The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-10-14

bad possibilities of transatlantic min
ing. speculation, however, is a much more
operators to keep on their guard.
The 'Kafiir's' excitement is one of the
widest outbreaks OF speculative mania
1t began with the remarkable success
~of few ventures connected with the
new gold discoveries in South Africa.
This led to the creation OF "syndicates''
without end, aud to- the formation
companies Tor exploration and for dealing
IN the new issues Of stocks and for the
boldest banking undertakings. In respect
to basis. many OF the schemes have really
none except that of air, while most OF
those that have actual property have
very questionable deposits of the precious
metal, and all are capitalized Immensely
in excess of their actual merits. In the
Of financing has been carried TO the most
daring pitch Of excess. Dividends have
been declared in the face of losses and
In the absence of production or even Of
the prices of these issues have been stead
lily forced up to a positively ludicrous
imitation It is Impossible tor state in ex-
act figures be~ex tent. to which tllis furore
of specula5lSn has run, for OF a large
amount Of the ventures no public infor-
But, so far as respects the companies
which give more or less publicity TO their
affairs, there are some twenty-five which
have been paying dividends, with some
regularity, averaging about 20 per cent.
and ranging in some cases as high as 65.75,
80 and even 100 per cent These may be
regarded as bona fide enterprises; and in
the speculative enthusiasm they have 'e1-
cited lies the basis of the rotten super
structure 81 speculation on Which the
metropolitan aud provincial stock markets
taiization OF mess twenty-five Companies COM
is about sss5Ss eco While their present
dends averaging about Z per cent. on the
current price. Besides these, there are 1873
companies reporting on the London mar
NJ f1as mn. y
pass muster on reiterated promises thar
are never fulfilled These non-dividend
paying mines have an aggregate capital
of s139 200, 600 Their market valuation last
month was S565. 00O, 00O or exactly four
times the par value of the shares.
Besides the los mining companies above
referred to, there are 81 other various
organizations, which are concerned in
land, banking, estates, promoting, explo-
ration, etc. These concerns have total
capital Of $79,000000 consisting principally
OF Il shares; and, in this case again, the
market value is exactly four times the
par capitalization, being $Sl5, 100000 Ex-
Guiding from the reckoning the twen<V-
nve dividend-paying mining stocks, we
have here, first, total Of 1874 enterprises,
representing either no value or very I'M
certain value, capitalized at S2fs 900 900:
and, second, this comparatively worth
less scrip worked . gg to to a. fictitious mar
also it's schemes of like quality and sim
ilarly inflated but we have no means of
knowing their exact extent.
This is the measure of the mass of ex-
plosive elements that now underlies the
financial markets of London and Paris
This Is the quality Of the investment ma
terial that those great centers are gloat-
ing over. while contemptuously turning
up their noses at American securities ii
Is not surprising that the sober part of
London and Paris should begin to feel
uneasy. That all this must end In a ter
rife explosion there is no possibility of
question. That the catastrophe cannotebe
much longer postponed is not to be
doubted. The symptoms are already ON
nous. The stage of distrust has been
reached, and the next stage must be
realizing: and when that comes the col
lapse will be instantaneous, and hun
dreds of millions of market value may be
wiped out in a few hours or days. At
the MON ent, the stronger spectators are
attempting to stay the realizing pro-
cess by main force of buying; but such
stuff cannot be saved by any such tricks
and soon the big SPECTATORS and the lit
tie ones win be crowding ON each other
to realize, with no buyers in the field
From the nature of the case it must be
so; and it is none too early to discount
the inevitable.
The interest of the New York market
in this impending explosion lies in this:
that as the collapse would affect the
whole investment market, our securities
held in England would suffer in sympathy,
and might consequently be returned on
this market. 1t is easy, however, to over
class who have participated in this craze
are not likely to be the same as those
who Invest in our securities or speculate
In them The latter class might tempo
rarily realize; but the demand would soon
return. and the speculative interest IN
London would then center upon Ameri-
cans, as affordipg the most attraction 10
the conservatism in speculation which
would Inen be the order Of the day. New
ertheless, Wal street cannot afford to be
hation. We shall feel the shock of the
distant earthquake, and il VIII be pru-
dent to keep vigilant eye upon our