Wages and prices were high, but nobody complained of them. There was in fact a disdain of all attempts to cheapen or haggle. Gold dust poured into San Francisco from the launches and schooners which plied on the Sacramento River, and almost everybody in California seemed to have it in plenty. “Money,” said a Pioneer in a letter written at the end of ’49, “is about the most valueless article that a man can have in his possession here.”

As an illustration of the lavish manner in which business was transacted, it may be mentioned that the stamp box in the express office of Wells, Fargo and Company was a sort of common treasury. Clerks, messengers and drivers dipped into it for change whenever they wanted a lunch or a drink. There was nothing secret about this practice, and if not sanctioned it was at least winked at by the superior officers. Huge lumps of gold were exhibited in hotels and gambling houses, and the jingling of coins rivalled the scraping of the fiddle as the characteristic music of San Francisco.

The first deposit in the United States Mint of gold from California was made on December 8, 1848, and between that date and May 1, 1850, there were presented for coinage gold dust and nuggets valued at eleven million four hundred and twenty thousand dollars. A lot of land in San Francisco rose from fifteen dollars in price to forty thousand dollars. In September, 1850, bricklayers receiving twelve dollars a day struck for fourteen dollars, and obtained the increase. The wages of carpenters varied from twelve dollars to twenty dollars a day. Those who did best in California were, as a rule, the small traders, the mechanics and skilled workmen, and the professional men who, resisting the temptation to hunt for gold, made money by being useful to the community. “It may truly be said,” remarked the “San Francisco Daily Herald” in 1852, “that California is the only spot in the world where labor is not only on an equality with capital, but to a certain extent is superior to it.”

Women cooks received one hundred dollars a month, and chambermaids and nurses almost as much. Washerwomen made fortunes and founded families. A resident of San Francisco went to the mines for four weeks, and came back with a bag of gold dust which, he thought, would astonish his wife, who had remained in the city; but meanwhile she had been “taking in washing,” at the rate of twelve dollars a dozen; and he was crestfallen to find that her gains were twice as much as his. It was cheaper to have one’s clothes sent to China or the Sandwich Islands to be laundered, and some thrifty and patient persons took that course. A valuable trade sprang up between China and San Francisco. The solitude became a village, and the village a city, with startling rapidity. In less than a year, twelve thousand people gathered at Sacramento where there had not been a single soul.

Events and changes followed one another so rapidly that each year formed an epoch by itself. In 1853 men spoke of 1849 as of a romantic and half-forgotten past. An old citizen was one who had been on the ground a year. When Stephen J. Field offered himself as a candidate for the newly-created office of Alcalde at Marysville, the supporters of a rival candidate objected to Field as being a newcomer. He had been there only three days. His opponent had been there six days.

But in 1851 the material progress of California received a great, though only a temporary, check. As commerce adjusted itself to the needs of the community prices and wages fell. A drink cost fifteen cents (the half of “two bits”), instead of fifty cents, which had been the usual price, and the wages of day laborers shrank to five dollars a day. The change was thus humorously described by an editor, obviously of Southern extraction: “About this time the Yankees began to pour into San Francisco, to invest in corner lots, and speculate in wooden gingerbread, framed houses and the like. Prices gradually came down, and money which was once thrown about so recklessly has now come to be regarded as an article of considerable importance.”

In San Francisco there was almost a commercial panic. The city was heavily in debt, many private fortunes were swept away, property was insecure, and robbery and murder were common events. Delano relates that a young man of his acquaintance, a wild and daring fellow, was offered at this time a salary of seven hundred dollars a month, to steal horses and mules in a large, systematic and business-like manner.[76]

The tone of the San Francisco papers in 1851 was by no means cheerful. The following is the description which the “Alta California” gave of the city in December of that year: “Our city is certainly an unfortunate one in the matter of public accommodation. Her wharves are exposed to tempestuous northers and to the ravages of the worm; the piles that are driven into the mud for houses to rest upon are forced out of their perpendicular and crowded over by pressure of sand used in filling in other water lots against them; a most valuable portion of the city survey is converted into a filthy lake or salt water laguna filled with garbage, dead animals and refuse matter from the streets; the streets are narrow and are constructed with sidewalks so irregular, miserable, and behampered as to drive off passengers into the middle of the street to take the chance of being ridden over and trampled under foot by scores of recklessly driven mules and horses; with drays, wagons and carriages without number to deafen, confuse and endanger the unfortunate pedestrian. A few thin strips of boards, pieces of dry-goods boxes or barrel staves constitute the sidewalks in some of our most important thoroughfares, and even this material is so irregularly and insecurely laid that the walks are shunned as stumbling places full of man-traps; more than all this, the sidewalks of the principal streets in the city are strewn and obstructed with shop wares.”

The first Vigilance Committee of 1851 checked crime and restored order for a short period, and the second Vigilance Committee of 1856, together with the election which followed it, effected a most decided and lasting improvement in the government of San Francisco, and especially in the management of its police. In the brief account already given of James King and his career, this episode in California life has been touched upon.

The fires which successively overran the cities of California, and especially San Francisco, were another source of disaster to the business world. There were many small fires in San Francisco and six conflagrations, all within two years. The first of these occurred in December, ’49, the loss being about one million dollars. A characteristic act at this fire was that of a merchant whose shop had been burned, but who had saved several hundred suits of black clothes. Having no place for storing them, and seeing that they would be stolen or ruined, he gave them away to the bystanders. “Help yourselves, gentlemen!” he cried. The invitation was accepted, and the next day an unusual proportion of the citizens of San Francisco were observed to be in mourning.