At the time of my arrival, on August 18, 1849, there were several hundreds of ships anchored in the bay deserted by their crews, who had gone to the mines.  They could make more in one day there than their wages would amount to in a month on the vessel.

In the city a large portion of its population were living in tents.  There were not buildings enough.  Vessels were constantly arriving loaded with people from all parts of the world.  As my health permitted I investigated matters there.  I took a walk out.  I met what looked like a laboring man.  I asked him how long he had been there?  He said two months.  I said to him:  “And not gone up to the mines yet?” He said to me he was in no particular hurry.  He said he had a row-boat and made $20 a day rowing passengers to and from the vessels (there was then no dock).  He had his boy with him, who gathered mussels and sold them.  Between the two they averaged $30 per day, which explained why he was in no hurry to go to the gold diggings.

Lumber was bringing fabulous prices.  It looked very favorable for my house ventures.  Mr. G., the Englishman, had been very anxious to buy them.  He had seen the specifications of the carpenter on the steamer coming up.  On Saturday P.M.  I called at his office.  He asked me if I had made up my mind to sell him the houses.  I said to him:  “If I should put a price on them you would not take me up.”  He said “try me.”  I named a price.  He said he would take them and go to my lawyer to draw up the contract.  I said I would just as soon go to his (which was a fatal mistake).  I knew his was a State senator from Florida, and had come up on the steamer with us.  We found the lawyer in his office, and he commenced drawing up the contract.  I made my statement that I sold the houses from my carpenter’s specifications (not from any representations I made myself), and from the bills of lading and from my insurance policy, which ranked the ship Prince de Joinville, formerly a Havre packet, classed A, No. 1.  He was to deposit bills of lading of the ship St. George from Liverpool, consigned to him, in value to the amount of $50,000, with a third party, as collateral security, that on the arrival of the Prince de Joinville, and the delivery of the houses, he was to pay me the sum agreed upon.

The lawyer, after writing a little, complained of a headache, and asked if it made any difference if he put it off until Monday morning.  I said, Mr. G. had been very anxious to buy the houses, and I had not cared about selling them to arrive, preferring to take my chances when the vessel got here, but since I had consented to sell them, I preferred to have it on the solid.  I said, I supposed the transaction was not of great importance to Mr. G., but I had all that I was worth in the world at stake on the venture, and would prefer to have it closed now.  He commenced writing, and again complained of the headache.  I then consented to put it off until Monday morning at 10 o’clock.  We both pledged our honor to meet there at that time and consummate it.  I was there on Monday morning at the time designated.  Mr. G. came in at 11 o’clock and said he had changed his mind and would not take the houses.  I said all right, but his word of pledge of honor would have no value with me hereafter.