Everybody seemed to be making money fast; the city was being rapidly extended and improved; people paid their three per cent. a month interest without fail, and without deeming it excessive.

Turner, Nisbet, and I, daily discussed the prospects, and gradually settled down to the conviction that with two hundred thousand dollars capital, and a credit of fifty thousand dollars in New York, we could build up a business that would help the St. Louis house, and at the same time pay expenses in California, with a reasonable profit. Of course, Turner never designed to remain long in California, and I consented to go back to St. Louis, confer with Mr. Lucas and Captain Simonds, agree upon further details, and then return permanently.

I have no memoranda by me now by which to determine the fact, but think I returned to New York in July, 1853, by the Nicaragua route, and thence to St. Louis by way of Lancaster, Ohio, where my family still was. Mr. Lucas promptly agreed to the terms proposed, and further consented, on the expiration of the lease of the Adams & Co. office, to erect a new banking-house in San Francisco, to cost fifty thousand dollars. I then returned to Lancaster, explained to Mr. Ewing and Mrs. Sherman all the details of our agreement, and, meeting their approval, I sent to the Adjutant-General of the army my letter of resignation, to take effect at the end of the six months' leave, and the resignation was accepted, to take effect September 6, 1853. Being then a citizen, I engaged a pa.s.sage out to California by the Nicaragua route, in the steamer leaving New York September 20th, for myself and family, and accordingly proceeded to New York, where I had a conference with Mr. Meigs, cashier of the American Exchange Bank, and with Messrs. Wadsworth & Sheldon, bankers, who were our New York correspondents; and on the 20th embarked for San Juan del Norte, with the family, composed of Mrs. Sherman, Lizzie, then less than a year old, and her nurse, Mary Lynch. Our pa.s.sage down was uneventful, and, on the boats up the Nicaragua River, pretty much the same as before. On reaching Virgin Bay, I engaged a native with three mules to carry us across to the Pacific, and as usual the trip partook of the ludicrous --Mrs. Sherman mounted on a donkey about as large as a Newfoundland dog; Mary Lynch on another, trying to carry Lizzie on a pillow before her, but her mule had a fashion of lying down, which scared her, till I exchanged mules, and my California spurs kept that mule on his legs. I carried Lizzie some time till she was fast asleep, when I got our native man to carry her awhile. The child woke up, and, finding herself in the hands of a dark-visaged man, she yelled most l.u.s.tily till I got her away. At the summit of the pa.s.s, there was a clear-running brook, where we rested an hour, and bathed Lizzie in its sweet waters. We then continued to the end of our journey, and, without going to the tavern at San Juan del Sur, we pa.s.sed directly to the vessel, then at anchor about two miles out.

To reach her we engaged a native boat, which had to be kept outside the surf. Mrs. Sherman was first taken in the arms of two stout natives; Mary Lynch, carrying Lizzie, was carried by two others; and I followed, mounted on the back of a strapping fellow, while fifty or a hundred others were running to and fro, cackling like geese.

Mary Lynch got scared at the surf, and began screaming like a fool, when Lizzie became convulsed with fear, and one of the natives rushed to her, caught her out of Mary's arms, and carried her swiftly to Mrs. Sherman, who, by that time, was in the boat, but Lizzie had fainted with fear, and for a long time sobbed as though permanently injured. For years she showed symptoms that made us believe she had never entirely recovered from the effects of the scare. In due time we reached the steamer Sierra Nevada, and got a good state-room. Our pa.s.sage up the coast was pleasant enough; we reached San Francisco; on the 15th of October, and took quarters at an hotel on Stockton Street, near Broadway.

Major Turner remained till some time in November, when he also departed for the East, leaving me and Nisbet to manage the bank. I endeavored to make myself familiar with the business, but of course Nisbet kept the books, and gave his personal attention to the loans, discounts, and drafts, which yielded the profits. I soon saw, however, that the three per cent. charged as premium on bills of exchange was not all profit, but out of this had to come one and a fourth to one and a half for freight, one and a third for insurance, with some indefinite promise of a return premium; then, the cost of blanks, boxing of the bullion, etc., etc. Indeed, I saw no margin for profit at all. Nisbet, however, who had long been familiar with the business, insisted there was a profit, in the fact that the gold-dust or bullion shipped was more valuable than its cost to us. We, of course, had to remit bullion to meet our bills on New York, and bought crude gold-dust, or bars refined by Kellogg & Humbert or E. Justh & Co., for at that time the United States Mint was not in operation. But, as the reports of our shipments came back from New York, I discovered that I was right, and Nisbet was wrong; and, although we could not help selling our checks on New York and St. Louis at the same price as other bankers, I discovered that, at all events, the exchange business in San Francisco was rather a losing business than profitable. The same as to loans. We could loan, at three per cent. a month, all our own money, say two hundred and fifty thousand dollars, and a part of our deposit account. This latter account in California was decidedly uncertain. The balance due depositors would run down to a mere nominal sum on steamer-days, which were the 1st and 15th of each month, and then would increase till the next steamer-day, so that we could not make use of any reasonable part of this balance for loans beyond the next steamer-day; or, in other words, we had an expensive bank, with expensive clerks, and all the machinery for taking care of other people's money for their benefit, without corresponding profit. I also saw that loans were attended with risk commensurate with the rate; nevertheless, I could not attempt to reform the rules and customs established by others before me, and had to drift along with the rest toward that Niagara that none foresaw at the time.

