out one hundred and twenty
thousand dollars, for which remained of coin about fifty thousand
dollars. I resolved not to sleep until I had collected from those
owing the bank a part of their debts; for I was angry with them
that they had stood back and allowed the panic to fall on the banks
alone. Among these were Captain Folsom, who owed us twenty-five
thousand dollars, secured by a mortgage on the American Theatre and
Tehama Hotel; James Smiley, contractor for building the
Custom-House, who owed us two notes of twenty thousand and sixteen
thousand dollars, for which we held, as collateral, two acceptances
of the collector of the port, Major R. P. Hammond, for twenty
thousand dollars each; besides other private parties that I need
not name. The acceptances given to Smiley were for work done on
the Custom-House, but could not be paid until the work was actually
laid in the walls, and certified by Major Tower, United States
Engineers; but Smiley had an immense amount of granite, brick,
iron, etc., on the ground, in advance of construction, and these
acceptances were given him expressly that he might raise money
thereon for the payment of such materials.

Therefore, as soon as I got my dinner, I took my saddle-horse, and
rode to Captain Folsom's house, where I found him in great pain and
distress, mental and physical. He was sitting in a chair, and
bathing his head with a sponge. I explained to him the object of
my visit, and he said he had expected it, and had already sent his
agent, Van Winkle, down-town, with instructions to raise what money
he could at any cost; but he did not succeed in raising a cent. So
great was the shock to public confidence, that men slept on their
money, and would not loan it for ten per cent. a week, on any
security whatever--even on mint certificates, which were as good as
gold, and only required about ten days to be paid in coin by the
United States Mint. I then rode up to Hammond's house, on Rincon
Hill, and found him there. I explained to him exactly Smiley's
affairs, and only asked him to pay one of his acceptances. He
inquired, "Why not both?" I answered that was so much the better;
it would put me under still greater obligations. He then agreed to
meet me at our bank at 10 P.M. I sent word to others that I
demanded them to pay what they could on their paper, and then
returned to the bank, to meet Hammond. In due time, he came down
with Palmer (of Palmer, Cook & Co.), and