Prospecting for Gold.
It was one Sunday evening in 1886 that the great 'find' was made which laid the base of the prosperity of the Johannesburg-to-be. A farm-servant of the brothers Struben went over to visit a friend at a neighbouring farm, and as he trekked homeward in the evening, knocked off a bit of rock, the appearance of which led him to take it home to his employer. It corresponded with what Struben had himself found in another part, and following up both leads, revealed what became famous as the Main Reef, which was traced for miles east and west.
A lot of the 'conglomerate' was sent on to Kimberley to be analysed, and a thoughtful observer of the analysis there came to the conclusion that there must be more good stuff where that came from. So he mounted his horse and rode over to Barberton, where he caught a 'coach' which dropped him on the Rand, as it is now called. There he quietly acquired the Langlaagte farm for a few thousands, which the people on the spot thought was sheer madness on his part. But his name was J. B. Robinson, and he is now known in the 'Kaffir Circus' and elsewhere as one of the 'Gold Kings' of Africa. He gradually purchased other farms, and in a year or two floated the well-known Langlaagte Company with a capital of £450,000, to acquire what had cost him in all about £20,000. In five years this company turned out gold to the value of a million, and paid dividends to the amount of £330,000. The Robinson Company, formed a little later to acquire and work some other lots, in five years produced gold to the value of one and a half million, and paid to its shareholders some £570,000 in dividends. With these discoveries and successful enterprises the name and fame of 'the Rand' were established, and for years the district became the happy hunting-ground of the financiers and company promoters. The Rand, or Witwatersrandt, is the topmost plateau of the High Veldt of the Transvaal, at the watershed of the Limpopo and the Vaal; and on the summit of the plateau is the gold-city of Johannesburg, some five thousand seven hundred feet above the sea.
Soon the principal feature in Johannesburg was the Stock Exchange, and the main occupation of the inhabitants was the buying and selling of shares in mining companies, many of them bogus, at fabulous prices. The inevitable reaction came, until once resplendent 'brokers' could hardly raise the price of a 'drink;' though, to be sure, drinks and everything else cost a small fortune. To-day the city is the centre of a great mining industry, and the roar of the 'stamps' is heard all round it, night and day. From a haunt of gamblers and 'wild-catters,' it has grown into a comparatively sedate town of industry, commerce, and finance, and the gold-fever which maddened its populace has been transferred (not wholly, perhaps) to London and Paris.
The Stock Exchange of Johannesburg sprang into existence in 1887, and before the end of that year some sixty-eight mining companies were on its list, with an aggregate nominal capital of £3,000,000. During the 1895 'boom' in the market for mining shares in London and Paris, the market value of the shares of the group of South African companies was in the aggregate over £300,000,000! It is true that these are not all gold-mining shares, but the great majority are of companies either for or in connection with gold-mining. In 1887 the Transvaal produced only about 25,000 ounces of gold; in 1894 the output was 2,024,159 ounces; in 1895 it was 2,277,633 ounces.
Just before the Californian discoveries—namely, in 1849, the world's annual output of gold was only about £6,000,000. Then came the American and Australian booms, raising the quantity produced in 1853 to the value of £30,000,000. After 1853 there was a gradual decline to less than £20,000,000 in 1883. This was the lowest period, and then the De Kaap and other discoveries in Africa began to raise the total slowly again. Between 1883 and 1887 the El Callao mine in South America and the Mount Morgan in Australia helped greatly to enlarge the output, and then in 1807 the 'Randt' began to yield of its riches. The following are the estimates of a mining-expert of the world's gold production during 1890, £23,700,000; 1891, £26,130,000; 1892, £29,260,000; 1893, £31,110,000; 1894, £36,000,000; 1895, £40,000,000.
As to the future of the South African sources of supply, it is estimated by Messrs Hatch and Chalmers, mining engineers, who have published an exhaustive work on the subject, that before the end of the present century the Witwatersrandt mines alone will be yielding gold to the value of £20,000,000 annually; that early next century they will turn out £26,000,000 annually; and that the known resources of the district are equal to a total production within the next half century of £700,000,000, of which, probably, £200,000,000 will be clear profit over the cost of mining.
These estimates are considered excessive by some authorities; nevertheless it is to be remembered that the productivity of deep level mining has not yet been properly tested, that even the Transvaal itself has not yet been thoroughly exploited, and that there is every reason to believe that Matabeleland and Mashonaland are also rich in gold. But we have not to look to Africa alone. In Australia, besides the regular sources of supply which are being industriously developed, new deposits are being opened up in Western Australia at such a rate that some people predict that the 'Cinderella of the Colonies' will soon become the richest, or one of the richest, members of the family.
The following shows the contributions towards the world's gold supply on the basis of 1894:
| United States | £7,950,000 |
| Australasia | 8,352,000 |
| South Africa | 8,054,000 |
| British Columbia and South America | 2,000,000 |
| Russia | 4,827,000 |
| Other Countries | 4,807,000 |
| ————— | |
| £35,990,000 |