The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-07-13
TIE TRANsvAAL MINES.

For number of years the Transvaal
mines have been a matter of wonder
menJ and surprise to the world, not
solely because of their truly great
produotiveness, but quite as much by
the remarkable manner in which they
captured the English imagination and
caused English gold to flow TO South
Africa. That stream has about stopped
and the return current is not very
strong. What is the reason for all
this? The London Economist says that
the mining industry in the Transvaal
IS for the most part played cut. 1t says
that the position of actually producing
mines. win, on the whole, as a result
of reforms and economies now being
put in force in all the properties, be
more favorable than for a long time
past, but that no reforms imaginable
would enable number of mines now
crushed TO make a profit. The Econ
omist further says:
Nobody probably realizes the i'm
menSe sums Of money still needed TO
bring to a producing stage the mines
on the main reef nor the fact that most
or these mines under present taxation,
won't pay when they are equipped.
The position of many mines at the
present moment, which are heavily in
debt, and either shut down or working
al a loss, should be enough TO cause
real alarm to the directors of w-grade
mines who are still rashly spending the
working capital On hand Or are them
selves running into Gig debts. But the
methods of finance on the Rand have
been always rotten, and until the pre-
sent engineers and managers are
brought 10 their senses they viii con-
tinue to be so. The financial position
Of the industry six months hence, I'M
less great reforms are granted in the
meantime Will be thoroughly rotten,
and until this is re.nedied European in
vestors should absolutely refuse to
touch single Transyaal stock.
The great depression has not yet
made itself thoroughly felt in the town
and population of Johannesburg.
Hundreds of course. are already
ruined, but thousands are on the verge.
and in a month or two more there VIII
be a regular crash. Hundreds of houses
are empty, and rents are coming down
at an alarming rate. II is easy TO see
now thae the town has been hugely
overbualt and that town property has
been much overvalued. A number of
big buildings, tire relics of last years
builulAS bOOlil, dic SUN SOln5 up bGt
these. when finished, remain half
empty. and one feels sorry for the num-
Der of small storekeepers who are
starting business. OF a truth, johann
nesburg is about 10 suffer for it's sins,
and the extrava gance of past years is
about 90 have its reward.
The hold that Kaffirs took on the
London market was wonderfully re-
markabie. They were to London what
Panama canal shares were to Paris
some years before. When they We're at
the height Of the boom the returns
upon leading stocks was only about
per cent on the selling price. but that
fact seemed to have no effect what
ever upon buyers; it was the specu-
lative possibilities of the stocks and
not their intrinsic value that sent them
up And up and up they went until at
last the whole thing collapsed.
viii the English or anyone else
profit by the lesson? 1t is doubtful. 1t
will be harder to start another min
ing excitement in London, that is all
But most men are Incapable of realiz-
ing that disasters which have happened
to others can happen TO them. And af-
ter ALL it is a good thing that men are
more cheered by the successes of the
world rather than depressed by them.