The California Gold Rush of 1849

It was here, in this sleepy valley, that the Americananother matter entirely.
Dream was re-defined. An accidental discovery nearBy mid 1849, the easy gold was gone--but the 49ers
the obscure American River would forever change akept coming. There was still gold in the riverbeds, but it
young nation. The simple life would no longer bewas getting harder and harder to find. A typical miner
enough. In its place would come a new kind of lifestyle:spent 10 hours a day knee-deep in ice cold water,
entrepreneurial, wide-open, free. The new Americandigging, sifting, washing. It was backbreaking labor that
dream: to get rich; to make a fortune--quickly.yielded less and less.
Instant wealth was here for the taking. All acrossAs panning became less effective, the miners moved
America, young men made the decision to go toto more advanced techniques for extracting the
California. Every city, every hamlet would send itsprecious metal. But it was a losing battle as the gold
brightest, its strongest, to California--and eagerly awaitreserves were declining and the number of miners
their triumphant return home. They came from Europe,was increasing dramatically. The atmosphere of
Asia, and South America in search of instant riches.friendly camaraderie so prevalent a year or two
It was one of the greatest adventures the world hadearlier, was all but gone by 1850. Forty-niners who
ever seen.expected to make their fortune in a few days found
In the early 1840s, California was a distant outpost thatthemselves digging for month after month--year after
only a handful of Americans had seen. The sleepyyear--with little to show for the effort. Frustration and
port that would become San Francisco had just a fewdepression was rampant.
hundred residents.Out of despair, many 49ers turned to poker and other
One of the wealthiest people in the region was Johnforms of gambling in hopes of snatching the quick
Sutter--an affable Swiss immigrant who came tofortunes that had eluded them in the rivers. When that
California in 1839, intent on building his own privatedidn't work, many turned to crime. Jails, unnecessary a
empire. Sutter soon built a fort, amassed 12,000 headfew years earlier, were soon filled. Hangings became
of cattle, and took on hundreds of workers. His mostcommon--almost matter of fact.
prolific crop was debt. He owed money to creditors as49er John Bucroft
far away as Russia. But Sutter was a man with a"I take this opportunity of writing these few lines to you
dream; a dream of a vast agricultural domain that hehoping to find you in good health. Me and Charley is
would control.sentenced to be hung at five o'clock for a robbery.
By the mid 1840s, more and more Americans wereGive my best to Frank and Sam."
trickling into California by wagon and ship. SutterMany gave up the dream and went home to the east.
welcomed the newcomers--he saw them as subjectsOthers stayed on--just one more year they hoped.
for his self-styled kingdom. But Sutter had no idea thatOne more year and they'd strike it rich. And there
the trickle would become a flood--a deluge ofwere the occasional lucky strikes well into the
humanity that would destroy his dream. Sutter's1850s--just enough good news to encourage the
undoing began 50 miles northeast of his fort on themasses to continue digging. Most failed every day, but
American River. In late 1847, James Marshall and aboutthey kept on--year after year. Dejected, disappointed,
20 men were sent to the river by Sutter to build amany would never return home to loved ones back
sawmill--to provide lumber for Sutter's growing ranch.east--they would die in California, broken by a dream
The sawmill was nearly complete when a glint ofthat never came true.
something caught Marshall's eye. It was January 24th,Although the gold in the California hills eventually ran
1848.out--the impact of the gold rush era lives on. California
James Marshallwas shaped by the adventurers who stayed--to form
"I reached my hand down and picked it up; it made mythe idea that is California today: a place that accepts
heart thump, for I was certain it was gold. The pieceand nurtures risk takers.
was about half the size and shape of a pea. Then IJohn Sutter never saw the opportunity of gold. He
saw another."couldn't alter his vision--and left the state. But as Sutter
After making the greatest find in the history of theand those like him departed, the new Californians
West, Marshall and the other workers went back tocame and kept coming. People who could adapt to
work. But they kept stumbling upon more gold. Still inconstant changes; people who saw opportunity at
disbelief, Marshall took samples back to Sutter's Fort.every corner; people who longed for a more exciting
Sutter and Marshall tested the shiny metal as bestlife, and weren't afraid to grab it.
they could--a tattered encyclopedia gave them clues. ItIt was a dream that precious few ever actually
was gold, they concluded--but neither man was happyrealized--but it's a dream that lives on.
