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CHAPTER VI

DISCOVERY OF THE GOLD PLACERS

By the treaty concluded between the United States and Mexico, in 1847, the territory of Upper California became the property of the United States. Little thought the Mexican government of the value of the land they were ceding, further than its commercial importance; and, doubtless, little thought the buyers of the territory, that its soil was pregnant with a wealth untold, and that its rivers flowed over golden beds.

This territory, now belonging to the American Union, embraces an area of 448,961 square miles. It extends along the Pacific coast, from about the thirty-second parallel of north latitude, a distance of near seven hundred miles, to the forty-second parallel, the southern boundary of Oregon. On the east, it is bounded by New Mexico. During the long period which transpired between its discovery and its cession to the United States, this vast tract of country was frequently visited by men of science, from all parts of the world. Repeated examinations were made by learned and enterprising officers and civilians; but none of them discovered the important fact, that the mountain torrents of the Sierra Nevada were constantly pouring down their golden sands into the valleys of the Sacramento and San Joaquin. The glittering particles twinkled beneath their feet, in the ravines which they explored, or glistened in the watercourses which they forded, yet they passed them by unheeded. Not a legend or tradition was heard among the white settlers, or the aborigines, that attracted their curiosity. A nation's ransom lay within their grasp, but, strange to say, it escaped their notice – it flashed and sparkled all in vain.1

The Russian American Company had a large establishment at Ross and Bodega, ninety miles north of San Francisco, founded in the year 1812; and factories were also established in the territory by the Hudson Bay Company. Their agents and employes ransacked the whole country west of the Sierra Nevada, or Snowy Mountain, in search of game. In 1838, Captain Sutter, formerly an officer in the Swiss Guards of Charles X., King of France, emigrated from the state of Missouri to Upper California, and obtained from the Mexican government a conditional grant of thirty leagues square of land, bounded on the west by the Sacramento river. Having purchased the stock, arms, and ammunition of the Russian establishment, he erected a dwelling and fortification on the left bank of the Sacramento, about fifty miles from its mouth, and near what was termed, in allusion to the new settlers, the American Fork. This formed the nucleus of a thriving settlement, to which Captain Sutter gave the name of New Helvetia. It is situated at the head of navigation for vessels on the Sacramento, in latitude 38° 33' 45" north, and longitude 121° 20' 05" west. During a residence of ten years in the immediate vicinity of the recently discovered placéras, or gold regions, Captain Sutter was neither the wiser nor the richer for the brilliant treasures that lay scattered around him.2

In the year 1841, careful examinations of the Bay of San Francisco, and of the Sacramento River and its tributaries, were made by Lieutenant Wilkes, the commander of the Exploring Expedition; and a party under Lieutenant Emmons, of the navy, proceeded up the valley of the Willamette, crossed the intervening highlands, and descended the Sacramento. In 1843-4, similar examinations were made by Captain, afterwards Lieutenant-Colonel Fremont, of the Topographical Engineers, and in 1846, by Major Emory, of the same corps. None of these officers made any discoveries of minerals, although they were led to conjecture, as private individuals who had visited the country had done, from its volcanic formation and peculiar geological features, that they might be found to exist in considerable quantities.3

As is often the case, chance at length accomplished what science had failed to do. In the winter of 1847-8, a Mr. Marshall commenced the construction of a saw-mill for Captain Sutter, on the north branch of the American Fork, and about fifty miles above New Helvetia, in a region abounding with pine timber. The dam and race were completed, but on attempting to put the mill in motion, it was ascertained that the tail-race was too narrow to permit the water to escape with perfect freedom. A strong current was then passed in, to wash it wider and deeper, by which a large bed of mud and gravel was thrown up at the foot of the race. Some days after this occurrence, Mr. Marshall observed a number of brilliant particles on this deposit of mud, which attracted his attention. On examining them, he became satisfied that they were gold, and communicated the fact to Captain Sutter. It was agreed between them, that the circumstance should not be made public for the present; but, like the secret of Midas, it could not be concealed. The Mormon emigrants, of whom Mr. Marshall was one, were soon made acquainted with the discovery, and in a few weeks all California was agitated with the startling information.

