California State Military Department
The California State Military Museum
Preserving California's Military Heritage
William Tecumseh Sherman and the Discovery of Gold
From Chapter II of Memoirs of W. T. Sherman,
by William T. Sherman

In Chapter II of his memoirs, Gen. Sherman writes of his tour of the gold fields, meeting with Gen. Sutter, the Mormons at Morman Island, Kit Carson, and how news of the gold discovery reached Washington, D.C. – and the world.

Sherman described Richard Barnes Mason, the newly-arrived, and fifth military governor of California (1847-1849), with whom then-Lieutenant Sherman would work closely: “Colonel R. B. Mason, First Dragoons, was an officer of great experience, of stern character, deemed by some harsh and severe, but in my intercourse with him he was kind and agreeable. He had a large fund of good sense, and, during our long period of service together, I enjoyed his unlimited confidence.”

San Francisco’s Fort Mason and Mason St. are named for him. Col. Mason, and Lt. Sherman, had offices at Monterey, the capital of Alta California. Sherman then described his adventures near San José and the quicksilver mines of New Almaden. Then, he wrote:


I remember one day, in the spring of 1848, that two men, Americans, came into the office and inquired for the Governor. I asked their business, and one answered that they had just come down from Captain Sutter on special business, and they wanted to see Governor Mason in person. I took them in to the colonel, and left them together. After some time the colonel came to his door and called to me. I went in, and my attention was directed to a series of papers unfolded on his table, in which lay about half an ounce of placer-gold. Mason said to me, “What is that?” I touched it and examined one or two of the larger pieces, and asked, “Is it gold?” Mason asked me if I had ever seen native gold. I answered that, in 1844, I was in Upper Georgia, and there saw some native gold, but it was much finer than this, and it was in phials, or in transparent quills; but I said that, if this were gold, it could be easily tested, first, by its malleability, and next by acids. I took a piece in my teeth, and the metallic lustre was perfect. I then called to the clerk, Baden, to bring an axe and hatchet from the backyard. When these were brought I took the largest piece and beat it out flat, and beyond doubt it was metal, and a pure metal. Still, we attached little importance to the fact, for gold was known to exist at San Fernando, at the south, and yet was not considered of much value.

Colonel Mason then handed me a letter from Captain Sutter, addressed to him, stating that he (Sutter) was engaged in erecting a saw-mill at Coloma, about forty miles up the American Fork, above his fort at New Helvetia, for the general benefit of the settlers in that vicinity; that he had incurred considerable expense, and wanted a “preëmption” to the quarter-section of land on which the mill was located, embracing the tail-race in which this particular gold had been found. Mason instructed me to prepare a letter, in answer, for his signature. I wrote off a letter, reciting that California was yet a Mexican province, simply held by us as a conquest; that no laws of the United States yet applied to it, much less the land laws or preëmption laws, which could only apply after a public survey. Therefore it was impossible for the Governor to promise him (Sutter) a title to the land; yet, as there were no settlements within forty miles, he was not likely to be disturbed by trespassers. Colonel Mason signed the letter, handed it to one of the gentlemen who had brought the sample of gold, and they departed.

That gold was the first discovered in the Sierra Nevada, which soon revolutionized the whole country, and actually moved the whole civilized world.

As the spring and summer of 1848 advanced, the reports came faster and faster from the gold-mines at Sutter’s saw-mill. Stories reached us of fabulous discoveries, and spread throughout the land. Everybody was talking of “Gold! gold!!” until it assumed the character of a fever. Some of our soldiers began to desert; citizens were fitting out trains of wagons and pack-mules to go to the mines. We heard of men earning fifty, five hundred, and thousands of dollars per day, and for a time it seemed as though somebody would reach solid gold. Some of this gold began to come to Yerba Buena [San Francisco] in trade, to disturb the value of merchandise, particularly of mules, horses, tin pans, and articles used in mining. I of course could not escape the infection, and at last convinced Colonel Mason that it was our duty to go up and see with our own eyes, that we might report the truth to our Government. As yet we had no regular mail to any part of the United States, but mails had come to us at long intervals, around Cape Horn, and one or two overland. I well remember the first overland mail. It was brought by Kit Carson in saddle-bags from Taos in New Mexico. We heard of his arrival at Los Angeles, and waited patiently for his arrival at headquarters. His fame then was at its height, from the publication of Frémont’s books, and I was very anxious to see a man who had achieved such feats of daring among the wild animals of the Rocky Mountains, and with wilder Indians of the Plains. At last his arrival was reported at the tavern at Monterey, and I hurried to hunt him up. I cannot express my surprise at beholding a small, stoop-shouldered man, with reddish hair, freckled face, soft blue eyes, and nothing to indicate extraordinary courage or daring. He spoke but little, and answered questions in monosyllables. I asked for his mail, and he picked up his light saddle-bags containing the great overland mail, and we walked together to headquarters, where he delivered his parcel into Colonel Mason’s own hands... .