Shortly after arriving out in 1853, we looked around for a site for the new bank, and the only place then available on Montgomery Street, the Wall Street of San Francisco, was a lot at the corner of Jackson Street, facing Montgomery, with an alley on the north, belonging to James Lick. The ground was sixty by sixty-two feet, and I had to pay for it thirty-two thousand dollars. I then made a contract with the builders, Keyser, & Brown, to erect a three-story brick building, with finished bas.e.m.e.nt, for about fifty thousand dollars. This made eighty-two thousand instead of fifty thousand dollars, but I thought Mr. Lucas could stand it and would approve, which he did, though it resulted in loss to him. After the civil war, he told me he had sold the building for forty thousand dollars, about half its cost, but luckily gold was then at 250, so that he could use the forty thousand dollars gold as the equivalent of one hundred thousand dollars currency. The building was erected; I gave it my personal supervision, and it was strongly and thoroughly built, for I saw it two years ago, when several earthquakes had made no impression on it; still, the choice of site was unfortunate, for the city drifted in the opposite direction, viz., toward Market Street. I then thought that all the heavy business would remain toward the foot of Broadway and Jackson Street, because there were the deepest water and best wharves, but in this I made a mistake. Nevertheless, in the spring of 1854, the new bank was finished, and we removed to it, paying rents thereafter to our Mr. Lucas instead of to Adams & Co. A man named Wright, during the same season, built a still finer building just across the street from us; Pioche, Bayerque & Co. were already established on another corner of Jackson Street, and the new Metropolitan Theatre was in progress diagonally opposite us.

During the whole of 1854 our business steadily grew, our average deposits going up to half a million, and our sales of exchange and consequent shipment of bullion averaging two hundred thousand dollars per steamer. I signed all bills of exchange, and insisted on Nisbet consulting me on loans and discounts. Spite of every caution, however, we lost occasionally by bad loans, and worse by the steady depreciation of real estate. The city of San Francisco was then extending her streets, sewering them, and planking them, with three-inch lumber. In payment for the lumber and the work of contractors, the city authorities paid scrip in even sums of one hundred, five hundred, one thousand, and five thousand dollars.

These formed a favorite collateral for loans at from fifty to sixty cents on the dollar, and no one doubted their ultimate value, either by redemption or by being converted into city bonds.

The notes also of H. Meiggs, Neeley Thompson & Co., etc., lumber-dealers, were favorite notes, for they paid their interest promptly, and lodged large margins of these street-improvement warrants as collateral. At that time, Meiggs was a prominent man, lived in style in a large house on Broadway, was a member of the City Council, and owned large saw-mills up the coast about Mendocino. In him Nisbet had unbounded faith, but, for some reason, I feared or mistrusted him, and remember that I cautioned Nisbet not to extend his credit, but to gradually contract his loans. On looking over our bills receivable, then about six hundred thousand dollars, I found Meiggs, as princ.i.p.al or indorser, owed us about eighty thousand dollars--all, however, secured by city warrants; still, he kept bank accounts elsewhere, and was generally a borrower. I instructed Nisbet to insist on his reducing his line as the notes matured, and, as he found it indelicate to speak to Meiggs, I instructed him to refer him to me; accordingly, when, on the next steamer-day, Meiggs appealed at the counter for a draft on Philadelphia, of about twenty thousand dollars, for which he offered his note and collateral, he was referred to me, and I explained to him that our draft was the same as money; that he could have it for cash, but that we were already in advance to him some seventy-five or eighty thousand dollars, and that instead of increasing the amount I must insist on its reduction. He inquired if I mistrusted his ability, etc. I explained, certainly not, but that our duty was to a.s.sist those who did all their business with us, and, as our means were necessarily limited, I must restrict him to some reasonable sum, say, twenty-five thousand dollars. Meiggs invited me to go with him to a rich mercantile house on Clay Street, whose partners belonged in Hamburg, and there, in the presence of the princ.i.p.als of the house, he demonstrated, as clearly as a proposition in mathematics, that his business at Mendocino was based on calculations that could not fail. The bill of exchange which he wanted, he said would make the last payment on a propeller already built in Philadelphia, which would be sent to San Francisco, to tow into and out of port the schooners and brigs that were bringing his lumber down the coast. I admitted all he said, but renewed my determination to limit his credit to twenty-five thousand dollars. The Hamburg firm then agreed to accept for him the payment of all his debt to us, except the twenty-five thousand dollars, payable in equal parts for the next three steamer-days. Accordingly, Meiggs went back with me to our bank, wrote his note for twenty-five thousand dollars, and secured it by mortgage on real estate and city warrants, and subst.i.tuted the three acceptances of the Hamburg firm for the overplus. I surrendered to him all his former notes, except one for which he was indorser. The three acceptances duly matured and were paid; one morning Meiggs and family were missing, and it was discovered they had embarked in a sailing-vessel for South America.

