The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-09-23

TIE KAFFTR BUBBLE.

In the daily market report from London
n Is noted that 'Kaffirs were active"
excited" or strong" This does not re-
fer 10 the colored people Of the southern
portion OF the dark continent but TO the
mining stocks sold in the London ex-
change. based upon South African gold
nnines. some of which arc among the
richest in the world. Iondons mining
excitement has assumed form which
recalls the days Of the South Sea bubble
and Laws Mississippi scheme. Good
American mining property is not consId-
cred wort9, looking at. nor are other safe
investments.
According 10 Brads,reets. "the London
financial press continues 10 devote the
major part or It's space 10 mining matters.
But while the intensity OF the excitement,
as revealed by enormous dealings. by
large advances in all classes OF mining
and development company securities. and
by the ease with which a succession OF
new ventures are noated. have been faith
fully recorded. there is an absence OF note
OF warning excep. of the most perfunct-
DRY kind. The same authorities which
are so watchful in warning tho public
against American railroad securities in
dulge only In the quietest kind Of admon-
ition against the evils 81 ovortrading
where South African mines are con
cerned"
London is just now paying much atten-
sion % the sayings and dolngs Of one Mr..
Barnato. made familarly known as Bar
ney.' This individual was one Of. the
pioneers Of South African development.
having achieved success in the diamond
fields. and has now turned his attention
a. the equally congcniai field OF gold min
Ing. His advent In london has been
treated a quasi-puhlic event and the
enormous concerns which his hrm pro-
poses 70 foat have heen received WITH tho
enthusiasm due 20 a dispenser % endless
rlches. They embrace ambitious eoasoll-
datious 81 variety Of mlncs. and I'm adj
dillon the floating OF bank, the shares
81 which. under the name of ''Barnevs..'
have hecn traded IA rccklessly. attaining
"a premium ~ SIS points even before the
prospectus was ISSUED or the public had
any idea % what is capitalization ana
SCOPE vas 70 be.
Chauncey NJ. nercw. who has rust re-
turned from Europe. says:
''rhe excitement In South African gold
mines equals the widest speculation In
Colorado or California. both London ana
Paris are crazy. One ~ the test-.n formed
bankers Of Europe told me that 80 mon
had pocketed. ln cold cash Within the pas.
year $50 90 by the sale % the stocks
or shares OF these companies. The r,srs,.
had GENE from the conndlns British pub
lie and The usually cautions French. FOR
~ millions ~ g Was wen hy man w-ho
went 20 the Cape as = jusEler in a circus.
ana Il now climbing rapidly the social
ladder. The stocks are constantly rlstnx
in price. and. OF course. capitalization.
ana az no distant dAy TIRE bubble wnl
burst. scattering ruin more widely than
has been experienced for a generation
An extraordinary feature o., the NaaFr
craze Is the eno5uraecnent given 80 81
~ the financial press supposed g, -
honest ana conservative. n IS publicly
charged tia, the mining boomers have sub
sldixs8 ere rarers. az TIRE Panama swim
6lers did ia France.
When ira crash tn I.,nica Sees come
We shan hear % few business failures.
and possibly a few criminal prosecutions.
Then TIRE craze vii - forgotten. IN ere
past five years the woyld has noted ere
rise ana FAN ~ three speculative Noouas
in FRANCE and Englaad English Invest
crs were deceived ~ great s1nsjrates
that YcckieSsiy bought property n Amer
ica. regardless % lts true value or rs d.v-
.8end prospects. 4 sood many millions
g, collars were sausu8ered IN this way.
These losses ala not deter ether persons
from investing their money IL hssll6ins
societies. which failed. with enormous liz
Utilities and Small assets. Tee Panama
canal Sw3nale robbed tie people - France
Of hundreds q Elllso2s % GsuAls. A