I instructed Nisbet to insist on his reducing his line as the notes matured, and, as he found it indelicate to speak to Meiggs, I instructed him to refer him to me; accordingly, when, on the next steamer-day, Meiggs appealed at the counter for a draft on Philadelphia, of about twenty thousand dollars, for which he offered his note and collateral, he was referred to me, and I explained to him that our draft was the same as money; that he could have it for cash, but that we were already in advance to him some seventy-five or eighty thousand dollars, and that instead of increasing the amount I must insist on its reduction.

He inquired if I mistrusted his ability, etc.

I explained, certainly not, but that our duty was to assist those who did all their business with us, and, as our means were necessarily limited, I must restrict him to some reasonable sum, say, twenty-five thousand dollars.

Meiggs invited me to go with him to a rich mercantile house on Clay Street, whose partners belonged in Hamburg, and there, in the presence of the principals of the house, he demonstrated, as clearly as a proposition in mathematics, that his business at Mendocino was based on calculations that could not fail.

The bill of exchange which he wanted, he said would make the last payment on a propeller already built in Philadelphia, which would be sent to San Francisco, to tow into and out of port the schooners and brigs that were bringing his lumber down the coast.