Shortly after my return from Africa I was talking with a well-known American business man who, after making the usual inquiries about lions, cannibals and hair-breadth escapes, asked: "Is it dangerous to go about in South Africa?" When I assured him that both my pocket-book and I were safer there than on Broadway in New York or State Street in Chicago, he was surprised. Yet his question is typical of a widespread ignorance about all Africa and even its most developed area.

What people generally do not understand is that the lower part of that one-time Dark Continent is one of the most prosperous regions in the world, where the home currency is at a premium instead of a discount; where the high cost of living remains a stranger and where you get little suggestion of the commercial rack and ruin that are disturbing the rest of the universe. While the war-ravaged nations and their neighbors are feeling their dubious way towards economic reconstruction, the Union of South Africa is on the wave of a striking expansion. It affords an impressive contrast to the demoralized productivity of Europe and for that matter the United States.

South Africa presents many economic features of distinct and unique interest. A glance at its steam transportation discloses rich material. Fundamentally the railroads of any country are the real measures of its progress. In Africa particularly they are the mileposts of civilization. In 1876 there were only 400 miles on the whole continent. Today there are over 30,000 miles. Of this network of rails exactly 11,478 miles are in the Union of South Africa and they comprise the second largest mileage in the world under one management.

More than this, they are Government owned and operated. Despite this usual handicap they pay. No particular love of Government control,—which is invariably an invitation for political influence to do its worst,—animated the development of these railways. As in Australia, where private capital refused to build, it was a case of necessity. In South Africa there was practically no private enterprise to sidestep the obligation that the need of adequate transportation imposed. The country was new, hostile savages still swarmed the frontiers, and the white man had to battle with Zulu and Kaffir for every area he opened. In the absence of navigable rivers—there are none in the Union—the steel rail had to do the pioneering. Besides, the Boers had a strong prejudice against the railroads and regarded the iron horse as a menace to their isolation.

The first steam road on the continent of Africa was constructed by private enterprise from the suburb of Durban in Natal into the town. It was a mile and three-quarters in length and was opened for traffic in 1860. Railway construction in the Cape Colony began about the same time. The Government ownership of the lines was inaugurated in 1873 and it has continued without interruption ever since. The real epoch of railway building in South Africa started with the great mineral discoveries. First came the uncovering of diamonds along the Orange River and the opening up of the Kimberley region, which added nearly 2,000 miles of railway. With the finding of gold in the Rand on what became the site of Johannesburg, another 1,500 miles were added.

Since most nationalized railways do not pay it is interesting to take a look at the African balance sheet. Almost without exception the South African railways have been operated at a considerable net profit. These profits some years have been as high as £2,590,917. During the war, when there was a natural slump in traffic and when all soldiers and Government supplies were carried free of cost, they aggregated in 1915, for instance, £749,125.

One fiscal feature of these South African railroads is worth emphasizing. Under the act of Union "all profits, after providing for interest, depreciation and betterment, shall be utilized in the reduction of tariffs, due regard being had to the agricultural and industrial development within the Union and the promotion by means of cheap transport of the settlement of an agricultural population in the inland portions of the Union." The result is that the rates on agricultural products, low-grade ores, and certain raw materials are possibly the lowest in the world. In other countries rates had to be increased during the war but in South Africa no change was made, so as not to interfere with the agricultural, mineral and industrial development of the country.

Nor is the Union behind in up-to-date transportation. A big program for electrification has been blocked out and a section is under conversion. Some of the power generated will be sold to the small manufacturer and thus production will be increased.

Stimulating the railway system of South Africa is a single personality which resembles the self-made American wizard of transportation more than any other Britisher that I have met with the possible exception of Sir Eric Geddes, at present Minister of Transport of Great Britain and who left his impress on England's conduct of the war. He is Sir William W. Hoy, whose official title is General Manager of the South African Railways and Ports. Big, vigorous, and forward-looking, he sits in a small office in the Railway Station at Capetown, with his finger literally on the pulse of nearly 12,000 miles of traffic. During the war Walker D. Hines, as Director General of the American Railways, was steward of a vaster network of rails but his job was an emergency one and terminated when that emergency subsided. Sir William Hoy, on the other hand, is set to a task which is not equalled in extent, scope or responsibility by any other similar official.

