The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1875-01-26
From the San Francisco Chronicle, Jan.

IRON the nan Francisco Chr0hlcie, Jan.
There was some gloomy countenan-
ces upon California street yesterday =
The three great mines that contain the
bonanza shrank in their market values
something over twenty millions OF dol
lars. and "all along the line," to speak
in stock slang, there were lame ducks
The market was ''soft;;" the brokers
called for more "mud." The day was
dark and lowering; dense fog shrowd-
ed the heavens. If the fog costs the
market twenty millions, what would
good, down pouring, ,drenching rain 40
If every operator who has plunged
head long into this seething whirlpool OF
speculation could he driven indoors to
dressing gown and slippers and give
time for a little self-communion, 1t
would be we'll for himself and the com
munity. The remarkable fact is not
that the market is ''off,'' and values
have shrpnk so much, but that it was
not .'off'' sooner and that the reaction
was not greater.
There is no more loss of gold and sill
yer in the bonanza day than before. IL
has not shrunk or withered. The bonanza
is honest, and it will deceive only those
who deceive themselves. Money is
tight. No more shares can be purchas-
ed on margins, and those who have
bought on margins must make them
good. The volume Of money is limited.
Some twenty or thirty million dollars is
the extent of our circulating medium,
and of course embarrassments must fol-
low if hundreds of millions of call de-
mands are out Stocks stand in the po-
sition of the rows of bricks we played
with in boyhoods days-the first brick
falls and they tumble along the whole
line. One money lender gets frightened
and determines to realize; others follow
A panic ensucs and those unfortunate
spectators who, with one thousand
dollars paid up, owe nine, are liable to
come to grief. The widest, broadest
swiftest stream may find itself unable
to float too large vessel.and San Fran
cisco is not the ocean; California street
ia, after all, only money ssrivulet, and
San Francisco is but financial puddle
compared to other streets and cities
The operations of the three week;
would stagger Threadneedle street ir
London, and such a rise of s'ocks al
we have experienced would puzzl'
Frankfort or the Paris BouFse. This
too, in the beginning OF the year. Sav
ings banks are preparing for dividends
insurance companies are getting read,
! for their annual statements, and take
will consume nearly 100000 Of rea
coin. =
From the best sources of information
indeed from all sources, there is a con
currence of testimony that the discove
ries in the three great mines are no
overrated. Men of the hest judgemcn
and of the very highest financial stand
ing give as their opinion that the dis
coveries of ore full, justify the preser
prices; but all agree that dealing upo
| margins is at this time hazardous.
the bonanza were solid silver it coul
not be realized for years; its minin
) and milling is not only source OF e1
pense, but il is question OF time an
, of machinery. Hence our cautionar
r article. The market will doubtless rail-
f to give buyers time to adjust themselve'
: Those who are carrying too high load
: must get rid of portion OF their bn
5 dens, and act as cautiously in sssumin
5 stock debt as any other. The bes
t feature of the market is, that there
e no cause for panic 1t is fac. tina
e beyond any dispute, the value lies
e bonanza mines, and that in time it WI
e he contributed in dividends, jnstitie
: bankers and individual money-lcndel
in standing up firmly to help their el
} ents through
This splendid discovery is too goo
S a thing in California for all of US not
r wish that it may be so dealt with thu
1 even temporary reaction will not brlr
\ loss and distress to our too ventureson
citizens. Those who have their stct
e paid for are not within the scope of OF
y suggestions. To them We can only sa
| aK cen On velvet