Q.David Bowers
On November 25, 1851, the San Francisco Herald carried a notice concerning the beginning of the business:
ASSAY OFFICE. IMPORTANT ADVANTAGE. New subscribers are now ready to melt and assay gold dust, and will pay to parties depositing the dust the net proceeds as soon as the dust is melted and assayed, less the usual percentage for assaying.
The advantage in this arrangement is that the depositor gets his money within forty-eight hours after depositing the dust.
Wass, Molitor & Co.
Merchant St., Naglee's Building.
In the same issue the San Francisco Herald commented editorially:
It would be seen from the announcement of Wass, Molitor & Co. that the public have a prospect of being relieved from any great addition to the torrent of cumbrous slugs which for the last nine months has been inundating the country. These gentlemen, of whose peculiar fitness as smelters and assayers we have heretofore spoken, are prepared to receive gold dust, melt it down, and by assay determine its mint value. Then, deducting the usual percentage for their labor, they will pay over to depositors the net proceeds of their gold in forty-eight hours from the time of deposit. The United States Assay Office, we are informed, makes a return-and that return in slugs-in eight days from the time of deposit. By this new arrangement, therefore, the depositor not only saves six days' use and interest on his gold, but relieves the currency from the addition of as many slugs as his gold could be coined into. Messrs. Wass, Molitor & Co. pay over the proceeds in any coin that may be current at the banks. They do not of course undertake to coin themselves. Their establishment will be a great convenience to the public, while it will, to the extent of the business done by them, check the incessant stream of unwieldy slugs that clog the ordinary transactions of business to a most serious extent.
Toward the latter part of 1851 a severe scarcity of small coins in circulation developed. Moffat & Co., the most respected coiners at the time, petitioned the Treasury Department for permission to coin small denomination issues, but their pleas were rejected. At the time $50 slugs were the only plentiful coins in circulation, thus inflicting great hardship upon customers and merchants engaging in transactions involving lesser amounts. Recognizing the need for small coins, Wass, Molitor & Co. prepared a $5 piece similar to the United States Mint issue and design but with inscriptions pertaining to the private firm. The Daily Alta California of January 8, 1852 noted:
The day before yesterday we were shown a piece of the denomination $5 which Messrs. Wass, Molitor & Co. are preparing to issue from their assay office, Naglee's Building, in Merchant St. It has the head and stars like the American coin, with the letters WM & co. in the place occupied by the word LIBERTY on our National currency. Below is the date, 1852. On the reverse is the eagle, with the words "In California Gold-Five Dollars" around it. The coin has the pale yellow appearance which is peculiar to the private coinage of the State, and which is caused by the silver alloy natural to the gold, whereas the issues from the United States Mint are slightly alloyed with copper.
Toward the latter part of 1851 a severe scarcity of small coins in circulation developed. Moffat & Co., the most respected coiners at the time, petitioned the Treasury Department for permission to coin small denomination issues, but their pleas were rejected. At the time $50 slugs were the only plentiful coins in circulation, thus inflicting great hardship upon customers and merchants engaging in transactions involving lesser amounts. Recognizing the need for small coins, Wass, Molitor & Co. prepared a $5 piece similar to the United States Mint issue and design but with inscriptions pertaining to the private firm. The Daily Alta California of January 8, 1852 noted:
The day before yesterday we were shown a piece of the denomination $5 which Messrs. Wass, Molitor & Co. are preparing to issue from their assay office, Naglee's Building, in Merchant St. It has the head and stars like the American coin, with the letters WM & co. in the place occupied by the word LIBERTY on our National currency. Below is the date, 1852. On the reverse is the eagle, with the words "In California Gold-Five Dollars" around it. The coin has the pale yellow appearance which is peculiar to the private coinage of the State, and which is caused by the silver alloy natural to the gold, whereas the issues from the United States Mint are slightly alloyed with copper.
On the same date another newspaper, the San Francisco Herald commented favorably upon the new enterprise:
The very serious inconveniences to which the people of California have been subjected through the want of a mint, and the stream of unwieldy slugs that have issued from the United States Assay Office have imperatively called for an increase of small coins. The well known and highly respect-able firm of Wass, Molitor & Co. have come forward in this emergency, and are now issuing a coin of the value of $5 to supply the necessities of trade. Their coining establishment, located in Naglee's fireproof brick building in Merchant St., is now complete, being provided with the most powerful and improved machinery for such purposes.
The mechanical execution of the coin issued by these gentlemen certainly reflects the highest credit upon their skill. It is a beautiful specimen of art, far superior in finish to anything of the kind ever gotten up in California. It is surrounded by a raised milled edge to protect the surface from being defaced by friction, and is almost a facsimile of the United States coin.
But the most important part to the public is its fineness and weight, as upon these two qualities combined must depend its value. In this particular it will be found highly satisfactory, and at once secure the confidence of the community. It has a uniform standard of .880, and contains no other alloy than that of silver which is found naturally combined with gold. The weight of each of the $5 pieces, which are the only ones at present issued, is 131 - 9/10s grains.
The standard fineness of the United States Five Dollar piece is .900, weight 127 grains. It is therefore 20/1000 finer than Wass, Molitor & Co. pieces, but this is more than counter-balanced by the latter's being 4 - 9/10 grains heavier, so that the new Five Dollar gold piece is in reality worth five dollars and four cents, as sufficient excess to pay the expense of re-coinage at the United States Mint without cost to the depositor.
The reasons Messrs. Wass, Molitor & Co. have adopted this standard of .880 is because this is about the average fineness of California gold, and further because the cost of refining California gold to the United States standard is exceedingly heavy, and the necessary chemicals cannot be obtained in this country. But it will be remembered that the difference is more than made up by the increased weight of 4 - 9/10 grains, which everyone can try for himself on a pair of scales. These coins will be redeemed on presentation in funds received at the Custom House and banks. The high reputation for honor and integrity enjoyed by Count Wass and his associates in this enterprise is an additional guaranty that every representation made by them will be strictly complied with. The public will be glad to have a coin in which they can feel confidence, and which can't depreciate in their hands. The leading bankers, too, sustained and encouraged this issue, and will receive it on deposit. Among others are the heavy houses of Adams & Co., Burgoyne & Co., and Page, Bacon & Co.
Messrs. Wass, Molitor & Co. coining establishment, which is entirely disconnected from the smelting and assaying office, now in active operation, is capable of turning out from $7,000 to $8,000 in Five Dollar pieces per day.