DuringthestayofmyfamilyinNewOrleans，weenjoyedthesocietyofthefamiliesofGeneralTwiggs，ColonelMyers，andColonelBliss，asalsoofmanycitizens，amongwhomwasthewifeofMr。
Day，sistertomybrother—in—law，JudgeBartley。GeneralTwiggswasthenoneoftheoldestofficersofthearmy。HishistoryextendedbacktotheWarof1812，andhehadservedinearlydayswithGeneralJacksoninFloridaandintheCreekcampaigns。Hehadfinepowersofdescription，andoftenentertainedus，athisoffice，withaccountsofhisexperiencesintheearliersettlementsoftheSouthwest。ColonelBlisshadbeenGeneralTaylor’sadjutantintheMexicanWar，andwasuniversallyregardedasoneofthemostfinishedandaccomplishedscholarsinthearmy，andhiswifewasamostagreeableandaccomplishedlady。
LateinFebruary，IdispatchedmyfamilyuptoOhiointhesteamboatTecumseh（CaptainPearce）;disposedofmyhouseandfurniture;turnedovertoMajorReynoldsthefunds，property，andrecordsoftheoffice;andtookpassageinasmallsteamerforNicaragua，，enrouteforCalifornia。WeembarkedearlyinMarch，andinsevendaysreachedGreytown，whereweunitedwiththepassengersfromNewYork，andproceeded，bytheNicaraguaRiverandLake，forthePacificOcean。Theriverwaslow，andthelittlesteamcanal—boats，fourinnumber，groundedoften，sothatthepassengershadtogetintothewater，tohelpthemoverthebare。
Inalltherewereaboutsixhundredpassengers，ofwhomaboutsixtywerewomenandchildren。InfourdayswereachedCastillo，wherethereisadecidedfall，passedbyashortrailway，andabovethisfallweweretransferredtoalargerboat，whichcarriedusuptherestoftheriver，andacrossthebeautifullakeNicaragua，studdedwithvolcanicislands。LandingatVirginBay，werodeonmulesacrosstoSanJuandelSur，wherelayatanchorthepropellerS。S。
Lewis（CaptainPartridge，Ithink）。Passengerswerecarriedthroughthesurfbynativestosmallboats，androwedofftotheLewis。Theweatherwasveryhot，andquiteascramblefollowedforstate—rooms，especiallyforthoseondeck。Isucceededinreachingthepurser’soffice，gotmyticketforaberthinoneofthebeststate—roomsondeck，and，justasIwasturningfromthewindow，aladywhowasafellow—passengerfromNewOrleans，aMrs。D—，calledtometosecureherandherladyfriendberthsondeck，sayingthatthosebelowwereunendurable。Ispoketothepurser，who，atthemomentperplexedbythecrowdandclamor，answered:\"Imustputtheirnamesdownfortheothertwoberthsofyourstate—room;but，assoonastheconfusionisover，Iwillmakesomechangewherebyyoushallnotsuffer。\"Assoonasthesetwowomenwereassignedtoastate—room，theytookpossession，andIwasleftout。Theirnameswererecordedas\"CaptainShermanandladies。\"AssoonasthingswerequieteddownIremonstratedwiththepurser，whoatlastgavemealowerberthinanotherandlargerstate—roomondeck，withfiveothers，sothatmytwoladieshadthestate—roomalltothemselves。Ateverymealthestewardwouldcometome，andsay，\"CaptainSherman，willyoubringyourladiestothetable？\"
andwehadthebestseatsintheship。
Thiscontinuedthroughoutthevoyage，andIassertthat\"myladies\"
wereofthemostmodestandbest—behavedintheship;butsometimeafterwehadreachedSanFranciscooneofourfellow—passengerscametomeandinquiredifIpersonallyknewMrs。D———，withflaxentresses，whosangsosweetlyforus，andwhohadcomeoutundermyespecialescort。IrepliedIdidnot，morethanthechanceacquaintanceofthevoyage，andwhatsheherselfhadtoldme，viz。，thatsheexpectedtomeetherhusband，wholivedaboutMokelumneHill。Hetheninformedmethatshewasawomanofthetown。
SocietyinCaliforniawasthendecidedlymixed。IndueseasonthesteamshipLewisgotunderweigh。Shewasawoodenship，longandnarrow，bark—rigged，andapropeller;veryslow，movingnotovereightmilesanhour。WestoppedatAcapulco，and，ineighteendays，passedinsightofPointPinoaatMonterey，andatthespeedweweretravelingexpectedtoreachSanFranciscoat4A。M。thenextday。Thecabinpassengers，aswasusual，boughtofthestewardsomechampagneandcigars，andwehadasortofovationforthecaptain，purser，andsurgeonoftheship，whowereallverycleverfellows，thoughtheyhadaslowandpoorship。Lateatnightallthepassengerswenttobed，expectingtoentertheportatdaylight。Ididnotundress，asIthoughtthecaptaincouldandwouldruninatnight，andIlaydownwithmyclotheson。About4
