met Smiley, who
was, of course, very anxious to retire his notes. We there
discussed the matter fully, when Hammond said, "Sherman, give me up
my two acceptances, and I will substitute therefor my check of
forty thousand dollars," with "the distinct understanding that, if
the money is not needed by you, it shall be returned to me, and the
transaction then to remain statu quo." To this there was a general
assent. Nisbet handed him his two acceptances, and he handed me
his check, signed as collector of the port, on Major J. R. Snyder,
United States Treasurer, for forty thousand dollars. I afterward
rode out, that night, to Major Snyder's house on North Beach, saw
him, and he agreed to meet me at 8 a.m. next day, at the United
States Mint, and to pay the check, so that I could have the money
before the bank opened. The next morning, as agreed on, we met,
and he paid me the check in two sealed bags of gold-coin, each
marked twenty thousand dollars, which I had carried to the bank,
but never opened them, or even broke the seals.

That morning our bank opened as usual, but there was no appearance
of a continuation of the "run;" on the contrary, money began to
come back on deposit, so that by night we had a considerable
increase, and this went on from day to day, till nearly the old
condition of things returned. After about three days, finding I
had no use for the money obtained on Hammond's check, I took the
identical two bags back to the cashier of the Custom-House, and
recovered the two acceptances which had been surrendered as
described; and Smiley's two notes were afterward paid in their due
course, out of the cash received on those identical acceptances.
But, years afterward, on settling with Hammond for the Custom-House
contract when completed, there was a difference, and Smiley sued
Lucas, Turner & Co. for money had and received for his benefit,
being the identical forty thousand dollars herein explained, but he
lost his case. Hammond, too, was afterward removed from office,
and indicted in part for this transaction. He was tried before the
United States Circuit Court, Judge McAlister presiding, for a
violation of the sub-Treasury Act, but was acquitted. Our bank,
having thus passed so well through the crisis, took at once a first
rank; but these bank failures had caused so many mercantile losses,
and had led to such an utter downfall in the value of real estate,
that everybody lost more or less money by ba