dgment against the city,
levied on some of its property, and proceeded to sell. The city
commissioners warned the public that titles under the Smith claim were
not legal, and proceeded to sell the property on their own account. The
speculators bought claims under Peter Smith amounting to over two
millions of dollars at merely nominal rates. For example, one parcel of
city lots sold at less than ten cents per lot. The prices were so absurd
that these sales were treated as a joke. The joke came in on the other
side, however, when the officials proceeded to ratify these sales. The
public then woke up to the fact that it had been fleeced. Enormous
prices were paid for unsuitable property, ostensibly for the uses of the
city. After the money had passed, these properties were often declared
unsuitable and resold at reduced prices to people already determined
upon by the ring.

Nevertheless commercially things went well for a time. The needs of
hundreds of thousands of newcomers, in a country where the manufactures
were practically nothing, were enormous. It is related that at first
laundry was sent as far as the Hawaiian Islands. Every single commodity
of civilized life, such as we understand it, had to be imported. As
there was then no remote semblance of combination, either in restraint
of or in encouragement of trade, it followed that the market must
fluctuate wildly. The local agents of eastern firms were often
embarrassed and overwhelmed by the ill-timed consignments of goods. One
Boston firm was alleged to have sent out a whole shipload of women's
bonnets--to a community where a woman was one of the rarest sights to be
found! Not many shipments were as silly as this, but the fact remains
that a rumor of a shortage in any commodity would often be followed by
rush orders on clipper ships laden to the guards with that same article.
As a consequence the bottom fell out of the market completely, and the
unfortunate consignee found himself forced to auction off the goods much
below cost.

During the year 1854, the tide of prosperity began to ebb. A dry season
caused a cessation of mining in many parts of the mountains. Of course
it can be well understood that the immense prosperity of the city, the
prosperity that allowed it to recover from severe financial disease, had
its spring in the placer mines. A constant stream of fresh gold was
needed to shore up the tottering commercial structure. With the miners
out of the diggin