162 HISTORY OF CALIFORNIA. 



" Gold dust is worth but $17 per ounce in Chili. It 

 is worth $18 at the United States mint. If, there- 

 fore, 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 ex- 

 change 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 invest- 

 ment 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 



