On the 2nd inst. I received from the Bank of California a statement of account to which was appended a form of approval incorporating a form of specific contract for payment in gold coin. This I was requested to sign and return. It is not unusual for tradesmen to take a precaution of this kind in California and although I was surprised that it should be thought necessary by the Bank, I did not think it prudent to decline the request. On the night of the 6th an Agent of the Bank reached the Estate prepared to attach the personal property. He went first to Mariposa where he had an interview with the Sheriff and then advised me of his purpose. I showed him the condition of our affairs without reserve, and by doing so, satisfied him that the proposed action was unnecessary, and would be disastrous. He at length agreed to suspend the attachment for a sufficient time to enable me to see the officers of the Bank. Precautions were taken to prevent suspicions of the purpose of his visit, anything of this kind being very unfavorable to the discipline which I have been striving to bring about in our affairs on the Estate.

The roads being very bad I was unable to reach San Francisco till [304]late at night on the 9th but immediately met Mr. Mills and Mr. Ralston having arranged an appointment with them by telegraph from Stockton. I was astonished to learn the character of their advices from New York. They apparently regarded the Company as bankrupt and were determined to secure what was due them at the earliest moment. Mr. Ralston seemed to me to be influenced by apprehension of censure for previous overconfidence. Both he and Mr. Mills however, expressed and evinced a strong disposition to regard my wishes and judgment under the circumstances as far as would be consistent with proceedings to which they were already committed. I argued that to proceed directly with these would not only be a great hardship to everyone else concerned but would be very likely to defeat their own purpose; whereas with a moderate delay it might be confidently expected that all the California creditors would be paid in full as well as themselves. I convinced them by a full exposition of the condition of the Estate that this was the case and they concluded to leave matters as I had arranged provisionally with their Agent on the Estate, until I had at least ample time for correspondence with you by telegraph.

Before however they had time for communication with their Agent, our checks which they had refused on the 4th inst, began to come back to persons on the Estate and this produced some excitement. The Agent of the Bank taking unreasonable alarm, suddenly instructed the Sheriff to seize the stores and some other personal property. The following day the men were not willing to continue at work, but by the exertions of Mr. Pieper, Mr. Deering and the Sheriff, and by the effect of a letter from myself which was read at each of the mines and mills, their excitement was quieted and work went on as usual.

But in the meantime other creditors in San Francisco were moving, I was told that they had received advices from private correspondents in New York that the stock of the Company had fallen to nothing. Your telegrams helped me very little to combat this and many other rumors. Hoping every hour to hear further from you, I used every expedient I could to cause delay in their action. By advice of counsel after boat time on the 13th I signed an acknowledgment of our indebtedness in gold, obtaining thereby a formal stipulation that judgment should not be taken against us for a period of one hundred days, thus securing ample time for correspondence with you. Other advantages were also obtained by verbal agreement.

On the 14th the men employed in the Mariposa mine refused to go to work. An arrangement was then made with the Sheriff, by which he on taking the amalgam then in the mills opened the Princeton store, this being the most convenient of any for the accommodation of all the men. Work was then resumed at Mariposa. The following day however the store was again closed by another attachment from San Francisco. As [305]soon as this was known the men at all the mills and mines stopped work.

January 22nd I have nothing later from the Estate. Persons who left there on the morning of the 17th are apprehensive that the men being out of provisions will have undertaken to force the Stores. My impression is, however, that sooner than allow this to occur the Sheriff will take the responsibility of supplying their immediate wants.

I have been trying during the last two days to effect some arrangement with the creditors by which the stores could be opened. They generally appreciate the necessity of this and even of providing for the payment of wages due the men but the Bank refuses to cooperate in any plan which others are disposed to consider favorably.