Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-26
DIAMOND MARKET
!. DECLARED F|RMER
Adjustment of Production to
Sales Has Good Effect
on Prices.


Prices Of diamonds not only have
withstood with unexpected strength the
period Of depression since late 1929, but
there are indications now appearing in
| reports to Government departments
that the price trend of the precious bits
of carbon is turning upward. This fact,
| according to those in close touch with
the industry, has come about as a re-
suit of sterilization of the diamond in
dustry and the maintenance of bal
ance between supply and demand.
Diamonds are on the list of so-called
Injuries. They are supposed to be af-
| fected deeply by the trend Of business
conditions. The strength shown by
| the diamond market is taken, there
fore, as an outstanding example of the
possibilities of adequate Sterilization of
production and marketing from within
the ranks Of an industry itself The
fact that the government of British
South Africa is also concerned in this
effort has not detracted from the
strength of the example.
Quality Regulated.
Since the passage Of the precious
stones act of 1927, the South African
wide powers to assist the diamond in
dustry through regulation of the guam
tity of diamonds which can be put on
the market from time to time. But the
law indicates clearly that it was the in
tent of the act that these powers should
be exercised only when the industry was
confronted with difficulties it could not
itself overcome.
In 1927, when the Namaqualand
HnldQ q he fpY1 ~
ton, the industry was threatened with
disaster. Production rose to a peak in
September Of that year when over
So, 100000 worth of rough stones were
placed on the market. Under wise ad-
ministration production in that field
fell to about 100000 for 1880. For
the whole South African field the pro-
duction in 1880 was under the 0,000,-
600 mark. Under normal conditions, 1t
Is estimated world demand is fully up
with production.
The South African government pos
sesseS the power to prevent any repe-
tition of overproduction from alluvial
fields within the union and the gov
eminent has made 1t plain it Is de-
termined that production should not
again assume such unreasonable pro-
portions as to constitute a menace to
the diamond trade as a whole or to
Tic pAOlltS % Tic 1Hulfloudl OlhLuOuu
companies. The Minister of Mines of
South Africa declared at the begin
ming of this year that the government
intended to limit its own sale of dia-
monds roportionately with those Of
other big producers and would only
sell diamonds for export through the
Syndicate.
New Era Started.
The formation of the Diamond Cor
poration marked the beginning of a
new era in the diamond industry. The
existing agreements with the old syn
dicate expired the first of this year
but on that date new agreement be-
came operative for a period of four
years, which has the full cooperation
of the Minister Of Mines and Admin
istrator of Southwest Africa. The
agreement does not include outside
producers directly, but most cordial
relations exist with the diamond COM
panies of Angola, the Congo and West
Africa, which have subscribed to the
policy of limitation Of production and
agreed to make sales through one chan
mel.
Diamond men say these facts have
assured the public Of the stability Of
the price Of the diamond and as a re-
suit there is now being experienced an
increasing demand for the finer grade
now approaching. Sales are gener-
ally more brisk in anticipation of June
weddings and graduations. Diamonds
are not numbered among the necessi-
ties but many of the 1900, 900 young
women under 10 have yet to be con-
WINGED of that fact.
Copyright, 1917