USA > California > San Francisco County > San Francisco > San Francisco, a history of the Pacific coast metropolis, Volume I > Part 54
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Alaska Acquired in 1867
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East; the San Francisco press had its share of the fun; but there were some who sat up and took notice, and profited by their knowledge of the country, the most of which was derived from the reports of the venturesome fishermen and the earlier intercourse of the employes of the Russian American Company, whose relations with the people of California, particularly those living about its great bay, were quite intimate.
No one reading the comments in the message of Governor Low would have in- ferred the existence of information of value concerning Alaska. He spoke of the extension of the area of political freedom through the acquisition, but was appar- ently oblivious of future possibilities. He did not ridicule the payment of $7,200,- 000 for a vast snow and ice field as some did, nor on the other hand did he dwell upon the fact that within the vast territory, whose boundaries were all that part of the coast west of the 141st meridian of longitude west of Greenwich, including the Aleutian islands, and all of the coast and islands north of Queen Charlotte island, a region whose extreme length north and south is about 1,100 miles, and its greatest breadth east and west, about 800 miles, there might be found illimitable riches. He was simply reflecting public indifference to the acquisition of 580,000 square miles of territory, with a coast line, including that of the islands and inlets of nearly 8,000 miles.
It was this general ignorance which caused the erroneous assumption that Wil- liam H. Seward merely made a lucky fluke in the purchase. Nothing is further from the truth. The secretary knew that he was consummating a profitable bar- gain. Political considerations may have had their influence in determining his course, but he knew that Alaska was possessed of valuable resources and unhesi- tatingly expressed confidence in their development. In 1869 Seward made a trip to Alaska, passing through this City while en route to the territory. He was ac- companied by S. C. Hastings, an old time friend, whose guest he was while in San Francisco. The object of his visit to Alaska was to confirm his impressions regard- ing the value of the purchase. On his return to San Francisco he made a trip to San Diego, where he met William Sumner Dodge, who had been chosen mayor of Sitka, and obtained from him much valuable information concerning Alaskan re- sources, which prompted him to complain with some acerbity of the American dis- position to speak without adequate information, and to predict that the territory would one day be regarded as one of the most valuable possessions of the United States.
His prediction has been amply justified by the result, and San Francisco for many years was the largest beneficiary of the sagacity of the far-seeing statesman. San Franciscans were the first to recognize the opportunities which the new terri- tory held out, and some of them profited greatly by taking advantage of them at a time when most of their fellow citizens were absorbed in watching or helping to promote the mining speculation craze. Later, when the unappreciated territory suddenly acquired notoriety, owing to its proximity to the Klondike mines in British Columbia, whose rich placers suggested equally valuable deposits, the ports to the north of San Francisco began to reach out and prosper, and the rapid development of the states of Washington and Oregon may be said to date from that period. It was about that time also that the outside world realized that it had inventoried Uncle Sam's Alaskan possession improperly when it dismissed it with a line cred- iting it with being chiefly valuable because of the existence of its seal herds.
Importance of Alaska Purchase
Seward's Good Bargain
Value of Trade of Alaska
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In the Sixties the term "non contiguous territory" was unfamiliar to San Fran- ciscans, but they were not unacquainted with the value of the trade of what has since become a part of the national domain, to which that designation is applied. The relations of San Francisco with Hawaii date back to the period before Amer- ican occupation of California was thought of by the most enthusiastic manifest destinarian. The Spanish in the pursuit of their purpose of monopolizing the whole region lying along the Pacific coast had considered the desirability of taking possession of the group, possibly with a view of utilizing its principal port as a calling place for its galleons, but chiefly with the idea of keeping anyone else from making use of the islands, but conditions prevented the materialization of the desire.
Trade with Hawaii
When the American missionaries established themselves in the group, they brought with them commercial habits as well as religious doctrine and the islands flourished. The fact that they had made Honolulu an attractive port for whalers has been mentioned. The business methods which brought about that result had put them in a position to profit considerably by the discovery of gold in California. Like the Russian American Company, which took advantage of the rush in 1849 to unload all its shopworn goods on the newcomers, the merchants of the Hawaiian islands were prompt to put in the newly created market all they had to spare, and they played quite a part in furnishing the much needed food supplies for the rap- idly increasing mining population of California.
