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Kellogg & Humbert Gold Ingot. 152.96 Ounces....
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Sold on Jan 5, 2017 for:
$293,750.00
Bid Source: Live: Floor bidder
Description
Kellogg & Humbert Gold Ingot
Very Large Size, 152.96 Ounces
Ex: S.S. Central America
Kellogg & Humbert Gold Ingot. 152.96 Ounces. CABG-440. The
S.S. Central America took with it more than 500 souls and
$1.2 million in gold when it slipped 7,200 feet below the sea off
the coast of the Carolinas in 1857. Its story has been widely
publicized since 1988, when the Columbus-America Discovery Group
found and began to recover contents from the wreckage. Its claim to
fame as one of the greatest treasure finds in history is
well-deserved, yet the loss of the Central America
represents something more. It illuminates the connections between
two geographically and economically distant coasts at a crucial
period in this country's storied history."Hard Money" West, "Paper Money" East
Gold in all its forms instantly comes to mind when one contemplates commerce on the Western frontier. Raw gold dust predominated as a medium of exchange, but coins and bars also traded when available. The issuance of paper money had been explicitly banned upon the adoption California's constitution in 1849. Per Bowers' 2002 tome, A California Gold Rush History:
"When California was admitted into the Union on September 9, 1850, it already had a "hard money" economy, with not a piece of paper money in sight. The dependence upon silver and gold coins and the exclusion of paper money prevailed for many years thereafter."
California mines were producing an estimated $300,000 worth of gold per day in 1849. There was seemingly no reason for banks to issue paper money under those circumstances. The same could not be said for East Coast states, save for Georgia and North Carolina. The Northeast relied heavily on banknotes, a long-standing tradition despite innumerable instances of fraud (phantom banks, spurious notes, insufficient reserves, etc.). These factors had led to a serious financial crisis in 1837, accounting for the Hard Times of 1837-1843, and had a tremendous influence on California's skepticism toward commercial banking. Clearly, the economies of the East and West were vastly different, yet they were inextricably intertwined.
Linking the Coasts
The Panama route played a vital role in bridging the geographic and economic gap between California and the Eastern states. James P. Delgado writes in To California by Sea: A Maritime History of the California Gold Rush: "On Panama steamers and across the isthmus California's wealth poured east, and mail and newspapers forged a regular link between California and the rest of the world." The route facilitated the movement of United States coinage westward, where federal specie was required to make payments at the Custom House.
The S.S. Central America, formerly the George Law, was one of the many ships responsible for moving gold, mail, and passengers from California along the Atlantic coast between New York and Havana. Its loss in September 1857 would highlight the interconnectedness between East and West, aggravating the first major panic in 20 years.
Economic Turbulence
By 1857, what had been a booming economy began to show signs of a slowdown. Banks were heavily invested in railroad ventures and agricultural industries, and started to suffer for a variety of reasons, including reduced foreign investment. The trade deficit grew, bank reserves became depleted, and investors got nervous. Outright panic ensued on August 24, when the Ohio Life Insurance & Trust Company declared bankruptcy. The firm was widely considered to be a sound lender, and its failure pointed to serious structural issues underpinning the American economy. Stock markets reacted accordingly in the weeks and months that followed.
At the same time, there was a belief that "the periodic arrival in New York City of treasure-laden ships from Panama pumped vitality into the eastern markets with 'new money' to help alleviate the situation, although few took the time to look at the actual numbers involved," according to Bowers. Two months prior to the fall of the Ohio Life Insurance & Trust Company, Harper's magazine included this prophetic commentary in its June 20 issue:
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R"The country is prosperous, no doubt, but we are going ahead so fast, and living so absolutely from hand to mouth, that the first hitch in the machinery may upset the whole concern. The loss of a single specie-steamer from California would break no one can tell how many mercantile houses in New York, Philadelphia, and Boston.
Harper's prediction became a reality on September 12, 1857, when the S.S. Central America sank in a hurricane. The resulting Panic of 1857 perfectly illustrated the interdependency between the Atlantic and Pacific economies, and the tenuous nature of that relationship.
Preeminent Assayers: Kellogg and Humbert
Aside from its economic significance, as highlighted above, the Central America and its contents provide historians with a better understanding of the major players involved in the important work of turning gold dust into coins and bars. Nearly 65% of the 532 gold ingots recovered from the Central America were stamped with the mark of Kellogg & Humbert -- a reflection of the firm's excellent standing. John Grover Kellogg and August Humbert had established themselves as two of the most reputable assayers in 1850s San Francisco. The latter was appointed United States Assayer in 1851, and the former had worked for Moffat & Co. before forming a partnership with G.F. Richter. In 1854, Kellogg and Humbert joined forces, striking vast quantities of twenty dollar gold coins when the newly opened San Francisco Mint was unable to meet demand. The men were widely regarded as two of the most trusted refiners and assayers of the Gold Rush period, enhancing the allure of this impressive ingot.
This is classified as a very large size ingot. The inscriptions are on the top face and vertically oriented. The back side does repeat the serial number, but curiously these numbers use a different font. The top side is well-spaced and laid out: No 482 / K&H hallmark / 152.96 Oz / 886 FINE. / $2801.49. The surfaces are uniformly bright yellow-gold and the ingot measures 64 mm x 150 mm x 28 mm.
From The Arizona Treasure Collection.
View all of [The Arizona Treasure Collection ]
Auction Info
2017 January 4 - 9 FUN US Coins Signature Auction - Fort Lauderdale #1251 (go to Auction Home page)
Auction Dates
January, 2017
4th-9th
Wednesday-Monday
Bids + Registered Phone Bidders: 16
Lot Tracking Activity: N/A
Page Views: 17,444
Buyer's Premium per Lot:
17.5% of the successful bid per lot.
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