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3 o8 McLOUGHLIN AND OLD OREGON

The Yankee only laughed, and put up his calico to ten dollars a yard and hauled in the wheat. and tallow.

And the careless Spaniards went on singing and dancing, horse-racing and gambling everybody gambled in Spanish California.

There was a new governor in California. A new governor in a Spanish- American State generally means a revolution.

"This new governor, Micheltorena, is partial to the Americans," said the Spanish Californians.

"His course is a menace to English interests," said Rae.

The Spaniards hated the Americans as much as Rae did. They often gathered at Yerba Buena to talk the matter over.

"We must depose him," said the Spaniards.

"We must fight them to the death," said Rae.

So the insurgents came to Yerba Buena for arms and ammunition. But the insurgents lost, and Rae lost.

"Curse it all! why did I let them have the arms and ammunition without a cent to show?" cried Rae, despairing. "And how shall I answer for mixing in this Spanish trouble?"

The proud chief trader groaned. He had done the best he could for his company, but the best he could would not avail. Already Sir George had sent recommends to shut up the house at Yerba Buena as a profitless venture. But Dr. McLoughlin held firm. And to disappoint the doctor now

"What if the Hudson's Bay Company is driven out of California? Am I to blame, with all these rival Yankees like the swarming rats of Hamelin nibbling on every side? "The servants heard a shot in Rae's room.