Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1904-01-09
MINING
Some of the Reasons Why They
Are Being POularized.

1t is a curious corollary that i'm
mediately after a financial panic or
any monetary disturbance Stimulating
a panic there is always a large
amount Of money ready to seek min
ing investments. This was strikingly
true in 1893 and 1894. When the
financial miasnia of that period had
been cleared away by general liqui-
dation, money which during the high
tension period sought investment in
all kinds of eastern fields, suddenly
turned to the more conservative and
inviting n of mining. The con-
ditions at the beginning Of 1904 are
strikngly similar to those of a decade
ago. During the past twelve months
there has been a total shrinkage in
nearly all lines of securities approx
mating thirty percent greater than
the total shrinkage of the 1893 panic.
A general panic however was hap
PLY prevented, due not so much per-
haps to the action either of the
Government or of any coterie of f.
%nanciers as to the unusually prosper
u condition OF the country at large
and to the unparalleled development
of the Western and Southern States.
Nevertheless, the total shrinkage
and the general liquidation, as before
suggested, was tremendous. Up to
about a year ago the country had
gone trust crazy; money was un-
sparingly dumped into the laps of
the promoters by an eager and ira
tional public. Individual e
which as such were earning good
profits were handed over to trust
adventurers to become a mere unit
in the attempted a~malgamation of an
entire industry. 1t was found that
while most exhorbitant prices, gen
orally in new stock certificates in
stead of cash, were often paid for the
individual plants, such plants we're
operated often in a desultary way OF
perhaps closed down indefinitely with
a view of c~urtailing production and
increasing prices. This condition left
the original owners to view their idle
plants and contemplate a stronghold
full of hydrated securities for which
there was neither price nor profit.
Then supervened a logical period of
liquidation-paying up of debts which
refused to run longer. Such a con
dition necessarily forced many to the
wall, and taught a lesson not soon to
be forgotten. 1t was seen that in
vestments were not wholly controlled
by the general conditions of trade
nor by trained and qualified Captains
of Industry, but rather by Major
domos of iucapacity. 1t was seen
that such men were Incapable of
forecasting future conditions or
avoiding the perils Of Industrial effort.
1t was realized that great industries
were subject to the ipsc dixit of
some misdirected upstart, that favor
ties, irrespective of qualifications,
we're pushed into difficult managerial
offices, and that the investments
we're not under prudent direction.
Immense fortunes were paid to the
promoters for services that we're
seldom commensurate.
All such criteria, coupled with
greatly reduced dividends, operated
di%sasterously to the investing public.
1t forced them to refuse to be led up
the mountain to be there tempted by
Satan. They viewed the valley be-
low through their own more rational
glasses, and of necessity turned to
conservative and fundamental chan
nels of economic effort.
Farming and Mining with their
allied industries always have and al
ways will constitute the primary
elements of wealth, The public is
rapidly learning that in those indus
industries there are, when reason
able judgment is exercised, less
danger, and that more substantial
results can be obtained. If the same
amount of business acumen is exer.
cised in mining investments as is in.
iected into industrial speculation, the