"A few men have been down in boats to this port, spending twenty to thirty ounces of gold each—about 300 dollars. I am confident that this town (San Francisco) has one-half of its tenements empty, locked up with the furniture. The owners—storekeepers, lawyers, mechanics, and labourers—all gone to the Sacramento with their families. Small parties, of five to fifteen men, have sent to this town and offered cooks ten to fifteen dollars per day for a few weeks. Mechanics and teamsters, earning the year past five to eight dollars per day, have struck and gone. Several U.S. volunteers have deserted. U.S. barque Anita, belonging to the Army, now at anchor here, has but six men. One Sandwich Island vessel in port lost all her men; and was obliged to engaged another crew at 50 dollars for the run of fifteen days to the Islands.
"One American captain having his men shipped on this coast in such a manner that they could leave at any time, had them all on the eve of quitting, when he agreed to continue their pay and food; leaving one on board, he took a boat and carried them to the gold regions—furnishing tools and giving his men one-third. They have been gone a week. Common spades and shovels, one month ago worth 1 dollar, will now bring 10 dollars, at the gold regions. I am informed 50 dollars has been offered for one. Should this gold continue as represented, this town and others would be depopulated. Clerks' wages have risen from 600 dollars to 1000 per annum, and board; cooks, 25 dollars to 30 dollars per month. This sum will not be any inducement a month longer, unless the fever and ague appears among the washers. The Californian, printed here, stopped this week. The Star newspaper office, where the new laws of Governor Mason, for this country, are printing, has but one man left. A merchant, lately from China, has even lost his China servants. Should the excitement continue through the year, and the whale-ships visit San Francisco, I think they will lose most all their crews. How Col. Mason can retain his men, unless he puts a force on the spot, I know not.
"I have seen several pounds of this gold, and consider it very pure, worth in New York 17 dollars to 18 dollars per ounce; 14 dollars to 16 dollars, in merchandise, is paid for it here. What good or bad effect this gold mania will have on California, I cannot foretell. It may end this year; but I am informed that it will continue many years. Mechanics now in this town are only wailing to finish some rude machinery, to enable them to obtain the gold more expeditiously, and free from working in the river. Up to this time, but few Californians have gone to the mines, being afraid the Americans will soon have trouble among themselves, and cause disturbance to all around. I have seen some of the black sand, as taken from the bottom of the river (I should think in the States it would bring 25 to 50 cents per pound), containing many pieces of gold; they are from the size of the head of a pin to the weight of the eighth of an ounce. I have seen some weighing one-quarter of an ounce (4 dollars). Although my statements are almost incredible, I believe I am within the statements believed by every one here. Ten days back, the excitement had not reached Monterey. I shall, within a few days, visit this gold mine, and will make another report to you. Inclosed you will have a specimen.
"I have the honour to be, very respectfully,
"THOMAS O. LARKIN.
"P.S. This placer, or gold region, is situated on public land."
"Mr. Larkin to Mr. Buchanan.
"Monterey, California,
June 28, 1848.
"SIR: My last dispatch to the State Department was written in San Francisco, the 1st of this month. In that I had the honour to give some information respecting the new 'placer,' or gold regions lately discovered on the branches of the Sacramento River. Since the writing of that dispatch I have visited a part of the gold region, and found it all I had heard, and much more than I anticipated. The part that I visited was upon a fork of the American River, a branch of the Sacramento, joining the main river at Sutter's Fort. The place in which I found the people digging was about twenty-five miles from the fort by land.