The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-10-02
A wild SPECULATIVE ERA.
The Craze That Has Seized Upon
Three Great Capitals.
From the New York Sun.

Three Great Capitals.
From the New York Sun.
London, Sept. 2S.-The craze Of specula-
ton which has seized upon three of the
greatest capitals of Europe should receive
the serious consideration of all countries
and all classes. 1t is a spectacle unpar-
alleled in this generation. 1t has devel-
oped into one of those great mental cpl
denies which, once in two or three de-
cades, sweep over a nation or Christen-
dom al large, much as the plague spreads
its Infection.
A fortnight ago, describing the last mad
scramble for BarmatO shares at four times
the price OF issue, said there were signs
that the climax had been reached. was
wrong The fever has reached still high
er pitch and there is no indication OF
abatement There will probably be none
as long as the companies formed last
spring continue to declare occasional divi-
dends OF so per cent, as has happened in
Two or three Instances this week. Div1-
dends Of 30 or 40 TO 100 per cent, which
other South African and West Australian
mines are paying, are looked upon as quite
The dealings in mining shares on the
LONDON stock exchange now far exceed IN
amount all other transactions daily. Ten
representative South African companies,
with nominal capital value of $4,000. 600,
nave risen in market value during the past
thlrty days more than S5OOV0,0J0 The in
crease OF the total South African shares
IN the market quotations during the same
period exceeds $3.50 200, CO., 1t is true that
there has been a substantial advance in
all classes Of securities, but speculation is
still confined to mines. II is impossible to
keep track of all the new ventures publicly
and privately put upon the market daily.
Inc popular appetite for these things is
simply Unsuitable
As a matter of fact the public gets little
or none OF the good things which are NOM
lnaliy onered to them. Take, for in
stance, certain West Australian COM
pany which will be offered ostensibly for
public subscription next week. The
shares Will be offered nOminally at par,
the capital being ST. 600 but already
Sl2 per cent. premium Is bid on the stock
exchange for options on these shares. In
other words, the market value Of this
embryo company's stock already amounts
to more than 5000 900, and not share
has yet been issued. OF course little or
no stock viii be allotted TO public sub
scribers. All will be taken by the direct
ors and other insiders who Will sell TO
the public at still higher figures and
l met yesterday the director of another
West Australian company, who conhded
to me that he and his associates were Sc
riously embarrassed by the fact that the
company held in its treasury cash and
the shares of subsidiary companies, ac-
cumulated within the last two months,
amounting to a market value of fifteen
times the total capital stock. They did
not know what to do about it because
the payment of enormous dividends
seems to disturb instead of strengthen
public confidence in the company.
There are dozens of cases where found
ers' shares in companies formed SIX
months ago or a year ago now command
200 times the cost price. The craze is not
confined to any one class OF operators
or spectators. There are some OF the
strongest financial concerns in the field.
1t is we'll known that the aPris ROths-
chils are taking an active part in the
deals. 1 happened to learn the other
day Of options taken a week ago, at
nominal price, by an agent of the Roths-
ohils in the stock of a company not yet
Issued which to-day Is worth S25OOOO.
1t is by such operations as these that
money is being made The great boom will
continue as long as the public IS madly
anxious to pay three or four hundred per
cent. for stocks Company organizers are
usually only too glad to issue at par.
Paris and Berlin are scarcely less eager
to invest than london. The attempt OF
the Paris Bourse to check the wild specu-
lation in that city by refusing 10 list
the new stocks until January is not likely
to be effectuaL The opposition is so strong
in fact that the decision may be rescinded,
as the chief effect threatened is to trans
fer a large proportions of the business to
the London Stock Exchange,
Many notes of warning and alarm are
being sounded by the conservative press,
and maybe the London Stock Exchange
will do somethig to check the overwhelm-
ing tide of speculation, but thus far no
protest has had the slightest effect.
There are indications that public at
tention will be turned more to West Aus
tralia than to South Africa within the
next few weeks, because the former Ei-
dorado has not enjoyed it's fair proper
ton of the boom, and African shares are
now quoted at such fabulous prices that
they have become less tempting even to
gold-mad SPECTATORS.
Meantime there is very interesting
crop of new miliOnaires, who are making
themselves and their money felt in many
queer ways in London. Some of them frank
ly declare that they do not know what
to do with their unaccustomed gold Some
are squandering it lavishly. Others already
have plans well advanced for building q
wonderful yacht to bring the America
cup over here.