At the time of my arrival, San Francisco was an the top wave of
speculation and prosperity. Major Turner had rented at six hundred
dollars a month the office formerly used and then owned by Adams &
Co., on the east side of Montgomery Street, between Sacramento and
California Streets. B. R. Nisbet was the active partner, and James
Reilly the teller. Already the bank of Lucas, Turner & Co. was
established, and was engaged in selling bills of exchange,
receiving deposits, and loaning money at three per cent. a month.

Page, Bacon & Co., and Adams & Co., were in full blast across the
street, in Parrott's new granite building, and other bankers were
doing seemingly a prosperous business, among them Wells, Fargo &
Co.; Drexel, Sather & Church; Burgoyne & Co.; James King of Win.;
Sanders & Brenham; Davidson & Co.; Palmer, Cook & Co., and others.
Turner and I had rooms at Mrs. Ross's, and took our meals at
restaurants down-town, mostly at a Frenchman's named Martin, on the
southwest corner of Montgomery and California Streets. General
Hitchcock, of the army, commanding the Department of California,
usually messed with us; also a Captain Mason, and Lieutenant
Whiting, of the Engineer Corps. We soon secured a small share of
business, and became satisfied there was room for profit.
Everybody seemed to be making money fast; the city was being
rapidly extended and improved; people paid their three per cent. a
month interest without fail, and without deeming it excessive.
Turner, Nisbet, and I, daily discussed the prospects, and gradually
settled down to the conviction that with two hundred thousand
dollars capital, and a credit of fifty thousand dollars in New
York, we could build up a business that would help the St. Louis
house, and at the same time pay expenses in California, with a
reasonable profit. Of course, Turner never designed to remain long