The herald., 1897-09-17
OFFICE OF THE HERALD,

OFFICE OF THE HERALD,
LOS ANGELES, Sept is, 1897.
when everybody is borrowing and lend
ers shut down at once, there come tight
ness Of times and panic, which we have
had. When everybody gets economical,
quits borrowing because compelled to pay
,ff as fast as he can, good times and pros
perity follow, which we are now to have.
1t is good sense and one of the certain
laws of political economy"
+ + +
The continued depression in the price
of silver has occasioned new financial plans
formerly unheard of in connection with
silver mining enterprises. One of the lat
est, according to the.Mining and Scientific
Press is sort of warehouse certificate
IDEA, based on the grain storage custom.
Every producer of silver in the west half
of America is receiving circular from
a concern in st. Paul, Mimi, which pro-
poses to ''buy sell and hold in trust gold
and silver bullion" The scheme Is not
without it's advantages, but is as one
sided as the handle of jug.
The plan is for mining company in this
state, Montana or Colorado, etc., to de-
posit silver bullion with the local bank or
safe deposit company, which local concern
will forward warehouse receipt for the
amount of such bullion at current rates to
the St. Paul company. which upon receipt
will issue corporation certificate of de-
post and return it to the local bank, which
in turn will give it to the depositor' This
certificate will agree with the depositor to
hold the bullion until it shall reach an
elevated price, which shall be named in
the certificate, when the bullion shall be
sold and the certificate called in and
cashed." Producers of silver bullion are
invited to enter into a combination con-
tract and agreement with the st. Paul cor
poration that they will place all of their
production into the hands of the corporation
and accept the corporation certificate of
deposit therefor. That concern says that
its certificate Of deposit will at all times
be worth the price of the daily market for
silver, and producers of silver bullion will
be allowed to hypothecate their certificates
for cash. thus giving producers. chance
at any time to realize the going market
price of silver, and enjoy the privilege of
carrying their certificates until the price
of silver bullion shall have attained the
elevated price named in the cooperation GER
tfficate.''
1t is believed that the advantages Of the
plan so far as the producers are con-
cerned will not be so manifest as to cause
a general acceptance of the idea 1t is
probable that silver producing concern
that cannot find any present profit in op-
Grating will feel more inclined to let the
silver stay where it is "till it shall have
attained an elevated price," rather than
mine and mill 1t for deposit in Minnesota
or Nebraska.
Just at present the Cripple Creek mines
are not the fashion. The attention Of in
vestors, and more particularly of the spec
ulators, has been diverted to other oppor-
tunities for making and losing money, and
Cripple Creek is neglected. The promoter
who gets his harvest from laying off a
barren mountain side on the edge of some
district as mining claims and then sells
them to a company capitalized for several
million dollars has fed to other and more
tempting fields. Cripple Creek has be-
come too we'll known, too easily reached,
and the activity of such journals as the
Mining Investor has had an unpleasant
effect on these schemes. The further off
they can get, the more remote and the
more inaccessible the properties which
they ars trying to boom. the better pleased
they are pleased. The Klondike, guarded
by thousands of miles of wilderness and
shut in by Arctic winter for nine months
Of the year, has been the best kind of ma
terial for such specula tors, and the pub
lie, with that unreason which makes a
scheme look attractive in proportion as it's
essential conditions are unknown, has been
quick to place its dollars at the disposal
Of the enterprising gentlemen who are
now engaged in spreading rainbows in
Arctic skies to the very substantial benefit
Of the pot of gold in their own pockets,
Mining Investor.
+ + +
Captain Lee, from the Klondike, says:
"As to the amount of gold taken out of
Klondike since the strike in August, 1896
the total does not exceed 81, 100000. OF that
amount about s1000,00O has come SOUTH
The remainder has gone In wages, expenses
and reinvestment in claims. During the
same period over 81, 900, 900 has gone in pro-
ment the trading companies at Dawson
have orders for food and supplies for the
coming winter from miners already there
to the amount of 81, 100000. On this sum-
mer's rush alone about 100000 has been
spent. More has been spent in steamboat
passages to Alaska than has been taken
out of the Klondke. In other words the
Klondike excitement has cost $4,000 900 up
to date. and has produced about 81, 600, ,0OO."
4 \ 4
The Cincinnati Price Current says: "When
1t is considered that the worlds yearly
wheat consumption represents approxi-
mately $500, 0,0O0,0 900 bushels, or 2,2oO, ,OOo 900
bushels or more for food purposes, and that
per cent decrease in average consumption
for food would mean 100000 900 bushels, 1t
Will be seen that it, as Beerbohm states is
apparently the situation, there is a fair
balance between supply and demand with
out such allowance, 1t must appear reason
able to regard with doubt tho probah,lit;aS