Bennington semi-weekly banner. (Bennington, Vt.) 1894-1902, 1895-10-04
ALL CRAZY FOR GAIN.
SPECU -ATIVE ERA THAT EXISTS IN
THREE GREAT CAPITALS.

Mining Stocks snapped Up at Fabulous
Prices as FSst as They Are Put on the
Market-A Crop of New Millionaires.
Unparalleled Spectacle.
The craze of speculation which has
seized upon three of tho greatest capitals
of Europe should receive the serious CON
sideration of all countries and all classes.
1t is n spectacle unparalleled in this gcner-
alton. 1t has developed into one of those
great mental ep;domics which, once in
two or three decades, sweep over nation
or ChristOndom at large much as the
plague spreads its infection.
A fortnight ago, describing the last mad
scramble for Barmato shares ut four times
the price of ISSUE said there were signs
that the climax had been reached. was
wrong Tho fever has reached n still high
or 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 800 per cent, as has happened i'll
two or three instances this week. DlYl-
dends of 30 or 40 to 100 per cent which
other South African and West Australian
mines are paying, are looked upon as quite
modest.
The dealings in mining shares on the
London Stock Exchange now far exceed In
amount all OthSr transactions daily. Ten
representative South African companies,
with nominal capital value of 500, OOO,-
900, have risen in market value during the
past 30 days more than $50, 600, 600. The
increase of the total South African shares
in the market quotations during the same
period exceeds $3.50, 900, 900. 1t is true
that there has been a substantial advance
in all classes of securities, but speculation
Is still confined to mines. 1t Is impossible
to keep track of all the new ventures pub
licly and privately put upon the market
daily. The popular appetite for these
things is simply Unsuitable.
As matter Of fact the public gets little
or none of the good things which are nomi-
nally offered to it. Take, for instance, a
certain West Australian company which
will be offered ostcnsibly for public sub.
scription next week. The shares will he
offered nominally at par, the capital being
So, 900, 600, but already 3l2 per cent pre-
MUM is bid on the Stock Exchange for
options on these shares. In other words,
the market value of this embryo company's
600, 600, and not share has yet been is
sued. OF course little or no stock will be
allotted to public subscribers. All will be
taken by tho directors and other insiders,
who will sell to the public at still higher
figures and pocket the premium.
l met yesterday the director of another
West Australian company who conGded
to me that he and his associates were seri-
ously embarrassed by the fact that the
company held in its treasury cash and the
shares of subsidiary companies accumu-
lated within the last two months, amount
ing to market value of 10 times the total
capital stock. They did not know what to
do about it because the payment of enor-
nous dividends seems to disturb instead
of strengthen public confidence in the COM
pany.
There are dozens of cases where found
ers' shares in companies formed six months
or year ago now command 200 times tho
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 well known
that the Paris Rothschilds are taking an
active part in the deals. l happened to
learn the other day of options taken week
ago, at n nominal price, by an agent of the
RothschildS in the stock of u company not
yet issued which today is worth $3.50, 600.
1t is by such operations as these that
money is being made. The great boom
| will continue AZ long as the public is mac
| ly anxious to pay 300 or 400 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 speculation in
that city by refusing to list the new stocks
until January is not likely to be etfectual.
The opposition is so strong, in fact, that
| the decision may be rescinded, as the chief
effect threatened is to transfer a large pro-
portion 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 something to check the overwhelm-
ing tide of speculation, but thus far no
protest has had the slightest effect.
There are indications that public atten-
tion will be turned more to West Australia
! than to South Africa within the next few
weeks, because the former Ell Dorado has
not enjoyed its fair proportion of the
boom, ard African shares are now quoted
at such fabulous prices that they have be-
come less tempting even to gold mad spec.
ulators
Meantime there is a very interesting
crop of new milliOnaires, who are making
themselves and their money felt in many
queer ways in London. Some of them
frankly 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 build
Ing a wonderful yacht to bring the Amer
ica's cup over here.-London Letter in
New York Sun.