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d 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 whatevereven 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 there he met Smiley; who was; of course; very anxious to retire his notes。  We there discussed the matter fully; when Hammond said; 〃Sherman; give me up my two acceptances; and I will substitute therefor my check of forty thousand dollars;〃 with 〃the distinct understanding that; if the money is not needed by you; it shall be returned to me; and the transaction then to remain statu quo。〃  To this there was a general assent。  Nisbet handed him his two acceptances; and he handed me his check; signed as collector of the port; on Major J。 R。 Snyder; United States Treasurer; for forty thousand dollars。  I afterward rode out; that night; to Major Snyder's house on North Beach; saw him; and he agreed to meet me at 8 a。m。  next day; at the United States Mint; and to pay the check; so that I could have the money before the bank opened。  The next morning; as agreed on; we met; and he paid me the check in two sealed bags of gold…coin; each marked twenty thousand dollars; which I had carried to the bank; but never opened them; or even broke the seals。

That morning our bank opened as usual; but there was no appearance of a continuation of the 〃run;〃 on the contrary; money began to come back on deposit; so that by night we had a considerable increase; and this went on from day to day; till nearly the old condition of things returned。  After about three days; finding I had no use for the money obtained on Hammond's check; I took the identical two bags back to the cashier of the Custom…House; and recovered the two acceptances which had been surrendered as described; and Smiley's two notes were afterward paid in their due course; out of the cash received on those identical acceptances。 But; years afterward; on settling with Hammond for the Custom…House contract when completed; there was a difference; and Smiley sued Lucas; Turner & Co。 for money had and received for his benefit; being the identical forty thousand dollars herein explained; but he lost his case。  Hammond; too; was afterward removed from office; and indicted in part for this transaction。  He was tried before the United States Circuit Court; Judge McAlister presiding; for a violation of the sub…Treasury Act; but was acquitted。  Our bank; having thus passed so well through the crisis; took at once a first rank; but these bank failures had caused so many mercantile losses; and had led to such an utter downfall in the value of real estate; that everybody lost more or less money by bad debts; by depreciation of stocks and collaterals; that became unsalable; if not worthless。

About this time (viz。; February; 1855) I had exchanged my house on Green; street; with Mr。 Sloat; for the half of a fifty…vara lot on Harrison Street; between Fremont and First; on which there was a small cottage; and I had contracted for the building of a new frame…house thereon; at six thousand dollars。  This house was finished on the 9th of April; and my family moved into it at once。

For some time Mrs。 Sherman had been anxious to go home to Lancaster; Ohio; where we had left our daughter Minnie; with her grandparents; and we arranged that S。 M。 Bowman; Esq。; and wife; should move into our new house and board us; viz。; Lizzie; Willie with the nurse Biddy; and myself; for a fair consideration。  It so happened that two of my personal friends; Messrs。  Winters and Cunningham of Marysville; and a young fellow named Eagan; now a captain in the Commissary Department; were going East in the steamer of the middle of April; and that Mr。。  William H。 Aspinwall; of New York; and Mr。 Chauncey; of Philadelphia; were also going back; and they all offered to look to the personal comfort of Mrs。 Sherman on the voyage。  They took passage in the steamer Golden Age (Commodore Watkins); which sailed on April 17; 1855。  Their passage down the coast was very pleasant till within a day's distance of Panama; when one bright moonlit night; April 29th; the ship; running at full speed; between the Islands Quibo and Quicara; struck on a sunken reef; tore out a streak in her bottom; and at once began to fill with water。  Fortunately she did not sink fast; but swung off into deep water; and Commodore Watkins happening to be on deck at the moment; walking with Mr。 Aspinwall; learning that the water was rushing in with great rapidity; gave orders for a full head of steam; and turned the vessel's bow straight for the Island Quicara。  The water rose rapidly in the hold; the passengers were all assembled; fearful of going down; the fires were out; and the last revolution of the wheels made; when her bow touched gently on the beach; and the vessel's stern sank in deep water。  Lines were got out; and the ship held in an upright position; so that the passengers were safe; and but little incommoded。  I have often heard Mrs。 Sherman tell of the boy Eagan; then about fourteen years old; coming to her state…room; and telling to her not to be afraid; as he was a good swimmer; but on coming out into the cabin; partially dressed; she felt more confidence in the cool manner; bearing; and greater strength of Mr。 Winters。  There must have been nearly a thousand souls on board at the time; few of whom could have been saved had the steamer gone down in mid…channel; which surely would have resulted; had not Commodore Watkins been on deck; or had he been less prompt in his determination to beach his ship。  A sailboat was dispatched toward Panama; which luckily met the steamer John T。 Stephens; just coming out of the bay; loaded with about a thousand passengers bound for San Francisco; and she at once proceeded to the relief of the Golden Age。  Her passengers were transferred in small boats to the Stephens; which vessel; with her two thousand people crowded together with hardly standing…room; returned to Panama; whence the passengers for the East proceeded to their destination without further delay。  Luckily for Mrs。 Sherman; Purser Goddard; an old Ohio friend of ours; was on the Stephens; and most kindly gave up his own room to her; and such lady friends as she included in her party。  The Golden Age was afterward partially repaired at Quicara; pumped out; and steamed to Panama; when; after further repairs; she resumed her place in the line。  I think she is still in existence; but Commodore Watkins afterward lost his life in China; by falling down a hatchway。

Mrs。 Sherman returned in the latter part of November of the same year; when Mr。 and Mrs。 Bowman; who meantime had bought a lot next to us and erected a house thereon; removed to it; and we thus continued close neighbors and friends until we left the country for good in 1857。

During the summer of 1856; in San Francisco; occurred one of those unhappy events; too common to new countries; in which I became involved in spite of myself。

William Neely Johnson was Governor of California; and resided at Sacramento City; General John E。 Wool commanded the Department of California; having s

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