New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-12
THE MINING BUBBLE BURST.
TIE RECENT EXCITEMENT IN THE MINING
EXCHANGES.

there is mining with pick and srade, with giant
powder and powerful streams Of water, in the
hedges and grches Of the Rockies and the Sierras,
and there is mining in the pockets Of confdins
Spectators in the stock exchanges Of New York,
San Francisco and Boston. The former kind of
mining adds to the bullion product Of the coun-
hy-to its wealth-the latter transfers silver and
gold to the pockets of manpulators Of the stocks
Entails loss upon men who else might be induced
30 invest money in legitimate mining enterprises,
retards the development of the mineral resources
Of the country and checks it's growth in wealth
This city AMI San Francisco have Just passed
through one of those seasons Of wild speculation
in mining stocks which have been the bane Of le
ultimate mining ever since gold was first discov
cred in California. Three or four of the Com
stock stocks. shares of which had been drug in
the market for years, except at merely nominal
prices, began to advance on the San Francisco ex
change about the middle of October the list being
led by Consolidated California and Virginia Up
TO the time that the quotations began to improve
nothing was known to outsiders that would war
rant one in paying more than So or 81 so share
for the stock OF this company. 1t was true that
Mr. Flood had never lost faith in the ultimate
discovery of large body of ore in the lower Levels
on the Comstocl<-at least he would never admit 1t
10 the public if he debut the bonanza didn't
appear, and when. about the middle of October
orders were received in Virginia City from San
Francisco to stop all work in the Chollar mine,
end to strip all levels below 2400 feet Virginia
City newspaper said that it sounded the death
knell Of deep mining on the Comstock. and that
"the abandonment OF deep mining destroys the
last glimmer of hope of future deals in Comstock
shares" These orders also necessitated the I'm
mediate suspension of all operations in the lower
levels of the Hale and Norcross, and were the
direct result of the refusal OF the trustees OF the
Savage mine to pay their one-third proportion OF
the expense Of keeping in motion the ponderous
pumps at the combination shaft.
Nor were the latest reports from the Consoli-
dated California and Virginia minc ITSELF In the
middle of October such as to inspire confidence IN
its future. The annual report Of the Superintend-
ent for the year ending the last day OF the pre-
vous month had Just been published 1t showed
the total product of the mine for the preceding
twelve months to have been s1,297.ss1 81. or
which s650.674 81 had been gold and s63S234
silver. The average value Of the ore for the year
shown by the mill assays. had been sl3 Is per
ton and the report closed with the remark that
nearly q million and half dollars worth OF ore
had been produced during the year lat no profit.
There was one encouraging feature about tne
public reports from Consolidated California and
Virginia in October The grade Of the ore had
begun to advance in October. The average OF The
assays for the year, as shown above. had been
sI3l3 per ton During the first week in October
if rose to $40 SO the next week to SEA 3D. the
third week to s31 H. and the last week TO sSs
ton Aside from this improvement and some
vague rumors that new body OF ore had oeen
discovered about 1,400 feet below the surface
nobody knew why Consolidated California and
Virginia should have gone from 81 40 on the first
of October TO 81 25 ON the Goth of that month
AS soon as the "boom" in this stock began 10
gather momentum other ComstoCls followed suit
Orbir no
quoted in Ncw-York October l, at 90 cents; DC
tober 22 il had advanced to So %. and week
later simultaneously with the announcement that
ore from the new find in Consolidated California
and Virginia was being hoisted through the
Ophir shaft. it jumped to "a 10. Savage ABOUT
doubled in price during October, and Sierra Nc
vaAa advanced from 30 cents share TO 81 50
During the month Of November the boom con
timed without interruption. Consolidated Can'
fornia closed the first Saturday in the month al
go %. and ON the three succeeding Saturdays AT
s1363 sls rs and s1s SO. Ophlr wen1 up 10
$3.50. Gould and Curry TO SO %. Hale and NOT
cross to s % and Sierra Nevada TO SO 90; Inc
boom reached its climax on SATURDAY. Dccen a-
her 4 and Monday. December q. TN the iorhel
NJ lose DAYS Consolidated California ami virginia
was quoted in this city at SAL. and on The ia1Uer
at $50 Some idea Of the proportions OF us
"boom7 may be gathered from the Market Naiue
nj the mine at the prices at which the STOCK was
Quoted October / and December 6. AT ~ Az IL
was s5is 600 : at $50 it was s12,O96'Ooo' an ad-
yance of sll.57S.00Ol
Another interesting circumstance in connection
with this latest excitement is that while tne slock
NJ worthless mines. those that were cleaned out
wears AGO and in all probability Will never again
nav for operation like the Little Pittsburg Lstle
Chief and other equally dead properties, lelI lle
revivfy ne influence of the wild SPECULATION In lne
rme,ocks tho really good dividend paying prop
ertps held the even tenor OF their way, pelnS
very little affected by 1t
Rut the bubble has burst. The excitement al
the Ccnsotdated Petroleum and stocK EAch,'ise
over mining shares has subsidized. prices are drop
nino hack TO their former figures. AMI 1t is GOOD
time to irqirc whether there Is likely 10 oe u
revival of interest in gold and silver nihr7 III
This country in the near future, ana II So ulo1 III
how solid a basis il win rest And first. In regaIu
70 the ComstoclS Lode That was unquestl onably
the greatest ledge of ore ever discovered In tihs
n, any other country. When 1t was IN oOhih%a
the Grade of its product was high and the amount
enormous Low grade ores were LETT IN the searcl
for those Of richer quality, and when they ceased
profitable production there was an enormous
amount of ray rock in sight-that is, what "oulu
he paw rock almost anywhere else Inns ID proVeu
by the steady output that has continues e.e l
SINCE the mines of Virginia City ceased TO produce
bigh grade ores And there are as yet no sshs
of exhaustion The secret of the depressed con
d;t;on Of business on the Comstock Is that the
cost of mining. even on the Upper ,,d 10
preat for the quality of the ore that Is produced
I'll tho nrincipal item of that cost is the LABOR
If the supcrntendents Of mines on the Coms,ocK
could hire miners at the prices that are paid ~
bther camps. while they might not oe aDie y,
s,-i'e o,orgh bullion to pay large dividends on
thc Immense issues of stock that have been made
t,,ev would not be obliged to call upon the shaie
holders for assessments to pay operating expenses
ana some of them at least. might earn pro ons
R,,t this cannot be done as long as mine,o
,,n;on keen wages up 10 s4 so day it might Dc
accomplished with labor at 81 SO or even 50
Sav business in Virginia City win revive OF
become more depressed than ever as 'ne min D.r
rim down wages or attempt to keep them up
tEer uin;nr camps within few hours rlde