The author highlights the beginnings of the Paper Mill in response to the need for packaging materials in th eretail markets of San Francisco during the gold rush. Henry VAn Valkenburgh found the materials for a good paper mill here in SAnta Cruz, namely lime and straw, access to transportation and running water for power. The paper mills was very success and was in operation until the accidental death of Van VAlkenburgh due to a falling tree. Major and floods and fires also did their part to challenge the paper mill. Next door to the paper mill was a powder mill which produced black gunpowder for use in mining and railroad building. The powder mill eventually took over the land where the paper mill stood and became a much larger operation, producing much of the supply for the country and during the Civil War. Over time, it made more sense to place operations in the middle of the country and the operations ceased. The author also writes of the early history of the town of San Francisco including the two influences of the Mission and the Branciforte adobe. AFter the Mexican government overthrow the Santa Cruz area became increasingly farmland with a vibrant city life downtown.