Foreign Miner's Tax
The Foreign Miners' Tax was a law enacted in California in 1850 aimed at regulating mining activities by foreign workers during the California Gold Rush. Originally, the tax required all non-citizen miners to pay a monthly fee of twenty dollars, which disproportionately targeted Chinese and Mexican miners, while exempting White immigrants. This legislation stemmed from rising tensions as many American miners felt threatened by the competitive presence of immigrant laborers who were often willing to work for lower wages. Despite expectations that the tax would boost state revenues, it led to significant disenfranchisement among the targeted groups, resulting in many choosing to leave the mining industry altogether. The ensuing labor shortage negatively impacted gold production and local businesses dependent on miners. Following protests from Latin American miners and the realization of its failure to generate anticipated revenue, the initial tax was repealed in 1851. A revised, lower tax was introduced in 1852, highlighting ongoing challenges related to immigration, labor rights, and economic competition in California during this transformative period.
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Foreign Miners' Tax
The Foreign Miners’ Tax, also known as “An Act for the Better Regulations of the Mines and the Government of Foreign Miners,” was a law passed by the government of California in 1850. Though the act initially applied to all foreign immigrants, it later excluded White immigrants, instead targeting Chinese and Mexican workers. Prior to 1850, large numbers of Chinese and Mexican workers had traveled to California, wishing to participate in the California Gold Rush.
The government of California hoped that the expensive tax would raise roughly two-hundred-thousand dollars for the state. However, instead of paying the high tax, most Chinese and Mexican workers chose to quit mining. Though some protests from Latin American miners occurred, they were quickly dispersed.
The departure of Chinese and Mexican miners caused a sudden labor shortage in California, reducing production in most mines and closing others. It also caused a significant reduction in profits for many of the businesses that catered to miners and other laborers. Because of this, the initial Foreign Miners’ Tax was repealed in 1851. However, a second less-expensive tax was passed in 1852.
Background
The United States annexed Alta California, which would later become the state of California, in 1848 following the end of the Mexican–American War. However, the territory quickly increased in perceived value when the government discovered large deposits of gold throughout the region. This period, later known as the California Gold Rush, was characterized by large numbers of miners flocking to California in search of personal fortune. Though few miners succeeded in finding large, untouched gold deposits, many people spent their lives working in California mines.
Workers traveled from the East to the West to work in the California mines. A significant population of the miners came to the United States from China. Chinese workers were perceived as harder working than American workers. They were also willing to work for lower wages than their American counterparts. Because of this, many American miners began to resent Chinese miners, believing they were taking American jobs. As tension between the two groups of workers rose, American miners attacked Chinese workers.
Despite this aggression, public opinion continued to turn against Chinese workers. Many miners petitioned their political representatives to limit the influence of foreign governments in mining. Some called for restrictions on the number of Chinese immigrants able to work in specific industries, while others called for a complete halt on Chinese immigration.
Overview
In 1849, the US government announced that California would enter the Union as a state on September 9, 1850. The territory was allowed to elect a governor before it was granted statehood. On December 20, 1849, Peter Hardeman Burnett was declared the first governor of California. Burnett had immigrated to California from Missouri, which at the time was a slave state. Burnett quickly became known for being racist; he wanted to expel most foreign immigrants and all Black people from the state. Burnett also promoted and signed the Act for the Government and Protection of Indians, which significantly contributed to the systemic mistreatment of California’s Indigenous populations.
Burnett decided to limit the impact of foreign workers on the economy through “An Act for the Better Regulations of the Mines and the Government of Foreign Miners,” more commonly known as the Foreign Miners’ Tax. The act was signed into law on April 13, 1850. It required all California miners who were not citizens of the United States to pay a monthly fee of twenty dollars to continue working. This act did not apply to Native Americans but included all foreign workers.
The government of California expected most miners to rejoice at the act’s passage, believing that it would reduce competition among miners and drive wages higher. However, many foreign White miners, such as those from Germany and Ireland, immediately protested the act. Although they knew that the act was intended to punish Chinese laborers, they thought it was unfair that they were forced to pay the tax as well.
Shortly after the act’s passage, the government of California amended its wording. It exempted any free White person or miner with the potential to legally become an American citizen. This allowed the immigrants from Ireland, Canada, England, Germany, and many other nations to mine in California without additional charge, while still targeting immigrants from Asia and Latin American countries.
In addition to Chinese workers, Latin American miners also protested the passage of the Foreign Miners’ Tax. On May 19, 1850, they launched what would later be known as the Sonora Protest, during which thousands of Mexican and Peruvian miners marched in town of Sonora. The protest was opposed by a local White militia, which dispersed the crowd by firing guns at the protestors.
Even though the protesters did not achieve their goal, the Foreign Miners’ Tax was widely considered a failure. Financial projections had initially expected the Foreign Miners’ Tax to bring in roughly two-hundred-thousand dollars in revenue. However, instead of paying the tax, many Mexican and Chinese miners quit the industry. Because Mexican and Chinese immigrants comprised a significant portion of California’s miners, this immediately caused problems for the gold mines. A significant number of mining camps faced a serious labor shortage because of the Chinese exodus.
The sudden departure of Chinese and Mexican immigrants also caused problems for other businesses in the state. Many industries had been built to cater to the miners, relying on their revenue to survive. When these profits began to drop, business owners lobbied for the repeal of the Foreign Miners’ Tax. They were successful, and the act was repealed in 1851. A second Foreign Miners’ Tax of three dollars per month was passed in 1852.
Bibliography
“Documents on the Foreign Miners Tax, 1851–1855.” Hanover.edu, history.hanover.edu/courses/excerpts/260miners.html. Accessed 14 June 2023.
“From Gold Rush to Golden State.” Library of Congress, 2023, www.loc.gov/collections/california-first-person-narratives/articles-and-essays/early-california-history/from-gold-rush-to-golden-state/#:~:text=In%201850%2C%20the%20new%20California,was%20repealed%20the%20next%20year. Accessed 14 June 2023.
“Foreign Miners Tax Documents, 1850–1867.” Calipshere, 2023, calisphere.org/item/434be451da8622a8b09c6ce68b164654/. Accessed 14 June 2023.
“Roaring Camp: The Social World of the California Gold Rush.” Internet Archive, 2000, archive.org/details/roaringcamp00susa. Accessed 14 Jun. 2023.
“The Chinese.” The Museum of the City of San Francisco, www.sfmuseum.org/hist6/chinhate.html. Accessed 14 June 2023.