This was the beginning of a series of failures in San Francisco, that extended through the next two years. As soon as it was known that Meiggs had fled, the town was full of rumors, and everybody was running to and fro to secure his money. His debts amounted to nearly a million dollars. The Hamburg house which, had been humbugged, were heavy losers and failed, I think. I took possession of Meiggs's dwelling-house and other property for which I held his mortgage, and in the city warrants thought I had an overplus; but it transpired that Meiggs, being in the City Council, had issued various quant.i.ties of street scrip, which was adjudged a forgery, though, beyond doubt, most of it, if not all, was properly signed, but fraudulently issued. On this city scrip our bank must have lost about ten thousand dollars. Meiggs subsequently turned up in Chili, where again he rose to wealth and has paid much of his San Francisco debts, but none to us. He is now in Peru, living like a prince.

With Meiggs fell all the lumber-dealers, and many persons dealing in city scrip. Compared with others, our loss was a trifle. In a short time things in San Francisco resumed their wonted course, and we generally laughed at the escapade of Meiggs, and the cursing of his deluded creditors.

Shortly after our arrival in San Francisco, I rented of a Mr.

Marryat, son of the English Captain Marryat, the author, a small frame-house on Stockton Street, near Green, buying of him his furniture, and we removed to it about December 1,1853. Close by, around on Green Street, a man named d.i.c.key was building two small brick-houses, on ground which he had leased of Nicholson. I bought one of these houses, subject to the ground-rent, and moved into it as soon as finished. Lieutenant T. H. Stevens, of the United States Navy, with his family, rented the other; we lived in this house throughout the year 1854, and up to April 17, 1855.

CHAPTER V.

CALIFORNIA

1855-1857

During the winter of 1854-'55, I received frequent intimations in my letters from the St. Louis house, that the bank of Page, Bacon & Co. was in trouble, growing out of their relations to the Ohio & Mississippi Railroad, to the contractors for building which they had made large advances, to secure which they had been compelled to take, as it were, an a.s.signment of the contract itself, and finally to a.s.sume all the liabilities of the contractors. Then they had to borrow money in New York, and raise other money from time to time, in the purchase of iron and materials for the road, and to pay the hands. The firm in St. Louis and that in San Francisco were different, having different partners, and the St. Louis house naturally pressed the San Francisco firm to ship largely of "gold-dust," which gave them a great name; also to keep as large a balance as possible in New York to sustain their credit. Mr. Page was a very wealthy man, but his wealth consisted mostly of land and property in St. Louis. He was an old man, and a good one; had been a baker, and knew little of banking as a business. This part of his general business was managed exclusively by his son-in-law, Henry D. Bacon, who was young, handsome, and generally popular.

How he was drawn into that affair of the Ohio & Mississippi road I have no means of knowing, except by hearsay. Their business in New York was done through the American Exchange Bank, and through Duncan, Sherman & Co. As we were rival houses, the St. Louis partners removed our account from the American Exchange Bank to the Metropolitan Bank; and, as Wadsworth & Sheldon had failed, I was instructed to deal in time bills, and in European exchange, with Schnchardt & Gebhard, bankers in Na.s.sau Street.

In California the house of Page, Bacon & Co. was composed of the same partners as in St. Louis, with the addition of Henry Haight, Judge Chambers, and young Frank Page. The latter had charge of the "branch" in Sacramento. Haight was the real head-man, but he was too fond of lager-beer to be in trusted with so large a business.

Beyond all comparison, Page, Bacon & Co. were the most prominent bankers in California in 1853-'55. Though I had notice of danger in that quarter, from our partners in St. Louis, n.o.body in California doubted their wealth and stability. They must have had, during that winter, an average deposit account of nearly two million dollars, of which seven hundred thousand dollars was in "certificates of deposit," the most stable of all accounts in a bank. Thousands of miners invested their earnings in such certificates, which they converted into drafts on New York, when they were ready to go home or wanted to send their "pile" to their families. Adams & Co. were next in order, because of their numerous offices scattered throughout the mining country. A gentleman named Haskell had been in charge of Adams & Co. in San Francisco, but in the winter of 1854-'55 some changes were made, and the banking department had been transferred to a magnificent office in Halleck's new Metropolitan Block. James King of Wm. had discontinued business on his own account, and been employed by Adams & Co. as their cashier and banker, and Isaiah C. Wood had succeeded Haskell in chief control of the express department.

Wells, Fargo & Co. were also bankers as well as expressmen, and William J. Pardee was the resident partner.

As the mail-steamer came in on February 17, 1855, according to her custom, she ran close to the Long Wharf (Meiggs's) on North Beach, to throw ash.o.r.e the express-parcels of news for speedy delivery.

