As long as the country continued to enjoy the full flood of prosperity, these things did not greatly matter. The time was individualistic, and every man was supposed to take care of himself. But in the year 1855 financial stringency overtook the new community. For lack of water many of the miners had stopped work and had to ask for credit in buying their daily necessities. The country stores had to have credit from the city because the miners could not pay, and the wholesalers of the city again had to ask extension from the East until their bills were met by the retailers. The gold of the country went East to pay its bills. Further to complicate the matter, all banking was at this time done by private firms. These could take deposits and make loans and could issue exchange, but they could not issue bank-notes. Therefore the currency was absolutely inelastic.
Even these conditions failed to shake the public optimism, until out of a clear sky came announcement that Adams and Company had failed. Adams and Company occupied in men's minds much the same position as the Bank of England. If Adams and Company were vulnerable, then nobody was secure. The assets of the bankrupt firm were turned over to one Alfred Cohen as receiver, with whom Jones, a member of the firm of Palmer, Cook, and Company, and a third individual were associated as assignees. On petition of other creditors the judge of the district court removed Cohen and appointed one Naglee in his place. This new man, Naglee, on asking for the assets was told that they had been deposited with Palmer, Cook, and Company. The latter firm refused to give them up, denying Naglee's jurisdiction in the matter. Naglee then commenced suit against the assignees and obtained a judgment against them for $269,000. On their refusal to pay over this sum, Jones and Cohen were taken into custody. But Palmer, Cook, and Company influenced the courts, as did about every large mercantile or political firm. They soon secured the release of the prisoners, and in the general scramble for the assets of Adams and Company they secured the lion's share.
It was the same old story. An immense amount of money had disappeared. Nobody had been punished, and it was all strictly legal. Failures resulted right and left. Even Wells, Fargo, and Company closed their doors but reopened them within a few days. There was much excitement which would probably have died as other excitement had died before, had not the times produced a voice of compelling power. This voice spoke through an individual known as James King of William.
King was a man of keen mind and dauntless courage, who had tried his luck briefly at the mines, realized that the physical work was too much for him, and had therefore returned to mercantile and banking pursuits in San Francisco. His peculiar name was said to be due to the fact that at the age of sixteen, finding another James King in his immediate circle, he had added his father's name as a distinguishing mark. He was rarely mentioned except with the full designation—James King of William. On his return he opened a private banking-house, brought out his family, and entered the life of the town. For a time his banking career prospered and he acquired a moderate fortune, but in 1854 unwise investments forced him to close his office. In a high-minded fashion, very unusual in those times and even now somewhat rare, he surrendered to his creditors everything on earth he possessed. He then accepted a salaried position with Adams and Company, which he held until that house also failed. Since to the outside world his connection with the firm looked dubious, he exonerated himself through a series of pamphlets and short newspaper articles. The vigor and force of their style arrested attention, so that when his dauntless crusading spirit, revolting against the carnival of crime both subtle and obvious, desired to edit a newspaper, he had no difficulty in raising the small sum of money necessary. He had always expressed his opinions clearly and fearlessly, and the public watched with the greatest interest the appearance of the new sheet.
The first number of the Daily Evening Bulletin appeared on October 8, 1855. Like all papers of that day and like many of the English papers now, its first page was completely covered with small advertisements. A thin driblet of local items occupied a column on the third and fourth pages, and a single column of editorials ran down the second. As a newspaper it seemed beneath contempt, but the editorials made men sit up and take notice. King started with an attack on Palmer, Cook, and Company's methods. He said nothing whatever about the robberies. He dealt exclusively with the excessive rentals for postal boxes charged the public by Palmer, Cook, and Company. That seemed a comparatively small and harmless matter, but King made it interesting by mentioning exact names, recording specific instances, avoiding any generalities, and stating plainly that this was merely a beginning in the exposure of methods. Jones of Palmer, Cook, and Company—that same Jones who had been arrested with Cohen—immediately visited King in his office with the object of either intimidating or bribing him as the circumstances seemed to advise. He bragged of horsewhips and duels, but returned rather noncommittal. The next evening the Bulletin reported Jones's visit simply as an item of news, faithfully, sarcastically, and in a pompous vein. There followed no comment whatever. The next number, now eagerly purchased by every one, was more interesting because of its hints of future disclosures rather than because of its actual information. One of the alleged scoundrels was mentioned by name, and then the subject was dropped. The attention of the City Marshal was curtly called to disorderly houses and the statutes concerning them, and it was added "for his information" that at a certain address, which was given, a structure was then actually being built for improper purposes. Then, without transition, followed a list of official bonds and sureties for which Palmer, Cook, and Company were giving vouchers, amounting to over two millions. There were no comments on this list, but the inference was obvious that the firm had the whip-hand over many public officials.
