It was in the first part of January, 1848, when the gold was discovered at 
Coloma, where I was then building a saw-mill. The contractor and builder 
of this mill was James W. Marshall, from New Jersey. In the fall of 1847, 
after the mill seat had been located, I sent up to this place Mr. P. L. 
Wimmer with his family, and a number of laborers, from the disbanded 
Mormon Battalion; and a little later I engaged Mr. Bennet from Oregon to 
assist Mr. Marshall in the mechanical labors of the mill. Mr. Wimmer had 
the team in charge, assisted by his young sons, to do the necessary 
teaming, and Mrs. Wimmer did the cooking for all hands. 

I was very much in need of a new saw-mill, to get lumber to finish my 
large flouring mill, of four run of stones, at Brighton, which was 
commenced at the same time, and was rapidly progressing; likewise for 
other buildings, fences, etc., for the small village of Yerba Buena, (now 
San Francisco.) In the City Hotel, (the only one) at the dinner table this 
enterprise was unkindly called "another folly of Sutter's," as my first 
settlement at the old fort near Sacramento City was called by a good many, 
"a folly of his," and they were about right in that, because I had the 
best chances to get some of the finest locations near the settlements; and 
even well stocked rancho's had been offered to me on the most reasonable 
conditions; but I refused all these good offers, and preferred to explore 
the wilderness, and select a territory on the banks of the Sacramento. It 
was a rainy afternoon when Mr. Marshall arrived at my office in the Fort, 
very wet. I was somewhat surprised to see him, as he was down a few days 
previous; and then, I sent up to Coloma a number of teams with provisions, 
mill irons, etc., etc. He told me then that he had some important and 
interesting news which he wished to communicate secretly to me, and wished 
me to go with him to a place where we should not be disturbed, and where 
no listeners could come and hear what we had to say. I went with him to my 
private rooms; he requested me to lock the door; I complied, but I told 
him at the same time that nobody was in the house except the clerk, who 
was in his office in a different part of the house; after requesting of me 
something which he wanted, which my servants brought and then left the 
room, I forgot to lock the doors, and it happened that the door was opened 
by the clerk just at the moment when Marshall took a rag from his pocket, 
showing me the yellow metal: he had about two ounces of it; but how quick 
Mr. M. put the yellow metal in his pocket again can hardly be described. 
The clerk came to see me on business, and excused himself for interrupting 
me, and as soon as he had left I was told, "now lock the doors; didn't I 
tell you that we might have listeners?" I told him that he need fear 
nothing about that, as it was not the habit of this gentleman; but I could 
hardly convince him that he need not to be suspicious. Then Mr. M. began 
to show me this metal, which consisted of small pieces and specimens, some 
of them worth a few dollars; he told me that he had expressed his opinion 
to the laborers at the mill, that this might be gold; but some of them 
were laughing at him and called him a crazy man, and could not believe 
such a thing. 

After having proved the metal with aqua fortis, which I found in my 
apothecary shop, likewise with other experiments, and read the long 
article "gold" in the Encyclopedia Americana, I declared this to be gold 
of the finest quality, of at least 23 carats. After this Mr. M. had no 
more rest nor patience, and wanted me to start with him immediately for 
Coloma; but I told him I could not leave as it was late in the evening and 
nearly supper time, and that it would be better for him to remain with me 
till the next morning, and I would travel with him, but this would not do: 
he asked me only "will you come to-morrow morning?" I told him yes, and 
off he started for Coloma in the heaviest rain, although already very wet, 
taking nothing to eat. I took this news very easy, like all other 
occurrences good or bad, but thought a great deal during the night about 
the consequences which might follow such a discovery. I gave all my 
necessary orders to my numerous laborers, and left the next morning at 7 
o'clock, accompanied by an Indian soldier, and vaquero, in a heavy rain, 
for Coloma. About half way on the road I saw at a distance a human being 
crawling out from the brushwood. I asked the Indian who it was: he told me 
"the same man who was with you last evening." When I came nearer I found 
it was Marshall, very wet; I told him that he would have done better to 
remain with me at the fort than to pass such an ugly night here but he 
told me that he went up to Coloma, (54 miles) took his other horse and 
came half way to meet me; then we rode up to the new Eldorado. In the 
afternoon the weather was clearing up, and we made a prospecting 
promenade. The next morning we went to the tail-race of the mill, through 
which the water was running during the night, to clean out the gravel 
which had been made loose, for the purpose of widening the race; and after 
the water was out of the race we went in to search for gold. This was done 
every morning: small pieces of gold could be seen remaining on the bottom 
of the clean washed bed rock. I went in the race and picked up several 
pieces of this gold, several of the laborers gave me some which they had 
picked up, and from Marshall I received a part. I told them that I would 
get a ring made of this gold as soon as it could be done in California; 
and I have had a heavy ring made, with my family's cost of arms engraved 
on the outside, and on the inside of the ring is engraved, "The first 
gold, discovered in January, 1848." Now if Mrs. Wimmer possesses a piece 
which has been found earlier than mine Mr. Marshall can tell, as it was 
probably received from him. I think Mr. Marshall could have hardly known 
himself which was exactly the first little piece, among the whole. 

