Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1872-05-20
CAUSES OF THE cRAsH.

garulnS inc truo CauScs h'uuS"iS s-o
present great decline. panic or crash
In mining stocks. Most Of the sore
headed losers have been inclined to
attribute their present state Of impe-
cunious, disgusting adyersity to the
bearing operations ofJones and Sharon.
It IL a fact however apparent now to
the most obtuse, that the great amount
OF stocks suddenly thrust upon the
market from all quarters, by prudent
or panic stricken holders had but the
inevitable result to send stocks down
with a rush, accelerated by Others
forced to sell. A, In their downward
rush, stocks touched the prices ut
which they were purchased, the bro
kers were obliged to call for further
margins, or sell in order to save them
selves. The story SO industriously cir
culated and made to appear.that stocks
were being firmly held, aud few sales
were made, was, and Is all humbug,
palpable to anyone with any sort OF
judgment or observation. The actual
sales were never reported, and they are
not and will not be under the olrcum-
stances. Everybody knows how 1t Is
himself, and knows Of hundreds OF
forced sales which would 60 to swell
up n mighty aggregate. As to the
bottom " being touched even to-day,
no one is wise to bet on the PROPOSE
ton, for all the fiercest "bulllng "
In tho world cannot stop a general
panic. The bottom, Will only be
reached when all the ELAINE ducks "
are disposed Of. Then, and not till
then, a good healthy riso may be an
ticlpated. We propose, AS heretofore,
to look upon and consider the facts In
the matter In their plain u~nspecula-
tive form. and to copy any remarks OF
our contemporaries tending to throw
light upon the all important subject.
The San Francisco Chronicle Of yoster-
day gives a long aud ably written arti-
clio on the rise aud fall of stocks, from
which we extract the following:
While the legitimate mining enter
prise Of the Pacific Coast may and
must be depressed, We are quite conf
dent that 1t will be but temporary.
Hereafter people will learn to invest
not upon wild probabilities, and oxaR-
gerated rumors but upon solid facts,
against which falsehood cannot detract.
The rise in all stocks located In aud
upon the Comstock lode, or It's imme-
diate vicinity. dates back to u few
mouths when q large body Of ore was
struck In the Crown Point. This stim-
ulated activity first In Savage, and to
Savage more than any other mine the
wild furore can be traced, which like a
whirlpool drew almost everybody IN
the vortex Of speculation. Hayward
and Jones had control Of Crown Point,
and being interested In Savage when a
supposed large development had been
made. determined to secure u control
ling interest in the Savage. BY the
aid Of u legislative enactment, when
they had secured u majority OF the
Savage stock, they wrested the man.
aycuient from Sharon and secured II
to themselves, and went to work with
energy and industry to develop the
hidden orc TO the fullest possible ex-
tent.
HAYWARD AND JONES
Advised all their friends, aud they
were many, to buy Savage. Their
friends looked up to them with the ut
most confidence, and gave orders to
their brokers without limit. The nd
vice Of Hayward and Jones to all was,
"Buy Savagcat any price below $l.OO0.
Buy It now at 800. then ut $500"
And even when at 500 they still ad-
vlsed their friends to buy and not to
sell. 1.-The stock will 60 to $1,000 be-
fore the first day OF July" And they
continued to buy-the friends. Hay
ward and Jones had, out Of $4,000
shares in the Savage, secured 10000.
These cost them ranging from $50 TO
$3.50 per share. or these. 1000 shares
were purchased from John Livingston,
who was the Achates tides Of Robert F.
Morrow bob. Charles N. FELTON,
tCharlieh and others. 10 pay for these
these they borrowed $1,000. 900, and as
the stock marched gradually on from
day to day,
THEY UNI.OADED
Enough at prices ranging from $500 to
800 to pay up the borrowed million.
Now let us see what was done In the
Savage to justify the promise Of 1000
per share. Ono crosS.cut had been
made which showed ouly u very small
body of paying ore. Two more cross
cuts are to be made, the prospects Of
striking more being good. When 1t
leaked out that the first
cross-cut had only shown q small body
of ore, Savage came to a stand-stlll,
and the knowing ones began to get
scary, and It Is reported that Hayward
and Jones then commenced and did
unload n large amount OF Savage. 1t
was then selling for 800 per Share
equal to $l4,0W per foot. the top price
a higher price than the Crown
Point + worth, which Is yielding dlvi-
dends Of unprecedented amounts from
n body Of ore in sight, of vast extent
and richness. II they did get out as
reported, they only showed their nat
ural smartneSs In standing from under.
The Sharon-Jones Crown Point-Yel-
low Jacket fire difficulty preclpltated
tire matter, and
THE PRICE ILLUMINATED
last week. Marginal stocks to the
value Of $40, 600, 900 were preclplrated
upon the market, which realized only
1000. 900. leaving 90. 1000. 900 In losses
at once to DO borne by the operators
and stock buyers. Sharon withdrew
his support from his own stocks, let
ting them decline rapidly. People
who had bought Savage put up other
as collateral, and when tile mar
kct broke they were thrown In and
swept away by the remorseless tide.
The panic increased, Instead Of de-
creasing.
THE DECLINE
Is the heaviest ever known In the San
stock market, and many q
day must elapse before such another
loss. Ruin has fallen not only on
leading citizens, but upon every one
- -.r a., A. -.-.h1o oni ~.