Washington Authorities Unconcerned
The trade thus established flourished and made closer the relations which it may be assumed would have in any event subsisted between the people of the group and San Francisco. The islands to all intents and purposes were even at this time as much American as though the Stars and Stripes floated over them. The policy of the United States in regard to them had not taken definite shape, possibly be- cause the authorities at Washington were convinced that the political integrity of the group would not be assailed by foreigners, but more probably because up to the time of the attempted secession the statesmen and politicians were wholly absorbed in the conduct of domestic affairs, and gave little thought to what was happening beyond the borders and the coast of the United States.
Communica- tion with the Islands
Meantime, however, the trade of San Francisco with the islands was becoming more active and the relations of San Franciscans and Hawaiians more intimate. As early as 1854 an attempt was made to establish a steamship line between Honolulu and San Francisco. It did not result in regular communication, but it kept alive the desire for it, and paved the way to its accomplishment later. Although regular trips of steamships did not begin until 1868, there were numerous sailing packets plying between the two ports, and the support they received was a constant incen- tive to further effort. In January, 1866, the California Steam Navigation Com- pany dispatched the propeller "Ajax" to Honolulu but did not repeat the experi- ment. In 1867 the California, Oregon and Mexican Steamship Company made a third essay and dispatched a monthly steamer, continuing the service until 1870, when a new line was started with the aid of a subsidy from Australia which, how- ever, was never successfully operated.
Reciprocity Treaty with Hawaii
This enterprise was the outcome of the efforts of the Hawaiian sugar planters to secure a reciprocity treaty with the United States. A measure of that character was then pending in the senate and it was thought that the decision of that body would be influenced by the menace of diverting the sugar trade to the British colonies. The first steamer of the subsidized line, the "Wonga Wonga," was adroitly
Non Con- tiguous Terri- tory Trade
AURANT
S METROPOLITA
METROPOLITAN THEATER AS IT APPEARED IN 1865
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CALIFORNIA THEATER, ON BUSH STREET ABOVE KEARNY, IN THE SIXTIES The Free Public Library was maintained in this building until the McAllister Street wing of the City Hall, destroyed in the fire of 1906, was completed
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used to give an object lesson to the slow moving senators. Instead of proceeding to San Francisco as originally designed, she was loaded with a cargo of pulp and sugar for Australia. The ruse had the intended effect. Although those familiar with the situation were perfectly aware that the Australian colonies offered no such market as the Hawaiian planters were seeking, there were plenty who feared that one might be developed and the islands be estranged.
In the Sixties and up to the time of the conclusion of the reciprocity treaty with the Hawaiian kingdom in 1875 there was very little concern felt in San Fran- cisco regarding the political future of the islands. Their autonomy had been guar- anteed by Great Britain and France, and the United States had practically assented. Trade had increased under the arrangement and there was no disposition to dis- turb it, but there were some who strongly advocated the adoption of the frequently mooted treaty proposition in the belief that it would result in directing to this port the sugars which were being grown in increasing quantities on the islands of the group. The chief advocates of the treaty, however, were more largely influenced by the prospect of making money by growing cane than by the hope of expanding the business of the port, although they did not fail to point out that there must be a great increase of trade in the event of the adoption of the treaty.
Public sentiment on the subject was not strong enough to greatly influence the authorities at Washington, and it is probable that the reluctance to break through the tariff system would have indefinitely postponed the consummation of the desire of the Hawaiian planters for closer relations had not James G. Blaine reached the conclusion that the acquisition of the Hawaiian group was a military necessity, and that the quickest way to achieve that object was to so strengthen the commercial bond between the islands and the United States that the islands would be unable to resist manifest destiny and would come under the American flag when the time became ripe for annexation.
