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America's First Gold Rush: Putting Southern Gold on the Map

2022-07-25 21:03:00
America's First Gold Rush: Putting Southern Gold on the Map
Posted in: News, News

America's First Gold Rush: Putting Southern Gold on the Map

While the term “gold rush” instantly evokes imagery of 49ers panning for gold dust in the sprawling hills of California, there have been a number of lesser-known gold discoveries to occur since America’s founding. From the Georgia Gold Rush of the southern Appalachian Mountains to the Pike’s Peak Gold Rush of Colorado, America’s story is rife with the rich history of gold. Despite each gold rush telling its own unique story, there is only one that can claim the title of the first in American history: the North Carolina Gold Rush of 1799.

This seminal gold rush took place just 23 years after America had gained independence and only seven years after the establishment of the United States Mint. How fitting then, that the unearthing of the first gold in young America was done by a boy just twelve years of age.

His name was Conrad Reed, and like most young boys, he enjoyed spending his days exploring meadows or fishing in the lakes around his home. During one of his excursions, Conrad found what he considered to be an interesting looking rock with a yellow hue. It weighed 17 pounds, about 20% of the average weight of a 12-yeard-old boy—and Conrad used all his might to lug this monstrosity back to his home. The Reed household was a simple one, consisting of humble, hard-working Americans. They weren’t geologists, they had no expertise in identifying and appraising rocks, and so, this massive rock was used as a door stop for three years.

Little did the Reed family know, this “interesting yellow rock” was a 17-pound gold nugget. At 17 pounds, the nugget equated to an unheard of 248 ounces of gold. In July 2022, with gold at $1,744 an ounce, this ingot would be worth $432,512.

In 1802, this rock was appraised by a jeweler and identified as a gold nugget, but Conrad Reed and his father, John, had no idea what its value was. So, when the appraiser asked how much they wanted for it, the Reed family requested only $3.50, about a week’s wage. As an honest, working-class family, the Reeds thought this was a tremendous opportunity. In reality, the nugget was worth about $3,600 at the time, meaning the Reeds were more or less scammed out of their gold.

There was a silver—or gold lining, however, as John Reed was able to use this as a learning experience. Understanding the true value of the gold on his property now, John Reed founded the historic Reed Gold Mine in 1803.

Word of the discovery got out shortly, triggering an epidemic of gold fever in the area, which caused many Americans to begin their own mining endeavors. At the time, there was only one United States Mint located in Philadelphia and a majority of the gold needed to be deposited there to be produced into coinage. From 1805 to 1824, an average of about $2,500 of gold was deposited at the Philadelphia per year. This exponentially increased over the next decade, and by 1833 a peak of $475,000 of gold was deposited.

The sudden jump in production came from technological advancements that replaced placer mining with lode mining. Unlike placer mining, which was done on the surface by panning through streams, lode mining took place underground where the deposits formed. This allowed for a massive increase in production.

By 1835, the United States government realized the pressing need for Southern Mints to begin processing and striking gold into coinage, and so the Coinage Act of 1835 was passed, authorizing the creation of the New Orleans, Dahlonega, and Charlotte Mints. It wasn’t until three years later, in 1838, that the Charlotte Mint in North Carolina would begin striking coinage.

Mining of the North Carolina region continued until the outbreak of the Civil War in 1861, equating to about $7,180,000 worth of gold being deposited between the Charlotte Mint and Philadelphia Mint from 1804 to 1861.

While the Carolina Gold Rush of 1799 was not the most lucrative gold rush to occur in our history, it was a crucial discovery that propelled our nation in the right direction. From its status as the first gold rush to its intriguing story to its role in expanding the United States Mint, the Carolina Gold Rush is undoubtedly one of the most important events to occur in the formative stages of our young country.