The report of the Secretary of the Treasury shows that the bul- The last quarterly report of all the national banks in the United State banks outside of those cities estimated at Total.... $61,000 5, 000 600 1.600 1,500 69, 700 The approximate estimate already given of the gold and silver prod the Pacific States and Territories for 1866 shows a total of $106,000,00 nearly double the combined bullion of the government and all the banks i country. For convenience of reference the report transmitted to you is divided sections and clauses, of which the following is a brief summary: Section 1 contains a historical sketch of the discovery of gold and sil the territory of the United States west of the Rocky mountains; the excit consequent upon the development of rich placer diggings in California crude means adopted in the early stages of gold mining on the Pacific the introduction of improved processes, and the extraordinary results th lowed in the sudden increase of commerce and the extension of the a civilization. In this section a sketch is also given of the discovery Comstock lode and the development of the silver mining interest east Sierra Nevada mountains. Section 2 refers chiefly to the geological features of California, and the inent characteristics of the principal lodes in the great mineral belt. The ent production of the gold mines is given from actual data derived from tigations made by Professor Ashburner, of the State geological survey, comparison is made between the products of California and Australia. D descriptions are given of a few leading mines in Grass valley and Mar showing the expenses and profits of gold mining as a permanent business Section 3 gives minute details and statistics of the gold and silver mini terests on the Pacific coast; the improved processes and results; the exp treasure from San Francisco, with the amount received from the mines; extracting the ore and reducing it; the average yield; the machinery in capital and labor employed, and cost of working. Section 4 gives a historical and topographical sketch of Nevada; the inent characteristics of the principal silver mines; the alkali lakes, sal wood and water privileges, and general products. Carefully prepared st: are given in this section, showing the expenses of silver mining, the variou cesses of crushing and amalgamating the ores, the number of mills in operation, the profits and losses, with a general review of the condition. mining interest. It also contains brief sketches of Utah, Idaho, Oregon, ington Territory, Montana and Arizona, with such reliable data, showing th dition and prospects of the mines, as could be obtained. Siection 5 is devoted to the copper mines of the Pacific coast. In this a h story of the discovery of every notable copper lode is given; the ex the veins; the quality of the ore; the process of reduction; the c machinery and working; the yield, and the profits and losses. Special tion is called to the great national importance of this interest. Section 6 contains a report on the quicksilver mines of California, wi tistics of production. Section 7 gives the history of the discovery of borax in California; t cess of working the borax deposits; their extent and value; some acc ur deposits; and reports on the tin mines of Temescal, and the coal esources of the Pacific coast. 5. S. Mining regions, population, altitude, &c. 9. An annonated catalogue of the minerals found west of the Rocky 10. Mining titles; the laws and customs of foreign governments; the ht, and peculiar doctrines held under that right; the recent legislation n government; recommendations of the Secretary of the Treasury; fa law for the sale of mineral lands, and general approval of the poled. 11. Local customs; difficulties arising therefrom; the necessity of some system; importance of congressional legislation for the systematic of the mines, and the establishment of a permanent policy for the deof the great mineral resources of the country. 12. A list of the most important works published in reference to the mineralogy, and metallurgy of the Pacific coast. 13. Population of the mining regions; agricultural resources; table of &c. he above synopsis it will be seen that an earnest attempt, at least, has e to meet the wishes of the department as expressed in the letter of ns hereto appended. Want of time for a more systematic arrangement the only serious obstacle to more satisfactory results. the most important subjects considered in the report is the discrepsting between the local rules and customs upon which a material part te mineral land law is based and the statutes of the States and TerriThe policy of granting titles to the miners in fee-simple has met with such approval, and the time has been so short since the law went into operat I have serious doubts as to the expediency of an immediate change. has been called to some of the difficulties arising from the loose inters given to local rules and customs, and in many cases the entire imility of determining what they are or ascertaining where they are to Some provision requiring official records to be kept might, perhaps, eneficial effect. Reasons doubtless exist for the differences in the