THE AUCKLAND GOLDFIELDS

Lyttelton Times, Volume XXX, Issue 2489, 14 December 1868, Page 2

THE AUCKLAND GOLDFIELDS

j The New Zealand Herald of Dec. 2 pub' lishes the following report from Mr P. Kissling:—

During the past month a very perceptible change has taken piace in the general aspect of affairs at the Thames. A few months tile majority of investors staked their money on pure chance, in large or small sums, ju>t as the fancy might take them. Very few had had any experience on other goldflelds, and reliable advice was difficult to lc obtained. _ The consequeuce was that scarcely any claims had a real market value, everything was at the arbitration of the shareholder, and according to his capacity and opportunities for puffing, so was his chance of gettinpc rid of a share at a long price. While this state of things was prevalent it was impossible that our goldfields could advance "satisfactorily ; to buy and sell again was the object of most speculators, and as a necessary result the development of the Claims themselves, the erection of machinery, the construction of tramways, and other necessary works were to a very great extent neglected. Of these facts the Southern Press made the utmost possible use, in order to prevent the withdrawal of capital from their own districts; the want of returns was freely commented on, and it was alleged that there were only one or two were actually payIngi Add to tins that tlio winter was unusually wet and protracted, and it will be easy to account for the time of depression which followed the speculation mania of May and June.

lrom this depression the goldficld ia just DOW beginning to emerge, and speculators generally hare received a lesson which it will take tlieiu sorao timo to forget. It lias been found that 011 this goldfield, as elsewhere, steady work is required 111 order to make money ; that the possession of a large number of claims does not cf necessity ensure a fortune, but does ensure the disbursement of considerable sums in tho way of wages; that the mere changing of shares by skilful management from hniid to lmnd, far from developing a goldfleld will hate a directly opnosite tendsncy, and by frightening bona j We investors must finally react to the injury of those who make their money in this manner These truths having now become pretty generally ndmitted, it is observable that all, or almost all, of the investments which are IUHuo are based upon a calculation nf the probable dividends, and upon the length of time during which it will be necessary to pay wages before any return can be looked for. Of course there still remains an element of Uncertainty—iuseparable from all goldfields transactions—about investments at the Thames, but it is taken into account in the prices given, and it may fairly be said that the outlay of capital upon the field is now reduced to a tolerable business footing, so that capitalists setting off one investment against another can form some approximate

Tlic increased confidence which from the above state of affairs (lay more and more evident to th» tar -ll those who liave any business connf,;.." 11 " of the Thames. If no other guide is til'" 1 the price of land at ijhortland or r ""o town, it will at once be acen that' , gambling speculations may h ave f business and business profits rest» 1 ciently firm foundation to chase of allotments, or the erection , t,lJrat ray high priccs-and thnt f (JU 'f ">i solely the immense quantity 0 f „ 00 « hat) been proved to ex i ßt in g '",' rounding hills, When, h' h « s»raddition to this it j g o} tr , j„ machinery is being erected on n! lt "t able site; that a tramway comnani informed, and that othen are f O LjJ,? Wn veying qnartz from the inland ,ii beach; tint capitalists are en<w" ,1 !o h lease ground under a pledge to exr""""'-' per annum for each man's er.mnri £i,/i and that the majority of in these enterprises are not mere a h tl,,Urlj but sober nr;n of business, who hlose, and of whom many are the sight of " gold fever," it Cln ln to be doubted that the Thames eol ifi , from being an Auckland chimerf /« reality. ~ l3a l'tjvel In every creek from theTaram t,„ also at Tapu and I'uriri vrr Jr k j' 6 J / a '*■ actively carried on, and f rom „. ' where machinery is availahe y Clilra eient to give handsome ' S °®" shareholders are to b tibtaintd '[> 11,5 better testimony to the richm-V- , i,, field, and at the same machtnery, could be given than, 1' oi a well-situated claim ne ar •] efatt that cently thrown up, bccawtt //,, Konly obtain a yield of bttaem ut \ mld ounce* to the ton. When such 11 thrt! tan happen there can be but li ? ' 5 ,hil surprise if the returns eentra U ' etot very small-it is atonceadir ~ ' nt m ton not h>l anjtkh, lil a lbal S w, In the share market there is nn i same difficulty of sa ] t whi , "° !on ?« the been experienced.]]-; « airi r ,' aa recen tlj be got rid of ®i:v Aft third rate, or for unproved claim, V, and impossible t» find B purchaser "• °- at companies which have been enr ii the Mining Cowpanie, Act [ 3 1 1 under readily, and every day slum-,' • U P disposition on the par o S a !; ,M ; eas . in g this kind ef investment that theoompr.ny is fornS en a" basis Claims are, in J Minis. Ik e,il to b'S against in such associations is themr-S the original shareholders of an unfair prone/. tion of paid-up scrip. if J£« were aware how shortsighted a policy thi l and what a prejudicial effect it l.as upon their market they would hardly be so g« sp £f. the delay m the sale of their compart shares far more than counterbalances the value of the small additional interest which they are able to retain. If this is avoided, the additional security and other advartages offered by companies are so great, that all claims of any value would find it advisable to avail themselves of the Act in question I believe that by far the best plan of distributing the capital of these mining companies is to let the original shareholders retain all the scrip, but only as partly paid up, If then they are unable to meet further calls, they can sell a portion of their interest, in order to defray the working expenses on the remainder. By this means the original shareholders save themselves from appearing to work their claims at the expense of the public, and a greatly increased confidence in their claim is the result. I have lately sold a number of shares in the Long Drive and Fai Marire companies at ii premium—the former of £1 per shsre; the latter of £1 15s. Jn the Caledonian Company a premium of £2 per share is asked md obtained without difficulty. In the Whau Dompany a premium Df £lO per share is isked. In the Auckland Company, on the uoanatain, a number of shares are offered at i discount of £2, but a3 soon as this Company is in regular working order, and has jommenced crushing, a very sudden rise m:y je anticipated iti their shares, as their crround lontains several undoubtedly go:d reefs, 'hares in other companies but receutl) started ire offering at par. In ordinary claims I have succeeded in dislosirg of a few large interests, and aiiumter if small ones; but sales of this kind ef pre>erty. except where an actual return is being ibtained, are slack, consequent upon the ixaggerated value which many shareholder >lace upon their interests.