Like James J. Hill and Daniel Willard he rose from the ranks. At Capetown he told me of his great admiration for American railways and their influence in the system he dominates. Among other things he said: "We are taking our whole cue for electrification from the railroads of your country and more especially the admirable precedent established by the Chicago, Milwaukee & St. Paul Railway. I believe firmly in wide electrification of present-day steam transport. The great practical advantages are more uniform speed and the elimination of stops to take water. It also affords improved acceleration, greater reliability as to timing, especially on heavy grades, and stricter adherence to schedule. There are enormous advantages to single lines like ours in South Africa. Likewise, crossings and train movements can be arranged with greater accuracy, thereby reducing delays. Perhaps the greatest saving is in haulage, that is, in the employment of the heavy electric locomotive. It all tends toward a denser traffic.

"Behind this whole process of electrification lies the need, created by the Great War, for coal conservation and for a motive power that will speed up production of all kinds. We have abundant coal in the Union of South Africa and by consuming less of it on our railways we will be in a stronger position to export it and thus strengthen our international position and keep the value of our money up."

Since Sir William has touched upon the coal supply we at once get a link,—and a typical one—with the ramified resource of the Union of South Africa. No product, not even those precious stones that lie in the bosom of Kimberley, or the glittering golden ore imbedded in the Rand, has a larger political or economic significance just now. Nor does any commodity figure quite so prominently in the march of world events.

In peace, as in war, coal spells life and power. It was the cudgel that the one-time proud and arrogant Germany held menacingly over the head of the unhappy neutral, and extorted special privilege. At the moment I write, coal is the storm center of controversy that ranges from the Ruhr Valley of Germany to the Welsh fields of Britain and affects the destinies of statesmen and of countries. We are not without fuel troubles, as our empty bins indicate. The nation, therefore, with cheap and abundant coal has a bargaining asset that insures industrial peace at home and trade prestige abroad.

South Africa not only has a low-priced and ample coal supply but it is in a convenient point for distribution to the whole Southern hemisphere,—in fact Europe and other sections. On past production the Union ranked only eleventh in a list of coal-producing countries, the output being about 8,000,000 tons a year before the war and something over 10,000,000 tons in 1919. This output, however, is no guide to the magnitude of its fields. Until comparatively recent times they have been little exploited, not because of inferiority but because of the restricted output prior to the new movement to develop a bunker and export trade. Without an adequate geological survey the investigations made during the last twelve months indicate a potential supply of over 60,000,000 tons and immense areas have not been touched at all.

The war changed the whole coal situation. Labour conflicts have reduced the British output; a huge part of Germany's supply must go to France as an indemnity, while our own fields are sadly under-worked, for a variety of causes. All these conditions operate in favor of the South African field, which is becoming increasingly important as a source of supply.

Despite her advantage the prices remain astonishingly low, when you compare them with those prevailing elsewhere. English coal, which in 1912 cost about nine shillings a ton at pithead, costs considerably more than thirty shillings today. The average pithead price of South African coal in 1915 was five shillings twopence a ton and at the time of my visit to South Africa in 1919 was still under seven shillings a ton. Capetown and Durban, the two principal harbours of the Union, are coaling stations of Empire importance. There you can see the flags of a dozen nations flying from ships that have put in for fuel. Thanks to the war these ports are in the center of the world's great trade routes and thus, geographically and economically their position is unique for bunkering and for export.

The price of bunker coal is a key to the increased overhead cost of world trade, as a result of the war. The Belgian boat on which I travelled from the shores of the Congo to Antwerp coaled at Teneriffe, where the price per ton was seven pounds. It is interesting to compare this with the bunker price at Capetown of a little more than two pounds per ton, or at Durban where the rate is one pound ten shillings a ton. In the face of these figures you can readily see what an economic advantage is accruing to the Union of South Africa with reference to the whole vexing question of coal supply.

