The great diamond hoax : $b and other stirring incidents in the life of Asbury HarpendingHarpending, Asbury
History
The great diamond hoax : $b and other stirring incidents in the life of Asbury Harpending
Harpending, Asbury
Brannan, Sam, 1819-1889; California -- History; Latter Day Saint churches -- California; Mines and mineral resources -- California
As I have said Sharon’s personality was very different from that of
Mills in many ways. He had some habits that an anchorite might not
approve. Among other things he was devoted to the great national
pastime--draw-poker. Many legends of his prowess, of his bewildering
bluffs and high-class technique were long fragrant memories of the
Comstock Lode. It is related that a friend of Ralston with a moral turn
warned him that his agent at Virginia was a notorious, abandoned and
dissolute poker player. The banker listened with absorbed interest.
“Does he win or lose?” he asked.
“My information,” said the informer, “is that he almost always wins.”
“Good,” said Ralston. “He’s the very man I want.” The three were
associated in many enterprises of the first magnitude. They had
combined resources, speaking very conservatively, of not less than
thirty-five millions, which is a big bunch of money even today. They
formed an irresistible power in California, until the railroad dynasty
succeeded them. Still I have reason to believe that Ralston never gave
these associates his full confidence, and that the relation became
irksome, if not oppressive.
I judge the former from an unrecorded incident that ought to be
remembered in financial history--an incident that just prevented a
crisis far more terrible than that of 1907.
[Illustration: WM. SHARON
A leading Comstock figure, former U. S. Senator]
It was in the year 1869. Ralston had loaned the railroad people some
months before $3,000,000, with which they pushed their line to Ogden,
adding a hundred miles to the Central Pacific in its cross-country race
with the Union Pacific for mileage. This large sum had gone out of the
State absolutely. Also two millions had taken wing for South America to
finance an investment there. Things were already a trifle tight when in
July, 1869, Jay Gould’s famous “gold corner” raised the yellow metal to
a huge premium and the gold coin of California was drained eastward, as
through a sieve. The banks always carried a large amount of gold bars,
but this was not available as coin, for the mint happened to be shut
down pending a change of administration.
The situation need not have been serious, for tucked away in the United
States sub-treasury were $14,000,000 in gold coin. It seemed the
most legitimate transaction in the world to deposit gold bars in the
Treasury and carry away an equal value in coin. But President Grant,
who was rather new on the job, for some unaccountable reason absolutely
refused to sanction the transfer, although the bankers almost burned up
the wires with their appeals. An uneasy feeling was over the town, the
overcharged atmosphere of panic, apt to break loose at any moment into
a resistless storm.
While the tension was at its height I called at the Bank of California
one afternoon and was ushered into the private office of Mr. Ralston.
To tell the truth, I was feeling the pinch myself, and wanted to know
something of the outlook.
Public-domain text, read in full here on John Shaqi.
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