Among these were Captain Folsom, who owed us twenty-five thousand dollars, secured by a mortgage on the American Theatre and Tehama Hotel; James Smiley, contractor for building the Custom-House, who owed us two notes of twenty thousand and sixteen thousand dollars, for which we held, as collateral, two acceptances of the collector of the port, Major R.P.Hammond, for twenty thousand dollars each; besides other private parties that I need not name.

The acceptances given to Smiley were for work done on the Custom-House, but could not be paid until the work was actually laid in the walls, and certified by Major Tower, United States Engineers; but Smiley had an immense amount of granite, brick, iron, etc., on the ground, in advance of construction, and these acceptances were given him expressly that he might raise money thereon for the payment of such materials.
Therefore, as soon as I got my dinner, I took my saddle-horse, and rode to Captain Folsom's house, where I found him in great pain and distress, mental and physical.

He was sitting in a chair, and bathing his head with a sponge.

I explained to him the object of my visit, and he said he had expected it, and had already sent his agent, Van Winkle, down-town, with instructions to raise what money he could at any cost; but he did not succeed in raising a cent.

So great was the shock to public confidence, that men slept on their money, and would not loan it for ten per cent.