haps in the course of a night would fence it in and erect some small house on the ground. When daylight and the proprietor came, the intruder defied ejection. To seek redress from the tribunals whose judgments had led to these encroachments was only ridiculous; so the parties generally fought it out among themselves, with the aid of friends and long purses to hire help, until both suffered considerably in the battle. The effect of these conflicting legal decisions on the titles to real estate had otherwise a very prejudicial effect. They hindered the immediate and permanent improvement of property, since no man would expend large sums in that way when his title to the ground was in jeopardy. Lenders, already alarmed at the foolish proposals of usury bills in the Legislature, became shy in advancing money on the security of many properties; the value of real estate fell considerably; in some instances no price whatever could be obtained where the title was disputed; and all was painful doubt on the subject. In 1850, real estate in the city was assessed at the value of $16,849,024; while, in 1851, it was only $10,518,273; and this was notwithstanding the vast improvements that had taken place in the interval. In the end, certain acts passed by the State, which confirmed sales of the beach and water lots by the city and sanctioned its title to those lots still unsold, and also later and more satisfactory decisions of the Supreme Court in the matter of titles, helped to re-establish confidence on the subject, and secure the old owner in his property against the mere squatter.

The commerce and imports of San Francisco were very great during 1851-too great indeed for a profitable trade. The fall in the prices of nearly all kinds of merchandise which lasted over a great part of 1850, continued during the following year. Matters were perhaps not quite so bad as when, in the spring of 1850, chests of tobacco were used to pave the streets or make a solid foundation for houses, and when nearly every article of merchandise went a-begging for a buyer, and not finding one was cast aside to rot, or used to fill up mud-holes; but still, in 1851, most kinds of goods were a dead loss to the owner. In the palmy days of '48 and '49, all were purchasers, at any price now every body sought to sell, at no matter what sacrifice. In '49 a dollar

was paid for a pill, and the same sum for an egg; a hundred dollars for a pair of boots, and twice that sum for a decent suit of clothes; a single rough brick cost a dime, and a plank some twenty feet long was cheap at ten dollars. At one period of that wondrous year, common iron tacks of the smallest size, sold for their weight in gold; and for a long period were in request at from five to ten dollars an ounce. But in '51, bales of valuable goods were sometimes not worth their storage. There happened to be no plaster walls in '49, and small tacks, of which there was only a very meagre quantity in the country,—were in extreme demand for fastening the usual muslin coverings to the wooden partitions of houses. Hence the apparently extravagant sum that was given. Every thing that was useful and really needed in those earlier days commanded the most astonishing prices. The supply was limited and the demand great, while money was suddenly plentiful. But in 1851, the stock of all kinds of goods was greatly over-proportioned to the natural demand of the place. The population of the city and country generally, although numbering only about a quarter of a million persons, yet being nearly all in the prime of life, rich and careless, and with large appetites, consumed and wasted the goods and provisions that would have satisfied an ordinary population of perhaps a million of people. Still the imports into San Francisco were far ahead of the most extravagant demands and consumption of the ravenous, wasteful people of California. For any article actually required, and of which there might be but a scanty stock in the market, noble rates were still given; but as the supply of most goods was immense, prices fell accordingly. The auctioneers, whose business and importance daily increased, rattled away shiploads of merchandise at often nominal prices. Extravagance and waste did their best, but they could not destroy every thing. Enormous losses were sustained during 1850, and especially in 1851, by foreign shippers. The commercial people in San Francisco generally acted as agents on commission for others, and did not often import as merchants on their own account. The losses therefore on merchandise did not so very much affect individual citizens, while to the general public it was a positive gain to have an unlimited supply of goods at low prices.

+

In the ordinary recreations of the city a change was gradually taking place. The gambling-saloons, though still very many, were becoming fewer, while billiard-rooms and drinking-bars or saloons for refreshment and conversation, were increasing in number, in size and handsome style. There is no place in the world with so many billiard-tables in it in proportion to the population, as San Francisco; and but few places, if any, with more drinking-houses. In such quarters, in 1851, a large proportion of the inhabitants usually spent their evenings. Other crowds nightly filled the large and beautiful theatres that were now erected. Balls, masquerades and concerts, gambling-saloons, visits to frail women,—who always have been very numerous and gay in San Francisco, and an occasional lecture, filled up the measure of evening amusement. Gayety and personal dissipation were then, + as they are now, characteristic features of the city. Nor were these things confined to the upper and richer classes. Labor was paid so highly that all orders of the people had money at command to squander in amusements. During the day, and particularly on Sundays, the "swells" of both the highest and the lowest rank, cantered to the presidio or the mission, or scampered among the sand-hills behind the town, or crossed the bay in the small steamers to Contra Costa, or formed pic-nic excursions to the fort, or the outer telegraph hill, or on the sea-shore, or somewhere among the lonely and picturesque valleys among the hills. San Francisco was certainly a great city; and its people had great notions; their deeds of business and amusement were all great in their way.