Toward the close of June, 1848, the gold-fever being at its height, by Colonel Mason’s orders, I made preparations for his trip to the newly-discovered gold-mines at Sutter’s Fort. I selected four good soldiers, with Aaron, Colonel Mason’s black servant, and a good outfit of horses and pack-mules, we started by the usually traveled route for Yerba Buena. There Captain Folsom and two citizens joined our party.

At that time there was not the sign of a habitation there or thereabouts, except the fort, and an old adobe-house, east of the fort, known as the hospital. The fort itself was one of adobe-walls, about twenty feet high, rectangular in form, with two-story block-houses at diagonal corners. The entrance was by a large gate, open by day and closed at night, with two iron ship’s guns near at hand. Inside there was a large house, with a good shingle-roof, used as a storehouse, and all round the walls were ranged rooms, the fort-wall being the outer wall of the house. The inner wall also was of adobe. These rooms were used by Captain Sutter and by his people. He had a blacksmith’s shop, carpenter’s shop, etc., and other rooms where the women made blankets. Sutter was monarch of all he surveyed, and authority to inflict punishment even unto death, a power he did not fail to use. He had horses, cattle, and sheep, and of these he gave liberally and without price to all in need. He caused to be driven into our camp a beef and some sheep, which were slaughtered for our use. Already the gold-mines were beginning to be felt. Many people were then encamped, some going and some coming, all full of gold-stories, and each surpassing the other. We found preparations in progress for celebrating the Fourth of July, then close at hand, and we agreed to remain over to assist on the occasion; of course, being the high officials, we were the honored guests. People came from a great distance to attend this celebration of the Fourth of July, and the tables were laid in a large room inside the storehouse of the fort. A man of some note, named Sinclair, presided, and after a substantial meal and a reasonable supply of aguardiente [brandy] we then began the toasts. All that I remember is that Folsom and I spoke for our party; others, Captain Sutter included, made speeches, and before the celebration was over Sutter was enthusiastic, and many others showed the effects of the aguardiente. The next day (namely July 5, 1848) we resumed our journey toward the mines, and, in twenty-five miles of as hot and dusty a ride as possible, we reached Mormon Island. I have heretofore stated that the gold was first found in the tail-race of the saw-mill at Coloma, forty miles above Sutter’s Fort, or fifteen above Mormon Island, in the bed of the American Fork of the Sacramento River. It seemed that Sutter had employed an American named Marshall, a sort of millwright, to do his work for him, but Marshall afterward claimed that in the matter of the saw-mill they were co-partners. At all events, Marshall and the family of Mr. Wimmer were living at Coloma, where the pine-trees afforded the best material for lumber. He had under him four white men, Mormons, who had been discharged from Cooke’s Battalion, and some Indians. These were engaged in hewing logs, building a mill-dam, and putting up a saw-mill. Marshall, as architect, had made the “tub-wheel,” and had set it in motion, and had also furnished some of the rude parts of machinery necessary for an ordinary up-and-down saw-mill.

Labor was very scarce, expensive, and had to be economized. The mill was built over a dry channel of the river which was calculated to be the tail-race. After arranging his head-race, dam and tub-wheel, he let on the water to test the goodness of his machinery. It worked very well until it was found that the tail-race did not carry off the water fast enough, so he put his men to work in a rude way to clear out the tail-race. They scratched a kind of ditch down the middle of the dry channel, throwing the coarser stones to one side; then, letting on the water again, it would run with velocity down the channel, washing away the dirt, thus saving labor. This course of action was repeated several times, acting exactly like the long Tom afterward resorted to by the miners. As Marshall himself was working in this ditch, he observed particles of yellow metal which he gathered up in his hand, when it seemed to have suddenly flashed across his mind that it was gold. After picking up about an ounce, he hurried down to the fort to report to Captain Sutter his discovery. Captain Sutter himself related to me Marshall’s account, saying that, as he sat in his room at the fort one day in February or March, 1848, a knock was heard at his door, and he called out, “Come in.” In walked Marshall, who was a half-crazy man at best, but then looked strangely wild. “What is the matter, Marshall?” Marshall inquired if any one was within hearing, and began to peer about the room, and look under the bed, when Sutter, fearing that some calamity had befallen the party up at the saw-mill, and that Marshall was really crazy, began to make his way to the door, demanding of Marshall to explain what was the matter. At last he revealed his discovery and laid before Captain Sutter the pellicles of gold he had picked up in the ditch. At first, Sutter attached little or no importance to the discovery, and told Marshall to go back to the mill, and say nothing of what he had seen to Mr. Wimmer, or any one else. Yet, as it might add value to the location, he dispatched to our headquarters at Monterey, as I have already related, the two men with a written application for a preëmption to the quarter-section of land at Coloma. Marshall returned to the mill, but could not keep out of his wonderful ditch, and by some means the other men employed there learned his secret. They then wanted to gather the gold, and Marshall threatened to shoot them if they attempted it; but these men had sense enough to know that if “placer”-gold existed at Coloma, it would also be found farther down-stream, and they gradually “prospected” until they reached Mormon Island, fifteen miles below, where they discovered one of the richest placers on earth. These men revealed the fact to some other Mormons who were employed by Captain Sutter at a grist-mill he was building still lower down the American Fork, and six miles above his fort. All of them struck for high wages, to which Sutter yielded, until they asked ten dollars a day, which he refused, and the two mills on which he had spent so much money were never built, and fell into decay.

