city, and informing me that S. had a diamond ring that cost $800 in Rio
Janeiro, at a broker's office, as collateral security for $250 borrowed
on it at ten per cent per month, and the time was about up. If I would
redeem the ring I could keep it and wear it until he paid me. I went and
saw the ring. It was as represented, and I redeemed it and wore it for a
considerable time. One day R. came to me with a naming letter from S.
that he had laid out the city and been elected alcalde, and we would
make our fortune, and there was a friend of S. that was going up there,
and if I would send up the ring by him he would appreciate it so much,
and he would be responsible that I should not lose any thing by it. I
was foolish enough to be persuaded by him and handed him the ring, for
which act I have never forgiven myself. That was the last I ever saw of
the ring or any of the money invested in Touwalma city, for it turned
out a failure. It was never the head of navigation on the river, or any
thing else that was ever heard of.

There were three unfortunate events that occurred in California in the
winter months of 1849 and the beginning of 1850. The rainy season had
destroyed all the dams constructed on the gold rivers and raceways,
which had been constructed at great expense for the purpose of working
the beds of the river for gold, the rivers often rising from ten to
eighteen feet in a night, and the current running with terrible force.
The second, the flooding of Sacramento, destroying large quantities of
merchandise and carrying away and undermining the houses there. The
third was the great fire in San Francisco, destroying one-third of the
main business portion of the city, upon which there was no insurance.
There were no companies organized or agents there to insure property
then, as it was too risky. There was one four-story fire-proof building
that was stored full of the most valuable goods, at a large price for
storage, for it was considered absolutely fire-proof, but when the fire