Silver or Gold.

Te Aroha News, Volume VII, Issue 474, 24 May 1890, Page 2

Silver or Gold.

This Australian Mining Standard, of May I-till, contains the following excellent article : “Referring last week to the questionable system of management adopted by many of the Barrier silver-mining companies, we ventured to predict that unless a radical change is effected, much of that capital which has lately been invested in Broken Hid properties will be withdrawn and placed in gold mining concerns. So altogether fashionable have been silver properties and silver stocks during the last three or four years, that the idea put forward lias been scouted by those most interested in the matter, who hold interests in silver properties. But closer consideration of the matter will show that the idea is far from ridiculous. Great as is the promise of several of the silver properties, even those in Broken Hill most loyal to their district cannot deny that for the capital invested an absurdly inadequate return is being obtained. Taking the paidup capital of the companies, and having forthe moment no regard for the fact that the market value of the stocks is vastly greater than ftie paid-up capital, it will be found that not £ per cent per annum is being returned to the investors. I We might close our eye- to this fact, ami, i with more good nature than justice, remember only that other companies will ishortly pay dividends and that the perjcentage will then lie increased ; but when those who have the management of the companies in their hands show that to increase the percentage is with them only a secondary consideration, it is surely' ■ time to ask the general body of share-

I holders and the public to open their eyes. That they will nwak© from their dream Hooner or later is certain. Bnt if they defer the awakening it will simply mean in the end not only a refusal to invest any new capital in Barrier silver properties but also a general and disastrous rush to j withdraw capital from them. ! If, instead of paying an alarmingly small rate of interest, the principal companies were on the average paying, say, 5 per cent on the market value of the shares; and if there were no other promising fields for the investment of capital* the managements might be better able to play ducks and drakes with shareholders and the public. Bnt, in the first place, as we have said, the dividends paid by BrokenHill properties are far below £ per cent per annum upon the aggregate market , value of the shares in the proprietary compauies. In the second place, there are many other fields which are not only bidding for, but deserve, attention. What is to be most deeply regretted is that, should a wholesale withdrawal of capital and confidence from the Barrier take place, other highly promising silver-fields will suffer* notwithstanding that the managements of the mines on those other fiolds have acted justly throughout. In some cases these mines have been opened up to such an extent as to. be now able to pay expenses, if nothing more at once ; but the collapse would weigh heavily on callmaking companies. It is in the direction of the goldfields that attention will, we think, be directed, if inconsiderate board's and managers turn it away from the silver fields. Everything seems to point to a revival in goldmining. In New South Wales, the most backward of the eastern colonies in the development of her auriferous wealth, one hears much more of gold now than for some years past; and, moreover, one hears of greater success being achieved. Last year’s production was the greatest since 1883. And he who reads the managers’ reports appearing week by week in the Mining Standard must have noticed that an unusual number of crushing plants are being erected. It is a fact also that the proportion of gold-mining to silver-mining companies floated during the past three months has been 2 to 1. For the three years previous this proportion was re - versed. In Victoria we see even more pronounced indications of a revival; and Sandhurst especially promises to be more active than it has been for some years. On the New Chum—the principal—line of reef there, both at the northern and southern extremities great improvements have taken place. It is curious to note that Sandhurst has so far had a wave of prosperity about every ten years. The years 1862 and 1863 witnessed its greatest alluvial triumphs ; 1872 saw the marvellous yields obtained from the shallow quartz on the Garden Gully line; and the early “ eighties ” witnessed a well-remembered revival. Movements are afoot to establish pyrites works at both Ballarat and Stawell; and* if these are established, a fillip will be given to gold-mining in those centres. | New Zealand, the total of whose gold is greater than that of New South Wales, is also attracting attention. For many years the colony was regarded as a “ poor man’s field.” Tne people now appreciate that those days are past. Had they done so ten years ago it would have been better for the colony. Not only are the rich ores of the North Island being mined more extensively, but more serious attention is also being given to their economic treatment. In the Middle Island nre the richest rivers in the world ; and the steady decline in the output of Otago has been arrested largely by the employment of improved, but inexpensive, dredges in the Clutim and other rivers, and on the sea coast. Queensland’s auriferous wealth is beyond all computation. It is now the largest gold-producer of'the group, and must claim attention. Nowhere in Australia is a . better return being given by mining companies for the money invested than by those whose properties are at Gympie and other Queensland centres. Then as to the metal itself, despite all that has been said and written about the advance in the market value of silver, there is almost an absolute certainty of the price of gold being obtained, while there is no very remote probability of an advance. Upon the expiry in 1891 of the term during which the countries in the Latin Union agreed to uphold silver as a standard, the silver currency of each union country in circulation in another union country will have to be, paid for in gold, unless the bimetallic term is extended ; and to this great opposition may be expected, es ! r pecially in France. If the term js not extended, the demaild for gold will be almost unprecedented. . i We have nothing to do with the share market. We are neither “bull” nor “ bear *’ either of silver or of gold stocks. What we desire to do is to ahow that it is dangerous in the extreme for the manage-

ments of the silver mines nnd mining c.impanies t>» do anything wli cli will mak(; the tittblie more disgusted than they j ere now with those managements. Very little is sometimes necessary to produce a panic, and a panic in the silver share market would he particularly serious, because of the high prices which have been paid in hard cash for stocks.