In my opinion, when the Mormons were driven from Nauvoo, Illinois, in 1844, they cast about for a land where they would not be disturbed again, and fixed on California. In the year 1845 a ship, the Brooklyn, sailed from New York for California, with a colony of Mormons, of which Sam Brannan was the leader, and we found them there on our arrival in January, 1847. When General Kearny, at Fort Leavenworth, was collecting volunteers early 1846, for the Mexican War, he, through the instrumentality of Captain James Allen, brother to our quartermaster, General Robert Allen, raised the battalion of Mormons at Kanesville, Iowa, now Council Bluffs, on the express understanding that it would facilitate their migration to California. But when the Mormons reached Salt Lake, in 1846, they learned that they had been forestalled by the United States forces in California, and they then determined to settle down where they were. Therefore, when this battalion of five companies of Mormons (raised by Allen, who died on the way, and was succeeded by Cooke) was discharged at Los Angeles, California, in the early summer of 1847, most of the men went to their people at Salt Lake, with all the money received, as pay from the United States, invested in cattle and breeding-horses; one company reënlisted for another year, and the remainder sought work in the country. As soon as the fame of the gold discovery spread through California, the Mormons naturally turned to Mormon Island, so that in July, 1848, we found about three hundred of them there at work. Sam Brannan was on hand as the high-priest, collecting the tithes. Clark, of Clark’s Point, an early pioneer, was there also, and nearly all the Mormons who had come out in the Brooklyn, or who had staid in California after the discharge of their battalion, had collected there. I recall the scene as perfectly to-day as though it were yesterday. In the midst of a broken country, all parched and dried by the hot sun of July, sparsely wooded with live-oaks and straggling pines, lay the valley of the American River, with its bold mountain-stream coming out of the Snowy Mountains to the east. In this valley is a flat, or gravel-bed, which in high water is an island, or is overflow, but at the time of our visit was simply a level gravel-bed of the river. On its edges men were digging, and filling buckets with the finer earth and gravel, which was carried to a machine made like a baby’s cradle, open at the foot, and at the head a plate of sheet-iron or zinc, punctured full of holes. On this metallic plate was emptied the earth, and water was then poured on it from buckets, while one man shook the cradle with violent rocking by a handle. On the bottom were nailed cleats of wood. With this rude machine four men could earn from forty to one hundred dollars a day, averaging sixteen dollars, or a gold ounce, per man per day. While the sun blazed down on the heads of the miners with tropical hats, the water was bitter cold, and all hands were either standing in the water or had their clothes wet all the time; yet there were no complaints of rheumatism or cold. We made our camp on a small knoll, a little below the island, and from it could overlook the busy scene. A few brush-huts near by served as stores, boarding-houses, and for sleeping; but all hands slept on the ground, with pine-leaves and blankets for bedding. As soon as the news spread that the Governor was there, persons came to see us, and volunteered all kinds of information, illustrating it by samples of gold, which was of a uniform kind, “scale gold.” I remember that Mr. Clark was in camp, talking to Colonel Mason about matters and things generally, when he inquired, “Governor, what business has Sam Brannan to collect the tithes here?” Clark admitted that Brannan was head of the Mormon church in California, and he as simply questioning as to Brannan’s right, as high-priest, to compel the Mormons to pay him the regular tithes. Colonel Mason answered, “Brannan has a perfect right to collect the tax, if you Mormons are fools enough to pay it.” “Then,” said Clark, “I for one won’t pay it any longer.” Colonel Mason added: “This is public land, and the gold is the property of the United States; all of you here are trespassers, but, as the Government is benefited by your getting out the gold, I do not intend to interfere.” I understood, afterward, that from that time the payment of the tithes ceased, but Brannan had already collected enough money wherewith to hire Sutter’s hospital, and to open a store there, in which he made more money than any merchant in California, during that summer and fall. The understanding was, that the money collected by him as tithes was the foundation of his fortune, which is still very large in San Francisco. That evening we all mingled freely with the miners, and witnessed the process of cleaning up and “panning” out, which is the last process of separating the pure gold from the fine dirt and black sand.

