Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1864-06-10
PANIC IN THE MINING MARKET.


undeveloped and speculative mines generally
denominated wildcat" has assumed the
character of panic; and the western world
is in quandary, both as to the cause and its
remedy. The beggarly price at which every
species Of stock is quoted in the market, and
the imposSibility Of realizing anything like a
fair value for mining shares, has brought the
work upon vast number OF prospecting
mines TO dead stand-still. and filed the
Territory with a population OF idle men.
There is, to be sure, an appearance of activity
in our streets, oCcaSisned BY the arrival Of
vast amounts Of merchandise to meet the de-
mands of a heavy population, very conside-
rable amount of building going on, and a
general appearance of business, that gives
the stranger an idea Of a brisker state OF
things than he has been accustomed TO else
where. 1t is difficult to convince such one
that the present is actually the dulleSt season
known in Washoc. That such is the case,
citizens are too painfully aware; and every
mind is turned toward 4 solution of the diff
Guilty and a search for a remedy. The San
Francisco Bulletin Of Wednesday has 4
lengthy article, of considerable interest, on
the subject After reviewing the history Of
the discovery Of the silver mines, their deyel-
opmert, and their value, the Bulletin says
Wherever silver has been found, ii in ever so
small quantities. there claims have been siaked
off. companies formed and in many instances eN'
peusive machinery erected That diSappoini-
nents have been experienced in numerous cases.
was TO have been expected The truth Is, out
now and then \ very rich silver mine mas ever
been worked anywhere the world over. and 1t
was not anticipated that every silver bearing lead
would pruye another PotOSi That hundreds OF
companies incorporated 70 work such claims turn
out unsuccessful. should surprise nobody. should
the oue-hundredih part Of the silver mines dIScoV'
cred on this side of the continent prove remuue-
rative at the present high price OF labor, It would
show richness nowhere else ever witnessed IN
the world.
Touching upon the subject Of fraudulent
companies and worthless mines, the wild
cat" proper, it says:
Still fraudulent or unsuccessful mining com
panies should not depresS the stock of such claims
As the Gould * Curry, the Ophir. Savage, etc,
for these have already shown themselves TO be a
reality They promise in the future great re-
Sul;s. ii prudently managed-as much So per
haps as any silver mines in the world. Unless
extraordinary CONSIGNMENT OF LLleI true
character has been long going on, ii would ap.
pear TO be folly TO say that the present depressed
price in the market Is caused by any well founded
apprehensious Of 4 material dimnu;ion Of their
future yield of mineral.
The writer sums up his case in manner
that evinces very thorough study and
knowledge of the subject under cousidera-
ton, and which is worthy Of perusal and at
teDtion:
The great and sudden dec!iae in the market
value ofthe stock Of the leading mining compa.
MES has doubtless been brought about by several
causes combined. one Of which Is the >trlnSency
of the money market. But another cause. more
powerful than the trst, is found in the extrava'
CANT and reckless manner in which some OF the
best mines have been worked. Men have had
possession of them who have lived in the style OF
grand MosulS-mcn who could not manage their
own affairs successfully. but could spend money
rapidly Even with this draw back some OF these
mines have paid enormously. II cannot be de-
MED however that mineral which would have
enriched the parties concerned has already been
wasted by an eNtrayagant system OF working
some of the mines nor the entire failure Of others,
explains the present depressed condition of the
acknowledge richest mines in Nevada Territory.
So many frauds have been heretofore perpetrated
in California and Nevada in connection with St!-
yer mining, that there exists very general mis-
trust Mines have in some instances been repre-
selteI y tADuAouslN TlCl NLNu NtlAu aANt pay
the expenses of working. In others, system.
attic plan OF involving companies which would
otherwise probably have paid good dividends,
has been practiced In some cases heavy debts
have been incurred, which may eventually have
20 be hquidaied by stockholders out OF their pri'
yate fortunes. The present depression in mining
stocks has doubtless been caused. TO 4 cOusidera
BILE extent by frauds, for who is not afraid. with
the personal liability clause OF the Constitution of
California hanging over him. to subscribe TO
shares of companies that may be controlled oy
knaves These men may NOT only take from US
valuable mine by their tricks, but involve every
stockhOlder TO the extent OF his outside liability
10 paw Ii the management of certain mining
companies upon this coast is 10 be taken as asan.
pie, it is absolutely dangerous 20 hold stock for
ultimately u good mine may be sold TO pay debts,
still leaving heavy obligations TO be met other
wise.
The present depressed condition Of the best
mines of Nevada Territory has doubtless been
caused principally by frauds in outside claims
Companies have been organized, ostensibly repre-
senting millions OF dollars purposely TO swindle
the community, and nearly every man in San
Francisco has come in for share of the losses.
Men are seen every day in our streets who nave
made hundreds of thousands OF dollars out OF
mining sxindles They hold their heads high.
having compounded with certain attorneys 20
whitewash and make them respectable members
of the community. That the mining interest OF
Nevada is suffering from the Outrages 10 which
but there is i remedy should the people be dispos-
ed TO use it, Men who cheat steal through
mining associations should be punished just like
other rogues not taken TO our homes TO be caress'
ed and hOnored. The difficulty which deprcsses
the mining interest at the present time is only 10
be got rid OF by refusing 10 have anything TO do
with mines controlled BY dishonest or irresPonsi-
bic parties II the people be so iuconsidcrate,
after what has taken place, as TO entrust their al
fairs TO the amount of millions with persons OF
whom they know nothing, how can they expect
ANYTHING but disaster: But the time has come
when the community should not tolerate swind-
ling in mines more than in any other branch OF
business, if they desire that prosperity 20 which
thew are entitled There is but little question
that many of the silver mines of Nevada, which
are now used TO defraud citizens, if under
honest and competent management would be u
source of great wealth, instead of continually run
ming the shareholders in debt. And As TO the
richer mines which have been thoroughly tried,
there can be nothing but fear of fraud which
will keep them down for any length Of time. 1t
is quite certain however, that the dishonest man.
agernent of mines cannot bring anything but dis
aster to the community; and hence we should
unite in assisting TO punish those who shall be
found guilty OF such wrongs as all know have
taken place.
ISFRISGEMENT.-The Text Society, for