about it.The Internet and her Marketing Capabilities
Sutter was building an agricultural fiefdom--he didn'tOn April 30, 1995, the government and the
want the competition that gold-seekers might bring.organizations that built this system from
And Marshall had a sawmill to build--gold hunters wouldscratch,released it and Internet traffic was handed
just get in his way. So they made a pact to keep theover to commercial networks. While the NSF is still
discovery a secret.funding research and setting guidelines for network
But it wasn't long before stories of gold filtered into theproviders, new infrastructure will be built and maintained
surrounding countryside. Yet there was no race to theby offsprings of telephone companies and other
American River. The news of Marshall's gold was justorganizations. Scientist developing networking
another fantastic tale--too unlikely to be believed.technology in the 1960's knew that what they were
The gold rush needed a booster, and Sam Brannanbuilding would be far bigger than themselves; nobody,
was the man. A San Francisco merchant, Brannanhowever , could have predicted the explosion in
was a skilled craftsman of hype. Eventually, the goldInternet access and interest in the past several years.
rush would make him the richest person inThe original designers didn't even think email would be
California--but Sam Brannan never mined for gold. Hesomething people would want. Commercial networks,
had a different scheme--a plan he set into motion bystudents, and even Internet cafes are scrambling
running through the streets of San Francisco shoutingtosign up and be part of a technological revolution. It is
about Marshall's discovery. As proof, Brannan held upimportant for us to remember that the real revolution
a bottle of gold dust. It was a masterstroke that wouldtook place two decades ago --- today'stechnology
spark the rush for gold--and make Brannan rich.just rides on the wave of yesteryear.
Brannan keenly understood the laws of supply andThe Marketing Capabilities of the Internet compares to
demand. His wild run through San Francisco came justthe California Gold Rush.
after he had purchased every pick axe, pan andWho was the REAL entrepreneur of the California
shovel in the region. A metal pan that sold for twentyGold Rush?
cents a few days earlier, was now available fromThe answer is Sam Brannan.
Brannan for fifteen dollars. In just nine weeks he made"The gold rush needed a booster, and Sam Brannan
thirty-six thousand dollars.was the man. A San Francisco merchant, Brannan
By the winter of 1848, whispers of a gold strike hadwas a skilled craftsman of hype. Eventually, the gold
drifted eastward across the country--but fewrushwould make him the richest person in
easterners believed. It was an age when rumors wereCalifornia--but Sam Brannan never mined for gold.
discounted--and government officials were revered.He had a different scheme--a plan he set into motion
The gold discovery needed validation, and Presidentby running through the streets of San Francisco
James Polk delivered just that in early December, 1848:shouting about Marshall's discovery. As proof,
President James Polk:Brannanheld up a bottle of gold dust. It was a
"The accounts of the abundance of gold in thatmasterstroke that would spark the rush for gold--and
territory are of such extraordinary character as wouldmake Brannan rich.
scarcely command belief were they not corroboratedBrannan keenly understood the laws of supply and
by authentic reports of officers in the public service."demand. His wild run through San Francisco came just
Polk's confirmation reached deep into the soul ofafter he had purchased every pick axe, pan and
millions. His simple words were a powerful call toshovel in the region. A metal pan that sold for twenty
action. Farmers left their fields; merchants closed theircents a few days earlier, was now available from
shops; soldiers left their posts--and made plans forBrannan for fifteen dollars. In just nine weeks he made
California. Newspapers fanned the fires.thirty-six thousand dollars."
Horace Greeley the of New York Tribune:Who was the REAL entrepreneur of Internet
"Fortune lies upon the surface of the earth as plentifulMarketing?
as the mud in our streets. We look for an additionThe answer is Bill Gates and Microsoft.
within the next four years equal to at least OneBill Gates did not choose to produce personal
Thousand Million of Dollars to the gold in circulation."computers(the Gold in the Gold Rush). He chose to
By early 1849, gold fever was an epidemic.produce the best and most used software to make
Discussions of gold could be heard at nearly everythe personalcomputers operate (the same as
kitchen table in the nation. Young men explained toBrannans pick axes and pan and shovels).
their wives that a year apart would be worth theAnd that is where the Internet Gold Rush stands today
hardship.--Professional Software to assist in finding gold in the
Miner Melvin Paden:Internet Marketing.
"Jane, I left you and them boys to procure a littleSo, the geniuses in the California Gold Rush and the
property by the sweat of my brow so that we couldInternet Marketing Gold Rush were Sam Brannan and
have a place of our own-that I might not be a dog forBill Gates.
otherpeople any longer."We, at the Software R Us Club are convinced that a
They said their goodbyes and streamed west invein of gold lies in providing professional software to
unison--thousands of young adventurers with aallow everyone the opportunity to stake their claim in
collective dream--a year of pain in return for a lifetimethe Internet Marketing Gold Rush.
of riches. They were dubbed "forty-niners" becauseAnd, just remember... Sam Brannan and Bill Gates
they left home in 1849. When they would return, waswere right.