Q.David Bowers
Moffat, born in Goshen, New York on February 12, 1788, was in his early sixties when he joined the California adventurers. The New York Tribune on February 14, 1849, told of his departure from that city:
The good bark Guilford sails today from the foot of Wall Street. Whatever success may attend the various adventurers, associated or individual, they will require a certain medium of circulation, or a fixed standard for their golddust. This end may be obtained through the operations of Messrs. Moffat & Co., who go out in the Guilford, with proper assistance, and most complete machinery and apparatus, to supply the want of Californians; in other words, to establish a sort of mint, to receive the gold-dust, smelt and assay it, and by their stamp to give it a currency and value, which must, in the absence of a Government character, be received by the merchants and consumers. Mr. John L. Moffat, known as the standard assayer in this city for many years, carries with him testimonials of our most eminent merchants, bankers, and bullion dealers, including a certificate of the strongest character from Messrs. Beebee, Ludlow & Co., the heaviest bullion dealers in the United States; the most eminent gold dealers in the city, together with Hon. R. J. Walker, Secretary of the Treasury, have indorsed the circular of Messrs. Moffat & Co. They have our best wishes for their success.
Moffat, who in New York was associated with the firm of Wilmarth, Moffat & Curtis, began business in San Francisco in the summer of 1849. Associated with him were Joseph R. Curtis, P. H. W. Perry, and Samuel H. Ward. Their office at Clay and Dupont streets was busy with the activity of trading in gold dust, refining it and converting the metal to bars and ingots to ship to the East for sale. An advertisement of the time read:
MOFFAT & CO.
John L. Moffat, Joseph R. Curtis, S. H. Ward, P. H. Perry, have erected suitable furnaces, and are provided with all the necessary apparatus and most ample facilities for smelting and assaying Gold Dust.
The highest market price paid for Gold Dust.
They refer to the annexed testimonials from the most eminent Bankers, Merchants, and Bullion Brokers of New York, the originals of which, with other evidences of character, may be seen at their office ...
Then followed testimonials from various bankers and others, including R. J. Walker, secretary of the United States Treasury.
Moffat produced small rectangular gold ingots ranging in value from $9.43 to $264. Most were of the value of $16. These are believed to have been first issued in June or July 1849.
The engraver Albert Kuner, who arrived in San Francisco on July 16th, was employed by Moffat & Co. Dies for a $10 issue were cut shortly thereafter. When Mr. Kuner's personal effects were examined following his death, an impression in wax of a Moffat & Co. undated $10 was found, accompanied by a note stating that the impression had been taken on July 31, 1849, and was for Moffat's first coin. The piece in question resembled a United States government $10 but had legends referring to Moffat & Co. The reverse was inscribed S. M. V. CALIFORNIA GOLD, "S. M. V." meaning "standard mint value."
At the Philadelphia Mint Jacob Eckfeldt and William Dubois examined certain of the 1849 issues and pronounced them to be inferior in quality to the standard of the Mint. However, the average value of the $10 piece was $9.977, which was far above the value of other California issuers. The same Philadelphia assayers noted that the value of Moffat's ingots was apt to vary. While the weights were correct, the fineness or value would often be higher or lower than that marked on the pieces, "varying grossly," they said. "What has surprised us, both in this case and that of the private mint in North Carolina, is that the valuation should be wrong even upon their own data, being deducible by a simple rule of arithmetic." In other words, using the fineness and weight stamped on the bars as a means for calculation, in combination with the current value, the value did not conform to what should have been correct.
Shortly after the $10 pieces made their appearance, a Moffat $5 coin, also engraved from dies cut by Kuner, reached circulation.
In the following year, 1850, only pieces of the $5 denomination were made. Prices Current, a financial publication issued in San Francisco, noted on December 14, 1850, that Moffat coins were being traded at their face value:
Gold dust $16 to $16.25; quicksilver $15 to $15.50; Moffat's coin, par; doubloons $16; sovereigns $4.85; 20-franc pieces $4, or at the Custom House $3.85; ten guilder pieces $4; ten-thaler pieces $8; Spanish dollars $1; Mexican dollars $1; Peruvian dollars $1; Chilean dollars $1; 5 francs, 95 cents.
It was noted that at the time $1.5 million worth of coins was stored in the Custom House, thereby making pieces very scarce in general circulation. During the same period in 1850 most other private gold coins were quoted at a discount of 8% or more.
In September 1850 Congress authorized the secretary of the Treasury to contract with a well-established assaying business in California to affix the stamp of the United States to bars and ingots: The Secretary of the Treasury ... be authorized and directed to contract, upon the most reasonable terms, with the proprietors of some well-established works now in successful operation in California, upon satisfactory security, to be judged by the Secretary of the Treasury, who shall, under the supervision of the United States Assayer, to be appointed by the President by and with the advice and consent of the Senate, perform such duties in assaying and fixing the value of gold in grains and lumps, and forming the same into bars, as shall be prescribed by the Secretary of the Treasury; and that the said United States Assayer shall cause the stamp of the United States, indicating the degree of fineness and value, to be affixed to each bar or ingot of gold that may be issued from the establishment; provided, that the United States shall not be held responsible for the loss of any gold deposited with said proprietors for assay.
Moffat & Co. received the honor. Appointed to the position of United States assayer was Augustus Humbert, a New York City maker of watch cases.
Moffat & Co. ceased their private business and pre-pared to issue coins under the government contract. New premises were secured on Montgomery Street between Clay and Commercial streets. The Daily Alta California published this advertisement on January 29, 1851:
UNITED STATES ASSAY OFFICE.
We give notice that on or about the first of February ensuing we will be prepared to receive gold dust for smelting and assaying, and forming the same into ingots and bars, in accordance with our recent contract with the Secretary of the Treasury, authorized by Act of Congress approved September 30, 1850, under the supervision of the United States Assayer, August Humbert, Esq., who will cause the United States stamp to be affixed to the same.
MOFFAT & CO.
Due notice will be given of the removal of the United States Assayer's office to Montgomery Street.