The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-22
.DEFLATION THE AIM
IN SOUTH AFRICA
Policy of Banks Brings Oh At
mosphere of Caution in
Business.
GENERAL CONDITION DULL
Gold Mining Industry, How
ever. Enjoys Exceptional Pros
perity, Says Trade Commission

WASHINGTON, Nov. 22.--South African
banks have been following during the
last few months a policy OF careful
scrutiny over credits with view to Sc
curing defiation where 1t is considered
wise. according to special report from
Trade Commissioner r. j. Stevenson, at
Johannesburg, received by the Bureau
of Foreign and Domestic Commerce. The
natural result of any such policy has
been to breed an atmosphere of caution
In the business community.
The recent sharp declines in the prices
secured for wool, hides, ostrich feathers
and waffle bark. which play Il PROMINENT
part in the export trade of South Africa,
have had quieting effect, especially at
Port Elizabeth, the centre of trade in
WOOL hides and feathers. AS the import
trade soon began to feel the effects Of
such condition. it is improbable that
the imports into South Africa during
the latter part Of 1920 will be as large
as those shown by the statistics for the
first six months.
THE general business conditions" the
report says, "canAbe classed as quiet or
dull This condition has been prevailing
for the last two months and from pres
ent indications is likely to continue for
some months yet. Unfortunately, goods
did not come forward regularly during
the early part of the year, when business
was exceptionally good. but back orders
in many lines began to arrive in large
quantities just as conditions became I'M
favorable. Stocks now on hand or ar
irving are consequently in excess Of
present or even normal requirements
This is especially true of the soft goods
trade, where it Is reported that parcels
are being sold in this market at prices
under present British or American quo
tations.
Interior merchants in many cases are
stocked up with wool which has been
taken in trade or bought as pure spec
ulation. During the war the South
African wool trade enjoyed great pros
perity, due partly to the fact that it
was not under Government control, as
were the other woods in the British
Empire. While the quantity of wool
exported has decreased in comparison
with prewar figures, the value is sew
eral times greater. With large quanti-
ties of wool from the last clip still on
hand and the new clip shortly available
the future of the trade Is not bright,
with a corresponding influence on the
import trade to be considered.
Local industries, such as the boot
and shoe factories, have felt the eff
fects of heavy importations from Eng
land and the United States. The auto
mobile trade has been seriously affected
by the shortage of gasolene.
1.-THE situation is not without It's
bright side. The gold mining industry
is enjoying exceptional prosperity be-
cause of the present premium on gold.
Due largely to this factor every mine
reported profits for the month of Au-
gust. The coal industry Is likewise
prosperous and the main difficulty has
been to secure railway facilities to haul
coal to the coast. The diamond trade
is improving and with buyers operating
more freely the outlook is satisfactory"