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 Dickey 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
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 assignment of the contract itself, and finally to assume 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 Nassau 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, nobody 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 ashore the express-parcels of news for speedy delivery. Some passenger 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 passed 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 assertion 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. Passing 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 passed back again into the room where the before-named gentlemen were discussing some paper which lay before them, and was going to pass out, when Captain Folsom, who was an officer of the army, a class-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 assets could be in part converted or realized; but I naturally inquired of Folsom, "Have you personally examined the accounts, as herein recited, and the assets, 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 &