The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-03-11

nanZa bubble in Nevada are not pleasant read
ing. The manner in which this artificial
speculation was created is an old story.
Some daring operators obtained possession OF
the shares of an ordinary gold mine. Stories
were slowly thrown into circulation to the
effect that it had suddenly developed incredi-
BILE richness, and contained gold or silver
''enough to pay the national debt" There
were gorgeous narratives, rivalling in their
coloring the stories of the arabian Nights. "
As is always the case in these transactions, the
poorer classes-who had put by savings for a
rainy day, and who had resisted the oppor-
tunities of investing in government bonds at a
modest five or six per cent interest-rushed
in and absorbed these mining shares. In
time the reaction came-the Big Bonanza was
found to be only an ordinary mine after all
Those who had owned it were rich in the
money they had taken from the people, and
the people were robbed. We had another
Big Bonanza some three or four years ago in
the diamond mines" Some miners reported
in a modest way that they had discovered ter
ritory in Colorado, we think, where diamonds
and precious stones were as thick as pebbles.
Suddenly company was formed with a capt.
tai of many millions of dollars. We do not
know how many shares were sold in these
diamond mines before 1t was found that the
precious stones had been placed there by
the ingenious gentlemen who had started the
company. They had been purchased in
London for this very purpose. The Emma
silver mine was another Big Bonanza.
Here was an ordinary silver mine in Utah
not very good, we suppose, and not very
bad-which, by the assistance of a United
States Senator, United States Minister and
the American financial agents in London, was
sold to English clergymen and widows for
five million dollars. We suppose one hum
dred thousand dollars would have been good
price for the mine at the outset 1t has faded
away. The original owners of this mine are
rich, but those who bought the shares, as q
Big Bonanza, and can with difficulty sustain
the loss, may struggle on as best they may.
We had Big Bonanza speculations during
the petroleum excitement, and companies
were formed to pay thousand per cent a
week, and which failed as soon as the d.
rectors had 'placed the stock" Every year or
so we have had these same phenomena, until
human mind is subject to Big Bonanza de-
lirium as the body is to fever and
ague in malarial districts. And this
is not only true in the present generation,
but hos been so in the past, as shown
in the John Law Mississippi scheme the South
Sea bubble and the tulipomania. jay
Cooke failed because he tried to sell Big
Bonanza in his Pacific Railway. The "busi-
ness prosperity that comes from the Big
Bonanza excitement is like the activity that
comes from fever. It is unhealthy and leads
to prostration. In Wall street to-day we have
the Big Bonanza feeling, as shown in the
transactions in great many stocks that have
no value except for speculation. Just now
we are in the height Of Big Bonanza week.
We read down the stock list and find thou
sands of shares sold at varying prices. If they
were really valuable thSy would be cheap,
but if they have no value they must neces-
sarily be dear. Take the transactions
for the last few days, aid the tendency
of the street has been to deal in Big Bonanza.
activity" Of this kind must certainly lead to
disaster There are multitude of interests
for sale in Wall street that could be properly
purchased by prudent investors. The stock
list is full of honest and remunerative invest
ments, first mortgage bonds of good rail-
roads, shares of dividend-paying stocks, State
bonds, New York city bonds, shares in banks
and other good corporate institutions. A bust
ness activity based on purchases of this kind
is sure sign of prosperity and health. But
q business prosperity founded On the Big b.
nanza of unbuilt railroads; of other railroads
robbed by inside corporators and left stripped
and bleeding of still others covered with four
or five mortgages, and which neither pay in
terest on their bonds or their stocks of yet
others which have been robbed OF their land
grants and subsidies by Credit Mobilier rings
and which now lie abandoned on the prairies,
slowly rusting into oxidized iron; COM
panies plundered by spectators and
whose very name is synonyme of corruption
Bonanzas, of those who handle Wall street.
Of course, SO long as these desperate specu-
lators, whose aim is to make money no mat
ter how it is made, buy and sell these shares
from each other it is none of our business.
But the danger is that the outside public, the
people of limited means, who are unused to
the devious ways of Wall street operators,
and who are too prone to follow Big b.
nanza when they hear of it, will be drawn into
the street and made to suffer in these foolish
Investments There never was time when
business opened with brighter outlook,
when there was better tone and higher
reasons for hopefulness. For this, and be-
cause we believe in a prosperous spring,
there never was a time when more caution
was necessary in dealing in bonds and
stocks. Now is the opportunity for
prudent men to mako good invest