A great many extensive enterprises by joint-stock companies had been begun, in the way of water-ditches, to bring water from the head of the mountain-streams down to the richer alluvial deposits, and nearly all of these companies became embarrassed or bankrupt. Foreign capital, also, which had been attracted to California by reason of the high rates of interest, was being withdrawn, or was tied up in property which could not be sold; and, although our bank's having withstood the panic gave us great credit, still the community itself was shaken, and loans of money were risky in the extreme.

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