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Farmers, Randlords and the South African state: Confrontation in the Witwatersrand Beef Markets, c. 1920–1923*

Published online by Cambridge University Press:  22 January 2009

Robert Morrell
Affiliation:
University of Durban-Westville

Extract

The pervasive importance of gold mining in modern South Africa has become embedded in South African historiography. Despite this, little research has been done to ascertain its impact on the other major sector of the economy, agriculture.

The gold mines had a profound effect upon one particular branch of agriculture – beef farming. The mines purchased large amounts of beef and were able to use their buying power to confront beef farmers in the marketplace. In the recession following the First World War, the mines were caught in a profitability crisis that was to lead to the Rand Revolt in 1922. One of the ways in which mining attempted to ease its position was by cutting back on the cost of the meat it supplied to its African labour force. This initially involved co-operation with a powerful cold-storage company, big ranchers and a number of smaller farmers to form a Meat Producers Exchange. This fragile alliance fell apart when farmers, themselves on the verge of bankruptcy, attempted to take control of the Exchange and raise beef prices. The farmers failed and in 1923 the exchange collapsed.

The victory of the mining and cold-storage companies rested on a number of factors. Farmers were unable to organize effectively because of the defection of ranchers to the mines. Changing economic conditions in 1922 and 1923 permitted the mines to terminate their co-operation with beef farmers. Finally the mines were able to call upon the state for support. The state ensured the demise of the Exchange and the defeat of the beef farmers. In the process it showed itself capable of intervening decisively to protect the interests of certain sections of capital.

Type
Research Article
Copyright
Copyright © Cambridge University Press 1986

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References

1 The Corner House alone required 1,300,000 Ibs a month for its compounds while the total yearly requirement for all compounds was estimated at 80,000 cattle. (Select Committee on the Meat Producers' Exchange Ltd, SC 9–1922, 148 and Farmer's Weekly (1 June 1921).)

2 See Van Onselen, C., Studies in the Social and Economic History of the Witwatersrand, 1886–1914 (Johannesburg, 1982).Google Scholar

3 The big African mineworkers' strike of 1920 underlined the danger of depressing wages further.

4 The best expression of this, albeit at a high level of abstraction, is Stanley Trapido's ‘Maize and Gold alliance’. (‘South Africa in a comparative study of industrialisation’, J. Development Studies, vii (1971).)Google Scholar

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7 A start has been made in dismantling the shibboleth ‘that there exists such a creature as “the farming interest”, monolithic (and) formidably organised’. (O'meara, D., ‘Class, Capital and Ideology in the Development of Afrikaner Nationalism 1934–48’ (D.Phil, thesis, University of Sussex, 1979), 8.) Much however remains to be done in the disaggregation of ‘Agriculture’.Google Scholar

8 The compound system allowed the mines to feed labour at very cheap rates. See Turrell, R., ‘Kimberley: Labour and Compounds 1871–1888’ in Marks, S. and Rath-Bone, R. (eds), Industrialisation and Social Change in South Africa (London, 1982)Google Scholar, and Kimberley's model compounds’, J. Afr. Hist. xxv (1984).Google Scholar Also Levy, N., The Foundation of the South African Cheap Labour System (London, 1982), 43.Google Scholar

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14 Evidence of Gwynn, SC 9–1922, 94 and 354.

15 In 1917 South African beef exports peaked at 309, 214 quarters. SC 11–1923, 7.

16 The Low Grade Mines Commission (1920) warned that 24 out of 30 of the Reefs gold mines would become unprofitable should prevailing conditions show no improvement.

17 Evidence of Gwynn, SC 9–1922, 37.

18 Barlow Rand Archives, Johannesburg (hereafter BRA), 22nd TCL Annual Report for 1916, chairman's address.

19 The most important item in this preparation was fencing, which was three times more expensive in 1920 than it had been in 1914. Department of Agriculture. Report for year ended 31 March 1919, UG 40–1919, 33; BRA, TCL Directors' Report for 1919.

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29 The state set up a number of commissions to investigate complaints. Their published reports include Findings of the Board of Control in an Enquiry into the Meat-Trade conducted at Johannesburg on the 28 February and 1st, 2nd, 3rd and 6th March 1822, UG 21–1922, and also a host of reports from cost of living commissions, including Cost of Living Commission – Profit Report, UG 1–1919.

30 The two major cost of living commissions of enquiry were chaired by H. Pim (1918–20) and G. Owen-Smith (1920).

31 Report of the Meat Trade Commission, UG 9–1920, 21.

32 Between 1911 and 1920 the auctioneers' turnover was £46 million.

33 Evidence of Gwynn, SC 9–1922, 15.

34 A suggestion of the close ties between the ICS and the auctioneers is that Bateman, manager at one time of the ICS, was a prominent member of the Rand Livestock Auctioneers Association in 1919. CAD, LDE 18454, 19579. Meeting of the Land Board, 15 August 1919.

