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 pre-cious 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