"Vessels bound round Cape Horn, with cargoes for markets on the American coast of the Pacific, can, by taking advantage of the south-east trade winds, and 'standing broad-off the Cape,' make the voyage to San Francisco in as short a time as they can to Valparaiso, or any port south of California. Vessels have sailed from our Atlantic ports to San Francisco in less than one hundred days, and they have been, in more than one instance, over one hundred and twenty days in going from Panama to San Francisco.
"This astonishing difference in time and distance was caused by the course of the winds, and the gulf-stream of the Pacific, mentioned in my remarks on the climate of California.
"The vessels from our Atlantic ports took advantage of the winds by steering _from the Cape_ as far into the Pacific as to be enabled to take a course west of the gulf-stream in sailing northward, thus availing themselves first of the south-east, then of the north-east 'trades,' and avoiding opposing currents.
"The vessels from Panama were kept back by calms, adverse winds, and currents. It will be perceived, therefore, that there can be no inducement for vessels bound round Cape Horn, with mixed or assorted cargoes, to stop at Valparaiso, Callao, Guayaquil, or any port on the west coast, because the exports of all those places will seek a market at San Francisco; and their supply of merchandise, as _return freight_, will be delivered at less expense than it can be by vessels direct from Atlantic ports, American or European. This tendency of trade to concentrate at San Francisco will be aided by the course of exchange.
"Gold dust is worth but $17 per ounce in Chili. It is worth $18 at the United States mint. If, therefore, 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 exchange 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.