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Hastings Standard, Issue 206, 28 December 1896, Page 2

If wo glance back on the events of

the year we find two or three that stand out prominently, and these might well have wrecked the money market. First there was the Jameson raid in the Transvaal, which struck the South African mining market with a severity from which it has not yet properly recoverd. The " Kaffir Circus " as this market is known in the London Stock Exchange is the parent market, and when this is depressed Westralians and Maoris as the respective mining markets are known cannot hope to be buoyant. The disturbance of the Jameson raid and those it specially affected, the Kaffir Circus, was felt by Colonial mining shares. It took some time for Westralians and Maoris to get clear of the depressing influence, and when that appeared to be complete there came sensational reports of the collapse of Coolgardie. " Nothing in the field " we were told and this after several millions of British capital was sent out to manure the field. Here there was a fresh scare to mining speculators, but so far as New Zealand was concerned this rather tended to divert public attention to the auriferous character of our fields, and from May to September the representatives of British and foreign syndicates roamed about the country seeking for something succuleut in the way of mining properties. Options were taken up right and left, but unfortunately the time limit of the options have not, in the face of circumstances, proved adequate, for most of them have been extended. The Turkish question, and the American Presidential election, have disturbed the money market, and the eruption of the latter is still being felt. The discount rate of the Bank of England from which may be judged the state of the money market, wa>, kept at the " dirt cheap" level of 2 per cent for a record period of nearly HI months, it was then suddenly advanced to 2h pei - cent, to be followed a fortnight later by a further advance to S3 per cent, and a month later a still further aYlvance to 4 per cent was made, and this is the present discount rate. The open market rate for three months' paper has risen from l*2s Gd per cent, per annum to £3 lis Sid per cent., which shows clearly enough the stringency of the London market. The mining boom in New Zealand was based on the idea that the options secured by the syndicators would be successfully sold in London, and prices of shares advanced to correspond with the advantages expected to arise from Home flotation. Many of these options fell due since the Bank of England discount rate was advanced, or, which is the same thing, since the London money market began to wear an austere aspect. The syndicators have been unable to convert their options, and have consequently been forced to apply for extension of time. To weak holders of shares the position appeared dangerous, and many threw their shares upon a market always sensitive, and down came prices. That is the position to-day. The market is lifeless, flat, dull, anything you like, but there is no collapse in mining.

There are without doubt a numerous progeny of " wild cats " amongst the mining ventures of New Zealand, and a Hat market such as is now being experienced is rather an advantage, inasmuch that it helps to kill this class of dangerous vermin. We are confident that the mining market will again revive, but so much depends upon the London money market. Those who fancy themselves at prophetic utterances say that towards March or April next there will be extreme activity, but any prognostications of this character must be accepted with an " if " until the warlike nature of European politics changes. If war breaks out in Europe, we shall have no time to waste on the price of mining shares or the prospective value of mining claims. Given a peaceful year in 1897 we are inclined to think that there will be a general revival in every branch of industry, and those who to-day turn up their noses at cheap mining shares will in a few months' time curse their stupidity and their bad luck.