The Evening Star FRIDAY, NOVEMBER 5, 1869.

Evening Star, Volume VII, Issue 2029, 5 November 1869, Page 2

The Evening Star FRIDAY, NOVEMBER 5, 1869.

Everyone in Dunedin must be pleased with the prospect of increased yield from the goldfields of the Province, as shown by the information received from the Dunstau district. There could be no doubt in the minds of any acquainted with the geological history of gold, that reefs of auriferous rock would be found somewhere in the neighborhood of alluvial fields ; and that eventually quartz mining would take the place of surface digging. This second phase had been reached some two or three years ago in this Province, and would by this time have been developed much more fully, but for the speculation induced by misrepresentation from the raining districts, or from the bungling manner in which many of the companies went about their work. We have every confidence in the payable character of many of the reefs of Otago j but we have no wish to see that wild speculation induced here that has characterised the rise ol quartz

mining in Auckland. We think it our duty to publish all the information that is obtainable as early as possible, respecting the discoveries that may be made, but we by no means endorse every statement that may reach us by electric telegraph or by letter. All that the conductors of a newspaper can do, is to be as careful as possible to obtain early and reliable information. But it must not be forgotten that “ own reporters” and “own “ correspondents ” are flesh and blood, liable to all the errors, prejudices, passions, and excitement, incident to humanity. Our instructions invariably are, “ communicate nothing that cannot “ be relied uponand we have no reason to believe that what appears in the Evening Stay, if erroneous, is ever otherwise than an accidental mistake. But it must be evident that in estimating the value of gold discoveries, while the production of a few specimens of rock containing gold, is pvima Jade evidence of a rich reef, and therefore sufficient to justify the formation of a company, it is not sufficient to justify running up shares to a premium, and thus holding out inducements to get up a share mania that, instead of forwarding mining development, "will ultimately retard it. It should be enough to remind the people of Otago that this has proved the result of such a gambling game here as well as elsewhere. Three years ago quartz reefing attracted much attention, and several companies were formed for working the reefs. But very few of them were brought into actual operation, and many who were led to invest their money have had to regret that they were deceived. But really there was no necessity that it should have been so. No human foresight can penetrate a rock, and say whether or not ib will prove rich enough to pay for working. To that extent, therefore, quartzmining is speculative. But the rock is not, in general, the deceiver. Properly examined and tested, it commonly tells the truth. That against which precaution has to be taken is the designing schemer, who comes bent upon entrapping the trusting and unwary. “ Own correspondents,” editors, reporters, and the public are alike liable to be misled by such men, and still the more when their statements are verified by the sanction of the names of men of influence and mark. An illustration of the unscrupulousness of this scheming class of men came within the experience of the writer of this article while in Victoria, which may prove the value of caution in mining matters. Some fifteen years ago, in Victoria, as in Otago, the surface diggings showed signs of exhaustion, and prospecting for minerals of other kinds than gold was liberally encouraged by the Government. One man came forward with rich specimens of copper, and asserted that he had found them in a certain place (a lease of which he obtained) which of course he was unprepared to name until he had some guarantee that he should have a profitable interest in the disclosure. His object was to get up a company. A company was formed on his representation, but in consequence of the depression of trade at the time, many of the shareholders became insolvent and no steps were taken to open up the ground, and it fell through. But the specimens were so rich, and the prospect so promising that the formation of another company was undertaken by one who luckily was cautious enough to go about the work in the right way. Determined that the shai’eholders should not be swindled, the condition of purchase of the claim was that within a fortnight, on a trifling subscription for prospecting being paid, he should sufficiently open the ground to show that there was good reason for believing a lode of copper existed. With the utmost effrontery the game was carried on, and within the specified time, intimation was given that the cropping out of the lode was laid bare and a rich prospect opened. In two coaches every member of the company proceeded to the spot, we need not say with every requisite for a comfortable picnic. But with them was one Avhose presence was neither desired nor expected by the projector. Amongst the amateur geologists were the secretary and some others, and they had sufficient knowledge of the science to know that the presence of a savan would be a great safeguard against deception, so they secured the voluntary services of Mr Blandowski, at that time on the Geological Staff of Victoria. The result proved the wisdom of the course taken. The so-called copper lode proved only what is popularly known as soap-stone, and the whole affair turned out a sham. The malachite had been obtained from the Burra Burra mines, and the fellow was shewn up, an impostor and a cheat. Tire inference we wish to be arrived at is, that if due care be taken quartz mining may be safely and profitably developed in Otago—if reckless speculation is entered into, the progress of the Province will only be retarded, and the subscriptions of the shareholders

will go to enrich those who enter into no risk, and whose only capital is their unscrupulous brains.