Page 66 - SARB: 100-Year Journey

The gold standard: key dates
1920s
8 January 1925
The Kemmerer-Vissering Commission Report recommends that the Union of South Africa return to the gold standard on a date not later than 1 July 1925.
27 April 1925
Great Britain returns to the gold standard in the form of a gold bullion standard.
18 May 1925
The Union of South Africa rescinds its 15 December 1920 proclamation suspending the redeemability of the Treasury’s gold certificates. This act returned South Africa on the gold standard on the basis
of the gold specie standard. The circulation of gold coin commenced in May 1925.
1929
Men queuing for food and shelter during the Great Depression. /Getty Images
The world descends into the Great Depression, which lasts into the late 1930s. It remains one of the longest economic downturns in modern history, underscored by deep cuts in industrial production, deflation, rampant unemployment, banking industry panic and socio-economic suffering. The previously employed found themselves homeless and queuing for food in soup kitchens.
1931
21 September 1931
Britain suspends the gold standard, three months before Governor Clegg’s retirement from the position. Britain’s actions came
as an unexpected shock to South African monetary authorities.
13 November 1931
The SARB raises the bank rate from 5% to 6% to protect the credit position of the country.
20 November 1931
The Minister of Finance delivers an impassioned speech in the House
of Assembly on the occasion of a reading on the Finance Emergency Regulations Bill. The Minister reaffirms the Union government’s support of the gold standard and the SARB as the custodian of its maintenance.
“The Government confidently expects, sir, that this House will affirm in no uncertain voice its determination not to forsake the rock of stability for the quicksands of inflation,” reads part
of the speech.
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