The History of United States Coinage As Illustrated by the Garrett Collection

Scales were often inaccurate, sometimes deliberately with many transactions involving Indians, and other times inadvertently. In the latter category a Mr. Green reported that he sold a cart and a pair of oxen to a Frenchman for $600 in gold, with the weighing done by the Frenchman who used improvised scales. Taking the metal to Sutter's Fort, the seller had the gold weighed there and found it to be worth $2,000.

With gold so abundant, inflation was rampant. A horse worth $6 before the gold rush started might command $300 at the mines. Goods and services of all kinds often sold at many multiples of the prices in San Francisco. Traders often reported profits of several hundred percent.

Gold production estimates for the period of greatest activity are difficult to compute as few records were kept. Estimates of production for the first year, 1848, ranged from $2 million, the officially reported export figure (which was just a fraction of the total amount mined) to $10 million (Hittell and Bancroft) to $45 million. Hittell's estimate, later seconded by Bancroft, was that about $10 million value was gathered by about 8,000 to 10,000 miners averaging an ounce a day, equalling about $1,000 or more per person for the season, notwithstanding the fact that most miners worked only part of the year.

San Francisco

From the earliest days of the gold discovery in 1848 San Francisco maintained its leadership as the main commercial center, first for commerce, then banking, and, finally, coinage.

The first bank in San Francisco was opened on January 9, 1848 as the "Exchange and Deposit Office" of Henry M. Naglee and Richard H. Sinton and was situated in the building known as the Parker House on Kearny Street opposite Portsmouth Square. Before that time deposits of citizens and commercial interests were made with different mercantile establishments possessing large safes and storage facilities, Cross & Co., Macondray and Co., Mellous, Howard & Co, and others being examples. In Sacramento similar services were offered by Hensley, Reading & Co., Priest, Lee & Co., and the Mormon merchant, Samuel Brannan.

Richard H. Sin ton retired from San Francisco's pioneer bank in July 1849, and Naglee continued the business alone. In the meantime, on June 5, Burgoyne & Company opened a banking establishment. September saw B. Davidson establish a bank, followed in October by Thomas G. Wells' establishment of Wells & Co. James King, or, as he was known, "James King of William," opened a bank on December 5, 1849.

King, who was to become one of San Francisco's most colorful personalities during the Gold Rush era, was born in Georgetown, in the District of Columbia, in January 28, 1822. In 1841 he became a clerk at the bank of Corcoran & Riggs in Washington. He was married in 1843. James King was not an unusual name, so the designation "of William!' was assumed by him to differentiate himself in accordance with an old Virginia custom.

King sailed in May 1848 from New York to Cartagena, in New Granada. From there he went to Panama, then to Callao, Peru, and then on to Valparaiso, Chile, which he reached on July 25th of the same year. He had hoped to follow the steps of his brother who had earlier joined a western exploration party headed by Fremont. In Chile he learned of gold in California and became excited by the prospects. Acquiring passage on the Undine, of American registry, he arrived in San Francisco on November 10th. He journeyed to the South Fork of the American river, but disliking the rigors of mining life he went to Sacramento to become a partner and bookkeeper in a merchandising firm, Hensley, Reading & Co. In autumn 1849 he returned to San Francisco, establishing on December 5th, with Jacob R. Snyder as his partner, The Banking House of James King of William & Co. Snyder remained a partner until his resignation on March 5, 1852, after which time King was the sole owner.

In May 1851 his family, consisting of his wife and four children, joined him. He built a beautiful home, had a fine carriage and horses, and lived in a gracious and elegant manner. From time to time King was called upon to make public statements, particularly when he headed the Grand Journey in 1853. Hittell notes that he became "widely known as a man not only of honor and integrity but also of intelligence and courage." At the same time he acquired a number of bitter enemies.

One of his employees was careless and made an investment in certain mining and ditch properties in Tuolumne County which nearly resulted infinancial disaster. In June 1854, while King was in an uncertain financial position due to the unwise Tuolumne invest-ments, Isaiah C. Woods of the express and banking firm of Adams & Co, suggested that if he would turn all of his bank's assets over to Adams and enter business with that firm it would assume all of the liabilities and pay him a salary of over. $1,000 per month. King, after due consideration, accepted the offer, believing Adams to be financially solid. For Adams it likewise seemed to be an attractive situation, for King's assets, after deducting his liabilities, still resulted in a net value. With King's previous banking experience and success Adams would surely prosper more than ever.