The next day we continued our journey up the valley of the American Fork, stopping at various camps, where mining was in progress; and about noon we reached Coloma, the place where gold had been first discovered. The hills were higher, and the timber of better quality. The river was narrower and bolder, and but few miners were at work there, by reason of Marshall’s and Sutter’s claim to the site. There stood the saw-mill unfinished, the dam and tail-race just as they were left when the Mormons ceased work. Marshall and Wimmer’s family of wife and half a dozen children were there, guarding their supposed treasure; living in a house made of clapboards. Here also we were shown the many specimens of gold, of a coarser grain that that found at Mormon Island. The next day we crossed the American River to its north side, and visited many small camps of men, in what we called the “dry diggings.” Little pools of water stood in the beds of the streams, and these were used to wash the dirt; and there the gold was in every conceivable shape and size, some of the specimens weighing several ounces. Some of these “diggings” were extremely rich, but as a whole they were more precarious in results than the river. Sometimes a lucky fellow would hit on a “pocket,” and collect several thousand dollars in a few days, and then again he would be shifting about from place to place, “prospecting,” and spending all he had made. Little stores were being opened at every point, where flour, bacon, etc., were sold; every thing being a dollar a pound, and a meal usually costing three dollars. Nobody paid for a bed, for he slept on the ground, without fear of cold or rain. We spent nearly a week in that region, and were quite bewildered by the fabulous tales of recent discoveries, which at the time were confined to the several forks of the American and Yuba Rivers.

On reaching Monterey, we found dispatches from Commodore Shubrick at Mazatlan, which gave almost positive assurance that the war with Mexico was over; that hostilities had ceased, and commissioners were arranging the terms of peace at Guadalupe Hidalgo. It was well that this news reached California at that critical time; for so contagious had become the “gold-fever” that everybody was bound to go and try his fortune, and the volunteer regiments of Stevenson’s would have deserted en masse, had the men not been assured that they would very soon be entitled to an honorable discharge. Many of our regulars did desert, among them the very men who had escorted us faithfully to the mines and back. Our servants also left us, and nothing less than three hundred dollars a month would hire a man in California; Colonel Mason’s black boy, Aaron, alone of all our then servants proving faithful. We were forced to resort to all manner of shifts to live. First, we had a mess with a black fellow we called Bustamente as cook; but he got the fever and had to go. We next took a soldier, but he deserted, and carried off my double-barreled shot-gun, which I prized very highly. To meet this conditions of facts, Colonel Mason ordered that liberal furloughs should be given to soldiers, and promises to all in turn, and he allowed all the officers to draw their rations in kind. As the actual value of the ration was very large, this enabled us to live. Halleck, Murray, Ord, and I, boarded with Doña Augustias, and in turn our rations as pay for our board.

Some time in September, 1848, the official news of the treaty of peace reached us, and the Mexican War was over. This treaty was signed in May, and came to us all the way by land by a courier from Lower California, sent from La Paz by Lieutenant-Colonel Burton. On its receipt, orders were at once made for the muster-out of all of Stevenson’s regiment, and our military forces were thus reduced to a single company of dragoons at Los Angeles, and the one company of artillery at Monterey. Nearly all business had ceased, except that connected with gold; and, during that fall, Colonel Mason, Captain Warner, and I, made another trip up to Sutter’s Fort, going to the newly discovered mines on the Stanislaus, called “Sonora,” named from miners of Sonora, Mexico, who had first discovered them. We found there pretty much the same state of facts as before existed at Mormon Island and Coloma, and we daily received intelligence of the opening of still other mines north and south.