Some pa.s.senger on deck called to a man of his acquaintance standing on the wharf, that Page & Bacon had failed in New York. The news spread like wild-fire, but soon it was met by the newspaper accounts to the effect that some particular acceptances of Page & Bacon, of St. Louis, in the hands of Duncan, Sherman & Co., in New York, had gone to protest. All who had balances at Page, Bacon & Co.'s, or held certificates of deposit, were more or less alarmed, wanted to secure their money, and a general excitement pervaded the whole community. Word was soon pa.s.sed round that the matter admitted of explanation, viz., that the two houses were distinct and separate concerns, that every draft of the California house had been paid in New York, and would continue to be paid. It was expected that this a.s.sertion would quiet the fears of the California creditors, but for the next three days there was a steady "run" on that bank. Page, Bacon & Co. stood the first day's run very well, and, as I afterward learned, paid out about six hundred thousand dollars in gold coin. On the 20th of February Henry Height came to our bank, to see what help we were willing to give him; but I was out, and Nisbet could not answer positively for the firm. Our condition was then very strong. The deposit account was about six hundred thousand dollars, and we had in our vault about five hundred thousand dollars in coin and bullion, besides an equal amount of good bills receivable. Still I did not like to weaken ourselves to help others; but in a most friendly spirit, that night after bank-hours, I went down to Page, Bacon & Co., and entered their office from the rear. I found in the cashier's room Folsom, Parrott, Dewey and Payne, Captain Ritchie, Donohue, and others, citizens and friends of the house, who had been called in for consultation. Pa.s.sing into the main office, where all the book-keepers, tellers, etc., with gas-lights, were busy writing up the day's work, I found Mr. Page, Henry Height, and Judge Chambers.

I spoke to Height, saying that I was sorry I had been out when he called at our bank, and had now come to see him in the most friendly spirit. Height had evidently been drinking, and said abruptly that "all the banks would break," that "no bank could instantly pay all its obligations," etc. I answered he could speak for himself, but not for me; that I had come to offer to buy with cash a fair proportion of his bullion, notes, and bills; but, if they were going to fail, I would not be drawn in. Height's manner was extremely offensive, but Mr. Page tried to smooth it over, saying they had had a bad day's run, and could not answer for the result till their books were written up.

I pa.s.sed back again into the room where the before-named gentlemen were discussing some paper which lay before them, and was going to pa.s.s out, when Captain Folsom, who was an officer of the army, a cla.s.s-mate and intimate friend of mine, handed me the paper the contents of which they were discussing. It was very short, and in Henry Haight's handwriting, pretty much in these terms: "We, the undersigned property-holders of San Francisco, having personally examined the books, papers, etc., of Page, Bacon & Co., do hereby certify that the house is solvent and able to pay all its debts,"

etc. Height had drawn up and asked them to sign this paper, with the intention to publish it in the next morning's papers, for effect. While I was talking with Captain Folsom, Height came into the room to listen. I admitted that the effect of such a publication would surely be good, and would probably stave off immediate demand till their a.s.sets could be in part converted or realized; but I naturally inquired of Folsom, "Have you personally examined the accounts, as herein recited, and the a.s.sets, enough to warrant your signature to this paper?" for, "thereby you in effect become indorsers." Folsom said they had not, when Height turned on me rudely and said, "Do you think the affairs of such a house as Page, Bacon & Co. can be critically examined in an hour?" I answered: "These gentlemen can do what they please, but they have twelve hours before the bank will open on the morrow, and if the ledger is written up" (as I believed it was or could be by midnight), "they can (by counting the coin, bullion on hand, and notes or stocks of immediate realization) approximate near enough for them to indorse for the remainder." But Height pooh-poohed me, and I left. Folsom followed me out, told me he could not afford to imperil all he had, and asked my advice. I explained to him that my partner Nisbet had been educated and trained in that very house of Page, Bacon & Co.; that we kept our books exactly as they did; that every day the ledger was written up, so that from it one could see exactly how much actual money was due the depositors and certificates; and then by counting the money in the vault, estimating the bullion on hand, which, though not actual money, could easily be converted into coin, and supplementing these amounts by "bills receivable," they ought to arrive at an approximate-result. After Folsom had left me, John Parrott also stopped and talked with me to the same effect. Next morning I looked out for the notice, but no such notice appeared in the morning papers, and I afterward learned that, on Parrott and Folsom demanding an actual count of the money in the vault, Haight angrily refused unless they would accept his word for it, when one after the other declined to sign his paper.

