hubert howe bancroft - Central Pacific Railroad Photographic History ...

BANKING. 161
in gold-dust and deposits to more important transactions.
In 1850 D. J. Tallant, Page, Bacon, and Company,
and F. Argenti and Company joined the list,
followed by a number of others in this and following
years, notably Drexel, Sather, and Church, and Adams
and Company. 14 The last, as the most wide-spread
express agency on the coast, extended banking facilities
to every town and camp of importance. 15 While
banks in California were somewhat fettered by corporation
laws and the prohibition to issue paper money,
they enjoyed in other respects vast opportunities, from
the immense yield of gold, the large import and traffic,
the speculative spirit of the people, and the rapid
development of resources and settlements. The purchase
of gold-dust alone was for a long time highly
profitable, owing to the low prices paid as compared
with mint values. 16 Methods differed widely at first
from those ruling in long-established business centres,
chiefly owing to the scarcity of reliable securities and
firms of good standing, towns being combustible and
uncovered by insurance, and fires, floods, and panics
ever pending. One result was exorbitant rates of
interest, which ruled at ten per cent per month even
houses continued to act as bankers for some years. Instance Gildemeester h
be Fremery, who advertised as bankers. Pac. News, Jan. 6, 1850; 8. F.
HeniM, July 1, Sept. 14, 1850. King of Wm and Wells represented eastern
banks. Davidson was Rothschild's agent.
11 Bolton, Barron, & Co., E. C. Dunbar, and W. F. Yonng figured in 1860,
as did S. Beebe, Ludlow, and Godeffiroy, Sillem & Co., agents for New York
and Hamburg banks. Mercttant's Mag., xxiv. 548. The list in 8. F. Directory,
1852, p. 94, adds Delessert, Cordier, & Co.; J. W. Gregory, express;
McNulty, Carothers, & Co.; Robinson & Co., savings bank; California Savings
Bank; F. G. Smith, savings bank; R. Rodger*; Sanders & Brenham; Todd'a
Express; Wells, Fargo, & Co., express. G. Ward figured also as banker in
1850. Garni*' Early %«, MS., 1G; S. F. Htraid, July 1,13, Sept. 14,1850;
Banker*' Mag., Apr. 1877; Col Courier, Feb. 21, 1851. In 8. F. Directory,
1854, p. 232, several of the above are no longer found, but Abel Gay, Lucas,
Turner, & Co. managed by Sherman, later general. Palmer, Cook, & Co.,
Timmerman & Co., savings, J. L. Woolsey & Co., savings, and A. S. Wright,
•avings and exchange, are added. Slvermaris Mem., L 92, 100.
14 Leading towns early obtained special banks. At Sac. several mercantile
firms opened special banking departments, Barton Lee and Baker & Co.
being the most prominent. Wheatons 8iaL, MS., 9; 8ac Transcript, May 29,
1850, names also Warbass & Co.; Henaley, Merrill, & King; and Henley,
McKnight, & Co. Placer Times, March 2, 9, 1850.
"Soon, however, this trade was abandoned to brokers, among them Sayward,
who gives interesting information concerning it. Pioneer, MS., 12-19.
HIST. CAI*, VOL. YIL 11