The Collapse of the Joint-Stock Companies and Formation of Small Mining Groups

Andrea Franzius


Once in California, the joint-stock companies as well as any personal or formal agreements of mutual support usually collapsed very quickly since the dangers of the journey had ended and most members thought that individual mining or work in small groups would be more profitable than the amount of gold they received from the company. Often, prospective miners sought new companions before they headed to the diggings by land from San Francisco or by riverboat to Sacramento and then overland, thus establishing new social bonds to limit anonymity in the strange new land.

The formation of new, smaller groups of miners, usually between three to nine, proved advantageous. Contrary to the primitive techniques of individual mining that were prevalent in 1848, the more advanced mining techniques that became common in 1849 required work in small groups.

Moreover, living in a cabin or tent, the miners also shared other work and responsibilities. They took turns cooking, cleaning, making trips to the town for food supplies, mail, and tools. They offered each other help and support in cases of sickness, substituting as best as they could for the women and families they had left behind. The group support had its limits. Should the sick or injured get a share of their companionsī profit during their absence from work? Also, costs for doctors and extended care for the sick were difficult issues which the groups solved with different levels of social responsibility.

Despite the groupsī efforts to create a small social "network," the miners were highly aware of the groupsī temporary nature (with the high possibility that partners might leave suddenly for other diggings, the city, or back home), which was reinforced by the high sense of competition among the miners. The small size, informality and instability of these groups distinguished them from the initial, larger joint-stock companies that organized the journey to California. Thus, the diaries and letters tell of loneliness and homesickness, acknowledging how insufficient the mining companions were as substitutes for family and friends.


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Andrea Franzius (agf2@acpub.duke.edu), November 1997
in collaboration with The Digital Scriptorium, Special Collections Library, Duke University
http://web-directory-where-this-project-lives/