We can now go into the larger matter of South Africa's business situation in the light of peace and world reconstruction. I have already shown how the war, and the social and industrial upheaval that followed in its wake have enlarged and fortified the coal situation in the Union. Practically all other interests are similarly affected. The outstanding factor in the prosperity of the Union has been the development of war-born self-sufficiency. I used to think during the conflict that shook the world, that this gospel of self-containment would be one of the compensations that Britain would gain for the years of blood and slaughter. So far as Britain is concerned this hope has not been realized. When I was last in England huge quantities of German dyes were being dumped on her shores to the loss and dismay of a new coal-tar industry that had been developed during the war. German wares like toys and novelties were now pouring in. And yet England wondered why her exchange was down!

In South Africa the situation has been entirely different. She alone of all the British dominions is asserting an almost pugnacious self-sufficiency. Cut off from outside supplies for over four years by the relentless submarine warfare, and the additional fact that nearly all the ships to and from the Cape had to carry war supplies or essential products, she was forced to develop her internal resources. The consequence is an expansion of agriculture, industry and manufactures. Instead of being as she was often called, "a country of samples," she has become a domain of active production, as is attested by an industrial output valued at £62,000,000 in 1918. Before the war the British and American manufacturer,—and there is a considerable market for American goods in the Cape Colony,—could undersell the South African article. That condition is changed and the home-made article produced with much cheaper labour than obtains either in Europe or the United States, has the field.

Let me emphasize another striking fact in connection with this South African prosperity. During the war I had occasion to observe at first-hand the economic conditions in every neutral country in Europe. I was deeply impressed with the prosperity of Sweden, Spain and Switzerland, and to a lesser extent Holland, who made hay while their neighbors reaped the tares of war. Japan did likewise. These nations were largely profiteers who capitalized a colossal misfortune. They got much of the benefit and little of the horror of the upheaval.

Not so with South Africa. She played an active part in the war and at the same time brought about a legitimate expansion of her resources. One point in her favor is that while she sent tens of thousands of her sons to fight, her own territory escaped the scar and ravage of battle. All the fighting in Africa, so far as the Union was concerned, was in German South-West Africa and German East Africa. After my years in tempest-tossed Europe it was a pleasant change to catch the buoyant, confident, unwearied spirit of South Africa.

I have dwelt upon coal because it happens to be a significant economic asset. Coal is merely a phase of the South African resources. In 1919 the Union produced £35,000,000 in gold and £7,200,000 in diamonds. The total mining production was, roughly, £50,000,000. This mining treasure is surpassed by the agricultural output, of which nearly one-third is exported. Land is the real measure of permanent wealth. The hoard of gold and diamonds in time becomes exhausted but the soil and its fruits go on forever.

The moment you touch South African agriculture you reach a real romance. Nowhere, not even in the winning of the American West by the Mormons, do you get a more dramatic spectacle of the triumph of the pioneer over combative conditions. The Mormons made the Utah desert bloom, and the Boers and their British colleagues wrested riches from the bare veldt. The Mormons fought Indians and wrestled with drought, while the Dutch in Africa and their English comrades battled with Kaffirs, Hottentots and Zulus and endured a no less grilling exposure to sun.

The crops are diversified. One of the staples of South Africa, for example, is the mealie, which is nothing more or less than our own American corn, but not quite so good. It provides the principal food of the natives and is eaten extensively by the European as well. On a dish of mealie porridge the Kaffir can keep the human machine going for twenty-four hours. Its prototype in the Congo is manice flour. In the Union nearly five million acres are under maize cultivation, which is exactly double the area in 1911. The value of the maize crop last year was approximately a million six hundred thousand pounds. Similar expansion has been the order in tobacco, wheat, fruit, sugar and half a dozen other products.

South Africa is a huge cattle country. The Boers have always excelled in the care of live stock and it is particularly due to their efforts that the Union today has more than seven million head of cattle, which represents another hundred per cent increase in less than ten years.

This matter of live stock leads me to one of the really picturesque industries of the Union which is the breeding of ostriches, "the birds with the golden feathers." Ask any man who raises these ungainly birds and he will tell you that with luck they are far better than the proverbial goose who laid the eighteen-karat eggs. The combination of F's—femininity, fashion and feathers—has been productive of many fortunes. The business is inclined to be fickle because it depends upon the female temperament. The ostrich feather, however, is always more or less in fashion. With the outbreak of the war there was a tremendous slump in feathers, which was keenly felt in South Africa. With peace, the plume again became the thing and the drooping industry expanded with get-rich-quick proportions.

