was at hand, Alaska's darkest hours were
past, and morning was breaking. The rule of the Navy Department
continued until 1884, then, although the warships still remained in
Alaskan waters, by Act of Congress of May 17th, a form of civil
government was granted, and the official Capital was placed at Sitka.
The terror of the Indian outbreaks was past; schools were in reach, for
the same act provided for the establishment of a system of public
education, and the Code of Oregon was adopted as the law of the
land.[28]

Then some of the life of the former years returned to the beautiful
village by the sea; there were pleasant parties among the residents, the
Governor held receptions, the officers of the warships added to the
social life, many a gay ball was celebrated on the top floor of the
court house, and for more than twenty years it was the Capital of
Alaska.[29]

With the influx of the Americans prospecting began, for in the vast wild
mountains of Baranof and Chicagof Islands there is a wealth of mineral
stored in the ledges.

The Russians had attempted to find the mineral of the mountains, and in
1848 a Mr. Doroshin, a mining engineer, had been sent out from St.
Petersburg to search for mineral wealth in the colonies. He was not
successful enough to make it of profit to them, although he found coal
on Cook Inlet, gold on the Kenai Peninsula, earth promising to bear
diamonds near Kootznahoo, and copper was known to be on the Myednooskie,
or Copper, River.

Discharged soldiers of the garrison were the first to take to the hills
with pick and shovel. Nicholas Haley, an old-time prospector of Arizona,
who came with the troops to Sitka, was one of the most energetic and
daring of these. Year after year, with pick and shovel, with rifle and
blankets, Nicholas attacked the rugged mountains. Rich specimens were
brought in and yielded enough when brayed in a mortar to keep him in a
grubstake, but it takes capital to develop a hard rock mine and capital
was wary. So Nicholas toiled on year after year, keeping up his
assessments and living on hopes until at last he passed over the Great
Divide to a Better Diggings.

Others tried it. In 1878 a mining company was organized at Sitka, but
there was not yet a law under which a claim could be legally taken.
Ledges were found, small mills were placed on the ground at the Stewart
Mine, the Lucky Chance and elsewhere, and later great fakes were
promoted at the Pande Basin and else