The next day I went with Mr. M. on a prospecting tour in the vicinity of 
Coloma, and the following morning I left for Sacramento. Before my 
departure I had a conversation with all hands: I told them that I would 
consider it as a great favor if they would keep this discovery secret only 
for six weeks, so that I could finish my large flour will at Brighton, 
(with four run of stones,) which had cost me already about from 24 to 25,
000 dollars – the people up there promised to keep it secret so long. On 
my way home, instead of feeling happy and contented, I was very unhappy, 
and could not see that it would benefit me much, and I was perfectly right 
in thinking so; as it came just precisely as I expected. I thought at the 
same time that it could hardly be kept secret for six weeks, and in this I 
was not mistaken, for about two weeks later, after my return, I sent up 
several teams in charge of a white man, as the teamsters were Indian boys. 
This man was acquainted with all hands up there, and Mrs. Wimmer told him 
the whole secret; likewise the young sons of Mr. Wimmer told him that they 
had gold, and that they would let him have some too; and so he obtained a 
few dollars' worth of it as a present. As soon as this man arrived at the 
fort he went to a small store in one of my outside buildings, kept by Mr. 
Smith, a partner of Samuel Brannan, and asked for a bottle of brandy, for 
which he would pay the cash; after having the bottle he paid with these 
small pieces of gold. Smith was astonished and asked him if he intended to 
insult him; the teamster told him to go and ask me about it; Smith came 
in, in great haste, to see me, and I told him at once the truth – what 
could I do? I had to tell him all about it. He reported it to Mr. S. 
Brannan, who came up immediately to get all possible information, when he 
returned and sent up large supplies of goods, leased a larger house from 
me, and commenced a very large and profitable business; soon he opened a 
branch house of business at Mormon Island. 

Mr. Brannan made a kind of claim on Mormon Island, and put a tolerably 
heavy tax on "The Latter Day Saints." I believe it was 30 per cent, which 
they paid for some time, until they got tired of it, (some of them told me 
that it was for the purpose of building a temple for the honor and glory 
of the Lord.) 

So soon as the secret was out my laborers began to leave me, in small 
parties first, but then all left, from the clerk to the cook, and I was in 
great distress; only a few mechanics remained to finish some very 
necessary work which they had commenced, and about eight invalids, who 
continued slowly to work a few teams, to scrape out the mill race at 
Brighton. The Mormons did not like to leave my mill unfinished, but they 
got the gold fever like everybody else. After they had made their piles 
they left for the Great Salt Lake. So long as these people have been 
employed by me they hav behaved very well, and were industrious and 
faithful laborers, and when settling their accounts there was not one of 
them who was not contented and satisfied. 

Then the people commenced rushing up from San Francisco and other parts of 
California, in May, 1848: in the former village only five men were left to 
take care of the women and children. The single men locked their doors and 
left for "Sutter's Fort," and from there to the Eldorado. For some time 
the people in Monterey and farther south would not believe the news of the 
gold discovery, and said that it was only a ‘Ruse de Guerre' of Sutter's, 
because he wanted to have neighbors in his wilderness. From this time on I 
got only too many neighbors, and some very bad ones among them. 

What a great misfortune was this sudden gold discovery for me! It has just 
broken up and ruined my hard, restless, and industrious labors, connected 
with many dangers of life, as I had many narrow escapes before I became 
properly established. 

From my mill buildings I reaped no benefit whatever, the mill stones even 
have been stolen and sold. 