Port Elizabeth in the Cape Colony is the center of the ostrich feather trade. It is the only place in the world, I believe, devoted entirely to plumage. Not long before I arrived in South Africa £85,000 of feathers were disposed of there in three days. It is no uncommon thing for a pound of prime plumes to fetch £100. The demand has become so keen that 350,000 ostriches in the Union can scarcely keep pace with it. Before the war there were more than 800,000 of these birds but the depression in feathers coupled with drought, flood and other causes, thinned out the ranks. It takes three years for an ostrich chick to become a feather producer.

America has a considerable part in shaping the ostrich feather market. As with diamonds, we are the largest consumers. You can go to Port Elizabeth any day and find a group of Yankees industriously bidding against each other. On one occasion two New York buyers started a competition that led to an eleven weeks orgy that registered a total net sale of more than £100,000 of feathers. They are still talking about it down there.

South Africa has not only expanded in output but her area is also enlarged. The Peace Conference gave her the mandate for German South-West Africa, which was the first section of the vanished Teutonic Empire in Africa. It occupies more than a quarter of the whole area of the continent south of the Zambesi River. While the word "mandate" as construed by the peace sharks at Paris is supposed to mean the amiable stewardship of a country, it really amounts to nothing more or less than an actual and benevolent assimilation. This assimilation is very much like the paternal interest that holding companies in the good old Wall Street days felt for small and competitive concerns. In other words, it is safe to assume that henceforth German South-West Africa will be a permanent part of the Union.

The Colony's chief asset is comprised in the so-called German South-West African Diamond Fields, which, with the Congo Diamond Fields, provide a considerable portion of the small stones now on the market. These two fields are alike in that they are alluvial which means that the diamonds are easily gathered by a washing process. No shafts are sunk. It is precisely like gold washing.

The German South-West mines have an American interest. In the reorganization following the conquest of German South-West Africa by the South African Army under General Botha the control had to become Anglo-Saxon. The Anglo-American Corporation which has extensive interests in South Africa and which is financed by London and New York capitalists, the latter including J. P. Morgan, Charles H. Sabin and W. B. Thompson, acquired these fields. It is an interesting commentary on post-war business readjustment to discover that there is still a German interest in these mines. It makes one wonder if the German will ever be eradicated from his world-wide contact with every point of commercial activity.

It is not surprising, therefore, that South Africa, in the light of all the facts that I have enumerated, should be prosperous. Take the money, always a test of national economic health. At Capetown I used the first golden sovereign that I had seen since early in 1914. This was not only because the Union happens to be a great gold-producing country but because she has an excess of exports over imports. Her money, despite its intimate relation with that of Great Britain, which has so sadly depreciated, is at a premium.

I got expensive evidence of this when I went to the bank at Capetown to get some cash. I had a letter of credit in terms of English pounds. To my surprise, I only got seventeen shillings and sixpence in African money for every English pound, which is nominally worth twenty shillings. Six months after I left, this penalty had increased to three shillings. To such an extent has the proud English pound sterling declined and in a British dominion too!

South Africa has put an embargo on the export of sovereigns. One reason was that during the first three years of the war a steady stream of these golden coins went surreptitiously to East India, where an unusually high premium for gold rules, especially in the bazaars. The goldsmiths find difficulty in getting material. The inevitable smuggling has resulted. In order to put a check on illicit removal, all passengers now leaving the Union are searched before they board their ships. Nor is it a half-hearted procedure. It is as drastic as the war-time scrutiny on frontiers.

To sum up the whole business situation in the Union of South Africa is to find that the spirit of production,—the most sorely needed thing in the world today—is that of persistent advance. I dwell on this because it is in such sharp contrast with what is going on throughout the rest of a universe that staggers under sloth, and where the will-to-work has almost become a lost art. That older and more complacent order which is represented for example by France, Italy and England may well seek inspiration from this South African beehive.