OVER SPECULATION.

Grey River Argus, Volume XIII, Issue 1661, 1 December 1873, Page 4

OVER SPECULATION.

[lyttklton times.] It is a simple thing to fill up a printed application for'shares^ but few seem to be aware of the risks they run or the obligations they incur by so doing. Thousands of people have been ruined by this very easy action. Lecl away by the.. prospect of a premium, people frequently apply for shares in a new undertaking regardless of the liabilities they take upon themselves. The allotment is made, premiums do not fall in, and then commences the struggle which so often ends in serious lobs, if not in ruin. Few enter into these engagements as a permanent investment, and the question of dividends never ' seems to form part of their calculations. Take, for instance, and Insurance Company witli unlimited liability. The suei cess of one or two such undertakin»3 is usually productive of a large crop of others, and we are already— after the sue- • cessful launching of the South British and National Insurance Companies— j threatened with no less than three others, j inOtago, Wellington, and Christchurch. Several foreign companies have been obliged to withdraw from the Colony, and it is reported that others are about to follow their example. Under such circumstances, it is astonishing to find men of experience and standing lending their names .to schemes which have only .the., barest chance of success. _ r The Colony is now enjoying a season' of' prosperity, but that prosperity i is;in .'itself > a strong reason ;> why we should be; .cautious, 1 ' and * ' not shut' our" eyes ' ; to' a possible reverse*:,; We* do not wish to create any feeling of alarm, but simply to urge greater caution;- There is in the community th&saine disposition for overtrading, .excessive, importing; and specu-. lation, which existed ten.years since,, and; which brought us from a state of prosperity; jto a long/ period j of > depression .: Before entering into these share transactions,! j men; should cdnsid'er'!,whethertheir meana,axe Bu,fficient,,so ,enable them to lock up capital for at least two or three years, and to provide for' whatever calls may be: tnade:'; If they ire; riot in such a, position j ; they*' 'do an injustice to their legitimate' business, and in , the event of financial, ' difficulties \ arising /give good cause for a charge of reckless expenditure of creditors' money. Our position is now commercially sound, and, with a fair amount^ofjjaution and discretion, may be maintained,' but share speculations and overstocked markets are the certain forejunnwidM* bad times." ..vn • - ■