Business of every kind was neglected, and the ripened grain was left in the fields unharvested. Nearly the whole population of Upper California became infected with the mania, and flocked to the mines. Whalers and merchant vessels entering the ports were abandoned by their crews, and the American soldiers and sailors deserted in scores. Upon the disbandment of Colonel Stevenson's regiment, most of the men made their way to the mineral regions. Within three months after the discovery, it was computed that there were near four thousand persons, including Indians, who were mostly employed by the whites, engaged in washing for gold. Various modes were adopted to separate the metal from the sand and gravel – some making use of tin pans, others of close-woven Indian baskets, and others still, of a rude machine called the cradle, six or eight feet long, and mounted on rockers, with a coarse grate, or sieve, at one end, but open at the other. The washings were mainly confined to the low wet grounds, and the margins of the streams – the earth being rarely disturbed more than eighteen inches below the surface. The value of the gold dust obtained by each man, per day, is said to have ranged from ten to fifty dollars, and sometimes even to have far exceeded that. The natural consequence of this state of things was, that the price of labor, and, indeed, of every thing, rose immediately from ten to twenty fold.4

As may readily be conjectured, every stream and ravine in the valley of the Sacramento was soon explored. Gold was found on every one of its tributaries; but the richest earth was discovered near the Rio de los Plumas, or Feather River,5 and its branches, the Yuba and Bear rivers, and on Weber's creek, a tributary of the American Fork. Explorations were also made in the valley of the San Joaquin, which resulted in the discovery of gold on the Cosumnes and other streams, and in the ravines of the Coast Range, west of the valley, as far down as Ciudad de los Angeles.

In addition to the gold mines, other important discoveries were made in Upper California. A rich vein of quicksilver was opened at New Almaden, near Santa Clara, which, with imperfect machinery, – the heat by which the metal is made to exude from the rock being applied by a very rude process, – yielded over thirty per cent. This mine – one of the principal advantages to be derived from which will be, that the working of the silver mines scattered through the territory must now become profitable – is superior to those of Almaden, in Old Spain, and second only to those of Idria, near Trieste, the richest in the world.

Lead mines were likewise discovered in the neighborhood of Sonoma, and vast beds of iron ore near the American Fork, yielding from eighty-five to ninety per cent. Copper, platina, tin, sulphur, zinc, and cobalt, were discovered every where; coal was found to exist in large quantities in the Cascade range of Oregon, of which the Sierra Nevada is a continuation; and in the vicinity of all this mineral wealth, there are immense quarries of marble and granite, for building purposes.

Colonel Mason had succeeded Colonel Fremont in the post of governor of California and military commandant. A regiment of New York troops, under the command of Colonel Stevenson, had been ordered to California before the conclusion of the treaty of peace, and formed the principal part of the military force in the territory.

Colonel Mason expressed the opinion, in his official despatch, that "there is more gold in the country drained by the Sacramento and San Joaquin rivers, than will pay the cost of the [late] war with Mexico a hundred times over." Should this even prove to be an exaggeration, there can be little reason to doubt, when we take into consideration all the mineral resources of the country, that the territory of California is by far the richest acquisition made by this government since its organization.

The appearance of the mines, at the period of Governor Mason's visit, three months after the discovery, he thus graphically describes:

"At the urgent solicitation of many gentlemen, I delayed there [at Sutter's Fort] to participate in the first public celebration of our national anniversary at that fort, but on the 5th resumed the journey, and proceeded twenty-five miles up the American Fork to a point on it now known as the Lower Mines, or Mormon Diggins. The hill-sides were thickly strewn with canvas tents and bush arbors; a store was erected, and several boarding shanties in operation. The day was intensely hot, yet about two hundred men were at work in the full glare of the sun, washing for gold – some with tin pans, some with close-woven Indian baskets, but the greater part had a rude machine, known as the cradle. This is on rockers, six or eight feet long, open at the foot, and at its head has a coarse grate, or sieve; the bottom is rounded, with small cleats nailed across. Four men are required to work this machine; one digs the ground in the bank close by the stream; another carries it to the cradle and empties it on the grate; a third gives a violent rocking motion to the machine; while a fourth dashes on water from the stream itself.

