"The vessels from Panama were kept back by calms, adverse winds, and currents. It will be perceived, therefore, that there can be no inducement for vessels bound round Cape Horn, with mixed or assorted cargoes, to stop at Valparaiso, Callao, Guayaquil, or any port on the west coast, because the exports of all those places will seek a market at San Francisco; and their supply of merchandise, as return freight, will be delivered at less expense than it can be by vessels direct from Atlantic ports, American or European. This tendency of trade to concentrate at San Francisco will be aided by the course of exchange.
"Gold dust is worth but $17 per ounce in Chili. It is worth $18 at the United States mint. If, therefore, a merchant of Valparaiso has ten thousand ounces in San Francisco, received in payment for lumber, barley, flour, or other produce, and desires an invoice of goods from the United States or Europe, he will gain $10,000 at the outset by sending his gold to New York, besides saving something on the freight and insurance, and at least one month's interest.
"The countries on the west coast of America have no exports which find a market in China, or other parts of Asia. San Francisco will, therefore, become not only the mart of these exports, but also of the products and manufactures of India, required in exchange for them, which must be paid for, principally, in gold coin or gold dust. Neither gold coin nor gold dust will answer as a remittance to China. Gold, in China, is not currency in any shape, nor is it received in payment of import duties, or taxes on land, or on the industry of the people.
"The value of pure gold in China is not far from $14 the ounce. Hence, the importer of manufactures and products of India into San Francisco will remit the gold coin or dust direct to New York, for investment in sterling bills on London. These bills will be sent to London, and placed to the credit of the firm in China from whom the merchandise has been received, and who, on learning of the remittance having gone forward to their agents, will draw a six months' sight bill for the amount, which will sell in China at the rate of four shillings and two pence or three pence per dollar.
"I have a statement before me from one of the most eminent merchants and bankers of New York, who was for many years engaged extensively in the India trade, which shows that the profit or gain on ten thousand ounces of gold, thus remitted, would be
| $33,434 44 | |
| And that the loss on the same quantity, sent direct to China, would be | 15,600 00 |
| Total difference in profit and loss in favor of the remittance to New York, | $50,034 44 |
"It will thus be perceived that nature has so arranged the winds and currents of the Pacific, and disposed of her vast treasures in the hills and mountains of California, as to give to the harbor of San Francisco the control of the commerce of that ocean, as far as it may be connected with the west coast of America.
"Important as the commerce of the Pacific undoubtedly is, and will be, to California, it cannot now, nor will it ever compare in magnitude and value to the domestic trade between her and the older States of the Union.
"Two years ago, California did not probably contain more than fifteen thousand people. That portion of it which has since been so wonderfully peopled by American citizens was, comparatively, without inhabitants, without resources, and not supplied with the common comforts of shelter afforded by a forest country.
"Notwithstanding the great distances immigrants have been compelled to travel to reach the territory, more than one hundred thousand have overcome all difficulties and spread themselves over its hills and plains. They have been supplied from distances as great as they themselves have passed with not only the necessaries, but the comforts and many of the luxuries of life. Houses have been imported from China, Chili, and the Atlantic States of the Union. All the materials required in building cities and towns have been added to the wants of a people so numerous, destitute, and remote from the sources of supply.