size aims in different districts. The rules which would apply to the Reese strict, where the ledges are extremely narrow and close to each other, arcely be applicable to districts in which the ledges are of great width part. Still, without descending to details in a general law, some regard e had to uniformity; and especially some fixed principle should be as to the local laws which shall govern in all conflicting cases. giving every advantage to the practical miner over the mere specu1 at once be conceded. This, I think, can only be carried into effect nal legislation. A general law, based somewhat upon the principles ated in the mining law of Mexico, but more liberal in its provisions, bably be required before long. The holding of claims without working; ure of mining property for debt; the abandonment of claims; the deof timber; the monopoly of salt-beds; these are subjects worthy of consideration. The e preparation of a preliminary report I have been compelled to depend upon the labors of other and abler hands. To Mr. Hittell, author of a cellent work on the resources of California, Professor Whitney, Mr. ner, and Mr. Gabb, of the State geological survey, Professor Blake, auvarious standard works on the geology and mineral resources of CaliBaron Von Richthofen, the distinguished German savant, Mr. Degroot, an nced statistician and topographer, Mr. Bennett, a mining expert, thofamiliar with the mineral regions, to Dr. Blachley, of Nevada, and indebted for nearly all that is really valuable in the report. I am It is my intention to visit the various mineral districts of the Pacific during the coming spring and summer. Personal examination of the m increased experience, and sufficient time for the careful preparation of the terial collected, will enable me, I trust, to present for your consideration, b the next meeting of Congress, a report better worthy of your approval thar just submitted. Reliable statistics and valuable information, showing th sources and products of our new States and Territories, cannot fail to beneficially to the country and the government. Nothing can tend in a g degree to encourage immigration and the investment of capital. The question arises, how can the object be best accomplished in the fu A statistical bureau for the Pacific coast has been recommended. It is manifest to my mind that the work cannot be properly done by b organization. Information derived from interested parties by means of and circulars, sent out over the mining regions, would be very imperfe for the most part unreliable. The plan that appears to me most feasible would be 1st. To authorize the appointment in each State and Territory of an ab experienced geologist, familiar with all the operations of mining. 2d Annual reports to be made by each officer so appointed and assign duty, under official instructions, to the supervising commissioner at San Fra 3d. The commissioner to make a visit every year to each mining distr purpose of personal inspection of the mines, and conference with his ants; after which he would be prepared to make his annual report to the tary of the Treasury. the Proper measures, of course, would be taken to secure the official ret assessors, surveyors, tax collectors, and other local State or territorial The expense would be comparatively trifling, inasmuch as the services fessional experts could be had without requiring their entire time. compensation to each would be an object of some importance. An appropriation of $25,000 would probably be sufficient to inaugura a system, though a much larger amount could be advantageously expend In the hope that these suggestions, hastily made and informally state at least furnish some ground for action, I have the honor to be, very respo your obedient servant, Hon. H. McCULLOCH, Secretary of the Treasury. J. ROSS BROWNE, SECTION 1. CAL SKETCH OF GOLD AND SILVER MINING ON THE PACIFIC SLOPE. ntion of gold.—2. Gold found before 1848.-3. Marshall's discovery.-4. The scovery in print.-5. Excitement abroad.-6. Pan washing.—7. The rocker.— ing ditches.-9. Miners' "rushes."-10. Gold Lake and Gold Bluff.-11. The -12. The sluice.-13. Placer leads traced to quartz.-14. A gold-dredging e.-15. Decrease of wages.-16. Growth of the quartz interest.-17. Failures rtz.-18. Improvement in quartz mining.-19. The hydraulic process.-20. Hill .-21. Decline of river mining.-22. "Rushes" to Australia.-23. The Kern xcitement.-24. Ancient rivers.-25. The Tuolumne table mountain.--26. The fever.-27. Discovery of Comstock lode.-28. The Washoe excitement.-29. The and yard process.-30. The pan process.-31. Growth of the Washoe excitement.— rginia City.-33. The silver panic.-34. Litigation about the Comstock ledge.e many-lode theory.-36. Expenses increasing with depth.-37. Some characes of Esmeralda, Humboldt, and Reese rivers.-38. Sutro tunnel project and-39. Richthofen's report.-40. Columbia basin and Cariboo mines. 1.