Speculations in Mining Stocks.

Thames Star, Volume VII, Issue 2599, 7 May 1877, Page 3

Speculations in Mining Stocks.

The following extract from an editorial in the San, Francisco Chronicle is worth consideration by those who are making haste to be rich by speculations in mining stocks:— . .

The man who invests his money in mining shares, not as a mere speculation, but with a view to the income to be derived from his capital, must take into consideration the risk of caves, inundations and fire.

The interest on the money invested should also be deducted from the gross amount of the dividends in order to furnish a basis for an estimate of the actual value of the shares. In view of the serions risks iucurred in all such investments, two per cent, per month is not an extravagant rate of interest to be allowed. And if wo calculate upon twelve $2 dividends making the value of the shares $24, the deduction of interest upon the money invested will reduce the actual value to the figure of -.318. . ■ i

In making these comments upon the rose-colored reports which have just been laid before the public in regard to the new revelations in the 1650-feet level of the Consolidated Virginia, we have no oilier object than simply to induce thoughtless outsiders who are tempted to embark their slender means in siock speculations to do a little cool " calculating " before they launch their frail skiffs upon so stormy and treacherous waters. During the last twelve months thousands of persons have suffered shipwreck on.the sea of stock speculation. The past.year has been one of unexampled productiveness!. We have had bounteous harvests. The mines have yielded in greater abundance that ever before, and yet business has languished, and the general prosperity has not corresponded with the increased production of the*, farms and mines. The gifts of nature have redounded to the benefit, not of the many, but of the'few. The poor have been still more impoverished, and their losses have swelled the accumulations of wealthy nonproducers, wlio do no honest or useful work,.but build up colossal fortunes by processes not distinguishable upon any moral ground from those of the poker sharp and the three-card morite dealer. It is the fever of stock gambling that has caused a general business depression at a time which should, according to all common auguries, have been a season of general prosperity. The actual products of our mines have been enormous, but those products have been of no benefit to the community at large, because of the manner in which the stock market has been manipulated by a few " interior spirits " for their own private interests.^ By the aid of the diamond drill and of fraudulent combinations the community has been fleeced for the benefit of a few large operators and mine directors, who have absorbed the hard earnings of a multitude of merchants, mechanics, clerks, servants, school teachers and. workingmen. These classes of our population are attracted to stock speculations as moths are. allured by the glare of a lamp. They are fooled and humbugged by rumors of " new developments" and rich "ore bodies." They purchase mining shares as they would tickets in a lottery, relying upon luck and chance. They do not pause to consider that there are'numerous stocks dailj' bought and sold in the market which represent mines that have never been developed and which have no "actual value. They act upon vague rumors, or upon " points " furnished by stool-pigeons and decoy-ducks employed by interested parties who are engaged.in. gigantic conspiracies to defraud the credulous and the unwary. ;' •