HISTORY 2
California Gold Rush: Introduction
James Wilson initially discovered flakes of gold in California, in the mountains of Sierra
Nevada. Approximately 700 American, 6,500 people of Mexican and Spanish decent, inhabited
the area. The Native Americans were the major population, comprising of 150,000 people in 1848.
The availability of gold was publicized through the media displaying gold originating from the
Sutter’s Creek. The number of miners escalated within a short span of months to 4,000. Californian
received numerous people from all the corners such as Hawaii, Peru, Chile and China.
Economic implication
In 1849, news concerning discovery of the Californian gold had become prevalent. People
who had harbored profound ambitions of becoming rich highly responded to the new discovery.
People secured heavy bank loans, spent saving or mortgaged their property in an effort to seize a
viable opportunity in California. The first hit was on the social set up. Man people left their
lucrative farms to engage in the business of mining. During the year 1849, America had vast and
fertile lands capable of high productions. People were blindfolded by the discovery of gold that
led to imbalance in the economic sector.
Gold rush led to up sprung of rental houses. The population had rapidly grown in the area to
reach more than 100,000 people. Investors sought their gold rush fortune by constructing many
houses in the region in an effort to cater for the need of the growing population. The buildings
provided an opportunity for other investments such as luxury hotels, shops and salon. The ventures
provided lucrative businesses for the pioneers. Growth in businesses also led to diversified sources
of revenue collection.
Institutions such as financiers and insurance companies had grown in the areas to allow
saving and accessing of banks for depositing of the money earned. Californian grew into a
