USA > Colorado > History of the State of Colorado, Volume III > Part 14
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The value of retort and nugget dust was ascertained by rubbing it upon the smooth polished surface of an iron stone,-brought into requi- sition for the purpose,-according to the shade of the trace left thereon. Bright yellow indicated the degree of purity, the darker shades showing the amalgamation of base metal, as copper, iron, etc. There were times, too, when gross deceptions were practiced by counterfeiters, who manu- factured "retort nuggets" from brass filings, spelter and the like, with a certain admixture of gold, but only a few of these devices succeeded.
The first broker's office established in Denver, was that of Samuel and George W. Brown in 1859, situate on Larimer street. The elder brother remained but a short time, after which the business was con- ducted by the junior partner, in connection with his appointment as Collector of Internal Revenue. The next was opened the same year by Turner & Hobbs, who occupied a brick building on the southeast corner
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of Larimer and Ferry streets, West Denver, the second floor of which was for some time used by Governor Evans for executive offices. George W. Kassler, who had acquired his experience in an Omaha bank, took charge as cashier, continuing until 1861, when the concern closed, and the proprietors returned East.
Clark, Gruber & Co. established the first, greatest, most extensive and useful of all the institutions known as banks, between 1859 and 1865, and their operations were of the most honorable nature. It sprang from a house organized in Leavenworth by Milton E. and Austin M. Clark, and E. H. Gruber in 1858. The Clarks were from Ripley, Ohio. They emigrated to Kansas in 1857, and at Leavenworth engaged in the grocery trade. Mr. Gruber in the same year entered the bank of Isett, Kerr & Co. In 1858 the firm changed to Scott, Kerr & Co., when Mr. Gruber, in connection with the Clarks, opened the banking house of Clark, Gruber & Co., in that city, and in 1859 purchased considerable quantities of gold from the Rocky Mountains, and as trustworthy advices from that quarter were highly favorable, they conceived the idea of placing a coining mint in Denver. They were paying five per cent. express charges on the dust brought in, and equal cost on the coin and currency returned, beside the expense of messengers or guards each way. To avoid these excessive charges, the expediency of coinage on the ground, and payments for gold dust in their own coin was advanced, but the first point to be considered was whether or not the laws of the United States were in opposition. They did not purpose to counterfeit, but to strike an original coin of full weight and value. Their attorneys investigated but discovered no obstacle to the issuance of such coins, as neither fraud nor deception was intended. Mr. M. E. Clark proceeded to Boston, purchased the necessary machinery, dies, etc., and it was shipped to Denver, arriving in February or March of 1860. In the meantime, work had begun upon a building. While this was in prog- ress, Mr. George W. McClure arrived from Iowa, and being an exper- ienced mechanic and assayer, was employed to put the plant in place, after which he was appointed assayer and minter. The mint was opened
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July 20th, 1860. The first coins struck were ten and twenty dollar pieces, bearing on one side a rude representation of Pike's Peak, and on the obverse, "Clark, Gruber & Co." They were coined from the native dust, but without alloy. They passed into general circulation at par, but being soft, soon began to show abrasion from excessive use, there- fore in 1861 the firm ordered a complete set of dies for denominations of $2.50, $5, $10 and $20, that were close fac similes of the United States coins of like denominations, the only difference being that upon the cap of "Liberty," they inserted the words "Pike's Peak," and on the obverse instead of "The United States of America," they substituted "Clark, Gruber & Co." These pieces bore the same percentage of alloy, and were of the same color as those issued at the Government mints, but contained one per cent. more gold than the standard coin, for the express purpose of protecting the holders against loss, the additional weight covering the cost of transportation to Philadelphia and recoining. These issues passed current throughout Colorado, and all bankers of the country to whom they were known, offered a premium for them. The coinage continued about two and one-half years, and in that time, as we are informed by Mr. Gruber, about $3,000,000 worth had been struck.
