What happened after the crash of the cattle market?
During the drought that followed the crash of the market, cattle owners began the practice of driving their herds to the Sierra Nevada Mountains in the spring to pasture until fall. Others grew alfalfa and other hay crops to supplement the range feed. The Los Angeles Star, April 7, 1860, stated that there were 800,000 cattle in the state, and the number was multiplying quickly. Therefore, the editor felt that the only solution was to slaughter for hide and tallow. By 1861 many rancheros went back to hide, tallow, and dried beef to make a profit. Many rancheros borrowed money via short-term mortgages, where collateral exceed the loan amount and interest rates were very high, from 4% to 7% a month to make ends meet. Many rancheros, even from the best families, lost first their cattle, then their land, and finally their casas. If cattle prices and interest rates on mortgages were bad enough, Mother Nature also hit the Ranchos. At the end of 1861, California experienced unprecedented flood
