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Placerville

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Founded in 1848, Placerville has been known by several names. Originally called Old Dry Diggins, the name changed to Hangtown in 1849 after citizens took law and order into their own hands and hanged three men. It was incorporated as Placerville in May 1854.

The entire region around Placerville was rich in gold. Large quantities of gold were mined from Hangtown Creek which runs right through the center of Placerville. The town also served as an important supply venue for towns and mining camps to the north and south.

Nearby is the Marshall Gold Discovery State Historic Park in Coloma, where James Marshall discovered gold in 1848.

James Marshall was 37 years old when he found the first flakes of gold in the tailrace of a sawmill he was building for John Sutter on the American River, setting off the gold rush. The westward migration, previously a trickle, turned into a flood of emigrants heading west to claim their fortune.

Emigrants headed west, driven by greed and "manifest destiny" to expand the nation's boundaries from the Atlantic to the Pacific. In the process, they devastated native cultures that had endured for thousands of years. At the same time, a much neglected, 300-year-old pastoral Mexican province suddenly became the new state of California.

American River
Historic Hangtown

Even before the discovery, California was considered to be rich in minerals. Spanish missionaries had found gold in several places prior to the "official" discovery. But, on that fateful day in 1848, Marshall was not really looking for gold. The sawmill he and his crew were attempting to construct was well on its way to completion -- except for the tailrace, which was too shallow to carry water fast enough past the wheel that powered the saw. Marshall decided to dig the tailrace during the day and then let water scour the bottom at night. This worked, but also turned the ditch into a giant sluicebox with cracks in the exposed bedrock serving as riffles to catch the gold that washed from the loosened gravel of the banks. 

On that Monday morning, as Marshall walked down the tailrace below the mill wheel, he saw the dull pieces of metal glimmering in the a crevice in the smooth granite bedrock under a few inches of water. Marshall could not be sure that this was actually gold; iron pyrite and blotite, or "fool's gold," are common in the Sierra Nevada.

But when Marshall hit the metal with a rock, the flake bent, but did not shatter as fool's gold would have. He picked up several small pieces, the largest "about half the size of a pea," placed the yellow metal in the crown of his battered hat and returned to the mill. "Hey, boys," he is remembered as saying, "by God I believe I've found a gold mine."

Ironically, Marshall would benefit little from his discovery. Although he spent a number of years prospecting for gold following his discovery, he did so with little success. Towards the end of his life, Marshall was reduced to selling his signature on a card attesting to his status as "the discoverer of gold in California" for 25¢.

Placerville, CA

But many others would benefit, including the fledgling settlement of Mormons in Utah. Between 1848 and 1851, more than $80,000 went through Brigham Young's gold accounts into the Mormon mint.

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