To assist the miners and brokers, they coined dust for them at a maximum charge of five per cent., but this was soon discontinued. Having abundant funds at command, they carried on an extensive busi- ness. They bought gold one day and coined it the next, and the money went immediately into use among the people, which gave the mint and its owners a decided advantage over their competitors in the trade, and it proved a very great convenience to the masses. In 1860 a branch agency was established in Central City, opposite the office of Lyon, Pullman & Co., where gold was purchased as it came from the mills and gulches, payment being made in coin, checks, currency or drafts, as the seller might elect ; made advances on bullion, in some cases before its delivery. For the further convenience of the public, they issued from well engraved steel plates five dollar notes, redeemable in Clark & Gruber's coin at their banking house in Denver, and this, like all other
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pledges given by this firm, was faithfully kept. In uttering coins that closely resembled those of the government, they may have evaded a law, but it was neither counterfeiting nor any deception, for every piece was worth more in gold than the standard. It was done in the first instance in Indian Territory, over which there was no jurisdiction of law. Precedents were found in the early years of California where all the coinage for some time was of private manufacture. It was a blessing to the miners and to traders, for it gave them full value for their dust. There was no waste, such as attended the exchange of the raw material. It was an honest and popular coin, accepted without hesitation, and no man lost a dollar by any of the varied transactions in which the house engaged. Nevertheless, the Clarks realized, after the organization of the Territory, that in continuing the coinage they were, to say the least, infringing upon the rights of the government and its laws, and being loyal and honorable men, they began to seek a proper way out of it and at the same time afford the miners, as heretofore, the best attainable facilities for the disposal of their products without loss or excessive
transportation charges. The first Republican convention held in Golden, July 2d, 1861, inserted in its platform an appeal to Congress for the establishment of a branch mint at Denver. When the government suspended specie payments and, as the war progressed gold became a speculative commodity, and in consequence the products of our mines came into speculative demand, bullion was more valuable than coin. M. E. Clark, the manager here, heartily seconded the project for a United States mint. Laying his plans before the prominent men of Denver, he obtained letters from them to the Secretary of the Treasury, Salmon P. Chase, urging its importance. Mr. Austin M. Clark went to Washington, and with Hon. H. P. Bennett, our delegate, laid the sub- ject before the head of the treasury with a candid statement of what his firm had been doing in Denver, together with specimens of their coinage. Mr. Chase submitted them to the director of the mint in Phil- adelphia, who pronounced them creditable, of full weight and value with authorized coins. Mr. Chase referred the matter to the Attorney Gen-
II III.
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eral, who returned his opinion in substance that no existing law had been violated. In his next report to Congress the Secretary strongly recom- mended the enactment of a law prohibiting the utterance of coins by any other than the established mints, and that he be empowered to purchase the building of Clark, Gruber & Co. and put a government mint in its place.
The first bill introduced by Hon. H. P. Bennett, our first Delegate after the organization of the Territory, was for the establishment of a branch mint in Denver in accordance with public expression in Colorado, and the recommendations of the Secretary. He was actively supported in his efforts to secure its passage by the Clarks and Gruber. George W. Brown brought from Denver a handful of large gold nuggets which were broadly displayed to the members as substantial evidence of the richness of the mines, and the necessity for a mint. Thaddeus Stevens of Pennsylvania, was the leader of the House. To intensify his interest in the bill, a handsome gold snuff box was ordered from Tiffany of New York, and presented to him. The bill passed the House, and when it went to the Senate was put in charge of Senator Fessenden, who piloted it through that body. As soon as approved, the Clarks returned to Denver and arranged for the transfer. They were paid $25,000 for their building and lands. It was the purpose of the act, of the Secretary of the Treasury, and all concerned, to have a coining mint, but owing to the greater influence of Pacific Coast senators and representatives, who demanded a mint for Carson City, Nevada, they captured the prize that should have been freely given to Colorado. Some years afterward the concern in this city, which was of no value whatever to the public, except as a depository for public funds, was reduced to an assay office, where it still remains.
Mr. George T. Clark, who was for a time associated with the orig- inal mint, was in no way related to the Clarks who established it, but acted as their agent in buying gold, and in conducting the business here.
