From this humble beginning, sugar grew into a large industry that would need a steady supply of laborers. In 1848, after a war with Mexico, the United States obtained a region known as California. Finding California to be a commercial and agricultural center, it became America's gateway to Asia. (From Gold Rush) With the large fertile lands of California, workers were needed to help reap the profits that would flow in.
In 1833, the British Empire abolished the practice of slavery. Plantation owners desperate for field labor made use of coolies. Coolies were basically Chinese that signed labor contracts and were held in virtual slavery. They were ensnared by brokers into this system by debts, clan war prisoners, or kidnapping. (From Gold Rush) Like the African slave trade, this method flourished over Asia and had high mortality rates due to cramped quarters and malnourishment. It was referred to as the "buying and selling of pigs." Hawaii made use of this practice in order to fulfill the great demand of the booming sugar industry. In 1962, the United States congress prohibited American citizens in American vessels from engaging in such activities. However, the laws were easily evaded, and not strictly enforced. In an 1869 magazine article called "Our Manufacturing Era," a writer named Henry Robinson described California's enormous economic potential. He stated that, "If Chinese labor could be used to develop the industries of California, it would be the height of folly to forbid its entrance to the Golden Gate." (From Internet) There was a constant demand for Asian labor all across the Pacific Coast, because they were cheaper, and generally harder working. Factory owners, bankers, investors, and other leaders of American industry used the Chinese workers to keep wages down. Chinese workers would work for cheaper wages, and would prevent strikes for higher wages from white workers. This naturally led to a build up of animosity among the groups that then led to racial antagonism.