The run on Page, Bacon & Co. therefore continued throughout the 21st, and I expected all day to get an invitation to close our bank for the next day, February 22, which we could have made a holiday by concerted action; but each banker waited for Page, Bacon & Co.

to ask for it, and, no such circular coming, in the then state of feeling no other banker was willing to take the initiative. On the morning of February 22, 1855, everybody was startled by receiving a small slip of paper, delivered at all the houses, on which was printed a short notice that, for "want of coin," Page, Bacon & Co.

found it necessary to close their bank for a short time. Of course, we all knew the consequences, and that every other bank in San Francisco would be tried. During the 22d we all kept open, and watched our depositors closely; but the day was generally observed by the people as a holiday, and the firemen paraded the streets of San Francisco in unusual strength. But, on writing up our books that night, we found that our deposit account had diminished about sixty-five thousand dollars. Still, there was no run on us, or any other of the banks, that day; yet, observing little knots of men on the street, discussing the state of the banks generally, and overhearing Haight's expression quoted, that, in case of the failure of Page, Bacon & Co., "all the other banks would break," I deemed it prudent to make ready. For some days we had refused all loans and renewals, and we tried, without, success, some of our call-loans; but, like Hotspur's spirits, they would not come.

Our financial condition on that day (February 22, 1855) was: Due depositors and demand certificates, five hundred and twenty thousand dollars; to meet which, we had in the vault: coin, three hundred and eighty thousand dollars; bullion, seventy-five thousand dollars; and bills receivable, about six hundred thousand dollars.

Of these, at least one hundred thousand dollars were on demand, with stock collaterals. Therefore, for the extent of our business, we were stronger than the Bank of England, or any bank in New York City.

Before daylight next morning, our door-bell was rung, and I was called down-stairs by E. Ca.s.serly, Esq. (an eminent lawyer of the day, since United States Senator), who informed me he had just come up from the office of Adams & Co., to tell me that their affairs were in such condition that they would not open that morning at all; and that this, added to the suspension of Page, Bacon & Co., announced the day before, would surely cause a general run on all the banks. I informed him that I expected as much, and was prepared for it.

In going down to the bank that morning, I found Montgomery Street full; but, punctually to the minute, the bank opened, and in rushed the crowd. As usual, the most noisy and clamorous were men and women who held small certificates; still, others with larger accounts were in the crowd, pushing forward for their balances.

All were promptly met and paid. Several gentlemen of my personal acquaintance merely asked my word of honor that their money was safe, and went away; others, who had large balances, and no immediate use for coin, gladly accepted gold-bars, whereby we paid out the seventy-five thousand dollars of bullion, relieving the coin to that amount.

Meantime, rumors from the street came pouring in that Wright & Co.

had failed; then Wells, Fargo & Co.; then Palmer, Cook & Co., and indeed all, or nearly all, the banks of the city; and I was told that parties on the street were betting high, first, that we would close our doors at eleven o'clock; then twelve, and so on; but we did not, till the usual hour that night. We had paid every demand, and still had a respectable amount left.

This run on the bank (the only one I ever experienced) presented all the features, serious and comical, usual to such occasions. At our counter happened that identical case, narrated of others, of the Frenchman, who was nearly squeezed to death in getting to the counter, and, when he received his money, did not know what to do with it. "If you got the money, I no want him; but if you no got him, I want it like the devil!"

Toward the close of the day, some of our customers deposited, rather ostentatiously, small amounts, not aggregating more than eight or ten thousand dollars. Book-keepers and tellers were kept at work to write up the books; and these showed:

Due depositors and certificates, about one hundred and twenty thousand dollars, for which remained of coin about fifty thousand dollars. I resolved not to sleep until I had collected from those owing the bank a part of their debts; for I was angry with them that they had stood back and allowed the panic to fall on the banks alone. Among these were Captain Folsom, who owed us twenty-five thousand dollars, secured by a mortgage on the American Theatre and Tehama Hotel; James Smiley, contractor for building the Custom-House, who owed us two notes of twenty thousand and sixteen thousand dollars, for which we held, as collateral, two acceptances of the collector of the port, Major R. P. Hammond, for twenty thousand dollars each; besides other private parties that I need not name. The acceptances given to Smiley were for work done on the Custom-House, but could not be paid until the work was actually laid in the walls, and certified by Major Tower, United States Engineers; but Smiley had an immense amount of granite, brick, iron, etc., on the ground, in advance of construction, and these acceptances were given him expressly that he might raise money thereon for the payment of such materials.

Therefore, as soon as I got my dinner, I took my saddle-horse, and rode to Captain Folsom's house, where I found him in great pain and distress, mental and physical. He was sitting in a chair, and bathing his head with a sponge. I explained to him the object of my visit, and he said he had expected it, and had already sent his agent, Van Winkle, down-town, with instructions to raise what money he could at any cost; but he did not succeed in raising a cent. So great was the shock to public confidence, that men slept on their money, and would not loan it for ten per cent. a week, on any security whatever--even on mint certificates, which were as good as gold, and only required about ten days to be paid in coin by the United States Mint. I then rode up to Hammond's house, on Rincon Hill, and found him there. I explained to him exactly Smiley's affairs, and only asked him to pay one of his acceptances. He inquired, "Why not both?" I answered that was so much the better; it would put me under still greater obligations. He then agreed to meet me at our bank at 10 P.M. I sent word to others that I demanded them to pay what they could on their paper, and then returned to the bank, to meet Hammond. In due time, he came down with Palmer (of Palmer, Cook & Co.), and there he met Smiley, who was, of course, very anxious to retire his notes. We there discussed the matter fully, when Hammond said, "Sherman, give me up my two acceptances, and I will subst.i.tute therefor my check of forty thousand dollars," with "the distinct understanding that, if the money is not needed by you, it shall be returned to me, and the transaction then to remain statu quo." To this there was a general a.s.sent. Nisbet handed him his two acceptances, and he handed me his check, signed as collector of the port, on Major J. R. Snyder, United States Treasurer, for forty thousand dollars. I afterward rode out, that night, to Major Snyder's house on North Beach, saw him, and he agreed to meet me at 8 a.m. next day, at the United States Mint, and to pay the check, so that I could have the money before the bank opened. The next morning, as agreed on, we met, and he paid me the check in two sealed bags of gold-coin, each marked twenty thousand dollars, which I had carried to the bank, but never opened them, or even broke the seals.

