Profits
Recent scholarship confirms that merchants made far more money than miners during the Gold Rush. The wealthiest man in California during the early years of the Gold Rush was Samuel Brannan, the tireless self-promoter, shopkeeper and newspaper publisher. Brannan opened the first supply stores in Sacramento, Coloma, and other spots in the gold fields. Just as the Gold Rush began, he purchased all the prospecting supplies available in San Francisco and re-sold them at a substantial profit. However, substantial money was made by some gold-seekers as well. For example, within a few months, one small group of prospectors, working on the Feather River in 1848, retrieved a sum of gold worth more than $3 million by 2010 prices.
On average, half the gold-seekers made a modest profit, after all expenses were taken into account. Most, however, especially those arriving later, made little or wound up losing money. Similarly, many unlucky merchants set up in settlements that disappeared, or were wiped out in one of the calamitous fires that swept the towns springing up. By contrast, a businessman who went on to great success was Levi Strauss, who first began selling denim overalls in San Francisco in 1853. Other businessmen, through good fortune and hard work, reaped great rewards in retail, shipping, entertainment, lodging, or transportation. Boardinghouses, food preparation, sewing, and laundry were highly profitable businesses often run by women (married, single, or widowed) who realized men would pay well for a service done by a woman. Brothels also brought in large profits, especially when combined with saloons and gaming houses.
By 1855, the economic climate had changed dramatically. Gold could be retrieved profitably from the goldfields only by medium to large groups of workers, either in partnerships or as employees. By the mid-1850s, it was the owners of these gold-mining companies who made the money. Also, the population and economy of California had become large and diverse enough that money could be made in a wide variety of conventional businesses.
Read more about this topic: California Gold Rush
Famous quotes containing the word profits:
“Whoever is content with the world, and who profits from its lack of justice, does not want to change it.”
—Friedrich Dürrenmatt (1921–1990)
“All industries are brought under the control of such people [film producers] by Capitalism. If the capitalists let themselves be seduced from their pursuit of profits to the enchantments of art, they would be bankrupt before they knew where they were. You cannot combine the pursuit of money with the pursuit of art.”
—George Bernard Shaw (1856–1950)
“The living language is like a cowpath: it is the creation of the cows themselves, who, having created it, follow it or depart from it according to their whims or their needs. From daily use, the path undergoes change. A cow is under no obligation to stay in the narrow path she helped make, following the contour of the land, but she often profits by staying with it and she would be handicapped if she didn’t know where it was or where it led to.”
—E.B. (Elwyn Brooks)