A。M。Iwasawakenedbyabumpandsortofgratingofthevessel，whichIthoughtwasourarrivalatthewharfinSanFrancisco;butinstantlytheshipstruckheavily;theenginesstopped，andtherunningtoandfroondeckshowedthatsomethingwaswrong。InamomentIwasoutofmystate—room，atthebulwark，holdingfasttoastanchion，andlookingoverthesideatthewhiteandseethingwatercausedbyhersuddenandviolentstoppage。Theseawascomparativelysmooth，thenightpitch—dark，andthefogdeepandimpenetrable;theshipwouldrisewiththeswell，andcomedownwithabumpandquiverthatwasdecidedlyunpleasant。Soonthepassengerswereoutoftheirrooms，undressed，callingforhelp，andprayingasthoughtheshipweregoingtosinkimmediately。Ofcourseshecouldnotsink，beingalreadyonthebottom，andtheonlyquestionwasastothestrenghofhulltostandthebumpingandstraining。Greatconfusionforatimeprevailed，butsoonI
realizedthatthecaptainhadtakenallproperprecautionstosecurehisboats，ofwhichthereweresixatthedavits。Thesearethefirstthingsthatsteerage—passengersmakeforincaseofshipwreck，andrightovermyheadIheardthecaptain’svoicesayinalowtone，butquitedecided:\"Letgothatfalls，or，damnyou，I’llblowyourheadoff！\"Thisseeminglyharshlanguagegavemegreatcomfortatthetime，andonsayingsotothecaptainafterward，heexplainedthatitwasaddressedtoapassengerwhoattemptedtoloweroneoftheboats。Guards，composedofthecrew，weresoonpostedtopreventanyinterferencewiththeboats，andtheofficerscirculatedamongthepassengersthereportthattherewasnoimmediatedanger;that，fortunately，theseawassmooth;
thatweweresimplyaground，andmustquietlyawaitdaylight。
Theyadvisedthepassengerstokeepquiet，andtheladiesandchildrentodressandsitatthedoorsoftheirstate—rooms，theretoawaittheadviceandactionoftheofficersoftheship，whowereperfectlycoolandself—possessed。Meantimetheshipwasworkingoverareef—foratimeIfearedshewouldbreakintwo;
but，asthewatergraduallyroseinsidetoalevelwiththeseaoutside，theshipswungbroadsidetotheswell，andallherkeelseemedtorestontherockorsand。Atnotimedidtheseabreakoverthedeck——butthewaterbelowdroveallthepeopleuptothemain—deckandtothepromenade—deck，andthusweremainedforaboutthreehours，whendaylightcame;buttherewasafogsothickthatnothingbutwatercouldbeseen。Thecaptaincausedaboattobecarefullylowered，putinheratrustworthyofficerwithaboat—compass，andwesawherdepartintothefog。Duringherabsencetheship’sbellwaskepttolling。Thenthefireswereallout，theshipfullofwater，andgraduallybreakingup，wrigglingwitheveryswelllikeawillowbasket——theseaallroundusfullofthefloatingfragmentsofhersheeting，twistedandtornintoaspongycondition。Inlessthananhourtheboatreturned，sayingthatthebeachwasquitenear，notmorethanamileaway，andhadagoodplaceforlanding。Alltheboatswerethencarefullylowered，andmannedbycrewsbelongingtotheship;apieceofthegangway，ontheleewardside，wascutaway，andallthewomen，andafewoftheworst—scaredmen，wereloweredintotheboats，whichpulledforshore。Inacomparativelyshorttimetheboatsreturned，tooknewloads，andthedebarkationwasafterwardcarriedonquietlyandsystematically。Nobaggagewasallowedtogoonshoreexceptbagsorparcelscarriedinthehandsofpassengers。Attimesthefogliftedsothatwecouldseefromthewreckthetopsofthehills，andtheoutlineoftheshore;andIremembersittingon，theupperorhurricanedeckwiththecaptain，whohadhismapsandcompassbeforehim，andwastryingtomakeoutwheretheshipwas。I
