Keith's activities did not immediately confront him with anything in
the nature of a test, however. His superiors confined him to the
drawing of briefs and the carrying through of carefully selected cases.
It was considered well to "work him in" a little before putting
responsibility on him.
He enjoyed it, for now he had at his call all the civil and police
resources of the city. This gave him a pleasant feeling of power. He
was at the centre of things. And through his office he came into
contact with ever-widening circles of people, all of whom were
disposed, even anxious, to treat him well, to get in his good graces.
Possibly most of these were what we would call the worst elements; and
by that we would mean not only the roughnecks of the police or
sheriff's offices, but also the punctilious, smooth-mannered
Southerners who practically monopolized the political offices. These
men would have been little considered in the South; in fact, in many
cases, they had left their native states under a cloud or even with
prison records; but their natural charm, their audacity, and their
great punctilio as to "honour" deeply impressed the ordinary citizen.
As one chronicler of the times puts it, they had "fluency in harangue,
vigour in invective, ostentatious courage, absolute confidence about
all matters of morals, politics, and propriety"--which is an excellent
thumbnail sketch. Many of these ex-jailbirds rose to wealth and
influence, so that to this day the sound of their names means
aristocracy and birth to those ignorant of local history. Their
descendants may be seen to-day ruffling it proudly on the strength of
their "birth!"
They, and the classes they directly and indirectly encouraged, had at
last brought the city fairly on the financial rocks. There was no more
revenue. Everything taxable had been taxed. The poll tax was out of all
reason; property paid 4 per cent. on an actual valuation; theatres,
bankers, brokers, freight, miners, merchants, hotel, keepers,
incorporations, every form of industry was levied upon heavily. Still
that was not enough. Even labour was paid now in scrip so depreciated
that the cost of the simplest public works was terrible.
And to heap up the measure, the year of 1855 was one of financial
stringency. The season of '54-'55 had been one of drought. For lack of
water most of the mining had ceased. The miners wanted to be trusted
for their daily needs; the country stores had to have credit because
the miners could not pay; and so on up to the wholesalers in the city.
Goods were therefore sold cheap at auction, and the gold went East to
pay at the source. Money, actual physical money, became scarce. The
gold was gone, and there existed no institution legally entitled to
issue the paper money that might have taken its place. All the banking
was done by private firms. These took deposits, made loans, issued
exchange, but could not issue banknotes.
Still, things had looked a bit squally many times before, but nothing
had happened. Men had the habit of optimism. No one stopped to analyze
the situation, to realize that the very good reason nothing had
happened was that the city had always had behind it the strength of the
mines, and that now the mines had withdrawn.
Out of a clear sky came the announcement that Adams & Co. had failed!
At first nobody believed it. Adams & Co. had occupied in men's minds
from the start much the same position as the Bank of England. The
confirmation of the news caused the wildest panic and excitement. If
Adams & Co. were vulnerable, nobody was secure. Small merchants began
to call in their credits. The city caught up eagerly every item of
news. All the assets of the bankrupt firm were turned over to Alfred
Cohen as receiver. Some interested people did not trust Cohen. They
made enough of a fuss to get H. M. Naglee appointed in Cohen's place.
Naglee, demanding the assets, was told they had been deposited with
Palmer, Cook & Co. The latter refused to give them up, denying Naglee's
jurisdiction in the matter. The case was brought into court. Then
suddenly it was found that Palmer, Cook & Co. had mysteriously lost
their paramount interest in the courts. They had counted on the case
being brought before their own judges; but it was cited before Judges
Hazen and Park, both of whom, while ultra-technical, were honest. The
truth of the matter was that the rats suspected Palmer, Cook & Co. of
sinking, too, and had deserted. Judges Hazen and Park called upon the
firm to turn over to Naglee the assets of Adams & Co. They still
refused. One of the partners, named Jones, and Cohen were imprisoned.
Some where $269,000 was missing. Nobody knew anything about it. The
books having to do with the transaction had mysteriously disappeared.
Two days later an Irishman found them floating in the bay, and brought
them to the court. But the crucial pages were missing. And then
suddenly, while both Judge Hazen and Judge Park were out of town,
application was made to the Supreme Court--of which Judge Terry was
head--for the release of Jones and Cohen. The application was granted.
So an immense sum of money disappeared; nobody was punished; it was all
strictly legal; and yet the dullest labourer could see that the whole
transaction amounted to robbery under arms. Failures resulted right and
left. Wells Fargo & Co. closed their doors, but resumed within a few
days. A great many pocketbooks were hit. There was much talk and
excitement.