The Ashburton Guardian. Magna Est Veritas et Prevalebit. THURSDAY, AUGUST 16, 1883. The Diamond Bubble Burst.

Ashburton Guardian, Volume IV, Issue 1023, 16 August 1883, Page 2

The Ashburton Guardian. Magna Est Veritas et Prevalebit. THURSDAY, AUGUST 16, 1883. The Diamond Bubble Burst.

The belief that we were all going to be made rich suddenly by the development of diamond fields in this province was so pleasant that there can be no wonder that it received many ardent votaries, and the mania which has been raging in Canterbury during the past few weeks was encouraged by the receipt of vague telegrams that might mean much or little. The trusting faith of those who allowed themselves to indulge in dreams of unlimited wealth in the immediate future has however, received a rude shock. Mr Mark Herman, a gentleman who has had fourteen years’ experience as a diamond miner in South Africa, has been induced by the reports that reached the Cape as to the discovery made in New Zealand, to come hither and spy out the land, and the result of his investigations is that what were fondly imagined to be precious stones are absolutely valueless. As might be expected, this unwelcome news has not been received with very good grace, and it appears that the enthusiastic Mr Jacobsen actually lost his temper and refused to acknowledge that he had been mistaken. It is not difficult to excuse this on the part of one who sud-

denly finds his hopes blasted and the chance destroyed of his being quoted to posterity as a benefactor who had hit upon a source of vast wealth to the land of his adoption. lie has our sympathy, but Mr Herman’s verdict has been so entirely confirmed by the subsequent messages sent by Messrs Kelsey and Cunningham that only one conclusion is possible. When the history of New Zealand comes to be written, not the least interesting chapter will be that which tells of the rise and fall of the excitement over this alleged diamond discovery. At first the news that evidences of the presence of diamonds in Canterbury had been found was received with incredulity, and although there was no reason to believe that Mr Jacobsen was not acting in good faith, he was looked on as a man whose enthusiasm had got the belter of his judgment. This opinion was fortified by the experiments made by our University professors, who decided that the specimens entrusted to them would not stand • the recognised tests. But the discoverer was not satisfied with this, and in spite of the indifference shown by the general public he scrt the stones to England for the purpose of obtaining expert’’testimony as to their worth. It will probably never be known exactly bow the excitement which has been rampant during the last month first arose, but so far as the tacts have been made known there certainly appears to have been nothing to justify it. Suddenly, shares which were originally at a nominal figure rose to a price altogether out of proportion to their worth, even if the most sanguine anticipations had been realised. Rumors filled the air as to the result of the Home tests, and when the gentleman who had charge of the specimens sent a cablegram so vaguely wo.ded that it could be read several ways, the most unlikely interpretation was put upon it because it dovetailed with the wishes of those who had speculated in shares. One of those manias forthwith commenced, in which men appear entirely to lose their reasoning faculties, and nothing was talked about but this wonderful discovery and its promised results. Not only were we to have diamonds, but they were to be found in such numbers that in our ignorance we had been actually using the material containing the precious stones for J metalling the streets. But now the inhabitants' of Canterbury must make up their minds that the sudden affluence that was predicted for them is a delusion and a snare. The disappointment will be less keenly felt in Ashburton than in Christchurch, although the former place would have benefited more had the diamonds

turned out to be genuine. The truth is that the interest felt in this matter here was jocular rather than serious. We hoped all that we were told might be true, but we can bear with resignation the news that the little black specks found in the reddish brown stones that are strewn along our roads are not really diamonds, because very few people believed they were. In Christchurch, however, the case is different. The sudden rise in shares in visionary ventures shows that there is an un healthy spirit of wild speculation existing at present, and no doubt legitimate trade has been disregarded while this mania has been raging. Bitter feelings will be engendered now that the inevitable reaction has set in, while men who have lost money will be slow to admit that their misfortune was chiefly due to self-deception. Still, we must admit that if Mr Kelsey’s first telegram had been as explicit as was his last one all this excitement would not have arisen. People will ask why he did not ascertain what was the real worth of the stones he took to England before forwarding his report. He himself says that four brokers had pronounced in favor of the specimens, but he subsequently consulted a higher authority who reversed that verdict. Was not the highest authority as open to him when he first landed as it was later on ? Then again, we have the fact that Mr Kelsey remained silent for some time, and it was not till after Mr Cunningham had been communicated with that we learned the truth, the arrival of the final messages from these gentlemen being synchronous. These things may be susceptible of easy explanation, nor is there the slightest cause to believe that Mr Kelsey has not acted with perfect good faith. But at the same time men who have been abnormally excited and have lost money through their own foolishness are only too ready to accord blame to people undeserving of it, and for this reason Christchurch would be a particularly unpleasant place for Mr Kelsev at the present time.

There is, however, a soul of goodness in this evil thing. If diamonds have not been found, it does not follow that minerals equally important do not exist in Canterbury. Indeed there is a widespread belief that gold will be discovered on this side of the ranges, and the numerous prospecting parties which this excite nent has called into being may be successful in hitting upon some new source of riches that will benefit this province. At any rate we shall have the satisfaction of knowing that the country has been thoroughly examined, and this in itself will prevent the recurrence of the unreasoning and unhealthy speculation that has been going on recently.