BANKS AND CURRENCY
Everybody knew that rich patches of gold were there, somewhere; but like the pearl in the oyster shell, it was valueless until found and gathered; and for the gathering, water was essential, water with sufficient fall to reach the field, and with power for working; so it was more eagerly sought than were gold indications because, having water, gold would surely be gathered, whereas gold indications were but such, and no more, until worked. There are spots still unworked, lying neglected, that would afford good returns were water cheaply available. This is but cause and effect; had the water been available, such places would not have remained unworked. Ere long the high-lands were explored for water, but few sources found; so catchment areas had to be relied upon; dams were to be seen in every direction. One Renewal Certificate of Registration issued to McClatchie Bros. in 1888 was for eight of such.
The cost of water was considerable, being, according to a Magisterial report of 1870, from £4 to £9 per claim per week. It was sold at a price per “head” the measurement of which is explained in another chapter. Before the standardising of a “head” by regulation, and the maximum price fixed, payment was much a matter of bargaining, according to the “fall,” and the hours per day and the days per week that the water would be used. A good dam was a more valuable property than the average claim-holding. Several dams were within the town area; one close to St. Patrick’s School, another behind Section 333, and another occupying Sections 205-207 facing the old Buller Road.
As stated, the banks backed many enterprises, some too liberally for the banks’ ultimate good. At first the quantity of gold coming to the smelting-rooms was great, but as the supply diminished the aspect of business changed, securities fell in value, defaults were inevitable, and moneylenders suffered. Foreclosures on mortgages were not always easily or peacefully effected. It is told of one battery which a bank seized, that a keg of powder exploded on the premises, which were wrecked, including the hut in which the bailiff was sleeping.
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