Ultimately everything came about as Blaine had planned, but his views were strenuously combatted by John Sherman and others, who were convinced that the convention as originally framed was a one sided affair which gave the island plant- ers all the advantages without in the least benefiting the American consumers of sugar. The soundness of their arguments was fully demonstrated so far as the question of the price of sugar was concerned, but on the other hand the predicted expansion of trade occurred and that sufficed to effectually dispose of economic criticism until some years after the conclusion of the treaty.
Meanwhile, however, the trade of Hawaii and the United States was steadily growing and before the close of 1870 several steamers were plying between San Francisco and Honolulu, where they connected with the subsidized Australian line, thus enabling the merchants of the former port to develop a trade with the antipodes, which later attained proportions that seemed to warrant the establishment of a direct line between San Francisco and Australasia.
If the trade which seemed to most impress the imagination of early San Fran- ciscans had been first mentioned it would have been a case of giving prominence to that which attained real importance only toward the close of the Sixties, when the overland railroad was approaching completion. The discovery of gold had been quickly followed by the arrival of ships from the Orient, most of which were in what might be called the roundabout trade. Many of them were foreign, but a fair proportion sailed under the American flag. They brought goods and many
San Fran- cisco's Attitnde Toward Reciprocity
Pians for Annexation
Effects of the Treaty
A Growing Trade
San Francisco's Oriental Trade
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Chinese immigrants, but there was nothing like a regular trade developed until California began to produce on a scale which enabled her to export. This some- what one sided trade continued throughout the Fifties and Sixties. In 1862 there were 42 arrivals from Hongkong, whose tonnage aggregated 36,800 and in the succeeding year there were 44, registering 34,300 tons. They were not large ves- sels, only sixteen of the arrivals in 1863 exceeding 1,000 tons burthen. The voyages varied from 35 to 85 days from Hongkong to San Francisco.
Pacific Mail Company Subsidized
As the transcontinental railroad approached completion congress began to in- terest itself in the subject of the extension of Oriental trade. An annual suhsidy of $500,000 was voted to provide for a monthly service between San Francisco and Hongkong. The Pacific Mail Company, which was largely instrumental in secur- ing the passage of the subsidy measure was awarded the contract and the side wheel steamer "Colorado," of 3,728 tons burthen, made the first trip, sailing from San Francisco on January 1, 1867. Her departure was made the occasion for a great celebration, in which speech making figured and glowing predictions of the future of the trade with the Orient were indulged in by the speakers, who also took occasion to dwell upon the enterprise of the mail company and the magnificence of the accommodations its vessels would afford to passengers.
This first steamer carried as the chief part of her cargo 1,000 barrels of flour and $560,000 of specie for Hongkong. There was also a small amount for Japan. The "Colorado" carried a few passengers, including ex-Governor Low and the president of the New York chamber of commerce. She made a detour to Honolulu and completed the round trip in 78 days. On her return she made the passage from Yokohama to San Francisco in 21 days. This record has since been more than cut in half, but no succeeding exploit appealed more powerfully to the imagination than the first performance of the "Colorado," which foreshadowed the subsequent accomplishment of Jules de Verne's traveler, who made the circuit of the earth in eighty days. The rate of speed has been greatly accelerated since then, and if Phineas Fogg should again start on a voyage and forget to turn off his gas, his bill for the wasted illuminant would be less than half as much as it was in 1870.
The first year under the subsidy the company made five trips and in 1869 the line was in working order, having increased its fleet of steamers to nine. The flour trade, which had shown shipments of 43,000 barrels in the first half of the decade Sixty, in the last half recorded exports for the period aggregating 150,000 barrels. The exports of specie had also expanded considerably. The term specie at this time included the Mexican dollar, large quantities of which were sold in San Fran- cisco for shipment to China. The import trade with Oriental countries during the Sixties was given more thought apparently than that of exporting. The idea that San Francisco would become the world's great tea emporium had obtained a firm hold, and there were numerous articles in the press dwelling on its importance and predicting its future growth. But the prophets reckoned without taking bonded warehouses and transcontinental railroad methods into consideration. They were to learn much about these later. In 1870 they had every reason to pin their faith to the proposition that San Francisco was the natural distributing point, for during the few years preceding they had seen the tea imports from China and Japan in- crease threefold, rising from 1,144,830 lbs. in 1860, valued at $300,766, to 3,119,063 lbs. in 1870, appraised at $1,060,012. A fair proportion of this commodity was handled here but the exigencies of transcontinental rates and the facilities for
Trade with the Orient
First Trip Under the Subsidy
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bonding in a comparatively brief period made San Francisco a mere port of call so far as tea and raw silk were concerned.
