In conclusion a little advice to intending investors should prove useful at the present moment. While every proposal to the British public must be judged on its merits, there are certain points often over-[looked by the readers of an American or Canadian prospectus.
In the first place there is a very dangerous tendency towards over-capitalisstion—a tendency which should be checked
capital asked for British Columbian mining by legislation," Thus, in, 189, the toe and transportation companies exceeded 0,000,000 dollars A parallel tendency aim-holders to set too high a value on their claims (utterly unproved claims being priced at ten or twenty thousand dollars on the strength of two or three selected scraps of exceptionally rich rock or specimen quartz" as working miners ironically style it) is partly the cause, in part an effect, of this very serious evi Accordingly it bohores the intending invester to consider very carefully the nature of the property or properties to he taken over by tle new Company, and to endeavour to arriv a true comparison of their real value as compared with the price to be paid to the vendors. And, while this advice applies in the case of all new Companies whatever part of the world is to be the scene of operations, it is seven times more pertinent with regard to the various British Columbian schemes now before the public than regard to Australian or South African flotations of " similar nature; for in nine eases out of ten the properties in question will be found to consist of one or two dains containing gold and silver hut not necessarily containing money (the distinetion should be obvious!) together wit variety of odds and ends (the belonging sind good-will of some storekeeper or i dividual or firm engaged in transportation, are familiar items), which may seem to the uninitiated to have a certain value but are in the eyes of those who know the country where even a doctor's practice would not fetch a cent) worth nothing—or less than nothing.
In the second place, the student of the prospectus of a new Company promoted in the West is pretty certain to over-rate the strength of the directorate. Supposing the list of directors contains the name of members of " Provincial Legislature or of the Dominion House of Commons, he is ape to regard the fact as some guarantee of the soundness of the concern. He knows that the average English or Scotch M.P. is a business man of substance and repute, and be naturally believes that the Canadian M.P. (M.P.P.) is not much inferior in this respect, and like the former would: never allow his name to be used in connection with an unsound undertaking. But Canada, having no large leisured class and being a country of such magnificent distances that the BLP. cannot attend to his business as well as his legislation, is obliged to pay the workers on her political machinery; with the result that politics have come to be looked upon as a profession (in the States they are looked upon as a trade, and it may come to that in Canada!), and the average partisan gets to Ottawa for the sake of his sessional indemnity and by means of hia position.
Thetendency, so fatal to the cause of good government in the States, for the successful business man to look upon the game of politics with a species of amused contempt is becoming more and more noticeable in Canada, and it is much to be feared that such men as Sir Charles Tapper will become less and less common in the political circles of the Dominion, Even Jas things are the Canadian plutocracy (a rapidly increasing class) seldom meddles with politics except indirectly when their vested interests are likely to be affected and the fact that a prominent politician (even if he be 'a Cabinet Minister) is the director of a new Company is no argument in favour of its character. "These politicians are the cheapest direotors!" was the remark made to the writer by a good all-round authority on British Columbian affaire; and the saying may be commended to the attention of those who are directly or indirectly interested in financial Hooliganism—or Hooleyism rather!—ia the West.
Finally it must not be forgotten that the colonial mining expert (though a more reliable man in most cases than the American ing sharp") is often more or less unqualified, and, oven when duly qualified, is not always altogether trustworthy that the report of a new Company's mining engineer must be considered with reference to his name and qualifications and reputation. Most Enylish mining engineers are honourable men, who would not lend their names to bolster up any shady under-and if the tame of one of thes occurs in a new prnpectus it may be taken as a better yuarantes of gon presence nf any number for, For those who are unable to obtain li formation from a friend on the spot, are in a position to spare the time and the expe se (six weeks and £50 will suffice) trip to British Columbia may berecommendpreliminary to any. investment of importance. Apart from the infurimation to be gained by x personal inspection of the mine or mines into which the investor thinks of putting his money—and the writer knows of two cases in which hundreds of pounds have been saved by such information!—the trip alone is well worth its cost. There is no more beautiful country in the world than the "Sa of Mountains and those who have a turn for sport and do not mind roughing it for a while, can get as much fishing and shooting as they desire, at n ridiculously small cost.
Text read from the printed page and cleaned; old type leaves the occasional error.