He had thousands of horses and cattle, and hundreds of men worked for him, both white men and Indians. Now he wanted to build a saw mill and a man named Marshall, a settler from the East, undertook to build it for him.

Marshall was a moody, queer tempered man. But he was a good workman. So about fifty miles from Sutter's fort the saw mill was begun. Now one day while Marshall was walking beside the mill stream inspecting the work he saw something yellow and shining among the loose earth and gravel which was being carried down by the stream. At first he thought little about it, but as again and again he saw these shining grains he at length thought that they might be gold and picked some up.

Next morning he again went to inspect the mill stream and there he found a piece of the shining stuff bigger than any he had found the day before. Marshall picked up the piece, and when he felt it heavy in his hand he began to feel a little excited.

Could it really be gold? he asked himself. Marshall did not know much about gold, but he knew that it was heavy, and that it was fairly soft. So he bit and hammered it with stones, and finding that it was easily beaten out he at last decided that it was indeed gold.

So he mounted his horse and rode off to Sutter to tell him of his wonderful discovery. It was a pouring wet day in January, and when Marshall reached the fort he was soaked through. But he took no thought of that, and marching right into Sutter's office with something of an air of mystery asked for a private talk.

Sutter wondered what had brought Marshall back from the mill, and he wondered still more at the mysterious air.

Soon he understood. For Marshall took out a little bag, and emptying what it held into his hand, held it out to Sutter.

"I believe this is gold," he said.

"It certainly looks like it," said Sutter in surprise.

Then Marshall told how he had found it in the mill stream, and that he believed there were tons of it.