The trade by steamer and sailing vessels with the Orient in the Sixties although it filled so large a space in the public mind, not only in San Francisco, but in the commercial centers of the East, where such questions receive attention, was not comparable in importance with that of the port with other parts of the world, and particularly with the remainder of the coast. There were lines of steamers sailing to British Columbia before the opening of the Sixties, and during the Fraser river rush there was considerable rivalry for the traffic which that excitement promoted ; but at the beginning of the decade conditions had become normal and steamers made regular sailings to Victoria. In May, 1861, Halladay & Flint established a regu- lar service between San Francisco and Mexican ports, which was maintained until the rivalry of the Pacific Mail Company made the business unprofitable.
Although the steam traffic was constantly gaining in importance there was no sign during the Sixties of the subsequent displacement of the ocean sailing vessel. The "windjammer" still held her own, and the pride in the swift performances of the clipper ships had only measurably abated. Large and constantly increasing quantities of merchandise were being brought to San Francisco via the isthmus, but the sails of ships in quest of grain cargoes continued to enliven the appearance of the bay, and to add to the importance of the port, for they usually brought car- goes which were distributed by San Francisco merchants. The arrivals increased with the development of California's wheat fields, which was proceeding with mar- velous rapidity during the decade, and was beginning to earn for California the reputation of being one of the world's great granaries.
In 1858-9 the total receipts of wheat and flour in San Francisco reduced to terms of wheat was only 638,664 centals. In 1866-7 the quantity had increased 5,901,593 centals and before 1870 it had passed the ten million cental mark. The bulk of this product was shipped to Great Britain and other countries. It formed the chief cargo of most of the sailing vessels clearing from the port of San Francisco. In the season of 1869-70 5,922,776 centals (wheat and flour) were exported to for- eign lands, and a not inconsiderable portion of the remainder was shipped to domestic ports, the regions which have since developed their cereal producing abil- ity at that time being largely dependent on the flour sent to them from San Fran- cisco. The growing importance of the cereal export trade by no means passed un- noticed in San Francisco. Although it was subordinated in the general esteem to the mining industry the cultivation of grain was duly commented upon in press and pub- lic speech, and glowing pictures of vast wheat fields were painted. Through all this comment one searches in vain for any signs of apprehension that the development along this line might result in fastening the large land holding system on the state. But that fear was soon to manifest itself and allay the pleasure with which San Franciscans were beginning to contemplate grain farms, whose size was reckoned by thousands of acres.
These fragmentary statistics permit the comment that despite occasional vicis- situdes the business of the port of San Francisco and of its merchants was fairly good during the decade. In 1863 there was a dry year which interrupted mining and caused a crop shortage. The bad results were visible in a diminished trade for a period of short duration. During the decade there were frequent opportuni- ties for felicitation on the growing importance of industries which, although in some
Coastwise Trade
Sailing Craft
Growth of Wheat Exports
Crop Diversifica- tlon
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instances introduced in the time of the missions, had made but slow progress. It began to be noted that the production of wine and brandy would prove a source of wealth to the state and the output of 2,250,000 gallons in 1866 was cited as evidence of what might be expected when the capability of California to produce the best quality of wines was fully recognized. This product was nearly doubled before the close of the decade.
