in the light OF ex-
pe-ience of other nations similarly sit
uated, give one reason to look forward
ut no very distant date to developments
in this country which will, l hope, sur
pass even many sanguine expectations.
The state Of war which has existed
for 30 long has happily now ceased, but
the influences which have operated dur
ing that period. as many other countries
have experienced over the ages In KIN
bred circumstances. have brought TO
notice the urgent need for nations to so
order their affairs that when upheavals
come the country which can rely to the
greatest extent on its'own resources and
services is one that can hold out longest
and win through. Wars in the past
have been the means OF compelling at
tention to this most vital question: and
have usually resulted In reorganiza-
ton of resources. the adoption OF meth
DDS and systems from more experienced
countries which. grated on to the Ia
tent possibilities of certain nations, have
produced wonderful results.
German Industrial Organization.
1 will just take two outstanding ex-
amples:
When afttr long years of struggle and
sacrifice the German people, through the
success of their arms in 1870, were as
cured Of peace, they consolidated their
people and set about economic develop
ment undisturbed by any fear of outside
interference. They recognized that being
then almost entirely an agricultural
country there existed very real need
to provide employment and support for
a rapidly increasing population. and they
set out TO develop the Industrial re-
sources Of then country with a thor
oughness of method. concentration OF
effort and Intelligence, which In COM
paratively short period yielded wonderful
results Had not military ambition, in
toxicated with success, usurped power
and led the nation astray, scarcely any
bounds could have been set to their
economic development
The opinion is very generally held
that the success which has attended the
German methods Is a reason for thinking
that these, II applied to South Africa.
would meet with the same results; but
hold that while we can with advantage
copy them in so far as application OF
science, organization and supervision are
concerned, we In this country are faced
with a very different proposition, and
our circumstances are SO dissimilar that
| too ready adherence should not be given
| to the German precedent for developing
our industrials.
Speaking generally, they availed them
selves Of their large and Increasing
| RI nf hail NTar
doors for thcir output they were pro
vided In abundance with mineral re
sources at close range: their industrie:
! were specialized and their output stand
ard ized TO permit of cheaper production
and the flooding of the worlds markets
their universities turned out large mum
beers of qualified students who were dis
tributed among their factories and who's
research work enabled the manufac
tuners to produce articles which success
fully competed with the products o
other countries; their future manufac
turers went to and rived and learned II
other countries, All with the highest in
ltelligence applied their experience thu
| aained to their own Industries; thei
| shippIng was organized with State as
| distance to enable their output to reacl
and be realized in foreign markets an
at prices which placed the products o
other competing countries at disad
vantage.
In addition railway rates on goods 70
lexport were reduced to a Lowell which i
practice acted as bonus to the manu-
facturers aud through bills of ladin
were issued. which covered the good
from the place OF manufacture 10 thei
several destinations abroad. The bene
Alta thereby conferred on those con
learned Will be obvious. Needless 70 say
the German railways we're State owned
orsanisstion ia japan.
But while we in this country canno
sdopt their methods In their entirety
aimee they were in many direction
based on indefensible conditions. W
can learn a lesson from their system c
financing Industries, and chiefly anon
these was the right claimed by the finaI
cIers and acquiesced in by the borrower
for tho former to closely investigate IN
condition Of the business seeking finar
cial assistance and to impose thereo
the advice Of their technical advisers
This interference with private affairs
n point which occurs to me as proba
BILE stumbling block when people ar
concerned who have not been accus
tened TO such methods But doubles
means can be devised to get over III
difficulty. since It Is essential that SON
control OF this nature must be retaire
IL capital is to be found for new indus
tries.
MY second example is japan. As a
able writer puts 1t: History Shove
the japanese that 1t Is very difficult I
maintain a high standard of nations
greatness when the revenue Of the Ian
and the prosperity Of the people Deepen