The Portland daily press., 1895-10-30
THU CRAZE OF 'sKAFPIR'S"
Is the Biggest Bubble in the History
Of Finance.
No SPECULATIVE FEVER HAS
EVER EQUALLED 1T.
rta Warts of Europe Have Gone Daft Ov-
erTt-When the Mighty Bubble Busts
Its Echoes VIII Be Heard Around the

Its Echoes VIII Be Heard Around the
World.
New York, October 29.-The Suns
London correspondent in long article
on the European craze in Kaffir specula-
ton says:
Is it folly or wisdom, IL it insanity or
sound Judgment, which leads credulous
publio to throw S75, 900, 600 into blind
nool and to risk these and many more
millions solely on the word of lucky
speculator who, only few months ago,
had no standing in the financial world
The answer may seem obvious to New
Workers, but it is a mooted question. to-
dav in the London Stock Exchange and
on the bourses of Paris and Berlin
The floating Of. the Barnato bank shares
aft an enormous premium two or three
weeks ago was only a striking incident
in the great game of speculation which
all Europe is playing-a game IN which
the stakes are larger, the winnings rich
er. and the losses (when they Gomez
heavier than in any which the history
of finance can show.
What, for instance, has led one OF the
most cautious of nations TO abandon sud
denly its financial conservatism ana
plunge into career of speculation
which is unrestra1ned by even the ordl-
nary dictates of prudence? 1t is.not nee
essary to enter upon discussion OF any
of the currents financial problems in spg-
costing at least partial answer to this
question. The explanation is to be FOUND
in the fact that for fully five years yet
the owners of small Accommodations OF
capital in England and Europe have been
unable to find safe and lucrative employ
mont for their money. People VINO de-
pend wholly or in part upon the income
Of their investments for their support and
they are very large class in England,
have been driven to desperation by the
long wears of depression. For many
months it has been impossible to lind in
vestments that offered per cent income
upon capital, combined with absolute
safety. This has meant all the difference
between comfort and absolute want to
many thousands. 1t has put discount
upon thrift and premium upon prodl-
gality among the earners. OF what use
was it to save if the 1ncrement Oh the
savings were so trifing as to be utterly
Inadequate to meet the simplest want OF
old age and disability?
The spread of this spirit has been
mark d among all classes OF Engllshineanl
during the last two or three years. 1t Is
not surprising, indeed it was inevitable,
that rapid growth of the gambling splr-
it has been coincident with it, The same
condition of things obtained in hardly
less degree in France, in Germany, and
in other continental countries. Ii safe Ia
yestments were lacking or were unpront-
able, then the field OF speculation alone
remained Even that was without speclal
allurements Euntil the newly discovered
resources of South Africa and West Aus
tralia furnished them in abundant meas
ure. What wonder, then, that the re-
Spouse to the golden temptation furnishes
the most astounding spectacle which the
lust of gold has given the modern Worl1!
The process of floating mine on the
London market is extremely interesting
1t is the working of this machinery, and
not the yield of mines themselves, that
has made most of the enormous fortunes
which have been accumulated during the
last few months. / have said that the
company promoter buys up most OF the
private mining claims. 1t would be
more correct to describe him as the agent
of promoting or exploitation corpora
tion or syndicate. There are plenty of
these corporations now in the field, and
the profits of Interpretations within the
last wear have been in many cases almost
incredible. " Let us take, in illustration
of their plan of operation, the cause OF
a single mining claim. They have paid
the discoverer, say, $40, 900 in cash for it.
They send few men and sink shaft
20 or 40 feet on the reef and take out sew
eral tons of ore. An expert examines the
property and reports, and more OF the
best specimens of ore are assayed The
result is embodied in prospectus and
printed in all tho London newspapers.
Subscriptions are invited for the shares
in the Struck 1t Rich mine, Hcapital
e1oO, ooO (S5OO, OO0,) of which go, 600 one
mound shares are offered to the public
at par.v 1t is explained that 40. 600 fully
paid shares and 920. 600 in cash are to be
paid to the yenders company. Public sub
scripers are notified that they must pay
2 shillings pence upon application, and
the same sum upon the allotment of each
share Five shillings more per share will
be due month after allotment, and the
balance of 10 shllllngS as called Tor by
the directors.
If the promoting company is concern
in which the public has confidence, that
isl if it has engineered similar deals sue
cessfully before, and if the directors
named also command the respect, then,
il the experience of the last six months
holds good, the public subscriptions will
offered In that case the public subscrib-
ers will receive one-tenth to one-fifth of
the shares they applied for or, perhaps,
none at all. Such demand for shares,
of course, insures their advancing to an
immediate premium, and as the directors
can allot to whom them please among
the subscribers, it is natural that their
friends are supplied first 1t happens al
most daily, therefore, that shares In new
companies are quoted at high premium
as soon as or even before they are issued.
The Kaffir market now dominates not
onlv the London Stock Exchange, but the
bourses of Paris and Berlin. Its iuctua-
tions have a direct effect upon the gene
raj money market; in fact, it has become
for the time being, the most influential
factor in the whole financial world. AS
to the effect of the craze upon the public
at large in London, at all events Truth
hardly exaggerated the facts, when it
said last week "Was South Africa com
posed of solid gold, was every pebble a
diamond, and did all Rhodes lead with
certainty to fortune, the excitement could
not be intensified"
The three great figures which loom up
as the leaders of the South Africa boom
ers are, as all the world knows, Messrs.
Rhodes, Robinson and Barnato.
Such is the basis and present aspect OF
tho 0reatest craza for sDecu lati0n tba+