Military contributions in account current with Commodore Thos. Ap Catesby Jones, commander in-chief of Pacific squadron, Special Agent. 1848. DR. To this amount, as per receipt rolls Nos. 3, December..... To this amount, ($1,510 82,) as per Samuel 1849. CR. 1848. By this amount, received of Hugh W. Greene, collector By this amount, received of McKean Buchanan, col- ... 1,510 82 No. 2. To Lieut. E. F. Beale's receipt for.... No. 6. To Lieut. Wm. Chandler's receipt for..... No. 4. To Commander Crowninshield's receipt for... .... .... E. O. E. Duplicates Nos. 3, 4, 5, 6, and 10 were forwarded with account-current sent home by the Lexington, United States storeship. THOS. AP. C. JONES, Commander-in-chief of the Pacific Squadron. Question 2.-Was there an account of that fund subsequently rendered by the accused? If yea, what became of it? Answer. I think there was, and that it was referred by me to the Navy Department, since which I have not seen it. The judge advocate states that the account referred to in the last answer is that which he desired to have brought into court; and that he will suspend the further examination of the witness until it is produced. He further states that he is not aware of any other evidence to be offered by him, after this witness shall have been examined; and that, the accused having suggested that certain citizens, witnesses for the defence, are in attendance, whom he desires to examine now, they will, with the permission of the court, be now adduced by the defence; and, accordingly, O. C. Pratt, district judge of Oregon, a witness for the defence, being duly sworn by the president of the court, is examined by the accused as follows-that is to say: Question 1.-Were you in Upper California at any time between the 1st day of October, 1848, and the 15th of March, 1849? If yea, please state at what points, at what dates, and, as far as you think proper, what was your occupation or business. Answer. I arrived at Los Angeles in October, 1848; was soon after at Santa Barbara, Monterey, San Francisco, San José. I was in California, mainly, from the period of my arrival on that coast until 21st April, 1849principally at San Francisco. While in California, I was engaged principally in buying and selling real estate and personal property; and left there at the date last named, to enter upon my duties as judge of Oregon. Question 2.-Do you know whether, within the dates specified in the last question, any inconvenience to commerce or trade was experienced in California from want of silver and gold coin as a circulating medium? If yea, please give particulars. Answer. I do know that great inconvenience was experienced in carrying on trade and commerce, during the period I was in California, from the cause indicated in the question. The war had just closed, and the specie in circulation during its continuance had mainly been carried away by merchants. The gold discovery had largely increased the necessary business of the country, and, in the absence of gold and silver as a cir culating medium, gold dust was obliged to be used in its place, in the larger as well as smaller transactions, to the great loss of those who were handling it. To get silver coin to pay the current expenses of myself and party from Los Angeles to Monterey, I had to pay as high as 10 per cent. Dust was abundant, and silver coin in particular was in great demand, by reason of the native population knowing little or nothing about American gold; and in that trip I could only make use of silver. Question 3.-Please state such circumstances as came within your knowledge, during your residence in California, as to the accumulation of coin in the hands of collectors and other officers of the general government in California being the subject of complaint among the merchants and citizens of San Francisco in the autumn of 1848. Answer. The common transanctions of trade were greatly embarrassed by the absence of specie; and the general supposition among my acquaint ances was, that a large amount of specie was locked up in the hands of public officers, either in the port of San Francisco or on board of the va rious vessels, as the result of the war contribution. Its existence in that state was the subject of general complaint at the places where I happened to be. From my business relations, I knew a large share of the merchants of California and persons in business at that time in California. Question 4.-Please state the effect, so far as it fell within your observation, which the coin put in circulation by the orders of Commore Jones, and by the officers and ships of his squadron, in the autumn of 1848, had upon the commerce of the country, and whether it proved beneficial, and in what degree, to all classes, consumers as well as producers, and importers of goods into California. Answer. I knew of my own knowledge little or nothing of the amount of money thus put in circulation by Commodore Jones. Specie to some extent was more abundant after the period that I supposed he had put specie in circulation. I then thought, and still think, that to the extent it increased the circulation, it was a public benefit After money was put in circulation by him, or his orders, it relieved the commercial community to that extent. How much he put in circulation 1 do not knowwhether a thousand or a hundred thousand. It was a matter of public notoriety that money was thus put in circulation by him. Question 5.-Under what circumstances and conditions was it usual to deposite gold dust or uncoined gold in the custom-house, by way of security or pledge for duties; and do you know of any sales of the article so deposited and pledged, in consequence of the depositors' failure to redeem the pledges by the payment of the duties in coin? Answer. I had no personal transactions with the custom house. What knowledge I have on that subject is derived from information given to me by parties paying duties, and by the collector. As to the fact of a sale of dust hypothecated for specie at the custom house by parties paying du ties, I know that a public sale of gold dust did take place during the autumn or early part of the winter of 1848, under the supervision of the collector at SanFrancisco, proclaimed to have been pledged at the custom house for duties, which were payable in specie, and to have been forfeited for non payment. My recollection is, that by reason of the scarcity of silver, there was very little competition, and that it sold at a price considerably below its value in the United States; and below its market value in San Francisco, after specie became more abundant. The judge advocate has no cross examination to give to this witness; and his testimony, as recorded, is read over to him, and is acknowledged to be correctly recorded, and he is discharged. William Petit, a witness produced by the accused, being duly sworn by the president of the court, is examined by the accused, as follows: Question 1.