Gold Rush of 1848
Although gold was first discovered near San Francisco in the early 1840s, word did not get out until 1848. Once it did, thousands of miners began to invade San Francisco from all directions—sailing in from the American East Coast, China, Europe, South America, and Australia [23]. The population increase alone dramatically changed the character of the city. According to Rand Richards in Historic San Francisco: A Concise History and Guide, “San Francisco’s population rose from about one thousand in early 1848 to two thousand in February 1849, and to twenty thousand or more at the end of that landmark year,” [23]. Similar to contemporary times, mid 19th century San Francisco faced steep costs of living and high real estate values, as food and lodging were in high demand. The “boom town” faced numerous drawbacks from the rapid population growth and limited resources; and crime, corruption, prostitution, and gambling were commonplace during this time [23].
Nevertheless, the Gold Rush brought a wealth of capital to the city—even if the gold was not physically in the city bounds. Richards says this “caused a ripple effect that led to the birth and rapid growth of many industries designed to service the miners and their needs,” [23]. The demand for lodging, restaurants, and entertainment venues particularly impacted the lumber, cattle, and banking industries [23]. Today, we still see effects of that time period in the banking and financial sector—now one of San Francisco’s largest economic trades. Some of the city’s most notable building projects also took place during this time, including the revolutionary cable car system, Golden Gate Park, and the grand Palace Hotel.
Compounded with the nearby discovery of silver in 1859 and the construction of the Southern Pacific Railroad, San Francisco had both the critical mass and the prosperous economy to become a major U.S. city.
Nevertheless, the Gold Rush brought a wealth of capital to the city—even if the gold was not physically in the city bounds. Richards says this “caused a ripple effect that led to the birth and rapid growth of many industries designed to service the miners and their needs,” [23]. The demand for lodging, restaurants, and entertainment venues particularly impacted the lumber, cattle, and banking industries [23]. Today, we still see effects of that time period in the banking and financial sector—now one of San Francisco’s largest economic trades. Some of the city’s most notable building projects also took place during this time, including the revolutionary cable car system, Golden Gate Park, and the grand Palace Hotel.
Compounded with the nearby discovery of silver in 1859 and the construction of the Southern Pacific Railroad, San Francisco had both the critical mass and the prosperous economy to become a major U.S. city.
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