his passage from San Francisco on the steamer Oregon, but went by land to Monterey, to visit friends and adjust matters for a long absence. He boarded the steamer at San Diego, and found many friends on board, among them Gen eral Fremont and family, and Senator Gwin. He arrived in New York in the latter part of January, 1850, and promptly delivered his dispatches to General Scott, with whom he dined..

In a few days General Scott ordered Sherman to proceed to Washington with the Pacific dispatches, and lay them before the Secretary of War (Crawford). This he did, and was questioned closely by the Secretary as to the resources and politics of the new State. He then visited President Taylor, at the White House, and made the acquaintance of many of the prominent Government officials, stopping the while at the home of Mr. Ewing, who was Secretary of the Interior.

Sherman had now completed his mission to the East, and be asked for and obtained a six months' leave of absence from duty. He first visited his mother at Mansfield, Ohio, and then returned to Washington, where he married Miss Ewing, daughter of Thomas Ewing, Secretary of the Inte rior. The marriage took place on May 1st, 1850, and was a distinguished affair, being attended by the President and his Cabinet, Senators, Representatives, Army and Navy officers, and others in high authority. His wedding tour extended for two months, and by July 1st he was back in Washington, to find political feeling, already running high over the question of slavery in the newly conquered Mexican territory, and intensely excited over the sudden death of the President, which occurred on July 9th. By request of the Adjutant-General of the Army he attended President Taylor's funeral in the capacity of aide. He witnessed the

Cabinet revolution brought about by change of Presidents, the retiracy of his father-in-law, Mr. Ewing, from the Interior Department, and his return to Washington as Senator from Ohio, in place of Mr. Corwin. He was also present at the heated debates in the Senate between the friends and opponents of slavery extension, and over Henry Clay's "Omnibus Bill."

By the close of July, Mr. Ewing had given up his house in Washington, and Sherman escorted his family to their Lancaster home. His name was now borne on the rolls of Company C, Bragg's Third Artillery, stationed at St. Louis. Pending the passage of a bill in Congress, authorizing the addition of four Captains to the Commissary Department, of which he expected to be one, he started for St. Louis in September, and reported at Jefferson barracks for duty. Here he received word that the pending bill had passed and that it provided for his promotion to the post of Captain. His commission bore date Sept. 27, 1850, and he immediately went on duty, sending for his wife, and taking permanent quarters at a hotel. From this time we must date Sherman's interest in St. Louis, for he became a purchaser of lots, some of which he held throughout his life.

He passed 1851 and part of 1852 in St Louis, and in the Spring of the latter year was sent to Fort Leavenworth on a cattle inspecting tour. He returned by steamboat to St. Louis, where he remained during the Summer of 1852, though his family was absent at Lancaster. In the Fall he was ordered to New Orleans to take charge of the badly managed Commissariat there, and relieve it from the suspicion of corruption. By changing the methods of purchasing supplies from secret solicitation to bids in open market, he soon broke up the corrupt practices which had brought odium on his predecessor and on the Department.

His family, now consisting of his wife and two children, arrived in New Orleans about Christmas, 1852, and he fur. nished a house for them. Almost at the same time he was visited by Major Turner, and shown articles of co-partnership for the founding of a bank in California, in which his own name was mentioned as a partner, and in which flattering inducements as to independent salary for active service were held out. Sherman was pleased with the overtures and prospects, and asked for a six-months' leave of absence, in order to go to California and examine matters for himself In February 1853, he sent his family to Ohio, sold his furniture and lease, accounted for the public property and records, and started for California by the Nicaraugua route. On this voyage his vessel was wrecked on the California coast. The passengers were all gotten ashore safely. Sherman and a

party started up the coast for aid. They secured a lumber laden schooner, but it too was wrecked and the lives of all on board were in danger till rescued by a passing craft.

.

Sherman found San Francisco in the midst of terrible speculative inflation. Values of every kind were out of all rea son, and money was being made and lost with bewildering rapidity. He found the bank of Lucas, Turner & Co., in which he had been offered a place and partnership, already a fact, and fully in the speculative swim. Its main house was at St, Louis. After looking over the ground, he and Turner agreed that business might be securely done on a cash capital of $200,000 and a credit of $50,000 in New York, To secure this, Sherman started back to New York, where he arrived in July 1853. He then visited St. Louis, taking in his Lancaster home, and made satisfactory arrangements with Mr. Lucas, the senior member of the firm. He returned to Ohio, laid his plans before his friends, and upon their approval, he sent his resignation as Captain in the

Army to the Adjutant-General, to take effect September 6 1853.

The acceptance of this resignation ended Sherman's early army career. He had not seen battles, but had been one of the most active of officers. He had not enjoyed rapid nor high promotion, but he accumulated a fund of experience which was to prove invaluable in the near future.

As a private citizen he engaged passage for himself and family, for San Francisco, and sailed on September 20, 1853, reaching their destination in safety on October 15. Sherman immediately turned in as banker, and soon found that the glowing profit of three per cent a month on loans was eaten up by expenses, and that the glamor of the situation was attenuated moonshine. The deposits were such an uncertain factor-in the millions to-day, in the hundreds tomorrow that they could not be calculated upon for any business transactions, covering even the shortest periods. He was dissapointed at the revelation, but being in for it, was forced to float with the tide toward the catastrophe which impended.

A new bank building was erected, substantial, but on an unfortunate site, as the city drifted away from it. Sherman worked hard. Business was brisk. Losses by loans were frequent. Securities were so fluctuating, that business dif fered nothing from gambling. At length the large house of Page, Bacon & Co. failed (Feb. 22, 1855). This was the signal for a general run and crash. Bank after bank failed and the run on Sherman's bank was only met after great difficulty. Its survival of the wreck gave it a strong place among the institutions at the Golden Gate.

About this time Sherman was commissioned an officer in the State militia. It was the dangerous period during which the "Vigilantes" held control of court and city, and

administered justice in their own prompt and brutal way. Their conflict with the State authorities was direct and Sherman could see no way to secure order except with the help of the Federal forces. This he failed to secure, in a direct form, yet the moral effect of his efforts was such as to finally induce the mob element to fall back into the usual currents of order and peace.

Affairs in San Francisco grew from bad to worse. Real estate depreciated; first-class securities could not be had. Rates of loans increased. Overwork and asthma drove Sherman into nervousness and despondency. The reasons for starting the bank of Lucas, Turner & Co. had ceased to exist. Sherman wrote Lucas at St. Louis, to the effect that he could use his money to better advantage in the East than on the Pacific. The reply was that Sherman should adjust the affairs of the bank and close its doors. He settled everything up as well as he could, and on May 1, 1857, the house of Lucas, Turner & Co., as it existed in San Francisco, became extinct.