Clue for Puzzle #2 - Can you work it out?

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Clue:

The city and its surrounding area experienced a hectic and licentious period after gold was discovered in 1849. Crews arriving in the town abandoned their ships, and people on the streets were "shanghai'd" to crew the ships back to Shanghai in China. On the other hand thousands of disappointed gold diggers committed suicide. The city authorities quickly decided that the only way to cope with the civil stress was to become a state within its new country, and this occurred only three years after the area gained freedom from Mexico.

 

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