The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-07-17
The Commercial and Financial Changes or
the Age.

the Age.
Steam and the magnetic telegraph ar
rapidly producing the most extraordinar
changes in the commercial world in the system
OF commercial exchanges and in fnancia
operations generally. But by far the mos
powerful agent in this work is the magnetic
telegraph. We cannot yet see clearly the ulti
mate results, but from what we do see it L
evident that we are on the eve Of greater
revolution in these matters than the world hal
ever before experienced. One thing is certain
and that is, that the nation which occupies the
most central position on the globe and which
has the most varied resources, with an active
and intelligent population to develop them
must become the commercial and financial
centre Of the world. That position and these
advantages the Uni.ei States holds pre-emi
ncnly. What Italy was in earlier and Eng
land in later times this country will bscoms
in future, and, in . com nercill and financial
point Of view, 1t will be still greater than
either. New York, as the metropolis and
centre of trade, will become more important
than ancient Venice and will eclipse London.
But these agencies will not only change the
course and centre Of trade but the manner Of
transactions in great measure also. Take,
for example, the enormous business which has
been done in money exchanges between differ
ent parts Of tho world, and the imm ,nse pro- 8
on these to the bankers and cities that have
controlled them, and then consider what will
be the effect Of the telegraph in cha1 ring all
this. Heretofore a merchant Or. any other
person wanting to trans..nit funds from bne
place TO ano'n'r ID 90 either hy bills Of ex.
chango OF v shipping the cash, aud ,nerally
oys -,Ils Of exchange, as being the most con-
venient mode. Il has been SO not only from
| one nation TO another, but also from one
remote part to another of he same country.
This business, though very convenient 10 NIL
chants and others, has in tho aggregate been
costly to those awaiting themselves of it, and
yer,- profitable to bankers and exch lnge
brokers, Indeed, it has been so profitable
that colossal fortunes have been made by 1t,
as in the case o, the Rothschilds, and great
cities have grown mp to be, through Il,
the commercial and financial empor;ums
of the world. We know Of one firm which has
made large fortune in tue course of few
years by dealing in bills of exchange between
Chicago and New York. With regard to the
dealers in foreign exchange we might name,
besides the Rothschilds, Barring and hundred
others, who built up their fortunes in the same
way. This, in fact, lies a. the foundation Of
the commercial and financial success Of nations
as well as Of individuals. Il arises from the
concentration of capital, and then does much In
continuing to concentrate capital The great
ness Of Venice arose principally from this
cause The Venetians if we mistake not, were
the first to emit commercial bills of credit or
deal in exchanges; AMI we'll did they profit by
IT, Amsterdam and other cities in the north
of Europe afterwards had the sagacity to mo-
nopollze this important business London
finally turned this stream of wealth to rself,
and has since become the financial centre Of
tho whole world.
A revolution, however, has commenced,
through the agency Of the magnetic telegraph.
Now q person can deposit his money In one
city, telegraph that it ia SO deposited, AMI hi,
correspondent at distance of thousands of
miles can draw the amount from some branch
house on the same day. Tim,, which is money,
is saved, and the profits OF exchange brokers ere
saved; and the whole is done for the mere cost
OF t,legraphing and q small percentage to the
banks through which the money is sent.
This Is what is going to take place generally,
not only between America and Europe, but
with the commercial nations of Asia as well.
Natural advantages will superseie the artii.
| cal power of capital AMI combination OF capt.
talists. The telegraph ard steam will quicken
and develop the industry and trade OF all
nations, and particularly those of the teeming
| populations of Asia. We are in the centre Of
| tho world with one hand stretched out 10
! Europe and the osher to Asia, and the business
| Of both will pass this way. New York, on the
| Atlantic, and San Francisco or somo other city
| on the Pacific. are destined to be what Venice
was and London is-the centres Of trade, com
merce and financial operations. Though we
are but in the beginning Of this great change, i
will take only few years, Comparatively
speaking, 10 bring about the surprising rcvolu
ton. The world moves now with lightning
speed.