But I have passed over a very interesting fact. As soon as we returned from our first visit to the gold-mines, it became important to send home positive knowledge of this valuable discovery. The means of communication with the United States were very precarious, and I suggested to Colonel Mason that a special courier ought to be sent; that Second-Lieutenant [Lucian] Loeser had been promoted to first-lieutenant, and was entitled to go home. He was accordingly detailed to carry the news. I prepared with great care the letter to the adjutant-general of August 17, 1848, which Colonel Mason modified in a few particulars; and, as it was important to send not only the specimens which had been presented to us along our route of travel, I advised the colonel to allow Captain Folsom to purchase and send to Washington a large sample of the commercial gold in general use, and to pay for the same out of the money in his hands known as the “civil fund,” arising from duties collected at the several ports in California. He consented to this, and Captain Folsom bought an oyster-can full at ten dollars the ounce, which was the rate of value at which it was then received at the custom-house. Folsom was instructed further to contract with some vessel to carry the messenger to South America, where he would take the English steamers as far east as Jamaica, with a conditional charter giving increased payment if the vessel could catch the October steamer. Folsom chartered the bark La Lambayecana, owned and navigated by Henry D. Cooke, who has since been the Governor of the District of Columbia. In due time this vessel reached Monterey, and Lieutenant Loeser, with his report and specimens of gold, embarked and sailed. He reached the South American Continent at Payta, Peru, in time, took the English steamer of October to Panama, and thence went on to Kingston, Jamaica, where he found a sailing-vessel bound for New Orleans. On reaching New Orleans, he telegraphed the War Department his arrival; but so many delays had occurred that he did not reach Washington in time to have the matter embraced in the President’s regular message of 1848, as we had calculated. Still, the President made it the subject of a special message, and thus became “official” what had before only reached the world in a very indefinite shape. Then began that wonderful development, and the great emigration to California, by land and by sea, of 1849 and 1850.

As before narrated, Mason, Warner, and I, made a second visit to the mines in September and October, 1848. As the winter season approached, Colonel Mason returned to Monterey, and I remained for a time at Sutter’s Fort. In order to share somewhat in the riches of the land, we formed a partnership in a store at Coloma, in charge of Norman S. Bestor, who had been Warner’s clerk. We supplied the necessary money, fifteen hundred dollars (five hundred dollars each), and Bestor carried on the store at Coloma for his share. Out of this investment, each of us realized a profit of about fifteen hundred dollars. Warner also got a regular leave of absence, and contract with Captain Sutter for survey and locating the town of Sacramento. He received for this sixteen dollars per day for his services as a surveyor; and Sutter paid all the hands engaged in the work. The town was laid off mostly up about the fort, but a few streets were staked off along the river-bank, and one or two leading to it. Captain Sutter always contended, however, that no town could possibly exist on the immediate bank of the river, because the spring freshets rose over the bank, and frequently it was necessary to swim a horse to reach the boat-landing. nevertheless, from the very beginning the town began to be built on the very river-bank, viz., First, Second, and Third Streets, with J and K Streets leading back. Among the principal merchants and traders of that winter, at Sacramento, were Sam Brannan and Hensley, Reading & Co. For several years the site was annually flooded; but the people have persevered in building the levees, and afterward in raising all the streets, so that Sacramento is now a fine city, the capital of the State, and stand were, in 1848, nothing but a dense mass of bushes, vines, and submerged land. The old fort has disappeared altogether.

During the fall of 1848, Warner, Ord, and I, camped on the bank of the American River, abreast of the fort, at what was known as the “Old Tan-Yard.” I was cook, Ord cleaned up the dishes, and Warner looked after the horses; but Ord was deposed as scullion because he would only wipe the tin plates with a tuft of grass, according to the custom of the country, whereas Warner insisted on having them washed after each meal with hot water. Warner was in consequence promoted to scullion, and Ord became the hostler. We drew our rations in kind from the commissary at San Francisco, who sent them up to us by a boat; and we were thus enabled to dispense a generous hospitality to many a poor devil who otherwise would have had nothing to eat.

The winter of 1848–1849 was a period of intense activity throughout California. The rainy season was unfavorable to the operations of gold-mining, and was very hard upon the thousands of houseless men and women who dwelt in the mountains, and even in the towns. Most of the natives and old inhabitants had returned to their ranches and houses; yet there were not roofs enough in the country to shelter the thousands who had arrived by sea and by land. The news had gone forth to the whole civilized world that gold in fabulous quantities was to be had for the mere digging, and adventurers came pouring in blindly to seek their fortunes, without a thought of house or food. Yerba Buena had been converted into San Francisco. Sacramento City had been laid out, lots were being rapidly sold, and the town was being built up as an entrepot to the mines. Stockton also had been chosen as a convenient point for trading with the lower or southern mines. Captain Sutter was sole proprietor of the former, and Captain Charles Weber was the owner of the site of Stockton, which was as yet known as “French Camp.”




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