-FIRST MENTION OF GOLD. est mention of gold in California is made in Hakluyt's account of the f Sir Francis Drake, who spent five weeks in June and July, 1579, in ar latitude 38°; whether Drake's bay or San Francisco bay is a matter e. It certainly was one of the two, and of neither can we now say h, as Hakluyt said seriously, "There is no part of the earth here to be wherein there is not a reasonable quantity of gold or silver." This t, taken literally, is untrue, and it was probably made without any founerely for the purpose of embellishing the story and magnifying the ce of Drake and of the country which he claimed to have added to the ns of the English crown. "reasonable quantity" of gold or silver had been obtained by the Engenturers, we should probably have had some account of their expedio the interior, of the manner and place in which the precious metals ained, and of the specimens which were brought home, but of these ere is no mention. er gold nor silver exists "in reasonable quantity" near the ocean about 38°, and the inference is that Drake's discovery of gold in California atter of fiction more than of fact. 2.-GOLD FOUND BEFORE 1848. small deposits of placer gold were found by Mexicans near the Coloer at various times from 1775 to 1828, and in the latter year a similar y was made at San Isidro, in what is now San Diego county, and in mineral vein, supposed to contain silver, at Olizal, in the district of Monttracted some attention, but no profitable mining was done at either of aces. s, who wrote the history of California in 1835, said "No minerals of ar importance have yet been found in Upper California, nor any ores of s in 1838, sixty-nine years after the arrival of the Franciscan friars, establishment of the first mission, that the placers of San Francisquito, forty-five miles northwest from Los Angeles, was discovered. The dep gold was neither extensive nor rich, but it was worked steadily for twenty In 1841 the exploring expedition of Commodore Wilkes visited the coa its mineralogist, James D. Dana, made a trip overland from the Columbia by way of Willamette and Sacramento valleys to San Francisco bay in the following year he published a book on mineralogy, and mentione that gold was found in the Sacramento valley, and that rocks similar to of the auriferous formations were observed in southern Oregon. Dana ( regard his discovery as of any practical value, and if he said anything a in California no one paid any attention to it. Nevertheless, many perso an idea that the country was rich in minerals, and on the 4th of May, Thomas O. Larkin, then United States consul in Monterey, a gentleman u careful to keep his statements within the limits of truth, said in an official to James Buchanan, then Secretary of State: "There is no doubt but tha silver, quicksilver, copper, lead, sulphur, 'and coal mines are to be found al California, and it is equally doubtful whether, under their present owners will ever be worked." The implication here is that if the country were only transferred to the ican flag, these mines, of whose existence he knew nothing save by surm by the assertion of incompetent persons, would soon be opened and worke sixty-six days after that letter was written, the stars and stripes were 1 in Monterey, and now California is working mines of all the minerals men by Larkin save lead, which also might be produced if it would pay, since is no lack of its ores. 3.-MARSHALL'S DISCOVERY. The discovery of the rich gold fields of the Sacramento basin is an An achievement, accomplished under the American dominion, by a native United States, and made of world-wide importance by American enterpri industry, favored by the liberal policy of American law. It was on the 19th day of January, 1848, ten days before the treaty o dalupe Hidalgo was signed, and three months before the ratified copies w changed, that James W. Marshall, while engaged in digging a race for mill at Coloma, about thirty-five miles eastward from Sutter's Fort, foun pieces of yellow metal, which he and the half dozen men working with the mill supposed to be gold. He felt confident that he had made a dis of great importance, but he knew nothing of either chemistry or gold mir he could not prove the nature of the metal or tell how to obtain it in quantities. Every morning he went down to the race to look for the bitt metal; but the other men at the mill thought Marshall was very wil ideas, and they continued their labors in building the mill, and in sowing and planting vegetables. The swift current of the mill-race washed considerable body of earthy matter, leaving the coarse particles of gold so Marshall's collection of specimens continued to accumulate, and his ates began to think there might be something in his gold mine after all. the middle of February, a Mr. Bennett, one of the party employed at t went to San Francisco for the purpose of learning whether this metal w cious, and there he was introduced to Isaac Humphrey, who had was gold in Georgia. The experienced miner saw at a glance that he had stuff before him, and after a few inquiries he was satisfied that the d must be rich. He made immediate preparation to go to the mill, and persuade some of his friends to go with him, but they thought it would a waste of time and money, so he went with Bennett for his sole compar He arrived at Coloma on the 7th of March, and found the work at going on as if no gold existed in the neighborhood. The next day he |