s. Harlan tells us: "During my sojourn in Stockton I
mixed freely with the returning and disgusted miners from whom I learned
that they were selling their mining implements at ruinously low prices.
An idea struck me one day which I immediately acted upon for fear that
another might strike in the same place and cause an explosion. The
heaven-born idea that had penetrated my cranium was this: start in the
mercantile line, purchase the kits and implements of the returning
miners at low figures and sell to the greenhorns en route to the mines
at California prices." In this manner innumerable occupations supplying
the obvious needs were taken up by many returned miners. A certain
proportion drifted to crime or shady devices, but the large majority
returned to San Francisco, whence they either went home completely
discouraged, or with renewed energy and better-applied ability took hold
of the destinies of the new city. Thus another sort of Forty-niner
became in his way as significant and strong, as effective and as
romantic as his brother, the red-shirted Forty-niner of the diggings.

But in addition to the miners who had made their stakes, who had given
up the idea of mining, or who were merely waiting for the winter's rains
to be over to go back again to the diggings, an ever increasing
immigration was coming to San Francisco with the sole idea of settling
in that place. All classes of men were represented. Many of the big
mercantile establishments of the East were sending out their agents.
Independent merchants sought the rewards of speculation. Gamblers also
perceived opportunities for big killings. Professional politicians and
cheap lawyers, largely from the Southern States, unfortunately also saw
their chance to obtain standing in a new community, having lost all
standing in their own. The result of the mixing of these various
chemical elements of society was an extraordinary boiling and bubbling.

When Commander Montgomery hoisted the American flag in 1846, the town of
Yerba Buena, as San Francisco was called, had a population of about two
hundred. Before the discovery of gold it developed under the influence
of American enterprise normally and rationally into a prosperous little
town with two hotels, a few private dwellings, and two wharves in the
process of construction. Merchants had established themselves with
connections in the Eastern States, in Great Britain, and South America.
Just before the discovery of gol