Show SOUTH AFRICAN DIAMOND RUSH PLAYS HAVOC WITH GEM MARKET the opening in 1926 of the new alluvial deposits in the transvaal has greatly influenced the diamond markets says the national bank backof of commerce in new york writing in the november issue of commerce monthly the discovery of new deposits of alluvial diamonds in south africa during the last year and a half has greatly affected the gem market the production of diamonds largely in excess of consumption ici aused a L break in prices of stones the diamond syndicate which had virtually controlled the market since the close of the last ventury was vas unable to limit production but it was successful in preventing I 1 a collapse of the market then in april a new alluvial deposit was discovered at swart P plaats laats in the transvaal in au august the Lichten lichtenburg buro Z field which has proved allgoo all too productive was opened by the end of 1926 six siv diggings had been declared and seven more in 1927 the announcement of these new diamond fields open to fro the public precipitated the greatest rush south africa had ever known thousands of farm and factory hands raced to the diggings Z 01 companies employed trained athletes to run for them on the day set by the union I 1 government for st staking akin claims tin in shenew the new field more than 25 claims were pe pegged b geld in this first lichtenburg 6 digging 11 61 the population of the district was increased from a few hundred to about the importance of these diggin diggins diggings s was not rated very high hig h by the big producers and b by y mining e experts nevertheless th eless production from these new sources more than doubled the output of alluvial diamonds in the union of south africa in 1926 with ia total value of the output for the current year has been put at which is only about under the value of all pit stones produced in 1926 total production of diamonds in south africa during 1926 came to which was considerably in excess of consumption the syndicate made every effort to prevent a glut of the market it offered to buy all alluvial diamonds produced on condition the union government would agree to declare no more diggings 6 under the existing law this could not be done the next step was to buy up tip as many of these diamonds as possible and a nd hold them off the market early in the year the precious stones bill was introduced duc edin in ithe south african parliament and the diamond industry became more hopeful opposition to the bill developed because of certain clauses and because it seemed to favor the big companies After much debate and some amendment the senate finally rejected the bill at the close of the session the market now awaits the october session session of parliament when therill the bill may be passed pa ased at a joint I 1 session |