It had also been arranged that an office or branch was to be established in New York City, of which I was to have charge, on pretty much the same terms and conditions as in the previous San Francisco firm.
Mr. Lucas, Major Turner, and I, agreed to meet in New York, soon after the 4th of July. We met accordingly at the Metropolitan Hotel, selected an office, No. 12 Pall Street, purchased the necessary furniture, and engaged a teller, bookkeeper, and porter. The new firm was to bear the same title of Lucas, Turner & Co., with about the same partners in interest, but the nature of the business was totally different. We opened our office on the 21st of July, 1857, and at once began to receive accounts from the West and from California, but our chief business was as the resident agents of the St. Louis firm of James H. Lucas & Co. Personally I took rooms at No. 100 Prince Street, in which house were also quartered Major J. G. Barnard, and Lieutenant J. B. McPherson, United States Engineers, both of whom afterward attained great fame in the civil war.
My business relations in New York were with the Metropolitan Bank and Bank of America; and with the very wealthy and most respectable firm of Schuchhardt & Gebhard, of Nassau Street. Every thing went along swimmingly till the 21st of August, when all Wall Street was thrown into a spasm by the failure of the Ohio Life and Trust Company, and the panic so resembled that in San Francisco, that, having nothing seemingly at stake, I felt amused. But it soon became a serious matter even to me. Western stocks and securities tumbled to such a figure, that all Western banks that held such securities, and had procured advances thereon, were compelled to pay up or substitute increased collaterals. Our own house was not a borrower in New York at all, but many of our Western correspondents were, and it taxed my tune to watch their interests. In September, the panic extended so as to threaten the safety of even some of the New York banks not connected with the West; and the alarm became general, and at last universal.
In the very midst of this panic came the news that the steamer Central America, formerly the George Law, with six hundred passengers and about sixteen hundred thousand dollars of treasure, coming from Aspinwall, had foundered at sea, off the coast of Georgia, and that about sixty of the passengers had been providentially picked up by a Swedish bark, and brought into Savannah. The absolute loss of this treasure went to swell the confusion and panic of the day.
A few days after, I was standing in the vestibule of the Metropolitan Hotel, and heard the captain of the Swedish bark tell his singular story of the rescue of these passengers. He was a short, sailor-like-looking man, with a strong German or Swedish accent. He said that he was sailing from some port in Honduras for Sweden, running down the Gulf Stream off Savannah. The weather had been heavy for some days, and, about nightfall, as he paced his deck, he observed a man-of-war hawk circle about his vessel, gradually lowering, until the bird was as it were aiming at him. He jerked out a belaying-pin, struck at the bird, missed it, when the hawk again rose high in the air, and a second time began to descend, contract his circle, and make at him again. The second time he hit the bird, and struck it to the deck.... This strange fact made him uneasy, and he thought it betokened danger; he went to the binnacle, saw the course he was steering, and without any particular reason he ordered the steersman to alter the course one point to the east.
After this it became quite dark, and he continued to promenade the deck, and had settled into a drowsy state, when as in a dream he thought he heard voices all round his ship. Waking up, he ran to the side of the ship, saw something struggling in the water, and heard clearly cries for help. Instantly heaving his ship to, and lowering all his boats, he managed to pick up sixty or more persons who were floating about on skylights, doors, spare, and whatever fragments remained of the Central America. Had he not changed the course of his vessel by reason of the mysterious conduct of that man-of-war hawk, not a soul would probably have survived the night. It was stated by the rescued passengers, among whom was Billy Birch, that the Central America had sailed from Aspinwall with the passengers and freight which left San Francisco on the 1st of September, and encountered the gale in the Gulf Stream somewhere off Savannah, in which she sprung a leak, filled rapidly, and went down. The passengers who were saved had clung to doors, skylights, and such floating objects as they could reach, and were thus rescued; all the rest, some five hundred in number, had gone down with the ship.
The panic grew worse and worse, and about the end of September there was a general suspension of the banks of New York, and a money crisis extended all over the country. In New York, Lucas, Turner & Co. had nothing at risk. We had large cash balances in the Metropolitan Bank and in the Bank of America, all safe, and we held, for the account of the St. Louis house, at least two hundred thousand dollars, of St. Louis city and county bonds, and of acceptances falling due right along, none extending beyond ninety days. I was advised from St. Louis that money matters were extremely tight; but I did not dream of any danger in that quarter. I knew well that Mr. Lucas was worth two or three million dollars in the best real estate, and inferred from the large balances to their credit with me that no mere panic could shake his credit; but, early on the morning of October 7th, my cousin, James M. Hoyt, came to me in bed, and read me a paragraph in the morning paper, to the effect that James H. Lucas & Co., of St. Louis, had suspended. I was, of course, surprised, but not sorry; for I had always contended that a man of so much visible wealth as Mr. Lucas should not be engaged in a business subject to such vicissitudes. I hurried down to the office, where I received the same information officially, by telegraph, with instructions to make proper disposition of the affairs of the bank, and to come out to St. Louis, with such assets as would be available there. I transferred the funds belonging to all our correspondents, with lists of outstanding checks, to one or other of our bankers, and with the cash balance of the St. Louis house and their available assets started for St. Louis. I may say with confidence that no man lost a cent by either of the banking firms of Lucas, Turner & Co., of San Francisco or New York; but, as usual, those who owed us were not always as just. I reached St. Louis October 17th, and found the partners engaged in liquidating the balances due depositors as fast as collections could be forced; and, as the panic began to subside, this process became quite rapid, and Mr. Lucas, by making a loan in Philadelphia, was enabled to close out all accounts without having made any serious sacrifices, Of course, no person ever lost a cent by him: he has recently died, leaving an estate of eight million dollars. During his lifetime, I had opportunities to know him well, and take much pleasure in bearing testimony to his great worth and personal kindness. On the failure of his bank, he assumed personally all the liabilities, released his partners of all responsibility, and offered to assist me to engage in business, which he supposed was due to me because I had resigned my army commission. I remained in St. Louis till the 17th of December, 1857, assisting in collecting for the bank, and in controlling all matters which came from the New York and San Francisco branches. B. R. Nisbet was still in San Francisco, but had married a Miss Thornton, and was coming home. There still remained in California a good deal of real estate, and notes, valued at about two hundred thousand dollars in the aggregate; so that, at Mr. Lucas's request, I agreed to go out again, to bring matters, if possible, nearer a final settlement. I accordingly left St. Louis, reached Lancaster, where my family was, on the 10th, staid there till after Christmas, and then went to New York, where I remained till January 5th, when I embarked on the steamer Moles Taylor (Captain McGowan) for Aspinwall; caught the Golden Gate (Captain Whiting) at Panama, January 15, 1858; and reached San Francisco on the 28th of January. I found that Nisbet and wife had gone to St. Louis, and that we had passed each other at sea. He had carried the ledger and books to St. Louis, but left a schedule, notes, etc., in the hands of S. M. Bowman, Esq., who passed them over to me.
On the 30th of January I published a notice of the dissolution of the partnership, and called on all who were still indebted to the firm of Lucas, Turner & Co. to pay up, or the notes would be sold at auction. I also advertised that all the real property, was for sale.
Business had somewhat changed since 1857. Parrott & Co.; Garrison, Fritz & Ralston; Wells, Fargo & Co.;