My tannery, which was then in a flourishing condition, and was carried on 
very profitably, was deserted, a large quantity of leather was left 
unfinished in the vats; and a great quantity of raw hides became valueless 
as they could not be sold; nobody wanted to be bothered with such trash, 
as it was called. So it was in all the other mechanical trades which I had 
carried on; all was abandoned, and work commenced or nearly finished was 
all left, to an immense loss for me. Even the Indians had no more patience 
to work alone, in harvesting and threshing my large wheat crop out; as the 
whites had all left, and other Indians had been engaged by some white men 
to work for them, and they commenced to have some gold for which they were 
buying all kinds of articles at enormous prices in the stores; which, when 
my Indians saw this, they wished very much to go to the mountains and dig 
gold. At last I consented, got a number of wagons ready, loaded them with 
provisions and goods of all kinds, employed a clerk, and left with about 
one hundred Indians, and about fifty Sandwich Islanders (Kanakas) which 
had joined those which I brought with me from the Islands. The first camp 
was about ten miles above Mormon Island, on the south fork of the American 
river. 

In a few weeks we became crowded ,and it would no more pay, as my people 
made too many acquaintances. I broke up the camp and started on the march 
further south, and located my next camp on Sutter creek (now in Amador 
county), and thought that I should there be alone. The work was going on 
well for a while, until three or four traveling grog-shops surrounded me, 
at from one and 8, half to two miles distance from the camp; then, of 
course, the gold was taken to these places, for drinking, gambling, etc., 
and then the following day they were sick and unable to work, and became 
deeper and more indebted to me, and particularly the Kanakas. I found that 
it was high time to quit this kind of business, and lose no more time and 
money. I therefore broke up the camp and returned to the Fort, where I 
disbanded nearly all the people who had worked for me in the mountains 
digging gold. This whole expedition proved to be a heavy loss to me. 

At the same time I was engaged in a mercantile firm in Coloma, which I 
left in January, 1849 – likewise with many sacrifices. After this I would 
have nothing more to do with the gold affairs. At this time, the Fort was 
the great trading place where nearly all the business was transacted. I 
had no pleasure to remain there, and moved up to Hock Farm, with all my 
Indians, and who had been with me from the time they were children. The 
place was then in charge of a Major Domo. 

It is very singular that the Indians never found a piece of gold and 
brought it to me, as they very often did other specimens found in the 
ravines. I requested them continually to bring me some curiosities from 
the mountains, for which I always recompensed them. I have received 
animals, birds, plants, young trees, wild fruits, pipe clay, stones, red 
ochre, etc., etc., but never a piece of gold. Mr. Dana of the scientific 
corps of the expedition under Com. Wilkes' Exploring Squadron, told me 
that he had the strongest proof and signs of gold in the vicinity of 
Shasta Mountain, and furthers south. A short time afterwards, Doctor 
Sandels, a very scientific traveler, visited me, and explored a part of 
the country in a great hurry, as time would not permit him to make a 
longer stay. 

He told me likewise that he found sure signs of gold, and was very sorry 
that be could not explore the Sierra Nevada. He did not encourage me to 
attempt to work and open mines, as it was uncertain how it would pay and 
would probably be only for a government. So I thought it more prudent to 
stick to the plow, not withstanding I did know that the country was rich 
in gold, and other minerals. An old attached Mexican servant who followed 
me here from the United States, as soon as he knew that I was here, and 
who understood a great deal about working in placers, told me he found 
sure signs of gold in the mountains on Bear Creek, and that we would go 
right to work after returning from our campaign in 1845, but he became a 
victim to his patriotism and fell into the hands of the enemy near my 
encampment, with dispatches for me from Gen. Micheltorena, and he was hung 
as a spy, for which I was very sorry. 

By this sudden discovery of the gold, all my great plans were destroyed. 
Had I succeeded for a few years before the gold was discovered, I would 
have been the richest citizen on the Pacific shore; but it had to be 
different. Instead of being rich, I am ruined, and the cause of it is the 
long delay of the United States Land Commission of the United States 
Courts, through the great influence of the squatter lawyers. Before my 
case will be decided in Washington, another year may elapse, but I hope 
that justice will be done me by the last tribunal — the Supreme Court of 
the United States. By the Land Commission and the District Court it has 
been decided in my favor. The Common Council of the city of Sacramento, 
composed partly of squatters, paid Adelpheus Felch, (one of the late Land 
Commissioners, who was engaged by the squatters during his office), $5,
000, from the fund of the city, against the will of the tax-payers, for 
which amount he has to try to defeat my just and old claim from the 
Mexican government, before the Supreme Court of the United States in 
Washington.