The Evening Star MONDAY, OCTOBER 30, 1871.

Evening Star, Volume IX, Issue 2715, 30 October 1871, Page 2

The Evening Star MONDAY, OCTOBER 30, 1871.

Sandhurst, in Victoria, has once more become celebrated. Twenty years ago fortunes were made by surface digging : this year it would appear that rich quartz has been reached at a depth of something like one thousand feet, and Victoria is mad with excitement. We do not suppose that mauy here will be foolish enough to be led into the wild speculation. It is fortunate that we are too far distant from it to share in the frenzy; for it is nothing less. It is one of those wild rushes after fortune that marie every pursuit in which there are supposed to be chances of great gains. A little solid reflection on the character of the speculation might save hundreds from embarking in it ; and those who have witnessed similar transactions, and have been behind the scenes, can point out tb? necessary results. All those extra-'

ordinary phases in commercial history have featured in common. As certainly ns consequent follows antecedent” so do a few, a very few* get rich by duping the many. In every one of these speculations there is a trerm of truth, but it is exaggerated and distorted so that men deceive, themselves. In Great Britain, at the advent of the joint stoclc banking system, banks only supplied a want much needed ; and if there had been knowledge euoughjto guide men in correctly estimating profits, there would not have been the earnest desire evinced by people of all classes to share in what were believed to be mines of wealth. Some banks did well, and immediately it was concluded that all would do so ; and just as in the Tulipomania every-

body became a purchaser, so at Home every one wanted to be a banker. But then the matter went further. When Mr A. and Mr B. were known to have sold shares at a premium, there was a demand for cheap shares that would command a ready sale in the market, and the supply was very soon fully equal to it. Beckmann’s “ History of “ Inventions ” describes what took place in tulips from 1631 to 1637, and it is true of every bubble and share mania since that time. After telling of the prices which tulips fetched, he says ■ A man of the name of Minting won by this trad* more than 60 000 florin? in about four months. It was followed not only by mercantile people, hut also by the first noblemen, citizens of every description, merchants, seamen, farmers, turf-diggers, chimney sweeps, footmen, servants, and old olothes women, Ac. At first everyone won, and no one lost. Some of the poorest people gained in a few months houses, coaches and horses, and figured away like the first characters in the land. In every town some tavern was selected as a ’Change, where high and low traded in flowers, and confirmed their bargains with the most sumptuous entertainments. They formed laws for themselves and had their notaries and clerks. '*** * * *

In proportion as more gained by this traffic, more engaged in it : and those who had money to pay to one, had soon money to receive from another ; as at fare, one loses upon one card, and at the same time wins on another.

At length, however, this trade fell all of a sudden. Among such a number of contracts many were broken ; many had engaged to pay more than they were able ; the whole stock of the adventurers was consumed by the extravagance of the winners; new adventurers no more engaged in it; and many becoming sensible of the odious traffic in which they had been concerned, returned to their former occupations.

No doubt there are important differences between flowers and mining shares. The tulip never had value excepting as a beautiful ornament, whereas rich mines are reproductive investments. But there is always this feature in common in all such speculations, scrip is thrown into the market which represents really nothing at all. The question asked is not what is the worth of an investment, but what will the scrip fetch in the market. Success in share speculation, even to the few who get rich by it, depends upon continually drawing fresh numbers into it, watching the signs of the times, and getting rid -of stock on the first notice of the game being up. It follows that the ultimate gainers may he counted usually by units and the losers by hundreds or thousands. As in gambling transactions, each is anxious only for himself. There is no such thing as mutual benetib as in trade, The sole object and purpose is to got rich at fire expense of neighbors, and in order to do this, legitimate commerce suffers. Bankers look suspiciously upon persons who engage in such transactions : money is tied up in payment of calls that is needed in business ; reproductive industry is neglected; trade languishes ; the whole social structure of the community is disorganised. There may he a partial palliation of these evils in the impetus given to working new ground, as for instance in Auckland; but even that is often based upon a hap-hazard venture, ami might have been far more certainly carried out by methodical and tradesmanlike investigation of the prospects of success. The mania in Victoria cannot last long, the fever is too intense : and before twelve months have past, hundreds, perhaps thousands, will regret the Sandhurst share bubble.