thoughtIrecognizedtheoutlineofthehillsbelowthemissionofDolores，andsostatedtohim;buthecalledmyattentiontothefactthatthegenerallineofhillsborenorthwest，whereasthecoastsouthofSanFranciscobearsduenorthandsouth。Hethereforeconcludedthattheshiphadoverrunherreckoning，andwasthentothenorthofSanFrancisco。Healsoexplainedthat，thepassageupbeinglongerthanusual，viz。，eighteendays，thecoalwasshort;thatatthetimethefiremenwereusingsomecut—upsparsalongwiththeslackofcoal，andthatthisfuelhadmademorethanusualsteam，sothattheshipmusthaveglidedalongfasterthanreckoned。Thisprovedtobetheactualcase，for，infact，thesteamshipLewiswaswreckedApril9，1853，on\"DuckworthReef，\"BaulinasBay，abouteighteenmilesabovetheentrancetoSanFrancisco。
Thecaptainhadsentashore。thepurserinthefirstboat，withorderstoworkhiswaytothecityassoonaspossible，toreportthelossofhisvessel，andtobringbackhelp。Iremainedonthewrecktillamongthelastofthepassengers，managingtogetacanofcrackersandsomesardinesoutofthesubmergedpantry，athingtherestofthepassengersdidnothave，andthenIwentquietlyashoreinoneoftheboats。Thepassengerswereallonthebeach，underasteepbluff;hadbuiltfirestodrytheirclothes，buthadseennohumanbeing，andhadnoideawheretheywere。Takingalongwithmeafellow—passenger，ayoungchapabouteighteenyearsold，Iscrambledupthebluff，andwalkedbacktowardthehills，inhopestogetagoodviewofsomeknownobject。ItwasthenthemonthofApril，andthehillswerecoveredwiththebeautifulgrassesandflowersofthatseasonoftheyear。Wesoonfoundhorsepathsandtracks，andfollowingthemwecameuponadroveofhorsesgrazingatlarge，someofwhichhadsaddle—marks。Atabouttwomilesfromthebeachwefoundacorral;andthence，followingoneofthestrongest—markedpaths，inaboutamilemorewedescendedintoavalley，and，onturningasharppoint，reachedaboardshanty，withahorsepicketednearby。Fourmenwereinsideeatingameal。IinquiredifanyoftheLewis’speoplehadbeenthere;theydidnotseemtounderstandwhatImeantwhenI
explainedtothemthataboutthreemilesfromthem，andbeyondtheoldcorral，thesteamerLewiswaswrecked，andherpassengerswereonthebeach。Iinquiredwherewewere，andtheyanswered，\"AtBaulinasCreek;\"thattheywereemployedatasaw—milljustabove，andwereengagedinshippinglumbertoSanFrancisco;thataschoonerloadedwithlumberwasthenabouttwomilesdownthecreek，waitingforthetidetogetout，anddoubtlessifwewouldwalkdowntheywouldtakeusonboard。
Iwroteafewwordsbacktothecaptain，tellinghimwherehewas，andthatIwouldhurrytothecitytosendhimhelp。MycompanionandItheirwentondownthecreek，andsoondescriedtheschooneranchoredoutinthestream。Onbeingbailed，asmallboatcameinandtookusonboard。The\"captain\"willinglyagreedforasmallsumtocarryusdowntoSanFrancisco;and，ashiswholecrewconsistedofasmallboyabouttwelveyearsold，wehelpedhimtogetuphisanchorandpoletheschoonerdownthecreekandoutoverthebaronahightide。Thismusthavebeenabout2P。M。Onceoverthebar，thesailswerehoisted，andweglidedalongrapidlywithastrong，fair，northwestwind。Thefoghadlifted，sowecouldseetheshoresplainly，andtheentrancetothebay。Inacoupleofhourswewereenteringtinebay，andrunning\"wing—and—wing。\"
Outsidethewindwassimplytheusualstrongbreeze;but，asitpassesthroughtheheadoftheGoldenGate，itincreases，andthere，too，wemetastrongebb—tide。
Theschoonerwasloadedwithlumber，muchofwhichwasondeck，lasheddowntoringboltswithraw—hidethongs。Thecaptainwassteering，andIwasrecliningonthelumber，lookingatthefamiliarshore，asweapproachedFortPoint，whenIheardasortofcry，andfelttheschoonergoingover。Aswegotintothethroatofthe\"Heads，\"theforceofthewind，meetingastrongebb—tide，drovethenoseoftheschoonerunderwater;shedovelikeaduck，wentoveronherside，andbegan，todriftoutwiththetide。I
foundmyselfinthewater，mixedupwithpiecesofplankandropes;
