Greymouth Evening Star, AND BRUNNERTON ADVOCATE. MONDAY, MAY 6 1901. OUR GOLD DREDGING.

Greymouth Evening Star, Volume XXXI, 6 May 1901, Page 2

Greymouth Evening Star, AND BRUNNERTON ADVOCATE. MONDAY, MAY 6 1901. OUR GOLD DREDGING.

The overhanging cloud of depression in gold dredging is clearing, the slump passing away, and there is very good reason for this. The “ clouds ” and “ slump” were caused by over-specu-lation by gambling pureandsimple and not because the industry had failed or looked like failing. Last months average as we before pointed out was 22 ounces 5 dwts per dredge per week. The first weeks return from six working dredges averages 26 ounces, or if we put the Greenstone Junction, which was only opening the claim, seven and a halt ounces in we have over 23 per dredge. This is a return that fully warrants the belief that dredging is a reality, and as the Premier the other day stated “ has come to stop. ” Our contemporary the Wellington Post has struck the true key note : “ The dredging market seems to be in a state of collapse, and mining speculators who invariably go to extremes are just now in the very depths of despair. The outlook is gloomy and uninviting, and consequently there are more sellers than buyers. Critically examined, it seems that the crisis is fully a financial one, and the inevitable outcome of the gambling of a year ago. The restless and speculative among brokers, however, could not remain idle, and the Exchanges wore manipulated, and clients were whipped into speculating in the good things, more particularly in the shares of companies whose dredges were beginning to look ship-shape. Much of the business was done on credit, and the brokers themselves became overloaded with shares nominally belonging to clients, but which the clients were unable to redeem in cash. In poitit of fact, jobbing on a large scale, indiscriminately and senselessly, was started, and some of the jobbers not having resources for the campaign are now more or less in financial straits. The industry, however, is as good today and as promising as it ever was. So far as the output is concerned there is every reason to anticipate a very large increase with substantial dividends for shareholders, but this does not mean that the market will of necessity improve. The comparatively low prices at which shares are selling may induce many who have hitherto held aloof to buy in, and likely Melbourne and Sydney capital may be attracted ; if so, the market wid revive, but in any case there is not likely to be a recrudescence of the gambling which prevailed a few months ago. The industry is sound, but the financial aspect is unsatisfactory, and it is this phase of the matter that needs attention. It is difficult to suggest any remedy, but it would he certainly unwise to force shares on to the market just now. Holders of scrip in the better class of ventures have no cause to alarm, while those' who are desirous of speculating have the market at their mercy at the moment.