The large admixture of foreign races, particularly the lighthearted, theatre-loving French, the musical Germans, and the laughter-loving, idle, dancing Hispano-Americans, tended to give a pleasant, gay aspect to the city. The grave national character of United States men was converted into levity and cheerfulness by the example and sympathy of their merry neighbors. It may be said, at the same time, that the foreign population were generally an orderly, obedient and useful class of the community. The Chinese might here perhaps form an exception. They are an exclusive race, and mingle but little save with their own people. They were now beginning to arrive in considerable numbers, bringing with them a number of their women, who are among the filthi

est and most abandoned of their sex.

They, as well as most of the foreign races, generally dwelt together in particular localities, which gave these quarters a distinctive appearance from the rest of the town. The Chinese and the free negroes, of whom there was now a goodly sprinkling, were "the hewers of wood and the drawers of water" of the place; and performed washing and women's business, and such menial offices as American white males would scorn to do for any remuneration. The "greasers," too, who are verily "of the earth, earthy," helped the "celestials" and the black fellows, or infernals, in their dirty work.

In various parts of this book, we have dwelt so fully on the state of crime and public morals during 1851, that it is unnecessary to say much more on the subject in this general chapter. The extraordinary action of the Vigilance Committee, proved most salutary to the best interests of the community. After a few hangings, which were signalized by scenes of the most terrible and impressive nature, the social state of the city was much improved; and people could venture to appear at dark in the streets, or to dwell alone in poorly defended houses, without dread of the assassin, the burglar, or the incendiary. Crime was now principally confined to petty thefts, for which the "chain-gang" was an excellent punishment; while cases of bloodshed,-and they were frightfully many,-arose chiefly from the rampant, unregulated passions of the people, who thought and called themselves, as they were reckoned by others, respectable men and good citizens.

The financial affairs of the city, which had long been in a very confused and ruinous state, were, towards the close of 1851, much simplified and improved. The general improvidence and corruption of a long series of municipal authorities, from the day when the American flag was first hoisted on the plaza, had squandered or jobbed away many of the most valuable portions of the real estate belonging to the corporation. But the funding of the floating debt, and perhaps the increasing purity, or dread of being found out, on the part of recent officials, with other causes, tended gradually to raise the credit of the city. The next great blow which fell upon the municipal funds was the noted matter of the "Peter Smith" sales, which shall be duly chronicled among the events of 1852.

CHAPTER XIX.

1852.

Dr. Peter Smith.-His contract with the city to take charge of the indigent sick.-The city's indebtedness.-Smith's judgments and executions.-Injunctions of the commissioners of the funded debt.-Sale and sacrifice of the city property under Smith's judgments.

JANUARY.-Some time before this date certain legal proceedings took place which much affected the pecuniary interests of the city. These subsequently involved it in great and expensive litigation, where millions' worth of property were concerned. The whole subject forms one of the most important series of events in the history of the city, and has long excited the close attention of the citizens and the deepest regret in the minds of all honest men that such unfortunate circumstances should have occurred. Charges of official corruption and private jobbery have at different times been made openly, and oftener whispered, against prominent citizens for their connection with the matter, and improper motives have been very freely imputed to them. Lawsuits have been long and vigorously carried on regarding the subject, the final decisions upon some of which have regulated the ownership and titles to a vast amount of property. We have selected the opening of this year for a short general statement of the case, although some of the particular events alluded to occur much later in point of time.

In the course of 1850, Dr. Peter Smith contracted with the city for the care of its indigent sick. For each patient he was allowed a sum of four dollars daily. This may now seem a high allowance, but at that period, to say nothing of the usual jobbery in the matter, the cost of house-rent, boarding, medicines and medical attendance, was very great. The city having little money in its exchequer at the time, generally paid Dr. Smith in the shape of