That morning our bank opened as usual, but there was no appearance of a continuation of the "run;" on the contrary, money began to come back on deposit, so that by night we had a considerable increase, and this went on from day to day, till nearly the old condition of things returned. After about three days, finding I had no use for the money obtained on Hammond's check, I took the identical two bags back to the cashier of the Custom-House, and recovered the two acceptances which had been surrendered as described; and Smiley's two notes were afterward paid in their due course, out of the cash received on those identical acceptances.

But, years afterward, on settling with Hammond for the Custom-House contract when completed, there was a difference, and Smiley sued Lucas, Turner & Co. for money had and received for his benefit, being the identical forty thousand dollars herein explained, but he lost his case. Hammond, too, was afterward removed from office, and indicted in part for this transaction. He was tried before the United States Circuit Court, Judge McAlister presiding, for a violation of the sub-Treasury Act, but was acquitted. Our bank, having thus pa.s.sed so well through the crisis, took at once a first rank; but these bank failures had caused so many mercantile losses, and had led to such an utter downfall in the value of real estate, that everybody lost more or less money by bad debts, by depreciation of stocks and collaterals, that became unsalable, if not worthless.

About this time (viz., February, 1855) I had exchanged my house on Green, street, with Mr. Sloat, for the half of a fifty-vara lot on Harrison Street, between Fremont and First, on which there was a small cottage, and I had contracted for the building of a new frame-house thereon, at six thousand dollars. This house was finished on the 9th of April, and my family moved into it at once.

For some time Mrs. Sherman had been anxious to go home to Lancaster, Ohio, where we had left our daughter Minnie, with her grandparents, and we arranged that S. M. Bowman, Esq., and wife, should move into our new house and board us, viz., Lizzie, Willie with the nurse Biddy, and myself, for a fair consideration. It so happened that two of my personal friends, Messrs. Winters and Cunningham of Marysville, and a young fellow named Eagan, now a captain in the Commissary Department, were going East in the steamer of the middle of April, and that Mr.. William H.

Aspinwall, of New York, and Mr. Chauncey, of Philadelphia, were also going back; and they all offered to look to the personal comfort of Mrs. Sherman on the voyage. They took pa.s.sage in the steamer Golden Age (Commodore Watkins), which sailed on April 17, 1855. Their pa.s.sage down the coast was very pleasant till within a day's distance of Panama, when one bright moonlit night, April 29th, the ship, running at full speed, between the Islands Quibo and Quicara, struck on a sunken reef, tore out a streak in her bottom, and at once began to fill with water. Fortunately she did not sink fast, but swung off into deep water, and Commodore Watkins happening to be on deck at the moment, walking with Mr. Aspinwall, learning that the water was rushing in with great rapidity, gave orders for a full head of steam, and turned the vessel's bow straight for the Island Quicara. The water rose rapidly in the hold, the pa.s.sengers were all a.s.sembled, fearful of going down, the fires were out, and the last revolution of the wheels made, when her bow touched gently on the beach, and the vessel's stern sank in deep water. Lines were got out, and the ship held in an upright position, so that the pa.s.sengers were safe, and but little incommoded. I have often heard Mrs. Sherman tell of the boy Eagan, then about fourteen years old, coming to her state-room, and telling to her not to be afraid, as he was a good swimmer; but on coming out into the cabin, partially dressed, she felt more confidence in the cool manner, bearing, and greater strength of Mr.

Winters. There must have been nearly a thousand souls on board at the time, few of whom could have been saved had the steamer gone down in mid-channel, which surely would have resulted, had not Commodore Watkins been on deck, or had he been less prompt in his determination to beach his ship. A sailboat was dispatched toward Panama, which luckily met the steamer John T. Stephens, just coming out of the bay, loaded with about a thousand pa.s.sengers bound for San Francisco, and she at once proceeded to the relief of the Golden Age. Her pa.s.sengers were transferred in small boats to the Stephens, which vessel, with her two thousand people crowded together with hardly standing-room, returned to Panama, whence the pa.s.sengers for the East proceeded to their destination without further delay. Luckily for Mrs. Sherman, Purser G.o.ddard, an old Ohio friend of ours, was on the Stephens, and most kindly gave up his own room to her, and such lady friends as she included in her party. The Golden Age was afterward partially repaired at Quicara, pumped out, and steamed to Panama, when, after further repairs, she resumed her place in the line. I think she is still in existence, but Commodore Watkins afterward lost his life in China, by falling down a hatchway.

