Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1875-06-21
The Bonanza Break.

The San Francisco papers arc giving
various theories - 10 ths cause Of the
recent or present unexpected break In
the stocks Of the great bonanza. We
copy tho following from The Post.
One theory OF the cause OF the break
Ia founded on the report that the ore Is
deteriorating In the upward Slopes, |
which have encountered punches Of Dor.
phyry. and that the bullion shipments
this month do not como up to the gen.
sral anticipation. It would bs singular,
indeed. II in 90 lsrgsa body Of ore a.
the Consolidated Virginia possesses poor
rock was not occasionally encountered,
while tho bullion shipments thus far
have littlo or no significance, since q
large shipment at the close OF the month
would mako mp the deficiencies Of the
frst. Il 10 also stated that large guam
titles Of the stock are hypothscatsd at
from $3.50 to $3.50 per share, and that
the $3.50 lenders called In their loans or
demanded more security upon the mar
gin Of their collaterals disappearing
whom the stock struck $3.50. and whom
II reached the neighborhood Of $500, the
holders OF stock 10 secure loans at that
figure pursued the same course which
has brought q great deal Of the stock on
the market. Consolidated Virginia has
been q iavorite security witn money
lenders, who considered u almost a.
good as impaired bullion. The result
has been that u has not only been loan.
ed upon heavily on lts own merits ana
LOT tue iegiinhto purposes OF its own
ers' nut u mas also been hypothecated az
. margin on MI tne otnoi stocks on the
list. Ills estimated that thero are now
outstanding IN n way aud another,
loans oh Consolidated Virginia stock to
the amount OF three millions Of dollars.
Some proportion OF these loans were Of
$3.50, but II any considerable amount 10
out ut $500 to $500, he owners must
sither sell their consolidated Virginia or
sacrifice some other stocks TO make their
margins good. In this condition OF nj.
fairs a serious break In Consolidated
Virginia would necessarily carry the
whole market with 10. what more nat
urai Than that the bears, apprecianng
the relation that consolidated virginia
bears 10 the market, being virtually the
Keystone TO the arch that sustains the
superstrneture, should mako their at
tack ON this limo and risk Its success or
failure ON the result.
There ara good reasons for believing
that Ophir and California, or perhaps
We should reverse the order and place
California first. are the objective points
In this movement. The reports from
OF the bonanza" excitement. Experts
are unanimous in their Endorsement OF
its value, and It Ia estimated that with
what IL now in sight or can be relied
upon to o dead moral certainty there is
sufficient ore to yield q net return OF
$500 per sharc. Several attempts have
been made to depress tho stock, but its
intrinsic value In 80 well understood BY
the public that all such Efforts have
proved failures. It has been quietly
whispered about the streets for some
weeks that California would soon 90 10
$50, the reason for the anticipated de-
cline being the supposition that the In.
siders wanted TO mako a deal for them.
selves and their friends. That tho stock
il strong In the public confidence will DO
seen by the quotations, which show that
Il has not responded In anything like a
corresponding degree 10 tho decline In
Consolidated Virginia. II Is pretty
cloar that II will not decline from sym.
pathy or lis c~ontiguity, aud it can only
be brought down by a mild sort OF smash
up and general calling In Of margins.
which must havo the effect Of
forcing sales. and In this event
holders Of California which IL
hypothecatod, would BE- forced 10
sell 10 keep up other margins, and 10
the manipulators could take advantage
OF their necessities TO load up. The mo-
tive for taking In California il the Same
M in buying a $40 piece for $40. As to