The Gisborne Times. PUBLISHED EVERY MORNING. TUESDAY, AUGUST 11, 1908. THE SLUMP IN DIAMONDS.

Gisborne Times, Volume XXVI, Issue 2266, 11 August 1908, Page 2

The Gisborne Times. PUBLISHED EVERY MORNING. TUESDAY, AUGUST 11, 1908. THE SLUMP IN DIAMONDS.

Tho nows that the famous Do Beers group of diamond mines in South Africa was to bo closed down on July 31. is a significant reminder that tho Western world, at least, is not feeling so financially capable as it did even a year ago. No more eloquent testimony could be had of the severity of tlie incidence of tho recent financial crisis upon tho fortunes of tho wealthy. In a general way it is a reflex of tho condition Europe; but particularly is it a reflex of the condition in America. There was a time when tho East was the great mart for diamonds, but for a generation past America has been far the most greedy buyer. No other species of gem seems to have appealed so strongly to the American taste as the diamond, and the demnnd has grown with the multiplication of the inordinately rich, until a year or so ago, when the Republic was taking more 0 f the first quality stones than all the rest of the world combined. But- when money becomes something of a consideration to tho individual, a few diamonds can be made to go a very long way. At all events, wo get some idea of the extent of the American economies by a comparison of the New York Customs returns for two periods a year apart. For instance during the first seven weeks of the present year the diamond importations from South Africa represented a value of about £70,000, as against nearly £1,000,000 for the corresponding period of 1907. In these circumstances it is not surprising to hear of phenomenal depression in tho South African diamond industry. For not only is the Do Beers affected, but ten other properties as well. Some of these appear to hive been embarrassed for some time past, and a few closed down earlier in the year. The fall in values of diamond stocks has, of course, been disastrous to holders. De Beers 6tock, for instance, was in the beginning of April worth hardly more than a third of the highest quotation of 1907. This is the great mine which laid the foundation of the late Cecil Rhodes fortune, and lias scattered millions in dividends to share% holders generally. In the case of the lesser properties the falls have been, with few exceptions, from pounds to shillings. The trouble has not been to get a price, but to be able to dispose of stones at all. Of course, no one imagines that the present condition of affairs will be permanent, or even that it will be of long continuance. But while it lasts it is a serious thing for investors, and aD equally serious thing for Capo Colony, which has been under a cloud of depression since the war. Being in the hands of a few big corporations, production has always been regulated so as not to spoil the market, and this policy is not likely to be departed from now when the position is so critical. Some opinion prevails that the prospects of tho industry might be improved if the prices were reduced. Indeed, it was difficult to suppress a smile at reading earlier in the year the published suggestion of tho oxMayor of Kimberley, that file price of stones should be lowered “so as to bring them within the reach of tho masses in Europe and America.”