The Archive · 1933

HOW GOLD STANDARD WEN' Dramatic Change Effected Just Before Christmas

and the Results making such notes legal tender for mayment by the bank. On the following day Reserve and Commer-jai "Banks refused all. exchange facilities, and South Africa was off the Gold "Standard. The Govern-mom OvR Ows of November. witnessed. the conclusion of a hectic bye-election cam-ign for the Parliamentary seat of "Germiston is an indus-I and railway town some twelve mulles from Johannesburg, and has electorate of Just over 8.000 men And. women representing all shades of political opinions, Five candidates contested the election, but from the very first it was clear that vic~ tory lay between the South African Party candidate and the Nationalist Party eandidate—the three remaining candidates were never inthe vonning. Prior to the by-election the seat had been held by Labour, fand not since 1924 has the seat been held by the S.A. Party. Never in the political history of this country has to grim a bable been fought. Both parties put all their energy into the fight, and on behalf of the Government, the majority, of the Cabinet addressed meetings through-Jout the constituency. 'The S.A. Party candidate was a young man, who worked hard and quietly. A ture of the election was the di turbances at many of the meetings, resulting' in one. instance In severe injury to a. persistent. questioner of cabinet Iminister. Before. polling day both parties were confident of victory, but no one ever anticipated Ube regul, which wag a great vie~ tory for the South "African Party by over 1,100 votes. It was an en-throly: unexpected decision, and can sed a flutter of concern throughout the "Government ranks, while it Drought. life, confidence and to the S.A. Party. General Smuts saw in the result a protest against the racial and Gold Standard poli-of the Government, and. added that the only honourable course for the Government to adopt wax either to rerign or to appeal to the country. 'The result. was generally" regarded as the most serious war the Government had as yet had. the gradual change that had come over, public opinion. 'There. is. no doubt that the S.A. Party' victory was in no small measure due to the Labour vote which deserted its own candidate, and lent ite weight to the S'A. Party.

Thin was followed a few days r-by an appeal from General Ido precisely as they pleased in a back-garden measuring 30ft. x ft. from 10 to 12.30 and 2.30 to 4. A mistress was seen sitting them, but she never made, was alleged, the slightest attempt control them. The. chi variously "described as "crying, screaming and shouting, bullying fand fighting, barking and whistling. The noise as insupportable. Mrs. Nottidge prayed for wet days that would keep the children indoors.

fof her witnesses (who had doors herself a great deal) because "they Smuts to the Labour, Party to join hands with the S.A. Party and force the Government out of power. He expressed the view that the S.A.P. Should shape their soe the future in such a Labour Party could goodwill join with him. "The sensational, for a number of the this appeal was both, rapid' and ost prominent members of the Labour Party on the Witwatersrand, fineluding members of Parliament, announced that they had decided 1 join the S.A. Party. In adopting

jeonsidered it to. be the only this, poles they saied ni hey which South Atviea could be farther serious ment for in Parlinment the Kabout party ae a ad_supported

Jeountry a ery of an early general then and there was throughout he election.

Then came an event of para portance. it. Justice Tielman announced "his. resignation from the Appygl Court Bench, and his intention. te return to polities, Ben Mr. Roos prior to. going upon the Nal formment from 1024-1929, tion asa leader was. particular strong in the Transvaal." Tm his one Rouncement Mr- Roos. atated. that Wag returning' to" political Tite ax a Nationalist, that he. opposed the " Government" on' their Gold Standard and. Racial policies and that his aim and object was to form 'a coalition with the S.A, Party and urn' the Government from power. ould rely upon ber of Nationalist members of Parliament to defeat the Government ret, but fand that he should also be free to appoint five other Cabinet "Minis ters. "It early beearns clear that Prior to taking this step Mr. I had not been in touch with 'ALP. or Nationalist leaders.

Crop of Wild Rumours dramatic step 1s—Cabinet Ministers had already dispersed for the holiday, and upon receipt of the news came hurrying back to Pretoria. "The immediate result was a crop of wild rumours to the effect that the Government would' resign mediately, and fevered. activities in financial circles. Speculators mediately sent money out of the country to England to benefit from the exchange in the belief that two or three weeks would see S. Africa inegTiet on te, ach ued and Bahan Mocineg Rk tue [eteacl" iene atefing The ment refused to. take any steps Fegulate the exchange conditions of fo link up with Sterling, and. the S'A, onl was left to find its own level." On. December '30 the "Com rates at £90 mercial "Banks quoted _exchan Mat ner Te ne a

Text read from the printed page and cleaned; old type leaves the occasional error.

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