When Mr. George W. Lane became superintendent of the mint in . 1863, -appointed by President Lincoln in December, 1862,-Mr. Mc-
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Clure was appointed melter, and subsequently cashier. Until after the organization of the First National Bank and its designation as a depos- itory for the United States funds, the accounts of disbursing officers for the government were kept there. Paymaster Fillmore of the army drew his supplies of currency for the payment of troops in his depart- ment, from the same source. Secretaries Weld and Elbert in paying the expenses of the legislative department, drew checks on the mint, a practice continued for a short time by the writer after he became Sec- retary, though his account was soon transferred to the First National. Mr. McClure was an active business man, took earnest part in the development of the city, erected several buildings, and at one time was considered quite wealthy. His homestead was a part of the site on which the Federal postoffice is being erected, and the little yellow painted battened frame building occupied as an office by the super- intendent of that beautiful edifice, is the one in which he lived and died. The first coin struck from Clark & Gruber's machinery-a ten dollar gold piece-is owned by Charles Y. McClure, his son, who has also some of the later issues under the improved dies.
Mr. E. Henry Gruber, now a resident of Denver, was born in Hagerstown, Maryland, March 25th, 1833; received a common school education, and at the age of sixteen took a course of instruction at Wittenberg College, Springfield, Ohio; removed to St. Louis, and from 1851 to 1857 was cashier for McLelland, Scruggs & Co. In the year last named, he went to Leavenworth, Kansas, and entered the bank of Isett, Kerr & Co. In connection with M. E. and Austin M. Clark, he opened the banking house of Clark, Gruber & Co., the material facts of which enterprise have been related. In 1864 he returned to Leaven- worth, where he continued in banking until 1866. In July, 1878, he returned to Colorado, locating in Leadville, and engaged in mining; was one of the original owners of the Pendery mine, from the sale of which he realized a moderate fortune; erected the Gruber block on Harrison avenue, and was identified with several important mining enterprises.
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C. A. Cook & Co. (Jasper P. Sears and Charles A. Cook, members of the firm so designated), arrived in Denver from the city of Leaven- worth, September 5th, 1859, bringing a large stock of merchandise, which was exposed for sale on Blake street between Fourteenth and Fifteenth streets, near the present site of the Palace Theater. Their business was largely wholesale. As gold dust from the mines became more and more abundant, and a feature of speculative interest to all who possessed capital, they set off one corner of their store as a broker's office. Some time later, in accordance with the expressed desires of the merchants, they opened a banking house, and as all traders experienced much difficulty in making change, they procured steel plates and issued a fractional paper currency of the denominations of ten, twenty-five and fifty cents and one dollar notes, redeemable at their counters in lawful currency. These "shinplasters" as they were called, entered into general use, and in the absence of anything better, served the purpose of their creation. Much of the volume was consumed here, but portions found their way to the mining camps, where they were accepted without question upon confidence in the financial strength of the firm issuing them. Although the principal business of C. A. Cook & Co. was merchandizing, the purchase and sale of gold, they soon added freight contracting for the United States to and from the Western military posts, and the results of all these transactions were highly profitable. The conflagration of 1863, which swept over the greater part of Blake, Wazee and lower Fifteenth streets, left most of the sufferers without insurance, and as a majority held considerable amounts of Cook's fractional paper, it soon appeared for redemption. At the risk of his life, Mr. Sears had saved the cash in his burning store, amounting to about $83,000, and when redemption of his paper was demanded, he discharged the obligations in coin or lawful funds, and immediately burned them. Enraged by the apparent lack of confidence, they resolved to issue no more, and adhered to the resolution. Soon afterward they abandoned merchandizing and con- fined their operations to banking and freight contracting. Mr. Cook
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died at Hot Springs, Arkansas, March 18th, 1878. His partner Sears, is still a resident of Denver.