Mrs. Sherman returned in the latter part of November of the same year, when Mr. and Mrs. Bowman, who meantime had bought a lot next to us and erected a house thereon, removed to it, and we thus continued close neighbors and friends until we left the country for good in 1857.

During the summer of 1856, in San Francisco, occurred one of those unhappy events, too common to new countries, in which I became involved in spite of myself.

William Neely Johnson was Governor of California, and resided at Sacramento City; General John E. Wool commanded the Department of California, having succeeded General Hitchc.o.c.k, and had his headquarters at Benicia; and a Mr. Van Ness was mayor of the city.

Politics had become a regular and profitable business, and politicians were more than suspected of being corrupt. It was reported and currently believed that the sheriff (Scannell) had been required to pay the Democratic Central Committee a hundred thousand dollars for his nomination, which was equivalent to an election, for an office of the nominal salary of twelve thousand dollars a year for four years. In the election all sorts of dishonesty were charged and believed, especially of "ballot-box stuffing," and too generally the better cla.s.ses avoided the elections and dodged jury-duty, so that the affairs of the city government necessarily pa.s.sed into the hands of a low set of professional politicians. Among them was a man named James Casey, who edited a small paper, the printing office of which was in a room on the third floor of our banking office. I hardly knew him by sight, and rarely if ever saw his paper; but one day Mr. Sather, of the excellent banking firm of Drexel, Sather & Church, came to me, and called my attention to an article in Casey's paper so full of falsehood and malice, that we construed it as an effort to black-mail the banks generally. At that time we were all laboring to restore confidence, which had been so rudely shaken by the panic, and I went up-stairs, found Casey, and pointed out to him the objectionable nature of his article, told him plainly that I could not tolerate his attempt to print and circulate slanders in our building, and, if he repeated it, I would cause him and his press to be thrown out of the windows. He took the hint and moved to more friendly quarters. I mention this fact, to show my estimate of the man, who became a figure in the drama I am about to describe. James King of Wm., as before explained, was in 1853 a banker on his own account, but some time in 1854 he had closed out his business, and engaged with Adams & Co. as cashier. When this firm failed, he, in common with all the employees, was thrown out of employment, and had to look around for something else. He settled down to the publication of an evening paper, called the Bulletin, and, being a man of fine manners and address, he at once const.i.tuted himself the champion of society against the public and private characters whom he saw fit to arraign.

As might have been expected, this soon brought him into the usual newspaper war with other editors, and especially with Casey, and epithets a la "Eatanswill" were soon bandying back and forth between them. One evening of May, 1856, King published, in the Bulletin, copies of papers procured from New York, to show that Casey had once been sentenced to the State penitentiary at Sing Sing. Casey took mortal offense, and called at the Bulletin office, on the corner of Montgomery and Merchant Streets, where he found King, and violent words pa.s.sed between them, resulting in Casey giving King notice that he would shoot him on sight. King remained in his office till about 5 or 6 p.m., when he started toward his home on Stockton Street, and, as he neared the corner of Washington, Casey approached him from the opposite direction, called to him, and began firing. King had on a short cloak, and in his breast-pocket a small pistol, which he did not use. One of Casey's shots struck him high up in the breast, from which he reeled, was caught by some pa.s.sing friend, and carried into the express-office on the corner, where he was laid on the counter; and a surgeon sent for. Casey escaped up Washington Street, went to the City Hall, and delivered himself to the sheriff (Scannell), who conveyed him to jail and locked him in a cell. Meantime, the news spread like wildfire, and all the city was in commotion, for grog was very popular. Nisbet, who boarded with us on Harrison Street, had been delayed at the bank later than usual, so that he happened to be near at the time, and, when he came out to dinner, he brought me the news of this affair, and said that there was every appearance of a riot down-town that night. This occurred toward the evening of May 14, 1856.

It so happened that, on the urgent solicitation of Van Winkle and of Governor Johnson; I had only a few days before agreed to accept the commission of major-general of the Second Division of Militia, embracing San Francisco. I had received the commission, but had not as yet formally accepted it, or even put myself in communication with the volunteer companies of the city. Of these, at that moment of time, there was a company of artillery with four guns, commanded by a Captain Johns, formerly of the army, and two or three uniformed companies of infantry. After dinner I went down town to see what was going on; found that King had been removed to a room in the Metropolitan Block; that his life was in great peril; that Casey was safe in jail, and the sheriff had called to his a.s.sistance a posse of the city police, some citizens, and one of the militia companies. The people were gathered in groups on the streets, and the words "Vigilance Committee" were freely spoken, but I saw no signs of immediate violence. The next morning, I again went to the jail, and found all things quiet, but the militia had withdrawn. I then went to the City Hall, saw the mayor, Van Ness, and some of the city officials, agreed to do what I could to maintain order with such militia as were on hand, and then formally accepted the commission, and took the "oath."

