There is no doubt that Mr. Ralston owed large sums of money to the bank, growing out of many investments, some of which were disastrous. In those days, whatever may be said of the practice, it was the commonest thing for bank officers to make loans to themselves. Not only that, but the practice was in full swing down to the time of the failure of the Safe Deposit Company’s Bank. With vast visible personal resources as security for loans, Mr. Ralston’s unlimited credit never seems to have been questioned by the directors of the Bank of California. Among his assets were a half interest in the Palace Hotel; a half interest in the Montgomery Street Land Company, which he and I organized, including the Grand Hotel, and most of the frontage on New Montgomery street; one-half of the capital stock of the Spring Valley Water Works; one-half interest in the Union Milling and Mining Company, which controlled the reduction of ores on the Comstock Lode with enormous profits, and one-third of the stock of the Virginia and Truckee Railroad, which holds the record of earning more per mile than any railroad in the world before or since. I should say that a conservative estimate of these properties alone was not less than $15,000,000. Besides, he had numberless industrial investments, residences and immense acreages of real estate in various parts of California. After I left San Francisco in the early part of 1873, Mr. Ralston engaged in many costly projects. One of these was the purchase of the Catholic Church property on Market street, and the construction of the Palace Hotel thereon by himself and William Sharon. This alone tied up $3,000,000 of ready money on his account. It is known that he lost heavily on a large purchase of stock in the Ophir Mining Company, upon false information that the great Flood and O’Brien bonanza extended into its territory. Several months before the failure he saw that he was deeply involved. Mr. Ralston realized too late that he had gone too far, that he was beyond his depth. He made efforts to secure money on his great holdings. But for evident reason he was compelled to go slow. The spectacle of Ralston as a borrower would have started suspicion at once. Loans were attempted through outside agents, but the door of accommodation was closed. Rumor has attributed this to the manipulation of the Bonanza firm, but a much better reason can be given than that. Nearly all the ready capital on the Pacific Coast was tied up in the wild Comstock speculation, still at its height. There was no money available for legitimate investments or loans of any kind. On top of this came the withdrawal of many large accounts. On the day of the failure more than $1,000,000 were unexpectedly checked out. Under this last blow the bank went down. So far as the Bonanza firm was involved, its members were personal friends of Ralston, though not of William Sharon.