"The sieve keeps the coarse stones from entering the cradle, the current of water washes off the earthy matter, and the gravel is gradually carried out at the foot of the machine, leaving the gold mixed with a heavy, fine black sand above the first cleats. The sand and gold, mixed together, are then drawn off through auger holes into a pan below, are dried in the sun, and afterward separated by blowing off the sand. A party of four men thus employed at the lower mines, averaged $100 a day. The Indians, and those who have nothing but pans or willow baskets, gradually wash out the earth and separate the gravel by hand, leaving nothing but the gold mixed with sand, which is separated in the manner before described. The gold in the lower mines is in fine bright scales, of which I send several specimens.

"From the mill [where the gold was first discovered], Mr. Marshall guided me up the mountain on the opposite or north bank of the south fork, where, in the bed of small streams or ravines, now dry, a great deal of coarse gold has been found. I there saw several parties at work, all of whom were doing very well; a great many specimens were shown me, some as heavy as four or five ounces in weight, and I send three pieces, labeled No. 5, presented by a Mr. Spence. You will perceive that some of the specimens accompanying this, hold mechanically pieces of quartz; that the surface is rough, and evidently moulded in the crevice of a rock. This gold cannot have been carried far by water, but must have remained near where it was first deposited from the rock that once bound it. I inquired of many people if they had encountered the metal in its matrix, but in every instance they said they had not; but that the gold was invariably mixed with washed gravel, or lodged in the crevices of other rocks. All bore testimony that they had found gold in greater or less quantities in the numerous small gullies or ravines that occur in that mountainous region.

"On the 7th of July I left the mill, and crossed to a stream emptying into the American Fork, three or four miles below the saw-mill. I struck this stream (now known as Weber's creek) at the washings of Sunol and Co. They had about thirty Indians employed, whom they payed in merchandise. They were getting gold of a character similar to that found in the main fork, and doubtless in sufficient quantities to satisfy them. I send you a small specimen, presented by this company, of their gold. From this point, we proceeded up the stream about eight miles, where we found a great many people and Indians – some engaged in the bed of the stream, and others in the small side valleys that put into it. These latter are exceedingly rich, and two ounces were considered an ordinary yield for a day's work. A small gutter not more than a hundred yards long, by four feet wide and two or three feet deep, was pointed out to me as the one where two men – William Daly and Parry McCoon – had, a short time before, obtained $17,000 worth of gold. Captain Weber informed me that he knew that these two men had employed four white men and about a hundred Indians, and that, at the end of one week's work, they paid off their party, and had left $10,000 worth of this gold. Another small ravine was shown me, from which had been taken upward of $12,000 worth of gold. Hundreds of similar ravines, to all appearances, are as yet untouched. I could not have credited these reports, had I not seen, in the abundance of the precious metal, evidence of their truth.

"Mr. Neligh, an agent of Commodore Stockton, had been at work about three weeks in the neighborhood, and showed me, in bags and bottles, over $2000 worth of gold; and Mr. Lyman, a gentleman of education, and worthy of every credit, said he had been engaged, with four others, with a machine, on the American Fork, just below Sutter's mill; that they worked eight days, and that his share was at the rate of fifty dollars a day; but hearing that others were doing better at Weber's place, they had removed there, and were then on the point of resuming operations. I might tell of hundreds of similar instances; but, to illustrate how plentiful the gold was in the pockets of common laborers, I will mention a single occurrence which took place in my presence when I was at Weber's store. This store was nothing but an arbor of bushes, under which he had exposed for sale goods and groceries suited to his customers. A man came in, picked up a box of Seidlitz powders, and asked the price. Captain Weber told him it was not for sale. The man offered an ounce of gold, but Captain Weber told him it only cost fifty cents, and he did not wish to sell it. The man then offered an ounce and a half, when Captain Weber had to take it. The prices of all things are high, and yet Indians, who before hardly knew what a breech cloth was, can now afford to buy the most gaudy dresses.

"The country on either side of Weber's creek is much broken up by hills, and is intersected in every direction by small streams or ravines, which contain more or less gold. Those that have been worked are barely scratched; and although thousands of ounces have been carried away, I do not consider that a serious impression has been made upon the whole. Every day was developing new and richer deposits; and the only impression seemed to be, that the metal would be found in such abundance as seriously to depreciate in value.