The position of the new paper was soon formally established. It possessed a large subscription list; it was eagerly bought on its appearance in the street; and its advertising was increasing. King again turned his attention to Palmer, Cook, and Company. Each day he explored succinctly, clearly, without rhetoric, some single branch of their business. By the time he had finished with them, he had not only exposed all their iniquities, but he had, which was more important, educated the public to the financial methods of the time. It followed naturally in this type of exposure that King should criticize some of the legal subterfuges, which in turn brought him to analysis of the firm's legal advisers, who had previously enjoyed a good reputation. From such subjects he drifted to dueling, venal newspapers, and soon down to the ordinary criminals such as Billy Mulligan, Wooley Kearny, Casey, Cora, Yankee Sullivan, Ned McGowan, Charles Duane, and many others. Never did he hesitate to specify names and instances. He never dealt in innuendoes. This was bringing him very close to personal danger, for worthies of the class last mentioned were the sort who carried their pistols and bowie-knives prominently displayed and handy for use. As yet no actual violence had been attempted against him. Other methods of reprisal that came to his notice King published without comment as items of news.
Mere threats had little effect in intimidating the editor. More serious means were tried. A dozen men publicly announced that they intended to kill him—and the records of the dozen were pretty good testimonials to their sincerity. In the gambling resorts and on the streets bets were made and pools formed on the probable duration of King's life. As was his custom, he commented even upon this. Said the Bulletin's editorial columns: "Bets are now being offered, we have been told, that the editor of the Bulletin will not be in existence twenty days longer. And the case of Dr. Hogan of the Vicksburg paper who was murdered by gamblers of that place is cited as a warning. Pah!… War then is the cry, is it? War between the prostitutes and gamblers on one side and the virtuous and respectable on the other! Be it so, then! Gamblers of San Francisco, you have made your election and we are ready on our side for the issue!" A man named Selover sent a challenge to King. King took this occasion to announce that he would consider no challenges and would fight no duels. Selover then announced his intention of killing King on sight. Says the Bulletin: "Mr. Selover, it is said, carries a knife. We carry a pistol. We hope neither will be required, but if this rencontre cannot be avoided, why will Mr. Selover persist in imperiling the lives of others? We pass every afternoon about half-past four to five o'clock along Market Street from Fourth to Fifth Streets. The road is wide and not so much frequented as those streets farther in town. If we are to be shot or cut to pieces, for heaven's sake let it be done there. Others will not be injured, and in case we fall our house is but a few hundred yards beyond and the cemetery not much farther." Boldness such as this did not act exactly as a soporific.
About this time was perpetrated a crime of violence no worse than many hundreds which had preceded it, but occurring at a psychological time. A gambler named Charles Cora shot and killed William Richardson, a United States marshal. The shooting was cold-blooded and without danger to the murderer, for at the time Richardson was unarmed. Cora was at once hustled to jail, not so much for confinement as for safety against a possible momentary public anger. Men had been shot on the street before—many men, some of them as well known and as well liked as Richardson—but not since public sentiment had been aroused and educated as the Bulletin had aroused and educated it. Crowds commenced at once to gather. Some talk of lynching went about. Men made violent street-corner speeches. The mobs finally surged to the jail, but were firmly met by a strong armed guard and fell back. There was much destructive and angry talk.
But to swing a mob into action there must be determined men at its head, and this mob had no leader. Sam Brannan started to say something, but was promptly arrested for inciting riot. Though the situation was ticklish, the police seem to have handled it well, making only a passive opposition and leaving the crowd to fritter its energies in purposeless cursing, surging to and fro, and harmless threatenings. Nevertheless this crowd persisted longer than most of them.
The next day the Bulletin vigorously counseled dependence upon the law, expressed confidence in the judges who were to try the case—Hager and Norton—and voiced a personal belief that the day had passed when it would ever be necessary to resort to arbitrary measures. It may hence be seen how far from a contemplation of extra legal measures was King in his public attitude. Nevertheless he added a paragraph of warning: "Hang Billy Mulligan—that's the word. If Mr. Sheriff Scannell does not remove Billy Mulligan from his present post as keeper of the County Jail and Mulligan lets Cora escape, hang Billy Mulligan, and if necessary to get rid of the sheriff, hang him—hang the sheriff!"