Spruce mountain stands overlooking lake George.
I came across this story, which I had never heard before, in the history of the town of Dresden from: The History of Washington County New York, 1737-1878 published in 1878.
Here is exactly as it was recorded in 1878.
On the summit of the first ridge of Spruce mountain, and about one and a half miles from Mr. Knowlton’s, is a cave which, though as yet not fully explored, bids fair to prove an interesting and noted feature of the vicinity. It was discovered about a year ago (1876-77) by James Adams, of Dresden, who, while hunting, tracked an animal into the cave. It was soon after partially explored, and was found to extend into the mountain at least some fifty or sixty feet. The outer entrance faces the southwest, and at that time had to be entered in a creeping position. It has since been enlarged, and can be entered by stooping slightly. This entrance is five or six feet wide, and extends into the mountain some ten or twelve feet, opening into a circular chamber fifteen feet in diameter and about six feet high. At the rear of this similar opening passes through a wall of rock to a second chamber, with a higher ceiling. From this chamber, to the right, upon a shelf of rock some three feet above the floor, is the entrance to a third chamber. At the rear of the second chamber another opening, only eighteen or twenty inches in diameter and only two feet above the floor, opens into still another chamber, which has yet to be explored. The walls of it could not be reached with a pole twelve feet in length. The walls and roof of these chambers are a rough grayish rock. The floor is covered with a fine black soil. Tradition has always hinted at the existence of a cave on the mountain and a curious legend is told about it.
Many years ago it was the abode of a white man and an Indian. It was also the secret hiding-place for a large amount of gold and silver that in some manner they had secured. The white man was of French blood, and had a son who was then a small lad. One day he and the Indian got into a quarrel, and a desperate fight ensued, in which the Indian was slain and the white man mortally wounded.With wonderful vitality and persistence, he, however, managed to get away from the vicinity, and communicated to his son, either personally or by letter, the secret of the cave and directions for finding it. Many years elapsed, when one day an old man came to the residence of one of the settlers and wanted to secure board for the summer. His request was acceded to, and he established himself as an inmate of the house. With his staff in his hand and a haversack of provisions at his side, day after day, week after week, month after month, he wandered through the woods and over the mountains. He did not hunt, he did not collect geological or botanical specimens, but simply wandered around in a seemingly aimless search for something. When winter came he left the vicinity never to return, but told his host, before leaving, this story in explanation of his mysterious conduct.
So there it is, maybe there’s gold and silver hidden in a cave somewhere on Spruce mountain. Then again maybe it’s just a legend.