-Were you in Upper California at any time between the 1st day of October, 1848, and the 15th of March, 1819? If yea, please state at what points, at what dates, and, as far as you think proper, what was your occupation or business. Answer.I was in Upper California during the whole period between the dates indicated. I was residing in Sacramento city. I was merchandising-purchasing most of my goods in San Francisco. I had neces sarily to go there to purchase my goods; and consequently was at both places. Question 2.-Do you know whether, within the dates specified in the last question, any inconvenience to commerce or trade was experienced in California from want of silver or gold coin as a circulating medium? If yea, please give particulars. Answer. Yes, I know there was; and, for one, I felt it very seriously; at times not being able to obtain coin; and, consequently, not being able to purchase goods. I could not get sufficient coin for gold dust at any price to pay duties. I think we lost three very important purchases of goods much needed by the people there, on account of not being able to get coin. We experienced more or less difficulty all the time between those dates, but more particularly after the early part of November. There were times when, as if by accident, we got coin, but we could not calcu late on it from day to day; and this was the general state of things with all others besides ourselves. Question 3.-Please state such circumstances as came within your knowledge, during your residence in California, as to the accumulation of coin in the hands of collectors and other officers of the general government in California being the subject of complaint among the merchants and citizens of San Francisco, in the autumn of 1848. Answer The collector at San Francisco, I believe, obtained almost every dollar of coin in that country, and when he got it he took good care to hold on to it. If he disbursed any, I do not know it, except a few dollars for moving some old guns. It was the subject of general complaint at San Francisco, and all up through the country. We sacrificed our gold dust for a mere song to speculators. It was felt worse by the consumers; the great body of the people felt it more than the merchants. In the early period after the gold discovery it was allowed to deposite gold at the custom house, to be redeemed in a certain number of days by paying the duties; but we were afraid to deposite our dust, lest it should be sacrificed, not knowing where we should get the coin from to redeem it. Question 4.-Please state the effect, so far as it fell within your observation, which the coin put in circulation by the orders of Commodore Jones, and by the officers and ships of his squadron, in the autumn of 1848, had upon the commerce of the country, and whether it proved bene ficial, and in what degree, to all classes, consumers as well as producers, and importers of goods into California. Answer. I know Commodore Jones put some coin in circulation; but what amount I cannot tell. I know that I received the benefit of a por tion of it once, through myself, and also through my partners at San Francisco. It was, I think, in November, 1848, I received the benefit of some coin that was deposited with me for sale by Mr. Linton, whom I understood to be an agent for Commodore Jones. This money, I had reason to believe through somebody, was money belonging to the sailors of the squadron, and that the dust was bought for them. I think it was $2,000 or thereabout. That it had a beneficial effect will be seen from the fact that I could not get the specie anywhere else; consequently, the effect was felt generally among the miners, who were the men who dealt with me. Question 5.-Under what circumstances and conditions was it usual to deposite gold dust, or uncoined gold, in the custom-house, by way security or pledge for duties; and do you know of any sales of the article so deposited and pledged in consequence of the depositor's failure to redeem the pledge by the payment of the duties in coin? Answer. I know that it was customary to deposite gold dust, to be re deemed in a few days, by the payment of the duties in coin. I know that sales were made, I think on the 5th day of November, 1848, or there. about, under authority of the custom-house, and I think after that time no gold dust was received on deposite for payment of duties. The judge advocate makes no cross-examination of this witness. The testimony of the witness, as hereinbefore recorded, is read over to him, and is acknowledged to be correctly recorded, and he is discharged. The accused states that he has no other witness in attendance to-day; and the court is therefore adjourned until to-morrow morning at half-past 10 o'clock. JANUARY 17, 1851-Half-past 10 o'clock a. m. The court met, pursuant to adjournment. Present: the president, all the members, and the judge advocate. The accused is in attendance. The record of the proceedings on yesterday is read and approved. The judge advocate states that the Fourth Auditor has not yet produced the paper referred to yesterday. The accused proceeds with the examination of witnesses for the defence. Commander C. K. Stribling, heretofore sworn and examined, is now called to testify for the defence, and is examined by the accused, as follows: Question 1.-Did Purser Wilson, in or about October, 1848, make any representations to you, for the purpose of transmitting the same through you to the commodore, as to the propriety and expediency of Commodore Jones's supplying a temporary circulating medium to relieve the local embarrassments of trade and commerce, by exchanging the surplus military contribution fund for gold dust; and what subsequently passed, on the same day or the next, between you and the commodore, on the same subject? Answer. I recollect distinctly the interview with Mr. Wilson. He came on board to see the commodore, who was absent at the time; and he told me the purpose of his visit. He stated that his object was to speak to the commodore in reference to converting the coin he had on board into gold dust, to relieve the wants of the community; that there was so little coin in circulation that it was very difficult for the merchants to raise sufficient money to pay their custom-house dues upon the importation of goods, and to carry on the ordinary business of the country. These are not the exact words, but the substance of the conversation. This I communicated to the commodore when he returned on board. A free conversation took place between Commodore Jones and myself upon the subject, in which the commodore expressed great reluctance to make use of the military contribution in that way. About that time, (it might have been a day or two after,) the commodore showed me a paper which he had drawn up on the subject, in the nature of an argument to justify the use of it in that way. He did not deliver the paper to me, but I presume retained it. It purported to contain the result of his deliberations on the subject. These conversations occurred at Monterey, about the time indicated by the question. Question 2.-Had you any conversation with the commodore relative |