35 Farmer's Weekly (24 November 1920).Google Scholar

36 The ICS too had an intricate system of buying cattle in the country, which was later to place it in a powerful position to hinder the MPE. See The Middelburg Observer (8 April 1921) and SC 11–1923, 21.

37 The auctioneers' position was made stronger by the commercial banks calling in their loans. The auctioneers consequently claimed to be ‘the only cash bank in this country’. Evidence of W. J. Ellis and C. R. Hardy, SC 9–1922, 164 and 213; BBA, Minute Book No. 25, 10 September 1920, 186.

38 In mid 1921 a fall in the maize price and farmer pressure for a higher producer price for maize led the state to pay £0.5 million too much for the maize crop. Attempts to get farmers to repay their debt plunged agriculture into chaos and increased political opposition to the SAP government. See Morrell, R., ‘Competition and cooperation in Middelburg, 1900–1930’ in Beinart, W., Delius, P. and Trapido, S. (eds), Putting a Plough to the Ground (Johannesburg, forthcoming).Google Scholar

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44 CAD, Department of Agriculture (LDB), LDB 1516, R2311, Report of Annual Meeting, 7 September 1922, 4.

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48 For a discussion of marketing problems see Grosskopf, J. F. W., ‘Marketing of agricultural products’, Economic Society of South Africa – Proceedings of Conference, Johannesburg (July 1925), 27.Google Scholar Also Bosman, A. M., Cattle Farming in South Africa (Pretoria, 1932), 2934.Google Scholar

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52 CAD, LDB 1516, R2311, Minute from Secretary of Agriculture to Minister of Agriculture, 4 June 1923.

53 The FCMI was later to suffer a similar fate to that of the MPE, and was taken over by the ICS. (Evidence of M. Alexander, MLA, SC 9–1922, 250–3.) Another body similar to the FCMI, Smithfields Cold Storage, also suffered the consequences of competing with the ICS by going bankrupt in 1925. (See The Middelbwg Observer (6 February 1920), and CAD, Department of Justice, JUS 5/95/25.)

54 Evidence of Gwynn, SC 9–1922, 19.

55 Phillips's elder son, H. L, Phillips, managed his father's farm and was also a leading member of the S.A. Cattle Breeders' Society, which had been formed by noted Swaziland rancher Allister Miller and reflected big ranch interests. H. L. Phillips was later unmoved by the fall of the MPE.

56 Evidence of Graaff, SC 9–1922, 94.

57 It becomes possible to speak of ‘the mines’ after the feud between the mining companies was ended in 1911 by the agreement over labour recruiting. See Jeeves, A. H., ‘Competitive recruiting and labour piracy in South East Africa, 1900–1921’, paper to the History Workshop ‘Town and Countryside in the Transvaal’Google Scholar; Innes, , Anglo American, 58.Google Scholar

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68 The NP gained 44 seats in the 1920 general election, which made it the largest party in the House of Assembly. The SAP had 41 seats and the Unionists 25. Smuts only retained power with Unionist support, but late in 1920 he strengthened his position by absorbing the Unionists. In the 1921 election the NP won 45 seats and the SAP 79. Smuts tried to bridge the gap between the SAP and NP but abandoned these efforts in September 1922. This may well have set him on a more partisan course in the MPE affair, for he was now free to ignore rural NP supporters.

69 Evidence of Graaff, SC 9–1922, 308.

70 Evidence of Hunt, SC 9–1922, 508.

71 Evidence of Gwynn, SC 9–1922, 386.

72 Evidence of E. Edwards and W. Light of the Witwatersrand Master Butchers Association, SC 9–1922, 270.

73 Who's Who in South Africa (London, 1923)Google Scholar; BRA, Vol. 222, File 37, J. E. Orr to L. Phillips, 29 March 1906; Die Burger (12 February 1923).Google Scholar

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79 Leisk was also a director of the TCL! Evidence of Gwynn, SC 9–1922, 70 and 397; BBA, Minute Book no. 28, 11 and 21.

80 Liebigs was an international canning concern which, together with the ICS, controlled the meat-processing industry in South Africa. Though they were often in competition with one another, they seem to have sunk their differences on this occasion when faced with a common threat.

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92 Hertzog's government scrapped the Beef Bounties Act from 31 May 1925. David Kaplan has mistakenly described the above act as an aid to agricultural exporters although the general thrust of his argument correctly identifies the hostility of the Smuts government towards farmers. (‘Class Conflict, Capital Accumulation and the State: An Historical Analysis of the State in Twentieth-Century South Africa’ (Ph.D. thesis, University of Sussex, 1977), 216.)Google Scholar

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