Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1871-09-19
The Plethsrs Of Capital In the Ciue,
-WhAt Might DO Doae With IL.
From the White Pine News.l

-What Might DO Dsae With IL.
From the White Pine News.
In all the commercial and financial
journals Of the cities we find COM
ments, week after week, on the fact
that the bank vaults r gorged with
capital lying idle, unproductive, and
speculations as to what Is the proper
remedy for such a waste. The rates
are lowered, in hopes Of getting out
some of this capital ; but that mas out
slight effect so long as the conditions
for security are continued as strtn-
gently as v The savings banks In
San Francisco parade the fact that they
are ready to let money at nine per
cent, instead Of twelve. The reduc-
tion was made only In the face OF q
necessity. Money has 50 accumulated
In the hands Of those who hold It TO-
let, that nine per cent. has come 70 Do
a high rate. A surplus accumulation
in The European cities, after freely
taking up the Turkish and French
loans, and engaging a large share OF
the latest issue Of United States bonds,
has still the effect to push over Into
the smaller ducts a flow Of funds sur
ficient to oyerstock outside connections
and at the same time make London a
liberal market for a variety OF JOINT
stock operations such as flourish perl
odically during q long peace.
Frankfort relieves her specie vaults
by taking up the loans of the nations.
london. tardily, takes to the same
measure of relief as the rates advance;
and at the same time engages In mining
enterprises all over the world, with a
freedom justified only by the fact that
London capital, employed In such ven
lures for centuries, has acquired con-
fdence from great success; and much
Of that idle capital In her banks Is the
fruit Of ventures In foreign mines and
commerce. London Is the cosmopoli-
tan trade center, where the promoters
Of any legitimate enterprise, no matter
In what part Of the world to operate,
can have a hearing for support. 4 :
But San Francisco, waddling awk-
wardly under metropolitan airs, finds
no vent for her surplus capital-no
ventures on which to embark q por-
tion, with the purpose to thrive afresh
from the increase. Her capital has
accumulated from the mines which
have built up her trade. The metal -
| the wealth Of the mountains OF Cali
| fornia and Nevada. Its accumulation
in her treasure vaults Is due to the
impoyerlshment of the people, by the
drain Of San Francisco, ultimately
driving them to produce their bread
from the soil and save the price on the
coast. San Francisco, sitting at the
Golden Gate, on the highway to the
best silver market In the world, cannot
command the trade In silver bulk so
far out rs Hamllton-which buys all
It's wares of her, paying In that much
| nbhorred medium Of commerce,
" British Gold" English capital
opens our mines, and the bullion ID
shipped to London on account ; much
Of It thence to China, as a convenience
In the tea trade. San Francisco Is
situated to conveniently manage the
ten trade Of the Western world
| America and Europe-but San Fran
| cisco cannot see the importance Of
| working the mines about her, and
must allow the bullion to make the
circuit from Hamilton to London and
Pekin, and the tea to naturally hunt
up the channel through which the
article in exchange reached the soil.
Seven-eights of the bullion product Of
White Pine goes East-not to 1.-THE
Great East" by way Of the Golden
Gate and the China seas, but to New
York and London.
San Francisco Is too self-sufflclent.
Her trade has been q natural drift Of
the current 80 long, that she does not
appreciate the advantages TO grow OF
an active effort for IN increased trade.
Her money, when she comes down to
10 magnanimous a rate as 8 per cent,
Is let "only OIL city property" Mean
while, the mines which have built up
that city property are needing REIN
forcements Of capital to preserve their
prosperity. The profits Of a mine are
closely drawn of to enrich other lines
Of trade, and not used to open up new
mines. The capital for this usc must
come from the cities. London capt.
talists understand this, and are send
ing out men to examine, and are TAX
Ing hold Of good mine prospects all
over the country. The effect will be
an Increase of the bullion shipments
East. 1t may be, when improved
transportation facilities favor, that the
general trade will observe the law
which operates to affect the tea trade
taking Imports and exports over one
line for exchange.