MINING NEWS.

New Zealand Graphic, Volume XV, Issue XXII, 30 November 1895, Page 685

MINING NEWS.

GENERAL dullness has characterised business in mining stock on the Ex change during the past week, and in many cases values have declined in a most unwarranted manner, unwarranted because the reports from the various mines continue very satisfactory, while the returns from the companies actively at work on properties already developed have been very good. A yield of £10,119 tor 28 days and £102,890 for II months from the Waibi mine, and £12,780 from the Kapai-Vermont since February should surely convince invectors that when systematically developed our mines will pay handsomely. The delay in cutting Legge's reef in Bunker’s Hill Mine at Coromandel no doubt caused some uneasiness, but that fact alone cannot have affected the whole marker. The real truth is that the persistent floating of new companies has resulted in the locking up of large sums of money, pending the completion of suiveys, and has also glutted the market with cheap scrip. Syndicate shares in new ventures were eagerly taken up in the hopes of selling scrip at high rates later on. Now many speculators ure reali ing that they have got more stock than they can comfortably hold, and the result has been a general desire to sell, and when buyers were few shares, were steadily ollered at declining prices, a fact which caused those who wished to buy to hold oil and wait until bedrock was reached. To tush ehares on the market when buyers are not numerous is a suicidal policy, which only plays into the hands of the ‘ bears.’ Now that the Banks have reduced the rates of interest on fixed deposits to 3J per cent., people will be inclined to look for other channels of investment, and no doubt more local capital will find its way into the developing our mineral resources. It must not bethought, however, that no business has been transacted during the week, for on the contrary wise men have purchased largely of what are known to be really good stccks, taking advantage of the necessities of sellers to secure their shares at low rates. This has been particularly the ca-e with regard to shares in mines that are known to be systematically worked to get tho gold, and not for market purposes solely. This proves that people are ready enough to invest in companies which are being worked in a bona fide m inner, which is of itself a guarantee of the permanency of the present wonderful revival in our mining industry. The formation of so many new companies, although responsible for the present dullness on the Exchange, must ultimately have a beneficial effect, for as they are nearly all no liability companies, starting therefore with cash in hand, it naturally follows that the

work done will be systematic prospecting over a widespread area of country. Such operations are the best possible basis for goldmining, and as the general tendency is towards special claims of 100 acres, labour will not be wasted in useless operations on small pieces of ground. There is every reason to expect that if these prospecting operalions disclose rea onable prospects of success, the necessary capital will be forthcoming.

English investorshave already shown their readiness to take up genuine ventures to a considerable extent, so that any of the new companies which strikes a payable lode, has a fair chance of being placed on the London market, to secure capital to erect the requisite machinery. During the past few months alone the follow.ng companies have been registered in London :—To Aroha Syndicate, £25.000 : Kathleen. £75.000 ; New Hauraki, £lOO,OOO ; New Zealand and Geneial Mining Syndicate, £25,000; Preece’s Point (Coromandel), £100,000; Taraiu Creek, £25,000; Union VVaihi, £200,000; Victor Waihou, £110.000; Waitekauri Ex ended, £130,000; Woodstock United, £130,000; and VVaihi Proprietary, £175,000. Be-ides these several other properties are teally sold, although the legal formalities have not yet been completed, as for instance the Alpha, Gladstone, May Queen, Moanataiari, Queen of Beauty, and other properties in various parts of the goldfields. All this points to the fact that capital wll be forthcoming provided that suitable properties are offered. London is, however, subject to cillapses, such as that which occuired a week or two ago, and which is still allecting that market to some extent. The fact that within the last week offers have been made for various mining properties by cable warrants the assumption that the London market has about recovered to its normal condition. Concerning that collaose a London correspondent writes :— ‘ The fact that the big South African (or Kaffir) promoters and operators are turning their attention to Westralian and New Zea'and enterprises, is of considerable importance to the latter colonies, meaning as it does a fresh stream of capital and investors. Curiously enough, the dabbler in Kaffirs seldom meddles with VVestralians or Maoris. He knows liis own mines, or (what is far more important) his own men, and dreads burning his fingers if he strays out of the right groove. When, however, his men lead the way he follows readily, not to say greedily. Thus the World's Treasure mine in Westralia was floated and underwritten and soon this week entirely by Kaffir operators, and several are biting at New Zealand properties.’ One great advantage of properties being taken up by London capitalists is that it is the energetic way in which the work of developing the property is pushed forward. The Waihi mine is a notable instance, also the VVaihi-Sil verton, while at the VVaitekauri mine over 100 men are now employed on day work, and contracts in constructing a tramway and water race from the low level tunnel to the site of the new battery, and the bush tracks present a lively appearance studded with tents and whares. In other companies equal energy is being disp'ayed in developing the properties, so that the results in the future must bo a considerably increased output of gold. It wi 1 thus be evident that the state of business on the local Exchange this week is not a reflex of the condition of the mining industry, but purely the result of want of confidence occasioned by the buying capacity of many investors being overstrained, and also because of the plethora of scrip in companies that have not yet been able to start work, owing to surveyors being unable to overlook the work they have undertaken. The permanent interests of bona fide mining should not be very prejudicially affected by the collapse in the sharemarket. English capitalists, as we have pointed out, are sti 1 enquiring for eligib'e properties. Hitherto their investments have turned out very handsomely, and the reports sent Home by mining experts despatched hither for the purpose of spying out the land have been of the most alluring character. Consequently it is merely a question of time before other properties will be purchased which will na'urally revive the confidence of local investors.