, 1870-10-17

~ tAonb VI y d61lcu1tu16. 1o1Of6 the IN-
Fosd WA completed, the San Francisco met-
chsnt Wss obliged TO order his goods from tho
East nearly eight or ten months ahead, be-
cause ~ had 10 be brought BY the Isthnus Or
" LUG long voyage around Cape Horn. At
ms time Of the completion of the railroad.
larSe amount Of goods Were thus stoat for
California, and taesa continued to arrive in
gtoat quantities after shipments begin to he
large by tho railroad. Then, - soon
as the railroad was completed. msrchanta
In New York. Chicago, ard st. Louis, who bad
never Lad customers vest Of the IockT
Mountsina before, began to go over and to
cell to the very customers TO whom San Ffa2-
yet coming by sea- For year after tue road
was 0nirhed, the country merchants Of CALI
fornia and Nevada had goods pressed upon
item from both sidea, and, not knowing in
which direction they should eventually tind
thsir source Of supply, t,ouGhs of both uut
they had, IN m4ny instances, moro th4n
they knew what 10 do with.
In addition to this, many people assumed
that the compilation OF The railroad would
bring greenback currency there u the.
"mouey Of account and that trade on the
Pacific COST would he greatly htimulated.
In anticipation OF fhia, quantities OF conmod:-
lies were shipped there from New fofk and
Eli tLese means the whole country was 40
over tQcked with goods that it Ii estimated
that, Just after the railroad WAS finished. the
supply ol manufactured goods from abroad
MAJ &c, ,to0, 900 in excess Of the Legitimate
tIale demands Of the country This conli-
itself BY the Diminished purchases Of Califor-
n,a country merchants, but it will tako 4 year
yet before trade ia worked down to 4
legitimate ba.is. Another reason for eons
decline ef ttade in SAu FRANCHISE Is that Itzv-
cllers from ths interior to the East now take
the railway At various places along its line,
inrtead Of coming TO san Francisco to take
the steamers. IL they did two years ago.
BAN FRASc1soo CAPITAL.
In San Francisco, trade ID sustained BY
cold basis of capital in money. The aggre-
gate capital OF the thirteen principal banks Ut
discount in tho city il about 600 900, VIZ;
Bank Of California, s5.o@, go; London {
e Co. e,aatssS 9k b.1f q hsh coansia'
81, ,250. ODD; Bank Of British North Amezica.
s150,060 Pacific nank, s7so,oo0; DOM.
hoe, Eelly Co., .s500.0n0; Wells,
Fargo i Co.. :5OO, ,000; Lather + Co.,
s500, 900; Tsllant + Co., s55o. 1000; John
Sims oos s Co. s25o.oooi rasrot = e,
Hso:seI 4 Beron, si5o, ,ooo; nisEol lick I usu, Spesr,,
S75t00.
This u Il large amount Of bsnk capital, and
it wonld seeun tLat. with such supply, money
should be cheaper in Sau FfanciBco for zegu-
lAr 1iscounts than y per cent But, in adlli-
ton to this large bank capital, which il near-
bie financial feature Of San Francisco ii tho
asyinga banks, Of whice there arc ten in the
city whoee aggregate deposits amount to
S:9 81, 112--s hun Just about equal to the ag-
g1egate capital and deposits Of all the banEn
Of every description III Chicago. 1liis money
is the savings Of laboring men and women,
mud II to tho credit Of 45,601 deposilors,
f1ttr1r1 y}Int74 tive EfHfn 1Nntr nF
SG;A to each. These savings banks are pro-
libited by their charters from ,loaniug
money on auy other eecarity than
real estate, and the facility with wbici, money
is always to be had from them, nj 10 and II per
cent, on Eeal estate security, has contributed
largely TO keep up plicss Of real estate in the
city to just about hat they are in correspond
ing locations i'll Chicago The long depression
in trade in San Francisco would naturally
have caueed decline in ya:nea of real estate
but tho 1oaEa OF the savings lanks havo en-
hDleI people 10 carry MI property we.l-loc1tud
within tho city limits. Land rpeculations,
limits are unsalatlc.
For the present, it sscms to mo San
FranciFco ii far ahead OF California.
Here Is city which, in point OF bank caai-
tai, il fsr ahe I'd OF Chicago, aud in general
facilities for businesa, in the way of a tine
port. and Of lines Of railway, and Of river nav
IEAIIlls IL &c E0HEt1uI IL IuOEk III {llG 4aETG
cities Of thcso Middle States; aud vet tbe
whole population Of the State or California ID
scarcely over Coo, coo. or just Atout 1uubla the
population i1slde Of the corporate limits oil
Chicago.
DECREASE OF THE PRODUCT or GOLD.
TIC cause foe 70 g1cas q dispsutortion bo-
twesu iha development Of tho city au1 the
State, at the present tirne. must be looked foi
III tllt fact that the gtowth anu wealth Of San
Frnpcieco were the result Of tho abnn3nuce oi
tlne gold product soon after its discovery, and
tE,e easc With which single Individuals conld
without tie aid Of capital. acquire fortunes
Tie placer diggings Of California were tht
Foftunatus pnrse for thousands Of men wht
never would lavo acquired competence II
auY other way. From these the gold ven
| into thu fauls OF the many, who acquired i
easy AID rluandcred it lavishly. fsut thi,
c!nhs Of population disappeared from Cali
forn,a when the placer digging. began to fail
In 1852 the gold product Of California; wa
nei1,y zoo; o 4 -; am q, aware ,,,1 th,t Thu
thCro il reason for thinking It ii nea1cr cor
rect. In 1860 the whole gold product OF thu
Pacific coast Nas scarcely Sj5. .00d, ,003-a de
crease Of nearly t~o-thirds. Considering thu
the class Of miners who produced the s9J, 600,
C00 In 1882 werc mostly men who woua,
eoou spend the whole of their fortunes. nntl
On the other hand. that the class who pro
duced tho sS5, 700 900 in 1850 were rracfica
business men, who invested large capital il
luartz-millr, and hydraulic wnrkp, sud wons,
tuy largc portion Of their own goods in IT,
Eabt-1 Say, considering those facts in regar
to the mining interests OF California, there wa
abundant reason for the slispru1urliene.0 dc
yeloFment OF San Fr4uc,eco as compared t
flat Of tho State. Eren tie development G
the +llver mines OF Nevada aud Utah lav
somt tendency to decrease the trade .
sau Francisco. because, while il draws the mit
the talnc time places them nearer 10 Easter
sources OF supoly. Quartz mining il noH Il,
onlE meaEs Of .cS'T'nG, even to molesat
extent, tho ,goli production Of califoEni'
unfortunately, this has fallen into kind {
progress. There sre ''nngs" Of rich mo
: who onn Qua.tz.milss. and who manage
, mAtir. .ufate tile stock1 OF the mining coIna
nics 70 that the mipcs are worked at nopruh
, snd often At an absolute Ilss to the stocl
. oWncrr, while the quartz-mills OF tho mautp1
lato1s make money. The result is that mo
Califoruians Who have taken stock in lu It
, lode. nte getting disgnsted, aud evcrywhe
oEc carr l'ut one tto!y+ Of continuous assta
ments to pay the expenses Of tho mines.
SILK AND WINE
! Gold digging is only pro 1.,ctiou. and 4
!; reproduction II is obly digging out Of Il
cath what was once placed slrrc, and new
can be replaced; hut agriculture is an Q
l,snstiess placer that induces permanent 20
5 n1atioD, and it IL 10 this That California mt
i look for her greatest development, aud
Q | which ebe has already made marvellous pro
il | T.aht yenr San ErAnrfacn axNnrt