The semi-weekly miner. [volume] (Butte, Mont.) 1882-1886, 1884-10-22
THE GREAT SPECULATION,
Which Broke Up the Ciarlssville Financle
III In lG,xh1.s and Maze n Panic

The panic In the Clarksvllle school
has naturally cast gloom over play.
ground and dormitory, and it will prob
bly, be long before the game oEmarbles
RECEIVERS its former standing as repu-
table though risky game.
The panic was distinctly due to over
trading in marbles. An immense busi-
ness was done with insufficient capital
and shrinkage in the value Of rabbits
or other securities would have precipi-
tated panic at any time. during the
last three months, The failure of James
Smith was, of course, the immediate
origin of the panic, but the firm could
not, in any event, have kept itself above
water more than week or two longer.
Master James Smith is not only
skillful marble-p:ayer, but lie is a finan.
cial genius. At the beginning of the
I...esent school term he conceived
grand scheme for enrich,ng himself and
ell the boys who had confidence in him.
He proposed that he should borrow
marbles at a high rate of interest, and
pay both this interest and large divi-
dends out of his winnings as marble
player. To every boy who should lend
him six marbles he offered to repay
nine marbles within two days, and in
case the lender should reinvest both
principal and profits he undertook to
repay him at any moment, with profits
at the rate of 50 per cent. every two
days.
The offer was so tempting that there
was general anxiety on the part of the
boys to lend their marbles to James
Smith, and in the course of the week
every boy in the school had invested
in the marble pool. It was understood
that James Smith was to win marbles
from boys unconnected with the school;
but curiously enough, no one inquired
where these boys were to be found, or
at what hour Of the night James Smith
was in the habit of secretly getting out
of bed and going off to play with his
unknown adversaries. The boys were,
however, perfectly satisfied with his
method of conducting business. He
never failed to tender large quantities
of marbles to his patrons whenever, by
the terms of his contracts, they were
entitled to dividends, and they never
failed to reinvest the whole amount
with him. Each of them had decided
to make at least million of marbles
before closing their accounts with James
Smith, and they were eager not to draw
marbles but to add to their investments.
The local store-keeper, who sold mar
bles, consented, after the boys had spent
all their money, to sell them marbles
on credit, provided they would place
securities in his hands. Most of the
boys kept rabbits. and they pledged
their rabbits, their toys. their jack
knives, and other negotiable securities
with the utmost recklessness. Last
Thursday night the books of James
Smith showed that twenty-eight mil
lions of marbles in round numbers were
due to the sixty-four boys of the Clarks-
vile school On Friday night James
Smith announced his insolvency, and
assigned 2O3 marbles to the Greek pro-
fessor in trust for his creditors.
The disaster was precipitated by
shrinkage in the value Of rabbits, caused
by the breaking out OF disteinper
among the rabbits hypothecated with
storekeeper. The latter, not knowing
at what moment all the rabbits might
die, demanded that they should be re-
deemed. In order to redeem them their
owners were compelled to call in the
marbles they had invested with James
Smith. The latter was unable to re-
Spond to the call; panic followed, and
the unfortunate boys lost both their
marbles and their hypothecated securi-
ties. -
The principal of the school investi-
gated the affairs of James Smith on
Saturday afternoon with three consecu-
tive apple-tree switches of the largest
size. James Smith had played marbles
with the son OF the jaritor of the female
seminary on two or three occasions and
had lost heavily. The dividends which
he rendered to his victims were simply
the investments made by other victims.
He had not won single legitimate mar
BILE during his entire career as marble
financier, and, as tie principal co,dl,
remarked, whenever he stopped to Sc
lect new switch, his con.!u It had been
no better than that of professional
pick-pocket.
At present the Clarksville school
boys have neither pocket-money, mar
bles, rabbits, nor any other negotiable
property. No one can palliate their fol-
ly or feel much sympathy with them in
their losses. Nevertheless, although nc
grown person would for an instant be
guilty of like folly, it should be men.
toned that James Smith informed the
BOYS that he conducted his business
strictly in accordance with Wall street
methods, and that they actually be.
ieved he spoke the truth.--New York
Times.