Fruit Canning
The fruit canning industry, which has since attained the distinction of being foremost among California's sources of revenue was also coming into prominence. The canner began his operations early in the Fifties, but they were on an inconsid- erable scale until 1857, when Cutting & Co., who take rank as pioneer producers, introduced their process, and practically fixed the seat of the industry in San Fran- cisco. In 1866 it was estimated that 19,000 cases were packed in the state, nearly all of which was put up in San Francisco. Excellent samples of raisins grown in the San Joaquin valley were exhibited about this time, and with their usual opti- mism the editors predicted that the day would come when they would contest with those of Malaga. As the output in 1870 was only reckoned at 1,200 boxes, valued at $1,350, they are entitled to be regarded as true prophets, for the product has grown to over 7,000,000 boxes annually and California now supplies the major part of the raisins consumed in the United States.
During the mission period, as already related, little attention was paid to the breed of sheep, but the neglected industry speedily attained importance after the occupation, and San Francisco began to be a wool market of considerable conse- quence. The wool produced in the Fifties was up to the standard of merino and this result was secured by crossing with the Mexican type. Later Southdowns and Shropshires were introduced which produced bigger animals, and following the experiments of Austrian growers Californians finally succeeded in producing a good grade of sheep by breeding from Leicester and Lincolns with fine merinos, the result being larger carcasses and an improved quality of mutton and a fairly good class of wool. The vast extent of the ranges caused sheep raising to extend rapidly, and before the close of the Sixties the wool crop, which was practically all marketed in San Francisco, had attained great importance. The clip of 1870 was estimated at 20,072,660 pounds, and growers and intermediaries were alike prosperous.
The production of so large a quantity of raw material naturally had the effect of directing attention to the desirability of converting it into textile fabrics, and there were large plans laid to accomplish that end which had a measure of success for a time. There were many circumstances militating against profitable manufac- turing in California, but it was believed that they were more than offset by the advantages which the state enjoyed. Among these latter were reckoned the remote- ness from the producing centers of the East, which were compelled to obtain their supplies of raw material from a great distance while California mills would have theirs at hand. It was thought that the increased cost of fuel in California would be more than offset by the greater cost to the Eastern manufacturer of the raw ma- terial, and the cost to him of sending the finished fabric to California. It was also pointed out that owing to the equable climate the efficiency of the worker would be improved. On the whole it was assumed that California would become a great manufacturer of woolens, and that San Francisco would be the principal seat of the industry.
Manufacture of Woolen Textiles
The Wool Industry
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The Pioneer Woolen Mills had been established before the Sixties and was operated in a small way. Its business expanded and in 1868 it had 37 sets of carding machines, 150 looms, 13,000 spindles, 120 knitting and 18 sewing machines. It gave employment to about 700 men, women and children, and had a paid up capital of $1,000,000. Its chief products were blankets, cloths, tweeds, flannels, robes and shawls. The quality of the output was excellent, and for a time the blankets of this mill were regarded with favor beyond the borders of the state and were not entirely unknown at the East where they competed with the best that section could produce. There was running at the same time according to the census report from which this information is extracted, the Mission Woolen Fac- tory, which employed 240 hands and consumed about 800,000 pounds of wool an- nually. The same authority puts the daily consumption of the Pioneer Mills at about 3,000 pounds. It also reports that there were mills in operation during the Sixties in Marysville, Los Angeles, Merced, Napa, Petaluma, San Jose, Santa Rosa, Stockton and Woodland, a total of twelve in the entire state.
Writing of this period a special agent of the census remarked several years later: "When the youth of San Francisco in 1865 is considered, the progress which had been made in manufactures up to that time was little short of marvelous. There were in that year between 300 and 400 establishments in that City which were engaged in the various kinds of metal making, and employment was given to over 2,000 hands." This satisfactory condition was attained in spite of the great stimu- lus given to importation from the East by the temptation held out to merchants to profit by the advantages derived from the difference in the value of gold and paper money, and notwithstanding the prevalent high wages. While the isolation endured the standard of living and wages established in California apparently did not greatly interfere with its development. It was only when the necessity of meeting with the growing competition of the East arose that difficulty was experi- enced by manufacturers in maintaining their industries.
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