Gold price drops

Gold price drops
Towards the end of 1921 the price of gold fell from 102 shillings an ounce to 95 shillings an ounce. Seven of the fifteen smaller mines began showing losses and soon it was clear that these mines might have to close, with some 10 000 whites and thousands of blacks retrenched. The Chamber of Mines announced a re-organisation of the underground systems, diluting the "colour bar", whereby semi-skilled and skilled jobs were reserved for whites only. Several years before, during the First World War, white miners had signed up as soldiers and some of their jobs had been taken by black miners. Whites were promised their jobs back when they returned, but with profits rapidly dropping, it was clear that the more expensive whites would have to go if the marginal mines were to be saved. Smuts stressed that there was to be no further dilution of the colour bar. The all-white trade union, the South African Industrial Federation, held discussions with the Chamber but before a resolution could be reached, white coal miners were informed of a cut in wages as a result of a drop in export contracts. The government issued a statement appealing to coal workers to help save the coal industry by accepting the lowered wages. The Federation concluded that the real reason behind the lowering of wages was to introduce cheap black labour, and on 1 January 1922, the coal miners came out on strike. By 10 January, 22 000 gold mineworkers had joined the coal miners. The government tried to get the mine owners and mineworkers to hold a conference, but no agreement could be reached. By the end of the month the question of wages became secondary to the issue of replacing white workers with black workers. The white Johannesburg public was fully behind the workers, as many households stood to lose the wages of their breadwinners. A militant and largely English-speaking Action Committee now controlled the Federation, which included members of the Communist Party. They distributed leaflets urging the strikers not to attack blacks, but this inevitably happened. The strike leaders soon instituted a commando system across the Rand, from Boksburg in the east right through to Krugersdorp in the west. These commandos spent time in parades and drills, learnt how to make home-made bombs, and generally gave the impression of preparing for battle. There were sporadic attacks on police stations, where policemen were disarmed. These commandos were told to return the weapons, with the strike leaders fearful of the government finding a reason to declare martial law. More and more displays of strength by the strikers, culminated in a mass meeting in the Johannesburg Town Hall. Here strikers demanded a "provisional republican government", according to Shorten, and as a last resort, were willing to "launch a revolution" and appoint a deputation to go to Pretoria to present their case to Transvaal parliamentarians and provincial councillors. Percy Fisher, a trade unionist and Communist Party militant who had left England during the war to avoid conscription, was happy to go along with the Party's call for the abolition of capitalism and the nationalisation of industry. Fisher pushed for the establishment of a provisional government to take over the running of the mines, adding that "bloodshed was inevitable". On 12 February the government encouraged miners to return to work, offering police protection to those who did return. The next day pickets appeared at every mine on the reef and armed policemen were called in wherever trouble broke out. The Chamber of Mines reported that workers were back at work and that the "end of the strike was in sight", says Shorten. Strikers attacked the scabs, a bomb was thrown into the house of a scab and two scabs were dragged off a tram. Smuts said to the Federation: "We shall draw a ring. We shall preserve law and order and allow the disputants to fight it out within that ring." On 21 February there were clashes between police and the strikers across the reef, from Benoni to Fordsburg. Police were instructed to disperse any gatherings, and to carry arms. On 23 February a "section of railway line near Doornfontein was dynamited" and a pylon at the City Deep mine was also blown up.

Towards the end of 1921 the price of gold fell from 102 shillings an ounce to 95 shillings an ounce. Seven of the fifteen smaller mines began showing losses and soon it was clear that these mines might have to close, with some 10 000 whites and thousands of blacks retrenched.

The Chamber of Mines announced a re-organisation of the underground systems, diluting the "colour bar", whereby semi-skilled and skilled jobs were reserved for whites only. Several years before, during the First World War, white miners had signed up as soldiers and some of their jobs had been taken by black miners.

Whites were promised their jobs back when they returned, but with profits rapidly dropping, it was clear that the more expensive whites would have to go if the marginal mines were to be saved. Smuts stressed that there was to be no further dilution of the colour bar.

The all-white trade union, the South African Industrial Federation, held discussions with the Chamber but before a resolution could be reached, white coal miners were informed of a cut in wages as a result of a drop in export contracts.

The government issued a statement appealing to coal workers to help save the coal industry by accepting the lowered wages. The Federation concluded that the real reason behind the lowering of wages was to introduce cheap black labour, and on 1 January 1922, the coal miners came out on strike.

By 10 January, 22 000 gold mineworkers had joined the coal miners. The government tried to get the mine owners and mineworkers to hold a conference, but no agreement could be reached. By the end of the month the question of wages became secondary to the issue of replacing white workers with black workers.

The white Johannesburg public was fully behind the workers, as many households stood to lose the wages of their breadwinners. A militant and largely English-speaking Action Committee now controlled the Federation, which included members of the Communist Party. They distributed leaflets urging the strikers not to attack blacks, but this inevitably happened.

The strike leaders soon instituted a commando system across the Rand, from Boksburg in the east right through to Krugersdorp in the west. These commandos spent time in parades and drills, learnt how to make home-made bombs, and generally gave the impression of preparing for battle.

There were sporadic attacks on police stations, where policemen were disarmed. These commandos were told to return the weapons, with the strike leaders fearful of the government finding a reason to declare martial law.

More and more displays of strength by the strikers, culminated in a mass meeting in the Johannesburg Town Hall. Here strikers demanded a "provisional republican government", according to Shorten, and as a last resort, were willing to "launch a revolution" and appoint a deputation to go to Pretoria to present their case to Transvaal parliamentarians and provincial councillors.

Percy Fisher, a trade unionist and Communist Party militant who had left England during the war to avoid conscription, was happy to go along with the Party's call for the abolition of capitalism and the nationalisation of industry. Fisher pushed for the establishment of a provisional government to take over the running of the mines, adding that "bloodshed was inevitable".

On 12 February the government encouraged miners to return to work, offering police protection to those who did return. The next day pickets appeared at every mine on the reef and armed policemen were called in wherever trouble broke out. The Chamber of Mines reported that workers were back at work and that the "end of the strike was in sight", says Shorten.

Strikers attacked the scabs, a bomb was thrown into the house of a scab and two scabs were dragged off a tram. Smuts said to the Federation: "We shall draw a ring. We shall preserve law and order and allow the disputants to fight it out within that ring."

On 21 February there were clashes between police and the strikers across the reef, from Benoni to Fordsburg. Police were instructed to disperse any gatherings, and to carry arms. On 23 February a "section of railway line near Doornfontein was dynamited" and a pylon at the City Deep mine was also blown up.