The sun., 1919-10-29
BANKS GIVE AID
IN SOUTH AFRICA
Industrial Undertakings Dis
cussed by Head Of Great
Institution.
CAPITAL rs AVAILABLE
Overseas Market Also Gives
Great Opening for Future
Development.
CAPITAL rs AVAILABLE
By e. Q. REYNOLDS.
General Maro0er Of the National Bomb
Of South Africa. Ltd. Pretoria,
South Africa

but Il Is doubtful whether with their en-
stinE resources It would be wise to go
further. The balances held by the banks
OF deposit are the property OF their Gus
toners, and II the latter care to Invest
them In industrial undertakings well and
good. but that decision entirely rests
with the private investor himself and
not with the bank. | emphasize this. as
possibly It may be assumed by some
that the banks have the power, II they
so desire. 70 Use these balances In tinanc-
ing Industries to a greater extent than
they have done In the past.
The banks are only trustees for the
public-they are not themselves the own
ere Of the money deposited with them
The question Is so elementary l apo'o-
gize for mentioning 1t. but 1t Ia well not
to leave room for any misunderstanding.
In addition to the balances in the
hands of the banks there are other
sources Of capital available. such as the
considerable sums in~the Government
Savings Bank, which aggregated f7 2i3.-
722 on June so, 1918. There is no rea-
son to suppose that the owners of this
money will not, when favorable oppor-
tunities present themselves. employ
! some OF II In a more remunerative form
| by investing in Industrial enterprises
which have proved successful, but the
: class of investors concerned. mainly
hose who look for a fair rate OF interest
with minimum amount Of risk, Is
likely to require good deal OF persua-
sion before changing their investments.
New Corporations Formed.
We have next to consider the capital
| which is at the disposal OF the mining
| and financial houses. These highly or
| yanzed corporations have for many
Nno I've Oh na1 fn- nj tV,rr
capital with which to develop the god
mining industry. May hope It viii be
possible ut an early date for some Of
| them more fully to turn their attention
| to the exploitation Of certain base min
erals and the marS factures cognate
! thereto? The technical skill and elabo-
| rate organization ut their disposal are
| two primary points which mark them
out as peculiarly fitted to lead the way
In the direction I am Indicating.
The National Industrial Corporation
| of Africa. Limited. recently formed. is t.
| my mind an ideal method of fostering
industries. and the progress OF the insti-
tuition named will be watched with great
| interest. Starting with moderate cap
| ibrl, already subscribed. with power to
! increase it to an unlimited extent. and
| furnished, rs 1t will be. with recourse to
technical stan of high order, and a
should insure success. this may be taken
as the model organization for assem-
| bling c'pital with the particular object
OF financing Industries.
| An institution OF this kind is. OF
| course. capable OF participating in many
| different enterprises, and as It's func-
! lions will be exercised over such a wide
field. much experience will be gained OF
many industries. and the guidance which
will in consequence be at the disposal
| OF persons starting new industries will
go long way to attract capital for their
development If they are directly or even
indirectly under the auspices Of the
| National Industrial Corporation.
| Perhaps no country in the earlier
stages of its Industrial development
| such as South Africa now Is. has had a
more helpful organic ton than this
placed at its disposal, and from the fact
that II Is to be financed by private
money. managed by leading business
men and entirely free from all associa-
ton with Government or vested interests
think the country is to be congratu-
| lated on It's establishment ! can place
no limit to its future activities.
Opening for Branch Industries.
The British Trade Corporation. an In
stitution recently formed n Great Brit
ain more with the object Of finding
outlets for British goods and undertake
ing contracts abroad IN which British
manufacturers will play large part,
may not exactly form a channel for cap
ital TO develop South African manufac-
lures, but II Is not unlikely that In the
course OF its activities It may find II
desirable TO recommend the British man.
ufacturer to establish branch industries
In this country, or may find 1t suitable
to treat some OF our mineral or other
products up to stage which Will enable
them to be shipped to Europe In a more
concentrated form than at present and
thus save a good por Ion OF the cost OF
transport now unavoidable.
There Is another source from which
capital may be attracted for the purpose
we re d!scussing-I allude to the direct
oversee market. This source requires
to be considered from q good man!
points OF view Tho economic position
In which the termination OF the wa
finds all the European nations at hrs
sight gives one to think that there Il
not likely to be any capital available
for undertakings such as we In Souu
Africa can offer. and that the vast SUM
which will DO required to replace tn
ravages OF war will find in Europe NOR
than an ample field for investment ant
at attractive rates OF interest There 4
also the likelihood OF preference beint
shown by European investors for tn
emp oyment OF their money close to theil
own doors. not only from the economical
/ but also and to a very large extent from
the sentimental point Of view.
Much leeway has to be made up b,
the suffering populations Of Invaded ter
: ritorles. and II will be a national dut,
to see these restored before though
, Is given to sending money for invest
ment IN other countries unless the pro
posal reveals prospects of very salts
! factory return. But even to this pictur
! there is another and an encouragin
side. Many men who prior to the wa
were engaged in or thought of being en-
gagged in manufacturing pursuits 4
Europe will prefer a country such q
this wher" ccndit ons are perhaps NOR
to their liking and where possibly bet
ter results can be obtained from knowl
edge and capital applied to Industries.
, The high cost of living which will oh
tain In Europe, coupled with the Incl
d ncs OF he7'v taxation, will encourage
men 10 turn their thoughts to this coun
: try, which is one with the lowest seal
= Of rect taxation In the empire an,
where labor Is relatively cheap. This
s~l' on the understa nding that tn
= color bar is not to be imposed. bu
4 O. ~ labor available Is to be free [,
participate IN the development OF in
= dustrit=5. ANY stipulation to the con
. tray would be fatal to progress a
e least In the initial stages, of almost an,
= local industry not protected by an un
4 duly high tariff
4 I VOuld nka 10 tnsch On ona aat,aot =,