Dr. O. D. Cass was born at Lyman on the Connecticut River, State of New Hampshire, August 2d, 1823. His primary education was obtained in the common schools of Vermont, reinforced by a course at Fairfield Academy, New York; studied medicine at Whitesboro, in the latter State, and attended medical lectures at Vermont Medical College in Castleton, where he was graduated June 18th, 1845; practiced his profession in Lewis County, New York, for a time, and was then appointed surgeon to one of the steamships plying between New Orleans and Panama. After making a number of trips, he took up his residence in California, practiced there some years, and then returned to "the States," settling in Muscatine, Iowa. In 1859 he went to Leavenworth and early in 1860 crossed the plains to Denver, arriving here May 13th. Here he resumed his practice, continuing until the following November. In connection with Dr. Hamilton (sub- sequently surgeon of the First Regiment Colorado Volunteers) he established a small hospital, but it did not endure. Dr. Cass' expe- rience in California had given him a general knowledge of gold dust, its grades and value as a speculative commodity, and having arranged his exchanges in Leavenworth, decided to abandon medicine and open a broker's office. His first location was in the room occupied by Hinckley's express, on Blake street, the chief business thoroughfare of the embryonic metropolis. Shortly afterward he was joined by his brother Joseph B. Cass, who came on from Leavenworth. As their gains multiplied from the profitable traffic, they concluded to erect a building of their own, and to this end they contracted with Mr. Henry C. Brown (one of the millionaires of the present epoch, but then only a carpenter) to build it, on the corner of Sixteenth and Holladay streets, (then G and McGaa). When completed they began a regular banking business, buying dust and shipping it to Carney & Stevens, bankers in Leavenworth (in whose house Mr. Joseph B. Cass had been cashier), drew drafts, loaned money at frightful rates of interest,-five to twenty
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per cent. per month,-and as another profitable adjunct, engaged in the transportation of goods by mule trains, from the Missouri River to the Rocky Mountains. As a natural consequence they made money rapidly, largely however, from the advance of gold during the war. They bought $15,000 to $20,000 each week, and their books indicated a net profit of about $1000 a day during the height of their traffic. It happened not infrequently that the price of gold which they had bought at thirteen to sixteen dollars per ounce, would advance fifteen, twenty and even thirty per cent. while in their hands or in transit to New York. They opened a branch office in Central City, and were the agents of Ben Holladay's stage line. In 1865 they sold out their business and building to Holladay.
Dr. Cass relates the following as one of his experiences as a physician in 1860 :
"One evening while sitting in my office, the door opened, and in stalked a man about five feet nine inches in height, 'bearded like a pard,' trousers in boot legs, his dark hair covered by a black slouch hat, beneath which I saw a pair of glittering black eyes.
"'Are you the Doctor ?'
"'Yes sir.'
"'Well, I want you to go and attend my woman who's sick.'
"'What's the matter with her ?'
"'I don't know, but I want you to go and see her.'
"'Well, my fee is twenty-five dollars, which must be paid before I go.'
"The words had scarcely passed my lips before the stranger whipped out an ugly looking six-shooter, and thrusting it in my face, said:
"'D-n your fee ! follow me, sir, and be quick about it.'
" Thus positively adjured, I stood not upon the order of my going, but went at once. He led me to the door of his cabin, opened it, pointed out the patient, and immediately disappeared in the darkness. I attended her for a week, and cured her. I did not in the meantime see nor hear
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a.M. Crowell
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of my conductor. The woman having recovered, he came again. Striding up to my desk with the air of a cavalry brigadier, he said,-
"' You cured her, did you ?'
"' Yes. I think she is all right now.'
" Laying five twenty dollar gold pieces of Clark & Gruber's mintage on the desk, he added in a milder tone,-
"' Will that pay you for your services ?'
". Yes sir, abundantly, and I'm very much obliged.'
"'See here, doctor. I've taken a notion to you. There's a good many rough fellows about town, who drink and fight and make trouble for honest people. If any of 'em ever interfere with you, you send for me. My name's Charlie Harrison.'"
And it was a magical n'ame here then. No man so bold, daring and reckless, or so steeped in crime as not to bow down before this chief of desperadoes, who could draw more swiftly and shoot more accurately than any man of his time, and who had already killed half a score of men. Yet to his credit be it said, he, like all brave but reckless men possessed many virtues, and his word, whether for good or evil, was always executed to the letter.
Warren Hussey came in 1861 and established a broker's office in one corner of a grocery store, the further history of which will appear in connection with the annals of the City National Bank.
