The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-09-29
CALIFORNIA BUBBLES.

CALIFORNIA BUBBLES.
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UlssSry Of the Mining stock Excitement In
San Franchise.
n the year 1887 commenced in holland, then the
0est powerful military and st the same time most pros
psrous commercial nation In The world speculation
which resulted in national financial eonvulsion, and in
- individual banupscy Of al who participated In the
enterprise The business called the "Blosmenhan-
Gsl" or sTiowsr Trade" It ID now known a. the
s'Iulipomania" Il confined exclusively 70 the
sahivasion and sale Of tulipa A. Amsterdam three
bulbs OF the denomination called The ssmpsr Augustus
were sold - high = %, 900 guildsrs, or $4,000.
In no. in England commenced tho disastrous specu.
lstion called the South Sea Company. Il incorpo
vasd by of Parliament l7lo Is gigantic prospects
mere looked to q means Of rsdssming the national
asbt Of England and Parliament passed another cot in
152o embracing that idea thus influencing tho conf
Osues Of individuals in the representations Of the drso
to Of the company BY the cooperation Of the govern.
usnt itself The shares by promises
q prodigious dividends from $500 TO the enormous
uses Of e5 25o The bubble burst Thousands Of fami-
Ms throughout the country reduced bsggary.
Parliament again ntsrfsred and in 1871 passed act
- punsh the drsciors seize their property and afford
sn,isf 10 the sufrsrsra
N lilo TIauCo uuu0rt0Ok W omutato tu0 0AAmPio VI
highland She yielded 10 the psrsuasions Of John Law
ME merged Me private bank Of that gen.
Nsmsn in Paris into the Royal Bank Of
France. She bestowed upon II . patent granting
the possession Of the country Of the Mississippi
Il took the title Of the Company Of the indies and In
RIO the Of France turned over to this corpo
yation in the form Of national Shares I'M
nsdiately TO sixty times their original price, In
2o the notes issued by this grand bank were discovered
% be $3.50 600 0O0 France became alarmed issued
slcs reducing this paper In value one half The COM
pany collapsed immediate ruin followed, Law resigned
IN ONCE Of Comptroller General Of France,
aacsd to poverty and died In destitution.
The foregoing arc perhaps the most illustrous In.
stances record Of the crsdulity cupdy and folly Of
mankind.
The rst occurred among people ever proverbal for
their impsrurbabty Of character; the second among
people chief characteristics sagacty in bus
and inmutability Of opinion and tho third among
. nation the individuals Of which the verisst op
yosits OF the two former.
In tho month Of May, 1s4s, gold was discovered In
California This discovery brought population 70 Call
Sornia which formed this Territory into State, which
Congress admitted into the Union the eth Of Sep
MEMBER, 1850 About $780, the Placer diggngs having
become exhausted great extent attention turned
- quartz mining
The discovery about this time Of the silver mines In
Washos led to further discoveries in Esmeraldo Coso
lnyo, Colorado Humboldt Reese river, owyhes. Boise.
Oeotnea, Carriboo and elsewhere
n the workings Of tho various mines discovered in
thess respective districts have had their Of opera
ssn in San Francisco: Il has been there and there
nly that many Of them shave moved and breathed and
Ad their being, and have ceased to be, 1t 10 or that
acs that the story Of their RISE progress and decline
must be told.
r. <.ii~ roa1
street, the chief mart Of stock transactions in San Fran
cisco, would hear from classes Of such observa
ttons As these, THAT they had specimen. from the lode;
they bad seen Them 1t very rich, IL just like
she Comstock," &c. few months later these desul-
sory observations took scientific turn, thus:-"rhe
Coughs blacksmith shop, At Red Dog, had tried
ysecs Of the ore, and IL yielded - per ton; John
la sent maD over to looS the lead AND T.
buy controlling interest,"" &C. Later again,
THAT company was formed-thati Il was incorporated"
mon brokers who had been among Jobbers
IN The commercial streets came up and took desks in
uaioons and auction houses Montgomery street. and
% rush out In company with prospective purchaser and
take refuge around neighboring TO negoti
~ up but they few and obscure %.n were
Aoa4d loudly to assert that 1.-The mine Incorporated
enat the stock would DO Issued 10 few days; that Il
essek would DO issued would 60 up 70 a. least s. per
foot higher" and did The business then began 70
Der, 1862, some thrtysevso brokers Organized them
solves into board under tn, title OF "The San Fran
cisco Stock and Exchange Board" II ct that time
experiment Of doubtful success but did succeed
me icsas tassus became real Ore, but . far moro
enc 70 which supsrsttiOn has given the above name.
Ihsn oams the great unwashed from hidden and I'M
1sn Of fruit vegetables lsf their stalls; the
guined butcher ceased TO WELD bis ceaver and his knfe
- % r.. 1usxs ceased TO anS
sure or profit in the compoundiug of pills
aad the mixing Of nosrums the barber ceased TO shave
ord forth to be shorn and assuming the apparel
q spurpls and fine lnen gave TO be understood that
they were be found in the 'sbusy mart Of men,"
way fortune great rches The slaves Of figures,
who had spent years In the counting room telling over
nsr Closed hsr and
taries unto corporations and brokers before the people
Grave counseilos were beguisd from the laws delay
and priests the Most High more sin in ''great
poverty" than in Sudden wealth" In the spring Of
1ss3 the mania became general.
Day after day the County Clerk received in baptism
new born corporations The word feet was In the
then terrors and cheering rather than chilling
idea 1t contemplated and admired, as Louis the
XVI. contemplated and admired the gulllone Ut cut
greater physical pain than cooling sousaton.l The
memorable euotins the power TO assess possessed
and exercised by "tne Board Of Trustees has done a.
much for many untortunsts siockholder
In the meantime the Stock and Exchange Board"
vas prog, essng mos. fsvoraby. lts ranks had been
0licd by the addition OF numerous recruits Its gina
numoer OF thirty -seven had increased 10 eighty
ssvsn members. These members controlled the
stocks and the stocks controlled the pub
10 To DO . member Of the !" Board" was at
that time to be looked upon respectable citizen
man of character. OF substance, and as somebody.
me price OF membership mad RISEN from $50 10 $500
Initiation Fee and worth 5000. Its sessions
were oaiy, from twelve 81. to ono p. NJ No one would
bny, one would sell stock until the Board had ad-
1earned The oracles had declared the prices Al the
hour or adjournment Of the Board persons Of all
CLASSES would crowd Montgomery street, eager TO learn
bow prices rusd ready TO SELL others 70 buy, and
sehers TO hold rM
The great number Of persons engaged in the business
brokers far exceeded the number limited for MEM
bsrsbip by the Board.
This debris Of operatives and Of actors resolved them-
selves other boarda They summoned TO their
Ennks about hundred and Nifty members each These
boards held their sessions at hours different from each
oshsr and from the nrst board Their meetings were
regular their iss Of stock vouminous the volunteer
calls Of stocks not the ss mutudinous but their
transactions were insignhcant The nrst board was the
10 whale that swa owed up the lessor onea Finally
ehses two latter boards united into one bat 70 little pur
pose. Their sessions became esmorous, disputatous