The Sun.
London, England, 1870-03-03 00:00:00

A NEW OPENING FOE INVESTMEN7.

One of the most legitimate English modes of busi-
ness, alike profitable and useful, appears never to
have been applied to the United States, though of
proved value as regards the colonies. We presume
it will be granted that there is a surplus of capital
in England, and a difficulty of selecting sound se-
curities offering what may be considered a fair
interest. It will also be granted that there are parts
of the United States rising in wealth and popula-
tion with unequalled rapidity, the want of money
to conduct the increasing business in these towns
far outstripping the supply. Such a place, for in-
stance, is California, where cash advances could not
be procured, if covered by real estate and British
Consols as well, each equalling the loan in value,
under 12 per cent. per annum. What could be
raised in England at 4 percent. command in San Fra-
ncisco three times th atinterest, a ratio that may be taken
in the West as a fair average. Therefore, on the
,ne hand, there is a dearth of capital in that place
recognized as the most prosperous city in the world,
with the most brilliant future ; and, on the other, a
stagnation and consequent glut, money for years
hanging like a drug on the market. The question
"s
—Could not the means be found of bringing Lon-
don and San Francisco financially together to their
mutual benefit? What has been done for New
Zealand and Australia, with profit to all concerned,
might surely be accomplished for San Francisco—a
far finer market for the employment of capital than
any at the antipodes. The principle applied to
those colonies would be found to answer admirably
for the Pacific States, and it commends itself for
its simplicity and practical utility. When men
desire to raise money for any enterprise in a
foreign city they are apt to proceed to London,
and draw vividly on their imagination in describ-
ing the advantages offered. As the English have
suffered from the practice, they naturally view with
suspicion all such proposals. The most legitimate and
a regular " wild-cat" stand on much the same foot-
ing, for Europeans are unable to distinguish
between them, and know little or nothing of the
value of the names which guarantee the statements.
Consequently the legitimate enterprise is confined to
the American city, and if certain to be enormously
profitable can perhaps get the capital required,
while the " wild-cat" seeks its fortune abroad. This
system is a glaring mistake, for it is not the enter-
prise that ought to come for the money, but the
money that ought to go to the enterprise. What we
mean is, that trusted agents of the lenders should
be sent to work on the spot, and that loans should
never be advanced for any enterprises at the risk
of the English lenders, but on securities which their
agents may pronounce to be absolutely safe. It
would not pay a very large dividend simply to loan
money in San Francisco through such machinery at
12 per cent., for the expenses both in London and
in California would make a considerable hole in the
profits. There is, however, a large class in Eng-
land who desire a regular half-yearly dividend pay-
able in London, the amount of which they know,
and on which they can rely. It would not suit
the pockets of such investors to await remittances
from San Francisco or to risk diminished incomes
through trade losses; and it is by them that Trust
and Loan Companies make their profits. On the
strength of the amount paid-up, of the subscription
and the balance remaining unpaid, as well as the mort-
gages taken by the company, and the security of all
itsproperty, they take up the issue of 7-year debenture
bonds bearing 7 per cent. per annum. This money in-
vested on the security of real estate in San Fran-
cisco realizes to the company 12 per cent. ; hence as
long as the interest of the mortage is duly paid, a
balance of 5 per cent. less working expenses is the
profit of the company. So long as these debenture
bonds command confidence and are freely taken,
the operations of the company, unless its agents are
dishonest, must be in a high degree remunerative,
and the gain to such a city as San Francisco is even
greater. Enterprises likely to benefit the commu-
nity,as well as the individuals who undertake them,
can be carried out, for the means could be supplied
through a trust corporation at what in California is
considered a reasonable rate of interest. The owners
of land property in that city may be willing to
mortgage it at two-thirds of its value, while un-
willing to force its sale at a sacrifice, and one of the
great benefits a Trust and Loan Company confers
on the community is thatitthus sets free capitalother-
wise locked up, and gives a broader scope to sound
business. We have before endeavoured to excite at-
tention to this profitable means of investment, as
one singularly calculated to do good. San Fran-
cisco is within telegraph communication of London.
It is the growing centre of Pacific commerce,
whence now, or will shortly, radiate steam lines
northward to Sitka, southward to Valparaiso, west-
ward to China, Japan, the Sandwich Islands, and
the Australias, while it is the western terminus
of the great transcontinental railroad. Such a
business, as we suggest, is peculiarly calculated
for that rising city ; but there are other American
towns wherein English money could be similarly
used, and, perhapsf as profitably to all. As, how-
ever, California presents the widest field, we would
like to see the experiment, if such it can be called,
tried there first, confident, as we are, that it will
open a new channel for business.—Anglo-American
Times.

Bank of France.

PARIS, Feb. 24.

The following is the return of the Bank of France
for the week ending to-day, together with the cor-
responding figures of the previous account :

DEBTOR.

Feb. 24. Feb. 17.
fr. c. fr. c.
Capital of the Bank.... 182,500,000 182,500,000
Profits in addition to

Capital (Art. 8, Law,
June 9, 1857) 7,044,776 02 7,044,776 02
Reserve of the Bank

and its branches 22,105,750 22,105,750 14
Reserve of landed pro- . _

party 4,000,000 4,000,000
Notes in circulation
Banknotes to order and

receipts payable at
sight 42,659,297 62 41,924,322 24
Treasury account cur-
rent creditor 166,417,086 15 153,480,915 16
Current accounts, Paris 303,951,102 71 308,425,453 66
Do. branch banks 47,145,791 43,256,499
Dividc nis payable 1,991,541 2,129,145
Discoioats and sundry
interests .. 3,196,794 12 2,967,133 32
Rediscot nted the last _ _ ___

_.
ix mcnt
1,305,522 15 1,305,522 15
shs
Surplus of re)eipts not
distributed - -
Sundries

Total
CREDITOR.
Feb. 17. Feb. 24.
Oath in hand and in fr. c. fr. c.
Branch banks
Commercial bills over-
due - 255,488 15 123,749 19
Commercial bills dis-

counted, not yet due 294,855,193 07 292,759,689 61
Do. branch banks 290,866,997 282,802,571
Advances on deposit of
bullion 10,856,900 12,116,800
Do. branch banks 1,462,500 1,682,400
Do. on French Public
...

Securities 19,219,300 18,944,600
Do. by branch banks 7,919,750 7,775,950
Do. on railway shares
and debentures 39,412,500 —39,421,5 W
Do. branch banks
Do. on Credit Fencier
Bonds
Do. branches 1,249,100 1,211,000
Do. to the State (Con-
vention, June 10,
1857) 60,000,000 60,000,000
Government Stock ro-

serve 12,980,750 14 12,980,750 14
Do. disposable
Rentes Immobalisees

(Law, June 2, 1857) 100,000,000 100,000,000
Hotel and furniture of
the Bsuk and landed
property branches 9,082,030 9,082,890
Expenses of manage-
ment 275,678 40 474,888 58
Sundries

Total
Certified by the Senator-Governor of the Bank
of France.

(Signed) RoULAND.

Though Fort Clarence, at Rochester, is to cease
to be used generally as a military prison at the end
of.the present month, most of the officers receiving
superannuations, a few prisoners whose terms of
imprisonment are short will still remain at the Fort
till their expiry, the officers left in charge being a
chief warder and an assistant warder,