Briefwisseling oor Kaapse sake 1778-1792

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XXI Swellengrebel to C. van der Oudermeulen,
1782

I return Fiscal Boers' reply, with thanks for having lent it to me.

One would gain from it the impression that the complaint about the languishing state of the burghers was quite false; and that never before have they enjoyed such prosperity. However it would be wrong to conclude that it is unnecessary to attempt to enlarge the market for Cape produce beyond that of a mere place for refreshment. It is well enough known how many large fleets, French or English, have been at the Cape since 1778; and how large the demand has been for Cape produce with which to provision the large number of men stationed on the French Indian Ocean islands, and the French garrison at the Cape itself. Since the Netherlands entered the war, fewer of our ships have called there, but the number of neutral ships has greatly increased and they have taken on additional supplies which much more than offsets any diminution in sales resulting from the smaller number of Dutch ships.

Indeed, the Fiscal does not expect this favourable situation to last, which he would blame on unrestrained extravagance. I would differ from him and find the real cause in the structure of the Colony's economy, since industries are lacking. As there are no other fields of investment for a farmer who is prospering, while various regulations and other difficulties prevent his investing his surplus funds in the Netherlands, he naturally puts his windfall profits into his farms. But as soon as a farmer has invested his profits in enlarging his farming operations, an increase in production follows which, if simply placed on the market already in existence, causes an overproduction and a fall in prices. In the meanwhile, his annual expenses have increased through his outlays on more slaves, bigger buildings, and more farm implements, thus opening a large gap between his increased costs and the lower prices he receives so long as only a restricted market is available. In the Netherlands the situation is quite different. Our open markets and easy communications ensure that what is produced can be sold somewhere. Thus the larger quantity sold will compensate for the lower price.

The lack of adequate markets, as a persistent problem, has, already in my eyes, been evident in the Colony for too long. For example, when Ryk Tulbagh was Governor the grainfarmer received a price 25 per cent lower than usual for wheat for Europe and in 1776 the better-to-do winefarmers had to put their wine into storage, so low was the price. But this is only to be expected in a Colony, founded more than 130 years ago on fruitful soil with a good climate, its population enlarged not only by

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natural increase but through a large immigration of French refugees (whom Boers seems to have overlooked in his submissions on rights of citizenship) and Company's servants who have taken their freedom, without an expansion of markets proportioned to the increase in numbers.

In my opinion it matters little that the Company for some years has sent some wheat to Europe; for it has paid only 18 Rds. for 10 muid in place of the usual Rds. 24, and the farmer can make no profit at that price. Indeed it will not cover the costs. Before he can make a start a farmer must lay out on a plough, three slaves and ten oxen at least Rds. 1000. The most that can be loaded on a waggon costing, with yokes and harness, Rds. 173, is 10 muids, and it is often carted over a distance of 2 or 3 days ride. No wonder the farmers prefer not to deliver their grain to the Company if they can dispose of it to others.