"On the 8th of July, I returned to the lower mines, and on the following day to Sutter's, where, on the 19th, I was making preparations for a visit to the Feather, Yuba, and Bear Rivers, when I received a letter from Commander A. R. Long, United States Navy, who had just arrived at San Francisco from Mazatlan with a crew for the sloop-of-war Warren, with orders to take that vessel to the squadron at La Paz. Captain Long wrote to me that the Mexican Congress had adjourned without ratifying the treaty of peace, that he had letters from Commodore Jones, and that his orders were to sail with the Warren on or before the 20th of July. In consequence of these, I determined to return to Monterey, and accordingly arrived here on the 17th of July. Before leaving Sutter's, I satisfied myself that gold existed in the bed of the Feather River, in the Yuba and Bear, and in many of the smaller streams that lie between the latter and the American Fork; also, that it had been found in the Cosumnes to the south of the American Fork. In each of these streams the gold is found in small scales, whereas in the intervening mountains it occurs in coarser lumps.

"Mr. Sinclair, whose rancho is three miles above Sutter's, on the north side of the American, employs about fifty Indians on the north fork, not far from its junction with the main stream. He had been engaged about five weeks when I saw him, and up to that time his Indians had used simply closely woven willow baskets. His net proceeds (which I saw) were about $16,000 worth of gold. He showed me the proceeds of his last week's work – fourteen pounds avoirdupois of clean-washed gold.

"The principal store at Sutter's Fort, that of Brannan and Co., had received in payment for goods $36,000 (worth of this gold) from the 1st of May to the 10th of July. Other merchants had also made extensive sales. Large quantities of goods were daily sent forward to the mines, as the Indians, heretofore so poor and degraded, have suddenly become consumers of the luxuries of life. I before mentioned that the greater part of the farmers and rancheros had abandoned their fields to go to the mines. This is not the case with Captain Sutter, who was carefully gathering his wheat, estimated at 40,000 bushels. Flour is already worth at Sutter's thirty-six dollars a barrel, and soon will be fifty. Unless large quantities of breadstuffs reach the country, much suffering will occur; but as each man is now able to pay a large price, it is believed the merchants will bring from Chili and Oregon a plentiful supply for the coming winter.

"The most moderate estimate I could obtain from men acquainted with the subject, was, that upward of four thousand men were working in the gold district, of whom more than one-half were Indians; and that from $30,000 to $50,000 worth of gold, if not more, was daily obtained. The entire gold district, with very few exceptions of grants made some years ago by the Mexican authorities, is on land belonging to the United States. It was a matter of serious reflection with me, how I could secure to the government certain rents or fees for the privilege of procuring this gold; but upon considering the large extent of country, the character of the people engaged, and the small scattered force at my command, I resolved not to interfere, but to permit all to work freely, unless broils and crimes should call for interference. I was surprised to hear that crime of any kind was very unfrequent, and that no thefts or robberies had been committed in the gold district.

"All live in tents, in bush arbors, or in the open air; and men have frequently about their persons thousands of dollars worth of this gold, and it was to me a matter of surprise that so peaceful and quiet state of things should continue to exist. Conflicting claims to particular spots of ground may cause collisions, but they will be rare, as the extent of country is so great, and the gold so abundant, that for the present there is room enough for all. Still the government is entitled to rents for this land, and immediate steps should be devised to collect them, for the longer it is delayed the more difficult it will become. One plan I would suggest is, to send out from the United States surveyors with high salaries, bound to serve specified periods.

"The discovery of these vast deposits of gold has entirely changed the character of Upper California. Its people, before engaged in cultivating their small patches of ground, and guarding their herds of cattle and horses, have all gone to the mines, or are on their way thither. Laborers of every trade have left their work benches, and tradesmen their shops. Sailors desert their ships as fast as they arrive on the coast, and several vessels have gone to sea with hardly enough hands to spread a sail. Two or three are now at anchor in San Francisco with no crew on board. Many desertions, too, have taken place from the garrisons within the influence of these mines; twenty-six soldiers have deserted from the post of Sonoma, twenty-four from that of San Francisco, and twenty-four from Monterey. For a few days the evil appeared so threatening, that great danger existed that the garrisons would leave in a body; and I refer you to my orders of the 25th of July, to show the steps adopted to meet this contingency. I shall spare no exertions to apprehend and punish deserters, but I believe no time in the history of our country has presented such temptations to desert as now exist in California.

