The site of Granada is admirably chosen. It occupies a gentle slope, descending towards the lake, which here forms a beautiful and partially protected bay, called the bay of Granada. Upon one side rises the great volcano of Momobacho, while behind are the undulating hills and ridges of land which intervene between the lake and the Pacific. The position is, in fact, the only eligible one on the western shore of the lake, near its head, where any considerable town could be built, due regard being had to space, salubrity, and convenience for trade. And while Leon, from the circumstances that it was almost immediately established as the seat of government, and was built in a more fertile and populous district, has preserved a larger population and a greater number of imposing public edifices, Granada has always held a higher place in respect of trade. Through it, from the earliest period, has been conducted the principal part of the commerce of the country, besides a portion of that of the adjacent provinces and States. It has not suffered so much from violence as the political capital; and although subject to the same influences which have depressed the country at large, it has felt them less. Wealth has, in consequence, concentrated here to a considerable extent, and its commercial relations have led to the introduction of many foreign customs, without, however, materially changing its essential Central American type. More foreigners have, from time to time, established themselves here, than in all the rest of the State. Some of them, after accumulating large fortunes, have returned to their native lands, while others, from habit or inclination, have remained, and almost entirely assimilated themselves to the native population. The population of Granada is now estimated at from twelve to fifteen thousand inhabitants. This estimate may, however, be considerably wide of the truth. When Juarros wrote, the population was calculated to be 863 Europeans, Spaniards and Creoles; 910 Mestizos; 4,765 Ladinos; and 1,695 Indians. Total, 8,233.