struckout，swamroundtothestern，gotonthekeel，andclamberedupontheside。Satisfiedthatshecouldnotsink，byreasonofhercargo，Iwasnotintheleastalarmed，butthoughttwoshipwrecksinonedaynotagoodbeginningforanew，peacefulcareer。Nobodywasdrowned，however;thecaptainandcrewwerebusyinsecuringsucharticlesaswereliabletofloatoff，andI
lookedoutforsomepassingboatorvesseltopickusup。Weweredriftingsteadilyouttosea，whileIwassignalingtoaboataboutthreemilesoff，towardSaucelito，andsawhertackandstandtowardus。Iwasbusywatchingthissail—boat，whenIheardaYankee’svoice，closebehind，saying，\"Thisisanicemessyou’vegotyourselvesinto，\"andlookingaboutIsawamaninasmallboat，whohadseenusupset，andhadrowedouttousfromaschooneranchoredcloseunderthefort。Someexplanationsweremade，andwhenthesail—boatcomingfromSaucelitowasnearenoughtobespokento，andthecaptainhadengagedhertohelphisschooner，webadehimgoodby，andgotthemaninthesmallboat—tocarryusashore，andlandusatthefootofthebluff，justbelowthefort。Oncethere，Iwasathome，andwefootedituptothePresidio。OfthesentinelIinquiredwhowasincommandofthepost，andwasanswered，\"MajorMerchant。\"Hewasnotthenin，buthisadjutant，LieutenantGardner，was。Isentmycardtohim;hecameout，andwasmuchsurprisedtofindmecoveredwithsand，anddrippingwithwater，agoodspecimenofashipwreckedmariner。A
fewwordsofexplanationsufficed;horseswereprovided，andwerodehastilyintothecity，reachingtheofficeoftheNicaraguaSteamshipCompany（C。K。Garrison，agent）aboutdark，justasthepurserhadarrived;byatotallydifferentroute。Itwastoolatetosendreliefthatnight，butbydaylightnextmorningtwosteamerswereenrouteforandreachedtheplaceofwreckintimetorelievethepassengersandbringthem，andmostofthebaggage。
Ilostmycarpet—bag，butsavedmytrunk。TheLewiswenttopiecesthenightafterwegotoff，and，hadtherebeenanaverageseaduringthenightofourshipwreck，noneofusprobablywouldhaveescaped。ThateveninginSanFranciscoIhuntedupMajorTurner，whomIfoundboarding，incompanywithGeneralE。A。Hitchcock，ataMrs。Ross’s，onClayStreet，nearPowell。Itookquarterswiththem，andbegantomakemystudies，withaviewtoadecisionwhetheritwasbesttoundertakethisnewanduntriedschemeofbanking，ortoreturntoNewOrleansandholdontowhatIthenhad，agoodarmycommission。
Atthetimeofmyarrival，SanFranciscowasanthetopwaveofspeculationandprosperity。MajorTurnerhadrentedatsixhundreddollarsamonththeofficeformerlyusedandthenownedbyAdams&
Co。，ontheeastsideofMontgomeryStreet，betweenSacramentoandCaliforniaStreets。B。R。Nisbetwastheactivepartner，andJamesReillytheteller。AlreadythebankofLucas，Turner&Co。wasestablished，andwasengagedinsellingbillsofexchange，receivingdeposits，andloaningmoneyatthreepercent。amonth。
Page，Bacon&Co。，andAdams&Co。，wereinfullblastacrossthestreet，inParrott’snewgranitebuilding，andotherbankersweredoingseeminglyaprosperousbusiness，amongthemWells，Fargo&
Co。;Drexel，Sather&Church;Burgoyne&Co。;JamesKingofWin。;
Sanders&Brenham;Davidson&Co。;Palmer，Cook&Co。，andothers。
TurnerandIhadroomsatMrs。Ross’s，andtookourmealsatrestaurantsdown—town，mostlyataFrenchman’snamedMartin，onthesouthwestcornerofMontgomeryandCaliforniaStreets。GeneralHitchcock，ofthearmy，commandingtheDepartmentofCalifornia，usuallymessedwithus;alsoaCaptainMason，andLieutenantWhiting，oftheEngineerCorps。Wesoonsecuredasmallshareofbusiness，andbecamesatisfiedtherewasroomforprofit。
Everybodyseemedtobemakingmoneyfast;thecitywasbeingrapidlyextendedandimproved;peoplepaidtheirthreepercent。amonthinterestwithoutfail，andwithoutdeemingitexcessive。
Turner，Nisbet，andI，dailydiscussedtheprospects，andgraduallysettleddowntotheconvictionthatwithtwohundredthousanddollarscapital，andacreditoffiftythousanddollarsinNewYork，wecouldbuildupabusinessthatwouldhelptheSt。Louishouse，andatthesametimepayexpensesinCalifornia，withareasonableprofit。Ofcourse，TurnerneverdesignedtoremainlonginCalifornia，andIconsentedtogobacktoSt。Louis，conferwithMr。LucasandCaptainSimonds，agreeuponfurtherdetails，andthenreturnpermanently。