"The danger of apprehension is small, and the prospect of high wages certain; pay and bounties are trifles, as laboring men at the mines can now earn in one day more than double a soldier's pay and allowances for a month, and even the pay of a lieutenant or captain cannot hire a servant. A carpenter or mechanic would not listen to an offer of less than fifteen or twenty dollars a day. Could any combination of affairs try a man's fidelity more than this? I really think some extraordinary mark of favor should be given to those soldiers who remain faithful to their flag throughout this tempting crisis.

"Many private letters have gone to the United States, giving accounts of the vast quantity of gold recently discovered, and it may be a matter of surprise why I have made no report on this subject at an earlier date. The reason is, that I could not bring myself to believe the reports that I heard of the wealth of the gold district until I visited it myself. I have no hesitation now in saying that there is more gold in the country drained by the Sacramento and San Joaquin Rivers than will pay the cost of the present war with Mexico a hundred times over. No capital is required to obtain this gold, as the laboring man wants nothing but his pick and shovel and tin pan, with which to dig and wash the gravel; and many frequently pick gold out of the crevices of the rocks with their butcher knives, in pieces of from one to six ounces.

"Mr. Dye, a gentleman residing in Monterey, and worthy of every credit, has just returned from Feather River. He tells me that the company to which he belonged worked seven weeks and two days, with an average of fifty Indians (washers,) and that their gross product was two hundred and seventy-three pounds of gold. His share (one seventh,) after paying all expenses, is about thirty-seven pounds, which he brought with him and exhibited in Monterey. I see no laboring man from the mines who does not show his two, three, or four pounds of gold. A soldier of the artillery company returned here a few days ago from the mines, having been absent on furlough twenty days. He made by trading and working, during that time, $1500. During these twenty days he was travelling ten or eleven days, leaving but a week in which he made a sum of money greater than he receives in pay, clothes, and rations, during a whole enlistment of five years. These statements appear incredible, but they are true.

"Gold is also believed to exist on the eastern slope of the Sierra Nevada; and when at the mines, I was informed by an intelligent Mormon that it had been found near the Great Salt Lake by some of his fraternity. Nearly all the Mormons are leaving California to go to the Salt Lake, and this they surely would not do unless they were sure of finding gold there in the same abundance as they now do on the Sacramento.

"The gold 'placer' near the mission of San Fernando has long been known, but has been little wrought for want of water. This is a spur which puts off from the Sierra Nevada (see Fremont's map,) the same in which the present mines occur. There is, therefore, every reason to believe, that in the intervening spaces, of five hundred miles (entirely unexplored) there must be many hidden and rich deposits. The 'placer' gold is now substituted as the currency of this country; in trade it passes freely at $16 per ounce; as an article of commerce its value is not yet fixed. The only purchase I made was of the specimen No. 7, which I got of Mr. Neligh at $12 the ounce. That is about the present cash value in the country, although it has been sold for less. The great demand for goods and provisions, made by this sudden development of wealth, has increased the amount of commerce at San Francisco very much, and it will continue to increase."

The Californian, published at San Francisco on the 14th of August, furnishes the following interesting account of the Gold Region:

"It was our intention to present our readers with a description of the extensive gold, silver, and iron mines, recently discovered in the Sierra Nevada, together with some other important items, for the good of the people, but we are compelled to defer it for a future number. Our prices current, many valuable communications, our marine journal, and other important matters, have also been crowded out. But to enable our distant readers to draw some idea of the extent of the gold mine, we will confine our remarks to a few facts. The country from the Ajuba to the San Joaquin rivers, a distance of about one hundred and twenty miles, and from the base toward the summit of the mountains, as far as Snow Hill, about seventy miles, has been explored, and gold found on every part. There are now probably 3000 people, including Indians, engaged collecting gold. The amount collected by each man who works, ranges from $10 to $350 per day. The publisher of this paper, while on a tour alone to the mining district, collected, with the aid of a shovel, pick and tin pan, about twenty inches in diameter, from $44 to $128 a day – averaging $100. The gross amount collected will probably exceed $600,000, of which amount our merchants have received about $250,000 worth for goods sold; all within the short space of eight weeks. The largest piece of gold known to be found weighed four pounds.

