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THROUGH THE NUMISMATIC GLASS: WELLS FARGO-150th ANNIVERSARY

Dr. Thomas Fitzgerald

The 1848 discovery of Gold at Sutter's Mill near Coloma, California, set into motion a series of events that quickly changed the United States, particularly the western part of the country. As the news spread, thousands of fortune seekers sought their share of the precious metal and the "Gold Rush" was on.

These events caught the attention of two very successful eastern businessmen, Henry Wells (1805-1878) and William G. Fargo (1818-1881). These men were both experienced in the transportation of goods and people as well as the banking business. They believed there would be great opportunities in California.

On March 18, 1852, Mr. Wells and Mr. Fargo met with their Associates at the famed Astor House in New York City and introduced their new express and banking company: "Wells, Fargo & Co." In July 1852, the new company opened its first office on Montgomery Street in San Francisco. The Company's first exchange note was dated July 13, 1852. These bills of exchange were issued to transfer money between the East and West coasts. Henry Wells and William G. Fargo had founded a company that became a legendary part of the history of the American West.

The possibility of gaining riches continued to attract many people to California. In 1848, the population was only 15,000, but by the time the Wells, Fargo & Co. office opened in 1852, the number had swelled to over a quarter of a million. The company continued to grow along with the population. By 1855, there were fifty-five agencies throughout California and Oregon. In fact, in towns with such out-of-the-ordinary names as Rough-n-Ready, Rattlesnake Bar and Yankee Jim's, the Wells Fargo Co. provided the only means of communication for business and regular mail.

In early 1855, a harsh financial "panic," brought on by over speculation, caused great concern in the business and banking circles of the state. Stores and banks closed their doors as many businesses were ruined. One of the few agencies to remain solvent was that of Wells Fargo, in fact the company continued to grow. Banking houses were now added in Nevada, Oregon, Utah and New York.

THE STAGECOACH ARRIVES

Anyone who has enjoyed the musical, "The Music Man," remembers the excitement of the entire town as the pending arrival of the stagecoach was announced. This coach, drawn by six fine horses, would deliver the musical instruments and band uniforms for the children of River City, Iowa. What a Part of our western history these carriages provided!. They became a symbol of western commerce and development.

Wells Fargo utilized stagecoaches from its earliest days. It contracted with independent stagecoach companies to carry mail, goods and treasure shipments. With the formation of the Overland Mail Company in 1857, Wells Fargo entered into the business of a major stage line. Originally organized and managed by John Butterfield, a long-time associate of Henry Wells and William Fargo, this company provided the first regular transcontinental mail and passenger service. It traveled the famous "Southern Overland Route: from St. Louis to San Francisco via El Paso and Los Angeles in three weeks. Roads had to be cleared and graded, dozens of stage stations had to be built and 250 coaches were purchased. Wells Fargo became the main financial support to Butterfield for the operation of this enterprise. By 1860, there were a number of management problems in the partnership and John Butterfield stepped down from the presidency.

Control passed to Wells Fargo although the ownership did not change until 1866.

THE CIVIL WAR

Communication between the East and West faced a major difficulty with the start of the Civil War in 1861. The southern route was deemed unfeasible as it crossed between states sympathetic to the southern or northern causes. The "central" overland route via Salt Lake City was adopted. This change provided uninterrupted, effective communication between the two coasts during the conflict.

The Wells Fargo stagecoach business Reached its peak in 1866 when the company purchased all the major stagecoach lines west of the Missouri River. The business employed the finest vehicles in the world, the Concord Stage Coach, built by Abbot-Downing Co. of Concord, New Hampshire. Mark Twain called them "a cradle on wheels." Although these coaches have long since passed into the history of the West, they remain the corporate symbol of the Wells Fargo Co. and provide the artwork for the CSNA medal designed for the convention in Concord, California.

THE PONY EXPRESS

Wells Fargo played a major role in the story of the Pony Express. The firm of Russell, Majors and Waddell founded the Pony Express in 1860. However, they were not successful and by the end of the decade, the company was almost bankrupt.

With the completion of the transcontinental telegraph in October, 1861, the overland Pony Express operation was no longer in great demand. However, between 1862 and 1865, Wells Fargo ran a pony express service between Virginia City, Nevada and San Francisco.

Later in the decade, the company provided a similar service to Los Angeles.

THE CHANGE FROM AN EXPRESS COMPANY TO BANKING

At the start of the 20th century, fundamental changes took place in the operation of the Wells Fargo Company. The separation of the express business from the banking business took place in 1905. This was the most important and far reaching change to take place in the history of the company. A well-known businessman, Edward Harriman, controlled both the Southern Pacific and Union Pacific Railroads. He also owned substantial stock interest in Wells Fargo. In taking control of the company, Harriman chose to separate the bank company from the express company. He worked out a merger with the Nevada National Bank. The resultant merged banks established their headquarters in San Francisco. The express company established their headquarters in New York City where it continued to provide services until 1918. The consolidation by the Federal Government of the nation's express services into the Railway Express Agency ended the express business for Wells Fargo although they continued to provide services in Mexico.

Collectors of National Bank Notes may collect these historical currency pieces from only one Wells Fargo bank. The Wells Fargo Nevada National Bank, Charter #5105, issued National Bank Notes from San Francisco.

THE WELLS FARGO-NEVADA NATIONAL BANK FACES THE EARTHQUAKE

On the morning of April 18, 1906, a major earthquake rocked San Francisco. Between the earthquake and the resulting fires, San Francisco was virtually destroyed. The Wells Fargo Bank immediately wired its correspondents: "Building Destroyed. Vaults Intact. Credit Unaffected." The Wells Fargo-Nevada National Bank was relocated in a private home where it continued to accept deposits and paid out cash. The company made a commitment to help rebuild the City of San Francisco.

NEW BANKING MERGERS

At the close of 1923, Wells Fargo-Nevada National Bank merged with Union Trust Company to form the Wells Fargo Bank & Union Trust Company. The conservative banking policies of the leaders of this organization enabled the bank to remain open during the great depression of the 1930's. Other banks in California mirrored the general development of the banking industry in the state. From their small beginnings, California banks evolved into large institutions with national and international operations. Following its 1960 merger, the newly formed "Wells Fargo Bank American Trust Company" (shortened in 1962 to "Wells Fargo Bank") took its place among the largest banks in the United States.

Join with the CSNA as they hold their semi-annual convention in Concord, California with the Wells Fargo theme. More information is available in this publication.