Ihavenomemorandabymenowbywhichtodeterminethefact，butthinkIreturnedtoNewYorkinJuly，1853，bytheNicaraguaroute，andthencetoSt。LouisbywayofLancaster，Ohio，wheremyfamilystillwas。Mr。Lucaspromptlyagreedtothetermsproposed，andfurtherconsented，ontheexpirationoftheleaseoftheAdams&
Co。office，toerectanewbanking—houseinSanFrancisco，tocostfiftythousanddollars。IthenreturnedtoLancaster，explainedtoMr。EwingandMrs。Shermanallthedetailsofouragreement，and，meetingtheirapproval，IsenttotheAdjutant—Generalofthearmymyletterofresignation，totakeeffectattheendofthesixmonths’leave，andtheresignationwasaccepted，totakeeffectSeptember6，1853。Beingthenacitizen，IengagedapassageouttoCaliforniabytheNicaraguaroute，inthesteamerleavingNewYorkSeptember20th，formyselfandfamily，andaccordinglyproceededtoNewYork，whereIhadaconferencewithMr。Meigs，cashieroftheAmericanExchangeBank，andwithMessrs。Wadsworth&Sheldon，bankers，whowereourNewYorkcorrespondents;andonthe20thembarkedforSanJuandelNorte，withthefamily，composedofMrs。Sherman，Lizzie，thenlessthanayearold，andhernurse，MaryLynch。Ourpassagedownwasuneventful，and，ontheboatsuptheNicaraguaRiver，prettymuchthesameasbefore。OnreachingVirginBay，IengagedanativewiththreemulestocarryusacrosstothePacific，andasusualthetrippartookoftheludicrous——
Mrs。ShermanmountedonadonkeyaboutaslargeasaNewfoundlanddog;MaryLynchonanother，tryingtocarryLizzieonapillowbeforeher，buthermulehadafashionoflyingdown，whichscaredher，tillIexchangedmules，andmyCaliforniaspurskeptthatmuleonhislegs。IcarriedLizziesometimetillshewasfastasleep，whenIgotournativemantocarryherawhile。Thechildwokeup，and，findingherselfinthehandsofadark—visagedman，sheyelledmostlustilytillIgotheraway。Atthesummitofthepass，therewasaclear—runningbrook，wherewerestedanhour，andbathedLizzieinitssweetwaters。Wethencontinuedtotheendofourjourney，and，withoutgoingtothetavernatSanJuandelSur，wepasseddirectlytothevessel，thenatanchorabouttwomilesout。
Toreachherweengagedanativeboat，whichhadtobekeptoutsidethesurf。Mrs。Shermanwasfirsttakeninthearmsoftwostoutnatives;MaryLynch，carryingLizzie，wascarriedbytwoothers;
andIfollowed，mountedonthebackofastrappingfellow，whilefiftyorahundredotherswererunningtoandfro，cacklinglikegeese。
MaryLynchgotscaredatthesurf，andbeganscreaminglikeafool，whenLizziebecameconvulsedwithfear，andoneofthenativesrushedtoher，caughtheroutofMary’sarms，andcarriedherswiftlytoMrs。Sherman，who，bythattime，wasintheboat，butLizziehadfaintedwithfear，andforalongtimesobbedasthoughpermanentlyinjured。Foryearssheshowedsymptomsthatmadeusbelieveshehadneverentirelyrecoveredfromtheeffectsofthescare。InduetimewereachedthesteamerSierraNevada，andgotagoodstate—room。Ourpassageupthecoastwaspleasantenough;wereachedSanFrancisco;onthe15thofOctober，andtookquartersatanhotelonStocktonStreet，nearBroadway。
MajorTurnerremainedtillsometimeinNovember，whenhealsodepartedfortheEast，leavingmeandNisbettomanagethebank。I
endeavoredtomakemyselffamiliarwiththebusiness，butofcourseNisbetkeptthebooks，andgavehispersonalattentiontotheloans，discounts，anddrafts，whichyieldedtheprofits。Isoonsaw，however，thatthethreepercent。chargedaspremiumonbillsofexchangewasnotallprofit，butoutofthishadtocomeoneandafourthtooneandahalfforfreight，oneandathirdforinsurance，withsomeindefinitepromiseofareturnpremium;then，the，costofblanks，boxingofthebullion，etc。，etc。Indeed，I
