The Placer herald. [volume] (Auburn, Placer County, Calif.) 1855-1991, 1864-05-28
The Bubble Bursting.


Washoe stock operations have had an es-
peca attraction to the people Of California
for the past two or three years; and unfortu.
nately thousands have been victimized by
speculations in fleet" in mines that either
bad no existence, or were nothing more than
barren veins Of rock. 1t is amazing to be
told, what appears now 10 be settled fact,
That OF over five thousand incorporated com
panies, in Washoe and California, there are
not fifty companies that are working ores at
profit. But we have this upon the author,
lly OF the Stock Boards of San Francisco
From this some idea NAV be formed Of the
rash and ruinous investments thst have been
made by thousands Of persons in the great
bubble shares of the day. For time all
stocks were as buoyant as the spirits Of the
operators" and feet" in any claim would
sell, although known to be the widest of
wild Cat" There was charm, an entice-
ment, that attracted toward the whirlpool
that was irresistible; and thlber went our
people, to submit to most uncertain chances,
the gains and earnings of weary years of la
Dor and toll. Mining exctements had pre-
viously been severe teachers in California,
and the experience Of the past should have
been careful guide for the present, but "op
orators" shut their eyes to such lights, and
went blindly and impetuousIy on the road
to financial disaster and ruin. As long as
assessments we're light, and specimens from
the Comstock gave character to a great
number Of newly located claims. it was fair
weather and smooth sailing. But scarifying
the surface. was not mining; deep shafts
through hard rock, at great outy of time
and money, had to be made deepiuto the earth
to develope the leads, which tired the pa
,lence and depleted the pockets of owners
and meanwhile the "indications" were alter
natey raising and depressing the expec,a-
tons Of prospectors, who in the end to fire.
quenly found they had worthless claims.
Again there WAS numerous class who
dabbed in stocks, not AS miners to develop
the supposed mineral wealth of Washoe, bu,
as Spectators to bull and bear the mark t
without reference to the value or worthless,
ness Of stock.
Many careful persons who have watched
the progress Of this mania. have foreseen tina,
"N''l'"S ''u'| Coihe' oHb ud"6 bt66T6u cI6hI
of the danger. Perhaps many operators
have seen the same thing and have hoped to
escaped the shoals and breakers in time; but
there were thousands who could or would
not see until they were crushed in bankrupt
cy-and to-day this is the condition of many
who have operated in Washoe stocks, and
the list is swelling hourly. The return wave
has set in, and along the shore is slrewn the
wrecks Of visionary projects with all their
g|ittering hopes and expectations.
No stronger evidence is required that the
full blown bubble has been prcked to a
point Of col apse than the recent action Of
the Virginia City Stock Brokers, in propo.
sing to make all transactions in stocks on
the basis of "greenbacks," and to levy and
collect assessments in the same CURRENCY
TO attempt the Development Of gold and sill
yer mines, with deprecated paper curren.
cy, in country tina. possesses a pure metal,
ic currency! The fact that the proposition
comes from such source, tells the whole
story. The bubble is bursting,-the crash
is coming and lucky is the man who can
stand from under in time.