them to Oregon where dust could be readily obtained at twelve or fourteen dollars an ounce.[1] The gold coins in general circulation were Spanish doubloons, halves, and quarters. Such was the scarcity of convenient currency previous to this overplus that silver coin had been at a premium of ten per cent,[2] but fell rapidly to one per cent.
The act of the legislature did not escape criticism.[3] But before the law could be carried into effect Governor Lane had issued his proclamation placing the territory under the government of the United States, and it became ineffectual, as well as illegal. The want, however, remaining the same, a partnership was formed called the Oregon Exchange Company, which proceeded to coin money after its own fashion, and on its own responsibility. The members were W. K. Kilborne, Theophilus Magruder, James Taylor, George Abernethy, W. H. Willson, W. H. Rector, J. G. Campbell, and Noyes Smith. Rector "being the only member with any mechanical skill" was deputized to furnish the stamps and dies, which he did, using a small machine for turning iron. The engraving was done by Campbell. When all was in readiness, Rector was employed as coiner, no assaying being done or attempt made to part the silver from the gold. Indeed, it was not then known in Oregon that there was any silver in the crude metal, and all the pieces of the same denomination were made of the same weight, though the color varied considerably. About thirty thousand dollars were made into five-
- ↑ W. H. Rector's Oregon Exchange Company, in Or. Archives, MS., 193.
- ↑ Moss' Pioneer Times, MS., 59.
- ↑ Some severe strictures were passed upon it by A. E. Wait, a lawyer, and at that time editor of the Spectator, who declared with emphasis that the people of Oregon desired no law which conflicted with the laws of the United States; but only asked for the temporary privilege under the provisional government of coining gold to meet the requirements of business for the present; and that if this act was to be numbered among those which congress was asked to confirm, it was a direct insult to the United States. Wait may have been right as to the general sentiment of the people, or of the best and most patriotic men of the American party, but it is plain from the language of the memorial to the legislature that its framers were in a mood to defy the government which had so long appeared to be unmindful of them.