sawnomarginforprofitatall。Nisbet，however，whohadlongbeenfamiliarwiththebusiness，insistedtherewasaprofit，inthefactthatthegold—dustorbullionshippedwasmorevaluablethanitscosttous。We，ofcourse，hadtoremitbulliontomeetourbillsonNewYork，andboughtcrudegold—dust，orbarsrefinedbyKellogg&HumbertorE。Justh&Co。，foratthattimetheUnitedStatesMintwasnotinoperation。But，asthereportsofourshipmentscamebackfromNewYork，IdiscoveredthatIwasright，andNisbetwaswrong;and，althoughwecouldnothelpsellingourchecksonNewYorkandSt。Louisatthesamepriceasotherbankers，Idiscoveredthat，atallevents，theexchangebusinessinSanFranciscowasratheralosingbusinessthanprofitable。Thesameastoloans。Wecouldloan，atthreepercent。amonth，allourownmoney，saytwohundredandfiftythousanddollars，andapartofourdepositaccount。ThislatteraccountinCaliforniawasdecidedlyuncertain。Thebalanceduedepositorswouldrundowntoamerenominalsumonsteamer—days，whichwerethe1stand15thofeachmonth，andthenwouldincreasetillthenextsteamer—day，sothatwecouldnotmakeuseofanyreasonablepartofthisbalanceforloansbeyondthenextsteamer—day;or，inotherwords，wehadanexpensivebank，withexpensiveclerks，andallthemachineryfortakingcareofotherpeople’smoneyfortheirbenefit，withoutcorrespondingprofit。Ialsosawthatloanswereattendedwithriskcommensuratewiththerate;nevertheless，Icouldnotattempttoreformtherulesandcustomsestablishedbyothersbeforeme，andhadtodriftalongwiththeresttowardthatNiagarathatnoneforesawatthetime。
Shortlyafterarrivingoutin1853，welookedaroundforasiteforthenewbank，andtheonlyplacethenavailableonMontgomeryStreet，theWallStreetofSanFrancisco，wasalotatthecornerofJacksonStreet，facingMontgomery，withanalleyonthenorth，belongingtoJamesLick。Thegroundwassixtybysixty—twofeet，andIhadtopayforitthirty—twothousanddollars。Ithenmadeacontractwiththebuilders，Keyser，&Brown，toerectathree—storybrickbuilding，withfinishedbasement，foraboutfiftythousanddollars。Thismadeeighty—twothousandinsteadoffiftythousanddollars，butIthoughtMr。Lucascouldstanditandwouldapprove，whichhedid，thoughitresultedinlosstohim。Afterthecivilwar，hetoldmehehadsoldthebuildingforfortythousanddollars，abouthalfitscost，butluckilygoldwasthenat250，sothathecouldusethefortythousanddollarsgoldastheequivalentofonehundredthousanddollarscurrency。Thebuildingwaserected;Igaveitmypersonalsupervision，anditwasstronglyandthoroughlybuilt，forIsawittwoyearsago，whenseveralearthquakeshadmadenoimpressiononit;still，thechoiceofsitewasunfortunate，forthecitydriftedintheoppositedirection，viz。，towardMarketStreet。IthenthoughtthatalltheheavybusinesswouldremaintowardthefootofBroadwayandJacksonStreet，becausetherewerethedeepestwaterandbestwharves，butinthisImadeamistake。Nevertheless，inthespringof1854，thenewbankwasfinished，andweremovedtoit，payingrentsthereaftertoourMr。LucasinsteadoftoAdams&Co。AmannamedWright，duringthesameseason，builtastillfinerbuildingjustacrossthestreetfromus;Pioche，Bayerque&Co。werealreadyestablishedonanothercornerofJacksonStreet，andthenewMetropolitanTheatrewasinprogressdiagonallyoppositeus。
Duringthewholeof1854ourbusinesssteadilygrew，ouraveragedepositsgoinguptohalfamillion，andoursalesofexchangeandconsequentshipmentofbullionaveragingtwohundredthousanddollarspersteamer。Isignedallbillsofexchange，andinsistedonNisbetconsultingmeonloansanddiscounts。Spiteofeverycaution，however，welostoccasionallybybadloans，andworsebythesteadydepreciationofrealestate。ThecityofSanFranciscowasthenextendingherstreets，seweringthem，andplankingthem，withthree—inchlumber。Inpaymentforthelumberandtheworkofcontractors，thecityauthoritiespaidscripinevensumsofonehundred，fivehundred，onethousand，andfivethousanddollars。
Theseformedafavoritecollateralforloansatfromfiftytosixtycentsonthedollar，andnoonedoubtedtheirultimatevalue，eitherbyredemptionorbybeingconvertedintocitybonds。ThenotesalsoofH。Meiggs，NeeleyThompson&Co。，etc。，lumber—
