The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-10-14

African Mining Speculation Affecting
New York bank Reserves.
New York Times

New York Times.
Mr.. Barney Barnato and his Kaffir cir
Gus are beginning 20 make themselves felt
IN Wall street. Not agreeahly. however.
II is not the bull side OF the circus. hue
the bear. the near approach of the time
when this circus speculation viii collapse:
when the wreck viii be as it is when tha
storm blows the big tent over, stampedes
everybody. and lets the nienagerie ami
mails loose. Friday afternoon. when our
market was having a sudden decline. thu
bears could put out no more effective ru-
NOR than that there was a Kaifr manic
IN London. There has been no panic yet.
but there wiz be; and the feekng that the
inevitable end is approaching las been
the cause or a constant marketing Of all
our stocks which are traded I'm over there.
To this selling may be attributed the de-
feat OF the efforts TO bull the Grangers
II was intended to advance these stocks
the past week. But London had so many
for sale it could not be done. As it holds
more 50. Paul than any OF the others. ft
sold more OF that III London continues
at this gait for "a while longer IL wiz have
no more Americans to sell when the KAT
fir crash does come; for &c Is only thu
floating stock we have 20 reckon with.
Solid investment holdings sre not likely
TO be appreeiably disturbed.
The eminently artificial character OF
this London speculation is strikingiy
to's bank shares were rushed up. The
issue OF the stock OF this bank. we have
been told In the press dispatches. was ons
of the grandeSt successes that the WON
derfui Anglo-Itslian has scored. Very
likely IL looked that way TO the gaping
crowd OF lambs. But how was IL dones
On the morning OF the issue. says a re-
cent dispatch. r mob OF LOO brokers
surGed into the Exchange 10 buy the
shares "at the market" that is, without
limit OF price. or course the price OF
shares went killing; but IL Barney Rar-
nato did not send in l.4S0 of those I,sea
brokers. he hasn't learned the tricks OF
his business. and most people believe no
has. When the smash finally comes, tho
mob of brokers will be there 10 sell at
the market" Another significant fact IL
that at the last settlement Barnato had
10 help Il along by offering 70 loan several
millions on the shares OF all companies he
was interested in. This shows that tho
speculation Is getting to point where Its
principal support is narrowed down 10
one man and HIS associates. The end,
therefore. cannot be far on. and what We
have to look out for is its possible effects
on this market
We have also TO consider what higher
rates for money will do. IL was pointed
out here last week that the bank state
ments were indicating volume or with
drawals which. If continued. would soon
very small proportions: hence IL was well
for commission brokers and others not TO
be carrying too many stocks on cali
money. This weeks statement brings the
surplus down 10 about $l5,ooo.0oo, an
amount which the cotton and grain move
ment could speedily draw away. II the
movement becomes a little more lively
than Il has been Of late. Gold exports
disappear under such circumstances, IA
money becomes too dear relative 10 other
articles of export 10 he sent out. A good
deal of foreign money VIII become avail
able for loans AS soon as rates rise; but u
Is not likely 10 come at anything under
or 6 per cent: that Is. either as sterling
loans or otherwise. IT will probably cost
that 10 the borrower, when his commits
sions, etc, are paid.
New York Tribune.
The decision OF the Paris stock board
that no new mining stocks shall he intro
duced on the bourse until the end OF ths
year has attracted much attention here.
since il ia the first sign OF a serious check
TO the speculation which has already gone
10 perilous lengths. Whether or not the
French brokers can prevent dealings In
the new Kafflrs and Africans of every col
or which are swapping the long market. II
Is undeniable that a halt ought 20 be called
and breathing space allowed. Problems OF
American finance and trade pass unobserv-
cd when the South African mining specu-
lation is at it's height. and has become
something like mania IN both London and
Paris Nothing like IL has been known In
recent times. Companies have been multi
piled week after week for the development
OF mining tracts from the Cape TO the
Zambesi.
Nothing can be more certain than the
failure OF a ma iority or these projects, Yet
mining shares are constantly rising. Any
thing that bears a South African name fe
marketable. There ia a scramble or large
and small investors for gold and diamond
stocks. Brokers are coming money IN cons
missions. and many great fortunes have
been made on the Mining Exchange Many
of the new companies are overcapitaiized.
and can never yield dividends, but every
thing is easily fioated on the fame or KIM
berley diamond mines or the gold fields or
the Rand. Geography In not special stu
DIV OF the Stock Exchange. south Arr
ca" are magic words that explain ths
great fortunes made by diamond kings ana
circus clowns who have returned 10 Eng
land TO build palaces In Piccadilly, and the
mad revsl Of speculation goes on. pound
sterling share goes no TO forty or hfty
hounds and remains there without diyi-
dend being paid. Mr.. Cecil Rhodes. ths
prirne minister Of Cape Colony, In the poll
teal con jurer who has created a chartered
Cnrnnanv and armed stock promoters with
their mower. He Is thc idol or the fpecu-
laior but the day must come some une
when his art as a uecroma4cer VIII he ex-
hausted and when the great bubble os
South African speculation viii burst.
Meanwhile gambling goes on undated