"Labor has ever been high in California, but previous to the discovery of the placera gold, the rates ranged from $1 to $3 per day. Since that epoch common labor cannot be obtained, and if to be had, for no less price than fifty cents per hour, and that the most common. Carpenters and other mechanics have been offered $15 a day, but it has been flatly refused. Many of our enterprising citizens were largely engaged in building, and others wish to commence on dwellings, warehouses, and the like, but all have had to suspend for the lack of that all important class of community, the working men."

The following extracts from the published journal of a physician in California, give accounts of the reception of the news of the gold discovery in San Francisco, with its consequent effects.

"May 8th.– Captain Fulsom called at Sweeting's to-day. He had seen a man this morning, who reported that he had just come from a river called the American Fork, about one hundred miles in the interior, where he had been gold washing. Captain Fulsom saw the gold he had with him; it was about twenty-three ounces weight, and in small flakes. The man stated that he was eight days getting it, but Captain Fulsom hardly believed this. He says that he saw some of this gold a few weeks since, and thought it was only 'mica,' but good judges have pronounced it to be genuine metal. He talks, however, of paying a visit to the place where it is reported to come from. After he was gone, Bradley stated that the Sacramento settlements, which Malcolm wished to visit, were in the neighborhood of the American Fork, and that we might go there together; he thought the distance was only one hundred and twenty miles.

"May 10th.– Yesterday and to-day nothing has been talked of but the new gold 'placer,' as people call it. It seems that four other men had accompanied the person Captain Fulsom saw yesterday, and that they had each realized a large quantity of gold. They left the 'diggings' on the American Fork, (which it seems is the Rio de los Americanos, a tributary to the Sacramento) about a week ago, and stopped a day or two at Sutter's Fort, a few miles this side of the diggings, on their way; from there they had travelled by boat to San Francisco. The gold they brought has been examined by the first Alcalde here and by all the merchants in the place. Bradley showed us a lump weighing a quarter of an ounce, which he had bought of one of the men, and for which he gave him three dollars and a half. I have no doubt in my own mind about its being genuine gold. Several parties, we hear, are already made up to visit the diggings; and, according to the newspaper here, a number of people have actually started off with shovels, mattocks, and pans, to dig the gold themselves. It is not likely, however, that this will be allowed, for Captain Fulsom has already written to Colonel Mason about taking possession of the mine on behalf of the government, it being, as he says, on public land.

"May 17th.– This place is now in a perfect furor of excitement; all the work-people have struck. Walking through the town to-day, I observed that laborers were employed only upon about half-a-dozen of the fifty new buildings which were in the course of being run up. The majority of the mechanics at this place are making preparations for moving off to the mines, and several hundred people of all classes – lawyers, store-keepers, merchants, &c., – are bitten with the fever; in fact, there is a regular gold mania springing up. I counted no less than eighteen houses which were closed, the owners having left."

1.A gold placera was discovered some years ago, near the mission of San Fernando, but it was very little worked, on account of the want of water.
2.Farnham's Adventures in California. – Wilkes's Narrative of the Exploring Expedition. – Fremont's Narrative.
3.See Farnham's Adventures. Wilkes's and Fremont's Narratives, and Emory's Report. – In 1846, Eugenio Macnamara, a Catholic priest and Missionary, obtained a grant of a large tract of land between the San Joaquin and the Sierra Nevada, the Cosumnes and the Tulares in the vicinity of San Gabriel, from Pio Pico, governor of the Californias, for the purpose of establishing upon it a large colony of Irish Catholics; but the grant was not ratified by the Central Government, and the project was not carried into effect. There is no evidence that Father Macnamara was aware of the existence of gold in the valley of the San Joaquin.
4.Official Despatch of Colonel Mason, Commander of the 10th Military Department, August 17, 1848. – Letters of Thomas C. Larkin, U.S. Consul at Monterey, to the Secretary of State, June 1, and June 28, 1848.
5.Feather River is the first considerable branch of the Sacramento below the Prairie Buttes. It has a course of about forty miles, and empties into the main river about fifteen miles above New Helvetia. Though the Sacramento is navigable for vessels only to that place, boats can pass up one hundred miles further.