dealers，werefavoritenotes，fortheypaidtheirinterestpromptly，andlodgedlargemarginsofthesestreet—improvementwarrantsascollateral。Atthattime，Meiggswasaprominentman，livedinstyleinalargehouseonBroadway，wasamemberoftheCityCouncil，andownedlargesaw—millsupthecoastaboutMendocino。InhimNisbethadunboundedfaith，but，forsomereason，Ifearedormistrustedhim，andrememberthatIcautionedNisbetnottoextendhiscredit，buttograduallycontracthisloans。Onlookingoverourbillsreceivable，thenaboutsixhundredthousanddollars，IfoundMeiggs，asprincipalorindorser，owedusabouteightythousanddollars——all，however，securedbycitywarrants;still，hekeptbankaccountselsewhere，andwasgenerallyaborrower。IinstructedNisbettoinsistonhisreducinghislineasthenotesmatured，and，ashefounditindelicatetospeaktoMeiggs，Iinstructedhimtoreferhimtome;
accordingly，when，onthenextsteamer—day，MeiggsappealedatthecounterforadraftonPhiladelphia，ofabouttwentythousanddollars，forwhichheofferedhisnoteandcollateral，hewasreferredtome，andIexplainedtohimthatourdraftwasthesameasmoney;thathecouldhaveitforcash，butthatwewerealreadyinadvancetohimsomeseventy—fiveoreightythousanddollars，andthatinsteadofincreasingtheamountImustinsistonitsreduction。HeinquiredifImistrustedhisability，etc。I
explained，certainlynot，butthatourdutywastoassistthosewhodidalltheirbusinesswithus，and，asourmeanswerenecessarilylimited，Imustrestricthimtosomereasonablesum，say，twenty—
fivethousanddollars。MeiggsinvitedmetogowithhimtoarichmercantilehouseonClayStreet，whosepartnersbelongedinHamburg，andthere，inthepresenceoftheprincipalsofthehouse，hedemonstrated，asclearlyasapropositioninmathematics，thathisbusinessatMendocinowasbasedoncalculationsthatcouldnotfail。Thebillofexchangewhichhewanted，hesaidwouldmakethelastpaymentonapropelleralreadybuiltinPhiladelphia，whichwouldbesenttoSanFrancisco，totowintoandoutofporttheschoonersandbrigsthatwerebringinghislumberdownthecoast。
Iadmittedallhesaid，butrenewedmydeterminationtolimithiscredittotwenty—fivethousanddollars。TheHamburgfirmthenagreedtoacceptforhimthepaymentofallhisdebttous，exceptthetwenty—fivethousanddollars，payableinequalpartsforthenextthreesteamer—days。Accordingly，Meiggswentbackwithmetoourbank，wrotehisnotefortwenty—fivethousanddollars，andsecureditbymortgageonrealestateandcitywarrants，andsubstitutedthethreeacceptancesoftheHamburgfirmfortheoverplus。Isurrenderedtohimallhisformernotes，exceptoneforwhichhewasindorser。Thethreeacceptancesdulymaturedandwerepaid;onemorningMeiggsandfamilyweremissing，anditwasdiscoveredtheyhadembarkedinasailing—vesselforSouthAmerica。
ThiswasthebeginningofaseriesoffailuresinSanFrancisco，thatextendedthroughthenexttwoyears。AssoonasitwasknownthatMeiggshadfled，thetownwasfullofrumors，andeverybodywasrunningtoandfrotosecurehismoney。Hisdebtsamountedtonearlyamilliondollars。TheHamburghousewhich，hadbeenhumbugged，wereheavylosersandfailed，Ithink。ItookpossessionofMeiggs’sdwelling—houseandotherpropertyforwhichIheldhismortgage，andinthecitywarrantsthoughtIhadanoverplus;butittranspiredthatMeiggs，beingintheCityCouncil，hadissuedvariousquantitiesofstreetscrip，whichwasadjudgedaforgery，though，beyonddoubt，mostofit，ifnotall，wasproperlysigned，butfraudulentlyissued。Onthiscityscripourbankmusthavelostabouttenthousanddollars。MeiggssubsequentlyturnedupinChili，whereagainherosetowealthandhaspaidmuchofhisSanFranciscodebts，butnonetous。HeisnowinPeru，livinglikeaprince。WithMeiggsfellallthelumber—dealers，andmanypersonsdealingincityscrip。Comparedwithothers，ourlosswasatrifle。InashorttimethingsinSanFranciscoresumedtheirwontedcourse，andwegenerallylaughedattheescapadeofMeiggs，andthecursingofhisdeludedcreditors。