The first attempt to establish banks under the laws of the Territory occurred in 1861, by special act of the legislature of that year, which decreed that a bank to be denominated "The Bank of Colorado" be established in the city of Denver. Its capital stock was placed at $150,- 000, and it was to be organized by P. P. Wilcox, E. W. Cobb and E. C. Jacobs. Subscriptions to the stock were required to be paid in gold and silver exclusively, and it was inhibited from issuing its own paper notes until after fifty per cent. of the stock subscribed for should have been actually paid in gold and silver, the remainder to be secured by bond ; the institution subject to inspection and approval by the territorial ex-
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ecutive, who was required to make public proclamation of its status before opening for business.
While this charter was drawn, or at least inspired by P. P. Wilcox, with the view of organizing under its provisions, he did not avail himself of the privileges thereby extended, but in connection with one Rogers, under the firm name of P. P. Wilcox & Co., proceeded to issue and cir- culate fractional currency of the denominations of ten, twenty-five and fifty cents, the volume of such utterances amounting to about $3,000. The scrip was not engraved, but rudely printed on cheap paper by Thomas Gibson. While the greater part was subsequently redeemed, some six or eight hundred dollars became widely distributed and lost, never appearing for cancellation, which was clear profit to the projectors. Much of it was destroyed by the fire of 1863. As far as known, no one ever took advantage of the banking act mentioned above.
Thus we find that prior to 1865 three kinds of circulating notes of home manufacture came into more or less general use,-those of C. A. Cook & Co., Clark, Gruber & Co., and P. P. Wilcox & Co. Amos Steck, agent for the Overland Express Co., also drew drafts for general accommodation. Immediately after the issuance of Treasury notes by the United States, a limited quantity found their way to this region, and were sold or exchanged for gold dust at a premium of ten to fifteen per cent. I myself paid fifteen per cent. in dust for the first of these notes that came into my possession, at the banking house or broker's office of Lyon, Pullman & Co. at Central City. From 1862 to 1865 most of the operators of gold mines in Gilpin County paid their employes in green- backs, and the premium on the gold extracted and marketed in New York, was sufficient to pay the entire cost of its production.
By an act of the legislative assembly, approved November 5th, 1861, individuals and corporations, "without special leave from the leg- islature," were prohibited from emitting or uttering any bill of credit, commanded not to "make, sign, draw or indorse any bond, promissory note or writing, bill of exchange or order to be used as a general circu- lating medium, as or in lieu of money or other currency, under penalty
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of fine or imprisonment." But it appears that the law had no terrors for the firms who did issue such currency without special permission of the assembly, for nearly all that was printed and distributed was created in defiance of this act, only Wilcox & Co. being indicted for it, and they were not punished.
On the 17th of April, 1865, the Comptroller of the Treasury au- thorized the organization of the First National Bank of Denver, and it was opened for business May 9th following. Its original stockholders and directors were Austin M. and Milton E. Clark (of Clark, Gruber & Co.), Bela S. Buell (now assistant superintendent of the Maid of Erin and Henrietta mines at Leadville), Jerome B. Chaffee, Henry J. Rogers, George T. Clark, Charles A. Cook and Eben Smith.
Its officers were, president, J. B. Chaffee; vice-president, H. J. Rogers; cashier, George T. Clark.
The private banking house of George T. Clark & Co. was merged in, and its available assets became a part of, the new institution. It was located on Blake street, then the chief center of commercial traffic. Notwithstanding its fine opportunities, its prosperity was of brief duration, owing to the somewhat improvident manner in which its affairs were conducted, therefore at the meeting of the directors held in 1867, it was decided to effect a change of management. At this meeting Mr. David H. Moffat, Jr., was elected cashier, and therewith began not only the enviable prestige and supremacy of this house over all others of its class in the city and Territory, but the second epoch of an extraordinary career. It is at this time very widely conceded that Mr. Moffat is the first civilian of the State, and excepting Ex-Governor John Evans with whom he has been intimately associated in building some of the most important of our public enterprises, its wealthiest citizen. It will be interesting to note the source from which he sprang, and his remarkable progress in the domain of finance.
Mr. Moffat was born in Orange County, New York, July 22d, 1839. He had few advantages of early education. His training came by exper- ience. When only twelve years of age, stimulated by an uncontrollable
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