Who Really Profited from the Gold Rush? - podcast episode cover

Who Really Profited from the Gold Rush?

Sep 30, 20227 min
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Episode description

A few people did strike it rich in the American Gold Rush of the 1800s -- but none of them were looking for gold. Learn more in this episode of BrainStuff, based on this article: https://history.howstuffworks.com/american-history/gold-rush.htm

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Transcript

Speaker 1

Welcome to brain Stuff, a production of iHeart Radio. Hey brain Stuff, Lauren Vogelbaum. Here. You'd think that finding gold on your property would mean the end of all your troubles, But for one John Sutter, it was just about the worst thing that could have happened. In the eighteen hundreds. Cutter was an entrepreneur and owned a large tract of land in California. He hired a carpenter named James Marshall to build a water wheel for a mill on his property.

Then in Marshall discovered flakes of gold in the river. Although the two men tried to keep the findest secret, they failed miserably, especially after an enterprising gentleman named Sam Brennan paraded around with a vial of gold and announced the whereabouts of the new discovery. He himself didn't go prospecting. He knew of a smarter way to make his fortune. As we'll see in just four years. By eighteen fifty two, Sutter would be bankrupt, his property overrun, and his livestock

stolen by avaricious prospectors. It's hard to exaggerate the enormity of the Gold rusha's impact on California. In a few short years, it transformed from a sparsely populated, newly acquired territory of the United States to a fully formed state with a thriving economy. Between eighteen forty eight and eighteen forty nine alone, the influx of settlers exploded from just four hundred to ninety thousand. To accommodate the flood of forty niners, as these would be gold miners, came to

be called a gold mining town sprung up all over. Shops, saloons, brothels, and other businesses set up to serve the forty niners and make some money of their own. Chaos and sorter were common, as we're gambling in violence. San Francisco became the center of this booming new economy. For the indigenous peoples who lived there, it was an unmitigated disaster. The thousands of new immigrants pushed the native populations off their land,

depriving them of their hunting grounds. Violent confrontations broke out, and the newcomers slaughtered as many as sixteen thousand of California's first people's in what amounted to state sanctioned genocide. The vast majority of the early gold rush immigrants were men, or at least they appeared to be. There are numerous recorded instances in which women dressed as men. For the article this episode is based on. Has to Fork spoke by email with Claire Sears, an associate professor of sociology

at San Francisco State University. As she said, this phenomenon was so common in gold rush California that when a newspaper photographer advertised for a lad to help him, he was compelled to specify that no young women in disguise need apply. Many of these prospectors did well at first. There was a lot of gold to be found. There are estimates that over the course of the gold rush, some one thousand, seven hundred and fifty pounds that's about

seven kilos of this buttery metal were unearthed. But a few people were able to hold on to their new found wealth. Life in a boom town was notoriously expensive, and there were so many ways to lose what you had found, alcohol, brothels and gambling being the chief enticements. Still, there were a few characters who got rich and stayed

that way. One of them was George Hurst, the father of publishing magnate William Randolph Hurst, and by the time he died, George Hurst was worth nineteen million dollars, which is a considerable fortune today, and was worth the equivalent of over half a billion in today's money at that time. But interestingly, Hurst didn't prospect for gold when he arrived in California. Instead, he mined courts. Building on his earnings, he went on to invest in silver mines across the country,

amassing of vast fortune and ending up a U. S. Senator. Meanwhile, one Jean Baptiste Charbonneau probably didn't strike it rich, but he must have made enough to afford the exorbitant cost of living in gold crazed California because he stuck it out for years and ended up running a hotel there. Charbonneau was an intriguing figure in part because he was the son of the famous Chicago weea and a Frenchman

by the name of Toussaint Charbonneau. As an infant, he was with his parents on the Lewis and Clark expedition, and after his mother's death, he was adopted by Clark. One of Charbonneau's fellow prospectors ended up running the hotel with him. The man's name was Jim Beckworth. And his story is at least as intriguing. Also, he's the only black person to have published an autobiography in those days in the American West. He did tend to exaggerate a bit.

He was known for spinning a good yarn, But his story goes like this. Born into slavery, Backworth was free by his master, who was also his father, and headed west, where he became a successful fur trapper, living with the chron nation for years. He married the daughter of a chief and fought with them, rising to the level of

war chief. He may have discovered what's now known as the Beckworth passed through the Sierra Nevada Mountains, and he helped establish a Native American trail that's now known as the Beckworth Trail, which thousands followed on their way to California. But the people who really made money on the California gold Rush were merchants. Take Levi Strouse. When he heard news of the California gold Rush, he headed to San Francisco, where he established his wholesale dry goods business in eighteen

fifty three. Then in eighteen seventy two, Strauss partnered with one of his customers, a tailor from Reno Nevada by the name of Jacob Davis, who was designing heavy cotton work pants with rivets hammered in the corner pockets to make them more durable. Levi Straussing Company couldn't sell enough of their waiste high overalls to the miners, lumberjacks and farmers,

and well you know the rest of the story. And remember Sam Brennan from the beginning of this episode, the one who basically kicked off the gold rush by parading around with that vial of precious metal. Rather than staking acclaim on the gold, Brandon bought up all the equipment that prospectors would need, and then when the rush began, resold the merchandise at a steep mark up. His store made enormous profits, selling as much as five thousand dollars

in goods per day to miners. That's some one and fifty five thousand a day in today's money. He became California's first millionaire. Today's episode is based on the article who Really Struck It Rich during the California Gold Rush on how stuff Works dot com written by a Scene Koran. Brain Stuff is production of I Heart Radio in partnership with How Stuff Works. Dot com and its produced by

Tyler Clang. Four more podcasts, My Heart Radio, visit the iHeart Radio app, Apple podcasts, or wherever you listen to your favorite shows. H

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