In 1851 (when I was not in California) there had been a Vigilance Committee, and it was understood that its organization still existed. All the newspapers took ground in favor of the Vigilance Committee, except the Herald (John Nugent, editor), and nearly all the best people favored that means of redress. I could see they were organizing, hiring rendezvous, collecting arms, etc., without concealment. It was soon manifest that the companies of volunteers would go with the "committee," and that the public authorities could not rely on them for aid or defense. Still, there were a good many citizens who contended that, if the civil authorities were properly sustained by the people at large, they could and would execute the law. But the papers inflamed the public mind, and the controversy spread to the country. About the third day after the shooting of King, Governor Johnson telegraphed me that he would be down in the evening boat, and asked me to meet him on arrival for consultation. I got C. H. Garrison to go with me, and we met the Governor and his brother on the wharf, and walked up to the International Hotel on Jackson Street, above Montgomery. We discussed the state of affairs fully; and Johnson, on learning that his particular friend, William T. Coleman, was the president of the Vigilance Committee, proposed to go and see him. En route we stopped at King's room, ascertained that he was slowly sinking, and could not live long; and then near midnight we walked to the Turnverein Hall, where the committee was known to be sitting in consultation. This hall was on Bush Street, at about the intersection of Stockton. It was all lighted up within, but the door was locked. The Governor knocked at the door, and on inquiry from inside "Who's there?"--gave his name. After some delay we were admitted into a sort of vestibule, beyond which was a large hall, and we could hear the suppressed voices of a mult.i.tude. We were shown into a bar-room to the right, when the Governor asked to see Coleman. The man left us, went into the main hall, and soon returned with Coleman, who was pale and agitated. After shaking hands all round, the Governor said, "Coleman, what the devil is the matter here?" Coleman said, "Governor, it is time this shooting on our streets should stop." The Governor replied, "I agree with you perfectly, and have come down, from Sacramento to a.s.sist." Coleman rejoined that "the people were tired of it, and had no faith in the officers of the law." A general conversation then followed, in which it was admitted that King would die, and that Casey must be executed; but the manner of execution was the thing to be settled, Coleman contending that the people would do it without trusting the courts or the sheriff. It so happened that at that time Judge Norton was on the bench of the court having jurisdiction, and he was universally recognized as an able and upright man, whom no one could or did mistrust; and it also happened that a grand-jury was then in session. Johnson argued that the time had pa.s.sed in California for mobs and vigilance committees, and said if Coleman and a.s.sociates would use their influence to support the law, he (the Governor) would undertake that, as soon as King died, the grand-jury should indict, that Judge Norton would try the murderer, and the whole proceeding should be as speedy as decency would allow. Then Coleman said "the people had no confidence in Scannell, the sheriff," who was, he said, in collusion with the rowdy element of San Francisco. Johnson then offered to be personally responsible that Casey should be safely guarded, and should be forthcoming for trial and execution at the proper time.

I remember very well Johnson's a.s.sertion that he had no right to make these stipulations, and maybe no power to fulfill them; but he did it to save the city and state from the disgrace of a mob.

Coleman disclaimed that the vigilance organization was a "mob,"

admitted that the proposition of the Governor was fair, and all he or any one should ask; and added, if we would wait awhile, he would submit it to the council, and bring back an answer.

We waited nearly an hour, and could hear the hum of voices in the hall, but no words, when Coleman came back, accompanied by a committee, of which I think the two brothers Arrington, Thomas Smiley the auctioneer, Seymour, Truett, and others, were members.

The whole conversation was gone over again, and the Governor's proposition was positively agreed to, with this further condition, that the Vigilance Committee should send into the jail a small force of their own men, to make certain that Casey should not be carried off or allowed to escape.

The Governor, his brother William, Garrison, and I, then went up to the jail, where we found the sheriff and his posse comitatus of police and citizens. These were styled the "Law-and-Order party,"

and some of them took offense that the Governor should have held communication with the "d.a.m.ned rebels," and several of them left the jail; but the sheriff seemed to agree with the Governor that what he had done was right and best; and, while we were there, some eight or ten armed men arrived from the Vigilance Committee, and were received by the sheriff (Scannell) as a part of his regular posse.

The Governor then, near daylight, went to his hotel, and I to my house for a short sleep. Next day I was at the bank, as usual, when, about noon the Governor called, and asked me to walk with him down-street He said he had just received a message from the Vigilance Committee to the effect that they were not bound by Coleman's promise not to do any thing till the regular trial by jury should be had, etc. He was with reason furious, and asked me to go with him to Truett's store, over which the Executive Committee was said to be in session. We were admitted to a front-room up-stairs, and heard voices in the back-room. The Governor inquired for Coleman, but he was not forthcoming. Another of the committee, Seymour, met us, denied in toto the promise of the night before, and the Governor openly accused him of treachery and falsehood.