Rise in Price of Gold Has Beneficial Effect All Over the Union Reports reaching Shanghai of a trade boom in South Africa are by no means unfounded, It was learnt the "'North-China Herald" August. 25 incon interview with 'A. T. Brennan, Trade Commissions the East for the Union of South Africa, who Is ona short visit to Shanghai. They are, as a matier of foet, 50 well founded that it is quite true to say that the position in South [Africa atthe present time is the same as it was after the Boer War, when old was first found there, Normally, fold is 88/~ an ounce, but when a large number of countries decide 10 fo of the gold standard, they have to pay more. to obtain the same amount of gold. "The price of gold Fises, and instead of 88/~ an ounce, it becomes 138/~ an ounce, which was Monday's "price.
The gold mines in South Attica, however, are still producing the same amount of gold, and w large umber of them can work at a profit when the price of gold is 88/—an ounce, so that their profits when the price rises to 138/~ are very considerably increased. A still' larger number of mines work at a profit when gold is 100/- an ounce.
When South Africa went off th Gold standard, the Government troduced legislation by. which the wealthy gold mines were taxed heavily, and the poorer mines were taxed lightly, the object being to encourage the low grade mines to Increase. their production. Every= thing is moving towards a great trade beom in South Africa at the moment, and all as the result of the higher price of gold. "This affects the farming community, it affects the secondary Industeles which pro vide material for the working of the mines, and for the use of the zniners themselves, it provides more work and leads' to a greater demand for Tabour, It sends the revenue of the country up to a higher Level through customs and import duties, and finally It leads to lower taxation, as the government has more money' than It reeds coming in through its various sources of revenue,
Text read from the printed page and cleaned; old type leaves the occasional error.