ALTHOUGH MOST Americans are aware of the California Gold Rush, not all that many realize the profound effect it had on our coinage. Long after the event, the effects were still being felt and even today changes that came about in our monetary system 175 years ago are still with us.
Prior to 1848 there was gold being mined in the United States but the quantity was not enough to sustain a strong gold currency. The principal area of such activity was in western North Carolina and northeastern Georgia though some ore was obtained in surrounding states, such as Tennessee and South Carolina. All of this would change dramatically as a result of the discovery by James Marshall of gold on the Sutter Ranch in late January 1848.
Men by the thousands quit their jobs and headed by land and sea for El Dorado. A few got rich but the majority of miners eked out a bare existence. Ordinary supplies were virtually all brought in by ship and high prices were the result. Money in any form was in short supply and this need was soon met in part by a considerable number of privately issued gold coins. These ranged in value from 25 cents to 50 dollars although quite a few ingots in odd values, such as $16, were also prepared
