Economic Impacts
GOVERNMENT:
“I resolved not to interfere, but permit all to work freely, unless broils and crimes should call for interference.” ~Richard Barnes Mason
- Especially during the military period, the government followed a policy of de facto laissez-faire. Civilian government less tolerant, dominated by racist, protectionist interests.
- Gun ownership was almost universal and even encouraged. As a result, crime in mining camps was less frequent than in relatively peaceful cities of the East Coast.
- Property rights staunchly defended: 1851: legislation providing for death penalty for theft of property over $100.
- Courts and justice system based on Anglo-Saxon model.
Foreign Miners Tax of 1850:
- $20 monthly fee from every foreign miner
- Intended to “protect” American miners from foreign competition
- Fueled ethnic resentment and diverted many foreigners to other growing Californian industries.
- Extreme failure, depopulated mining camps, filled cities with penniless foreigners, repealed a year later.
MECHANIZATION:
- Comes about as gold more difficult to extract.
- Joint agreements among miners evolve into corporations to attain the capital for procuring mining technology.
- Hydraulic mining (1853): Using jets of water to tear apart walls of riverbeds in search of gold
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PROCEED.