The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1907-10-19
The Present Depression
In Mining Stocks

The Sacramento Union Of October IA
in its weekly financial letter quotes 4
s spring. financial editor of the San
Francisco Recorder. as saying in his re-
view of current mining stock conditions
that until there it a halt to this de-
pression. aud financial affairs as a
whole become more settled, there is
only one thing hat can almost immed-
lately rescue the mining stock market
from its present state, and that is. IN
my opinion, an astonishingly great dis
covery Of rich ore at some new point
in the mines of Gold6eld, Tonopab, the
Comstock, or other section that is prom
inently represented on our stock
boards. That would Immediately start
a great speculation in mining shares.
mo matter how hard the times may
be-. such a discovery would act like
magic. l nave seen this happen a dozen
times in my experience and this will
TAKE place again, provided such a start
ling discovery can be made. Otherwise
the market will proceed along a slow
course and find its level, based upon
the state of other markets for securities,
and when the accompanying liquida.
ton ceases a natural reaction for the
better will occur"
Commenting on the remarks made
by the financial editor of the Recorder,
the Union says:
While fully indorsing Mr.. Springs
opinions, one of the leading local oper-
ators was inclined to place a more dir
rect cause on the stock slump. although
admitting that the general financial
situation was in a large measure re-
sponsible. He said: 1--WE can trace this
trouble back to the big boom of last
November. Last year Goldfeld was
filed with a lot of enthusiastic brokers,
all of whom had plenty of money.
They worked together in q campaign of
boosting, advertising and promotion.
They succeeded in interesting the en-
tire country in the new mines of Nevada
and the result was a great importing
of money into that State for stock in
vestments. Prices for all kind of shares,
good and bad, rose rapidly, and the ad-
vance eliminated in the inflated quota.
tions of November. All of the opera
tors and brokers of Gcldfield, Tonopah,
Bullfrog. Manhattan and San Francisco
made enormous sums of money, but
they made the mistake of thinking that
the inflated times would continue over
a period Of several years. Instead Of
quietly Withdrawing from speculation,
or proceeding along conservative lines,
they entered iuto another era of wide
spread promotion. taking up new prop.
critics. or buying heavily of the cheaper
AM promising prospects of the young
camps. You know what followed.
People of the East, who saw opportuni.
ties to realize handsome profits. sold
back their stocks to the West, which
was already loaded up with both old and
the newer issues. This heavy liquida-
tiOn utOhc oOWn tnc HiRn pflCes OF
November. and then troubles came
thick and fast The awful Winter
made work impossible in the mines,
and when the weather cleared the labor
strikes and the wrangles with the In.
dustrial Workers of the World followed
With peace restored and work resum.
ed a return to high prices was looked
for. but it was found that the Eastern
people were afraid to buy. having been
scared by the failure of the L. NJ. Sulli.
van Trust Company. Then it was learn,
ed that the East had the money while
the West had the stocks and no market
to dispose Of them. Thus it is that the
larger operators of San Francisco and
Goldfield are stock poor. while the
smaller ones are simply fiat broke. You
ask what will rescue the stock market
from its embarrassment? There is only
one thing and that is new money
Where that money is to come from is q
problem that the future alone will tell