The town of San José is situated in a fertile valley, near the most southern extremity of the Bay of San Francisco. On the south of the town runs a small stream, and the place is surrounded by plains, affording fine pasturage. Being situated on the direct route from the southern ports to the gold mines, San José received a considerable stimulus from their discovery. A profitable trade was soon established, and the town improved very rapidly. It is now a town of about four thousand inhabitants, and the increase still continues rapid. In a greater degree than any of the older towns of California, it has all the evidence of a thriving and progressive place. The greater part of the buildings are constructed in a style which shows the inroads of the taste of the people from the Atlantic States. A number of Mormons settled here at an early period, and built a great many neat wooden houses and cottages, which contrast favorably with the heavy old _adobés_ residences of the native inhabitants. Flour and saw-mills have been erected, but the scarcity of water is severely felt by their proprietors. San José in respect to climate and general abundance of the necessaries and luxuries of life, is one of the most desirable places of residence in California. Though situated a short distance inland, and thus deprived of the facilities which contributed to the rapid growth of San Francisco, the fertile plain surrounding it, and the increase of the inland trade and travel will draw to the town and its neighborhood a thriving, business population. The old mission of San José is situated about ten miles from the town. The establishment and the grounds belonging to it are in a state of decay. The population there is about three hundred in number, most of whom are Indians, and all of them in a degraded condition. The emigration to the gold region caused many towns to spring up, as if by magic, in its neighborhood, and on the route to it from San Francisco. These were principally the stopping places of the gold-seekers, or the seat of a trade in provisions and articles manufactured in the States and transported thither. Some of these towns have become of a size sufficient to warrant the assertion that they will soon rival the cities of the Atlantic coast of the United States. The progress of these places is aided by the enormous price of real estate in San Francisco.