ShortlyafterourarrivalinSanFrancisco，IrentedofaMr。
Marryat，sonoftheEnglishCaptainMarryat，theauthor，asmallframe—houseonStocktonStreet，nearGreen，buyingofhimhisfurniture，andweremovedtoitaboutDecember1，1853。Closeby，aroundonGreenStreet，amannamedDickeywasbuildingtwosmallbrick—houses，ongroundwhichhehadleasedofNicholson。Iboughtoneofthesehouses，subjecttotheground—rent，andmovedintoitassoonasfinished。LieutenantT。H。Stevens，oftheUnitedStatesNavy，withhisfamily，rentedtheother;welivedinthishousethroughouttheyear1854，anduptoApril17，1855。
CHAPTERV。
CALIFORNIA
1855—1857
Duringthewinterof1854—’55，IreceivedfrequentintimationsinmylettersfromtheSt。Louishouse，thatthebankofPage，Bacon&
Co。wasintrouble，growingoutoftheirrelationstotheOhio&
MississippiRailroad，tothecontractorsforbuildingwhichtheyhadmadelargeadvances，tosecurewhichtheyhadbeencompelledtotake，asitwere，anassignmentofthecontractitself，andfinallytoassumealltheliabilitiesofthecontractors。ThentheyhadtoborrowmoneyinNewYork，andraiseothermoneyfromtimetotime，inthepurchaseofironandmaterialsfortheroad，andtopaythehands。ThefirminSt。LouisandthatinSanFranciscoweredifferent，havingdifferentpartners，andtheSt。LouishousenaturallypressedtheSanFranciscofirmtoshiplargelyof\"gold—dust，\"whichgavethemagreatname;alsotokeepaslargeabalanceaspossibleinNewYorktosustaintheircredit。Mr。Pagewasaverywealthyman，buthiswealthconsistedmostlyoflandandpropertyinSt。Louis。Hewasanoldman，andagoodone;hadbeenabaker，andknewlittleofbankingasabusiness。Thispartofhisgeneralbusinesswasmanagedexclusivelybyhisson—in—law，HenryD。Bacon，whowasyoung，handsome，andgenerallypopular。
HowhewasdrawnintothataffairoftheOhio&MississippiroadI
havenomeansofknowing，exceptbyhearsay。TheirbusinessinNewYorkwasdonethroughtheAmericanExchangeBank，andthroughDuncan，Sherman&Co。Aswewererivalhouses，theSt。LouispartnersremovedouraccountfromtheAmericanExchangeBanktotheMetropolitanBank;and，asWadsworth&Sheldonhadfailed，Iwasinstructedtodealintimebills，andinEuropeanexchange，withSchnchardt&Gebhard，bankersinNassauStreet。
InCaliforniathehouseofPage，Bacon&Co。wascomposedofthesamepartnersasinSt。Louis，withtheadditionofHenryHaight，JudgeChambers，andyoungFrankPage。Thelatterhadchargeofthe\"branch\"inSacramento。Haightwastherealhead—man，buthewastoofondoflager—beertobeintrustedwithsolargeabusiness。
Beyondallcomparison，Page，Bacon&Co。werethemostprominentbankersinCaliforniain1853—’55。ThoughIhadnoticeofdangerinthatquarter，fromourpartnersinSt。Louis，nobodyinCaliforniadoubtedtheirwealthandstability。Theymusthavehad，duringthatwinter，anaveragedepositaccountofnearlytwomilliondollars，ofwhichsevenhundredthousanddollarswasin\"certificatesofdeposit，\"themoststableofallaccountsinabank。Thousandsofminersinvestedtheirearningsinsuchcertificates，whichtheyconvertedintodraftsonNewYork，whentheywerereadytogohomeorwantedtosendtheir\"pile\"totheirfamilies。Adams&Co。werenextinorder，becauseoftheirnumerousofficesscatteredthroughouttheminingcountry。A
gentlemannamedHaskellhadbeeninchargeofAdams&Co。inSanFrancisco，butinthewinterof1854—’55somechangesweremade，andthebankingdepartmenthadbeentransferredtoamagnificentofficeinHalleck’snewMetropolitanBlock。JamesKingofWm。haddiscontinuedbusinessonhisownaccount，andbeenemployedbyAdams&Co。astheircashierandbanker，andIsaiahC。WoodhadsucceededHaskellinchiefcontroloftheexpressdepartment。
Wells，Fargo&Co。werealsobankersaswellasexpressmen，andWilliamJ。Pardeewastheresidentpartner。
Asthemail—steamercameinonFebruary17，1855，accordingtohercustom，sheranclosetotheLongWharf（Meiggs’s）onNorthBeach，tothrowashoretheexpress—parcelsofnewsforspeedydelivery。