"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.