“The size of the gold depends in some measure upon the river from which it is taken; the banks of one river having larger grains of gold than another.  I presume more than one half of the gold put into pans or machines is washed out and goes down the stream; this is of no consequence to the washers, who care only for the present time.  Some have formed companies of four or five men, and have a rough-made machine put together in a day, which worked to much advantage, yet many prefer to work alone, with a wooden bowl or tin pan, worth fifteen or twenty cents in the States, but eight to sixteen dollars at the gold region.  As the workmen continue, and materials can be obtained, improvements will take place in the mode of obtaining gold; at present it is obtained by standing in the water, and with much severe labour, or such as is called here severe labour.

“How long this gathering of gold by the handful will continue here, or the future effect it will have on California, I cannot say.  Three-fourths of the houses in the town on the bay of San Francisco are deserted.  Houses are sold at the price of the ground lots.  The effects are this week showing themselves in Monterey.  Almost every house I had hired out is given up.  Every blacksmith, carpenter, and lawyer is leaving; brick-yards, saw-mills and ranches are left perfectly alone.  A large number of the volunteers at San Francisco and Sonoma have deserted; some have been retaken and brought back; public and private vessels are losing their crews; my clerks have had 100 per cent. advance offered them on their wages to accept employment.  A complete revolution in the ordinary state of affairs is taking place; both of our newspapers are discontinued from want of workmen and the loss of their agencies; the Alcaldes have left San Francisco, and I believe Sonoma likewise; the former place has not a Justice of the Peace left.

“The second Alcalde of Monterey to-day joins the keepers of our principal hotel, who have closed their office and house, and will leave to-morrow for the golden rivers.  I saw on the ground a lawyer who was last year Attorney-General of the King of the Sandwich Islands, digging and washing out his ounce and a half per day; near him can be found most all his brethren of the long robe, working in the same occupation.

“To conclude; my letter is long, but I could not well describe what I have seen in less words, and I now can believe that my account may be doubted.  If the affair proves a bubble, a mere excitement, I know not how we can all be deceived, as we are situated.  Governor Mason and his staff have left Monterey to visit the place in question, and will, I suppose, soon forward to his department his views and opinions on this subject.  Most of the land, where gold has been discovered, is public land; there are on different rivers some private grants.  I have three such purchased in 1846 and 1847, but have not learned that any private lands have produced gold, though they may hereafter do so.  I have the honour, dear sir, to be, very respectfully, your obedient servant,