Control of the Value of Black Goldminers' Labour-Power in South
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Farouk Stemmet Control of the Value of Black Goldminers’ Labour-Power in South Africa in the Early Industrial Period as a Consequence of the Disjuncture between the Rising Value of Gold and its ‘Fixed Price’ Thesis submitted for the Degree of Doctor of Philosophy Faculty of Social Sciences, University of Glasgow October, 1993. © Farouk Stemmet, MCMXCIII ProQuest Number: 13818401 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a com plete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. uest ProQuest 13818401 Published by ProQuest LLC(2018). Copyright of the Dissertation is held by the Author. All rights reserved. This work is protected against unauthorized copying under Title 17, United States C ode Microform Edition © ProQuest LLC. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346 GLASGOW UNIVFRSIT7 LIBRARY Abstract The title of this thesis,Control of the Value of Black Goldminers' Labour- Power in South Africa in the Early Industrial Period as a Consequence of the Disjuncture between the Rising Value of Gold and'Fixed its Price', presents, in reverse, the sequence of arguments that make up this dissertation. The revolution which took place in the value of gold, the measure of value, in the second half of the nineteenth century, coincided with the need of international trade to hold fast the value-ratio at which the world's various paper currencies represented a definite weight of gold. Movement in value did not translate into movement in price. Therefore, in order for this metal to be produced at all, even on the basis of simple reproduction, its value would have had to be lower than that value represented by its secular price. The 'fixed price' of the product also acted as a value-barrier between gold mining and industry in general. This meant that gold mining had to be responsible for its own surplus-value production, rather than, as does other industry, claim it from the general pool of surplus-value on the basis of the volume of capital invested. The size of itsvariable own capital, therefore, came to have an immediate bearing on its rate of surplus-value. For gold- producing capital, the value of gold-producing labour-power becomes crucial to its function as capital. For gold production to be secured, appreciation in the value of gold-producing labour-power needed to be controlled. The early South African gold-mining industry offers the clearest demonstration of this. The object before us, therefore, is the value of labour-power in gold production. This thesis offers three things: (i) a contribution towards a theory of gold; (ii) a reassessment of the great transformations that took place in the production and political economy of gold in the second half of the nineteenth century (a "re-appropriation of the material in detail"); (iii) an alternative explanation for the emergence of oppressive labour conditions on the South African gold m ines. Acknowledgements I must gratefully acknowledge the stimulating role of Hillel Ticktin who supervised the execution and completion of this dissertation. The thesis was sharpened by the numerous lengthy debates we have had over the past three years and even before. I am indebted to Hillel for his rigorous rooting out of my philosophical sloppiness, although I am sure that some remains. He has also patiently allowed me to maintain an idea until I myself discover its weakness or error. Where our views differ, he has always been respectful. I hope that I have reciprocated. Paul Trewhela was the first person with whom my thoughts on the gold question found resonance. He has played a most important role in the formulation of my ideas. He has also most generously made his unpublished manuscripts on gold available to me. I am indebted to Paul. This thesis has also benefited from discussion and debate with Baruch Hirson, Bill McElroy, Alan Horn, Paul Smith, Peter Kennedy, Ian Spencer, Janet Campbell, Alun Francis, Julian Siann and Russell Ally in the United Kingdom and with Kevin French and Richard Harvey in South Africa. I am grateful them all. My patient proof reader was Richard Maudsley, to whom I am grateful not only for his meticulous scrutiny, but also for his willingness to extetyrnis help to me at extremely short notice. Richard is not responsible for whatever errors may remain in this final document. Kevin French and Lindi Woolly have gone out of their way to make their house, office, telephone, fax machine, photocopier and time available to me. I could neither have wished for greater generosity, nor asked for a more suitable base from which to conduct my research in Johannesburg. Thank you very much, Lindi and Kev. Research in London was conducted from the secure base of Bill McElroy's flat. I am obliged to Bill for his hospitality. During the final week of preparation, Colin Buchanan calmly endured the disruption to his life brought by my presence in his room. I thank Colin for his patience and hospitality. Obligation is also due to the kind and helpful staff of the Rothschild Archives in London, the Chamber of Mines Library in Johannesburg and the Institute of Social History in Amsterdam. I should also gratefully acknowledge that the funding for this PhD., including support for a field trip to South Africa, was provided by an Africa Educational Trust Scholarship. I should particularly like to thank the Trust for its flexibility in administering the stipend, which allowed me to buy a computer early on in the course. This made the single most important contribution towards my completing the project in three years. For three years the boys and my colleagues in Burnbrae Boys' Boarding House, have been accommodating towards me, especially during the hectic final few months when I even had to give up my regular afternoon tea with Miss Alexander. Thank you Burnbrae. Lomond School I have to thank for granting me access to their laser printers. My partner, Katrin Querfeld, has tolerated heavy strain on our relationship on account this work. I should like to thank her for her perseverance. I should also like to thank her for checking (and sometimes correcting) my understanding of German material. My daughter Aliyah has been most tolerant towards my long periods of absence from her. I cannot expect her to understand why her father's doctoral thesis was so important. I have asked a lot of this child and have received without question. I shall remain forever grateful to her. In my darkest moments I turned to my very dear friend Paul Trewhela, and he was always there. Dedication This work is dedicated to my brave and patient daughter Aliyah v List of Figures and Tables.................................................................................................................................... 1 Introduction ............................................................................................................................................ 3 The Object .......................................................................................................................................3 Statement of Method.................................................................................................................. 4 Some General Points on the Occurrence and Production of Gold .............................1 1 The Technical Constraints on Underground and Lode Mining .....................1 6 Placer Mining (Gold-Washing) and Lode Gold Mining Compared ............. 2 0 SECTION I Towards a Theory of Gold..............................................................................................................2 4 Introduction .....................................................................................................................................................2 5 Chapter 1 Gold as Money................................................................................................................... 2 7 Gold and the Functions of Money ...........................................................................................2 8 Gold and its ‘Constant’ Value................................................................................. 3 9 The Two Use-Values of the Money-Commodity..............................................................4 4 Chapter 2 The Money-Commodity and the Value of Labour-Power.................................5 0 The Value of Labour-Power in the Production of the Money-Commodity...........5 0 The Effects of Different Value Changes on the Production of Gold 53 The ‘Fixed Gold Price’ and the Value of Gold-Mining Labour-Power ....................6 6 Paper Currency, Convertibility and World Gold Movement ......................6 6 Chapter 3 Gold as Capital....................................................................................................................8 0 Gold Production and the Circuit of Capital ........................................................................8 2 Competition and Gold Production ........................................................................................... 91 Competition and the Circuits of Capital ..............................................................9 2 Williams’ Theory of Gold, A Critique..................................................................9 9 SECTION II Gold Production, Capital and the Value Revolution of the Nineteenth