Memoirs of General William T. Sherman-1 [69]
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,
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,