January 24, 1848

John Sutter's vast agricultural empire in the Sacramento Valley needed lumber for its new construction and expansion projects. Sutter had obtained some lumber from Fort Ross, which he had purchased from the Russian-American Company in 1842. And a few of his men were whipsawing lumber by hand near what is now Sutter Creek. But a larger and steadier supply was needed.

To solve this problem, Sutter asked James Wilson Marshall, one of his workmen, to build a sawmill in the mountains. Marshall selected Coloma because it was the closest place to Sutter's Fort that had a suitable mill site: a river for power, and, on the south side of the valley, a stand of large pine trees that could be cut up into lumber. The two men were to be partners, Sutter to supply capital for the enterprise while Marshall superintended the mill's construction and operation.

In September 1847, Marshall and about a dozen workmen went up into the hills to start construction. By year's end the mill was ready to operate, but one unexpected problem remained. A low dam had been built across the river to raise the water level and funnel part of the stream into the diversion channel that would carry water through the mill. This channel was called a millrace. The lower part, the tailrace, carried water away from the mill and back into the river. Unfortunately the tailrace was too shallow. Water was not moving downstream away from the mill rapidly enough. And because the water was backing up, the big mill wheel would not turn properly.

In order to solve the problem, the tailrace had to be deepened all the way down to bedrock. Each day, therefore, the mill workers and a number of Cullumah Indians removed boulders and dirt. At night, water was allowed to run through the ditch to wash away loose debris.

On the morning of January 24, 1848, while inspecting the tailrace, Marshall spotted some shining flecks in the water. He scooped them up and, after testing them with his fingernail and pounding them with a rock, he placed them in the crown of his hat and hurried back to announce his find to the others: "Boys," he said. "By god, I believe I have found a gold mine."

Skeptical, everyone tried various tests on the substance , pounding, boiling in lye, heating but it passed them all. Four days later, Marshall decided that he must take the news to Sutter.

When he arrived at the Fort with a sample of gold wrapped up in a handkerchief, Sutter checked his encyclopedia, made various tests and confirmed Marshall's conclusion.

Mindful of his investment in the mill and his desperate need for lumber, he and Marshall agreed to keep the news secret until the mill was completed and in operation. After all, they didn't know the extent of the deposits. Gold had been discovered in California before, but the strikes soon gave out.


Gold! The Discoverer The Word Gets Out	January 24, 1848 John Sutter's vast agricultural empire in the Sacramento Valley needed lumber for its new construction and expansion projects. Sutter had obtained some lumber from Fort Ross, which he had purchased from the Russian-American Company in 1842. And a few of his men were whipsawing lumber by hand near what is now Sutter Creek. But a larger and steadier supply was needed. To solve this problem, Sutter asked James Wilson Marshall, one of his workmen, to build a sawmill in the mountains. Marshall selected Coloma because it was the closest place to Sutter's Fort that had a suitable mill site: a river for power, and, on the south side of the valley, a stand of large pine trees that could be cut up into lumber. The two men were to be partners, Sutter to supply capital for the enterprise while Marshall superintended the mill's construction and operation. In September 1847, Marshall and about a dozen workmen went up into the hills to start construction. By year's end the mill was ready to operate, but one unexpected problem remained. A low dam had been built across the river to raise the water level and funnel part of the stream into the diversion channel that would carry water through the mill. This channel was called a millrace. The lower part, the tailrace, carried water away from the mill and back into the river. Unfortunately the tailrace was too shallow. Water was not moving downstream away from the mill rapidly enough. And because the water was backing up, the big mill wheel would not turn properly. In order to solve the problem, the tailrace had to be deepened all the way down to bedrock. Each day, therefore, the mill workers and a number of Cullumah Indians removed boulders and dirt. At night, water was allowed to run through the ditch to wash away loose debris. On the morning of January 24, 1848, while inspecting the tailrace, Marshall spotted some shining flecks in the water. He scooped them up and, after testing them with his fingernail and pounding them with a rock, he placed them in the crown of his hat and hurried back to announce his find to the others: "Boys," he said. "By god, I believe I have found a gold mine." Skeptical, everyone tried various tests on the substance , pounding, boiling in lye, heating but it passed them all. Four days later, Marshall decided that he must take the news to Sutter. When he arrived at the Fort with a sample of gold wrapped up in a handkerchief, Sutter checked his encyclopedia, made various tests and confirmed Marshall's conclusion. Mindful of his investment in the mill and his desperate need for lumber, he and Marshall agreed to keep the news secret until the mill was completed and in operation. After all, they didn't know the extent of the deposits. Gold had been discovered in California before, but the strikes soon gave out.