Mining Towns

In 1895, prospectors found gold in the gravel of Birch Creek, another Yukon tributary. Almost overnight, Fortymile became a ghost town as prospectors rushed to Birch Creek. At the confluence of Birch Creek and the Yukon River, prospectors and camp followers soon founded the town of Circle City.

Circle City followed the life cycle of many mining towns. They would spring up almost overnight as miners rushed in to establish claims on promising new gold fields. In Circle City, many of the first miners were grubstaked by fur traders. A grubstake gave food and supplies to a man for a season (about $500 in value) in exchange for a share of his gold finds. A central town formed next to transportation routes. In the case of Circle City, this was where Birch Creek entered the Yukon River. 

Prospectors weren't the only ones who rushed toward the gold. Business people rushed right along with them to provide miners with supplies, entertainment, and basic services. By 1897, Circle City had two theaters, eight dance halls, six saloons, and a population of over 1,000. The people who provided goods and services to prospectors often prospered the most. In a remote mining town, anyone selling limited supplies and/or services could charge sky-high prices and reap significant profits. 

Like many early mining towns and camps, Circle City had no real government. There was no sheriff, jail, courthouse, or taxes. The Episcopal Church opened a hospital, and the miners assembled a library. A school was the only government service. 

To maintain law and order, mining towns and camps operated under what was known as the "Miner's Code." When a crime or conflict occurred, miners came together to dispense justice. The involved parties would give their sides of the story, and the miners would render a verdict. Punishments typically were fines for minor infractions, banishment for theft, and hanging for murder. 

Mining towns often emptied out as quickly as they sprung up. When news of the Klondike gold strike hit Circle City in the summer of 1897, many of the residents rushed upriver to Canada. By 1900, most of Circle City's 400 log cabins were abandoned.

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