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 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