Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1895-10-17
SPECULATION RUN MAD.

Mining men throughout the west are
eagerly watching events in the London
stock exchange at this time. The mad
speculation in south African mining
shares there has reached a point that in
terests also the average business man the
world over. While qualification is ex-
pressed in some quarters that investors
have gone 80 heavily into the mining
stock market, and the prediction ia made
that eventually this speculative spirit will
be turned toward American mining shares,
still there is great fear if the present
phenomenal rush for all classes of south
African stocks isn't checked and that, too,
gradually, there will be financial crash
that will startle the world, and the effect
will be to bring into disrepute even the
best of mining investments.
The financial review issued by Clews &
Co., of New York, under date of the 18th
inst, contains some figures on this re-
markable case that will strike the miners
and mining capitalists of the west as
almost incredible.
1t is impossible to state in exact figures
the extent to which this furore of specu-
)ation has run, says Clews 4 Co., for of a
large amount of the ventures no public
Information is obtainable. 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, averag-
ing about 20 per cent and ranging in
some cases as high as 65, rs, so and even
100 per cent. These may be regarded as
bona fide enterprises; and in the specu-
lative enthusiasm they have excited lies
the basis of the rotten superstructures of
speculation on which the metropolitan
and provincial stock markets are alike
running crazy. The legal capitalization
of these twenty-five companies is about
$32,50O,000; while the present marke.
price represents $192,5oO,OO0, the divi-
dends averaging about 9 per cent on the
current price. Besides these, there are
1873 companies reporting on the London
market which are paying no dividends
and pass muster on reiterated promises
which are never fulfilled. These non
dividend paying mines have an aggregate
capital of $1390Oo,OOO. Their market
valne last month was $565,O00,OOO, or e1-
actly four times the par value of the
shares. Besides the 1853 mining COM
panies above referred to, Their are thirty
one other various organizations, which
are concerned in land, banking, estates,
promoting, exploration, etc. These con-
Germs have total capital of $79,OOO,OOO,
consisting principally of FL shares; and
in this case again, the market value is
exactly four times the par capital
ization, being $15,000.OOO. Excluding
from the reckoning the twenty-five divi-
dend-paylng mining stocks, we have here,
first, total of 1874 enterprises, repre-
senting either no value or very uncertain
value, capitalized at $21S,O0OOOO; and,
second, this comparatively worthless
scrip worked up to fictitious market
valuation of $SS0,OOC,OOO.
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
material that those great centers are
gloating over while contemptuously
turning up their noses at American Sc
curities. 1t is not surprising that the
sober part of London and Paris should
begin to feel uneasy. That all this must
end in terrific explosion there is no
possibility of question. That the catas-
trophe can be much longer postponed is
not to be doubted. The symptoms are
already ominous. The stage of distrust /
has been reached, and the next stage
must be realizing; and when that comes
the collapse will be instantaneous, and
hundrecs of millions of market value
may be wiped ont in few hours or days.