Denver Depression of 1893

Last updated

The Denver Depression of 1893 was the economic and psychological[ citation needed ] depression of Denver, Colorado, that began in 1893 after the rapid drop in the price of silver and lasted for several years. [1]

Contents

Causes

With the Coinage Act of 1873, bimetallism was disestablished by Congress and gold was established as the standard. Despite this, the city of Denver, Colorado enjoyed boomtown growth during the late 19th century after the discovery and development of numerous silver mines and the passage of first the Bland–Allison Act of 1878 and then the Sherman Silver Purchase Act of 1890, both of which required the U.S. government to purchase millions of ounces of silver each year. As one historian of the period noted, “Almost all economic pursuits in the state were tied in one way or another to the mining industry; consequently, almost every Colorado resident had a vested interest in its success.” [2] But whereas the silver standard enabled western rural farmers and miners to pay off their debts, bankers in the east were losing money because the circulation of silver was leading to a decline in the value of gold-based money as investors turned in the new silver notes for gold dollars (see also Free silver, silverites). In 1893, those in the west lost the battle, as United States President Grover Cleveland oversaw the repeal of the Sherman Silver Purchase Act. This caused the prices of silver to fall, and the prices of silver continued to fall further due to an overabundance of the metal when silver was struck in Leadville and in the San Juan Mountains. [3]

Denver was already suffering economically due to several successive years of droughts and harsh winters that had hurt the agricultural industry. [4] Agricultural distress, coupled with the withdrawal of foreign investors and the over-expansion of the silver mining industries, led Denver to experience its first economic depression.

Effects

The collapse of the silver market beginning in 1893 dropped the price of silver from 83 cents to 62 cents an ounce. [5] Mining companies dropped their wages, yet as one historian reports, due to the overabundance of workers in the area, “employers could easily replace workers unwilling to accept pay cuts.” [6] Then, as the silver mines began to close due to the continued drop in silver prices, unemployed miners and other workers from the Colorado mountains flooded into Denver in hopes of finding work. Seeking to address the growing tensions in Denver, politicians friendly with the silver cause met in Denver on July 12, 1893, to lend support against the repealing of the Sherman Silver Act, but to no avail. [7] People began to withdraw their money from banks in a panic as the price of silver dropped. This caused numerous banks to collapse, as at this point there was no federal insurance to support the money in the banks. Many people in the west thus lost their life savings. [8] And as Denver banks closed, real estate values dropped, smelters stopped working, and the Denver tramways had trouble getting people to ride and pay their fares. [9]

Unfortunately, the miners coming into Denver found no jobs and no help. [10] Rescue missions initially provided tents and food, but they could not keep up with the growing number of unemployed persons in the city, and eventually they could only provide for women and children. [11] The People's Tabernacle was one of the largest of such efforts that had provided care for the sick. They offered a free dispensary, gave away winter clothing, and offered a free bathhouse, classes in sewing, shelter for the homeless, and medical attention for prostitutes, but they were similarly forced to limit aid to people who had been living in the city for more than 60 days. [12]

The depression also exacerbated existing prejudices. American Protective Association (APA) found jobs for Protestants, for example, by firing Catholics. This led 10,000 Denverites to belong to the APA after the depression started. In response, Catholic Reverend Thomas Malone infiltrated the APA with spies, seeking to embarrass its members and to weaken the party. [13]

Several organizations formed community gardens as an attempt to help ease the shortage of food. [14] By the fall of 1893, a tent city had appeared at Riverfront Park along the South Platte River. The chamber of commerce gave a gift of lumber to the homeless camped in the tent city, apparently in hopes that they would build rafts and float away. During this time 450 desperate Coxeyites abandoned their rafts in La Salle and hijacked a train to Julesburg where they were stopped by a posse. [15]

By September 1893, the Colorado Bureau of Labor Statistics reported that 377 businesses had failed, 435 mines had closed, and 45,000 people were out of work. [16]

Because of the city's inability to take care of the jobless, some train companies began offering reduced or free fares for people wanting to travel from Denver. One railroad, for instance, lowered fares to $6 on the Denver to Missouri River route. [17] This effort contributed to the exodus from the city, and Denver's population dropped from 106,000 in 1890 to 90,000 in 1895. [18]

The only project that was not slowed during the depression was the building of the Colorado State Capitol. This construction effort provided jobs during the crisis, both for those working on the building itself and in the mines that could extract the marble that was chosen in lieu of hardwood for flooring. As one historian of the time noted, “Governor Davis Waite, the board’s chairman, remained dedicated to providing jobs for the Coloradoans by using native materials as much as possible” [19]

In 1895, The Festival of Mountain and Plain was established by Chamber of Commerce to raise peoples' spirits in a manner comparable to New Orleans' Mardi Gras. During the festival people marched “inside the block long silver serpent” that was meant to celebrate the city's silver heritage, singing, “We spring, we sprawl, We caper, we crawl, With vesture of changeable hue. We slidingly slink, as we near the brink Of our subterranean abyss.” Department stores ran sales during the festival, and festival organizers arranged for opportunities that enabled tourists to take pictures of Ute Indians for a fee and to see a Broadway show. [20]

Politics

With the rising opposition to the Republican efforts that had supported the gold standard that had contributed to the crash of the silver industry, the Populist political party easily won the Colorado statehouse in 1893, and Davis Hanson Waite was elected to the governorship. [21]

Governor Waite tried to overturn the corruption in Denver in 1894 by removing police and fire commissioners that he believed were shielding the gamblers and prostitutes that he believed were resulting from and also worsening the depression. Corrupt officials including the infamous Soapy Smith and his colleagues barricaded themselves in the city hall in response, and militiamen were sent to remove them. Federal intervention prevented an all out war and the Colorado Supreme Court ruled in favor of the governor and stated that the governor could remove commissioners.

Waite also suggested that Colorado should mint its own money by buying the silver the state produced and shipping it to Mexico to be minted into “Fandango Dollars.” [22] As Waite stated, “it is better, infinitely better, that blood should flow to the horses’ bridles rather than our national liberties should be destroyed.” [23] The public was not receptive to the idea, however, and in 1894 Albert McIntire defeated Waite for governorship.

People

Many of Colorado's most renowned residents of the day suffered as a result of Denver's depression of 1893:

See also

Notes

  1. ↑ Leonard 1990, page 102.
  2. ↑ Ubbelohde 1982, page 222.
  3. ↑ Cotton, website
  4. ↑ Everett 2005. page 76.
  5. ↑ Ubbelohde 1982, page 228.
  6. ↑ Leonard 1990. page 104.
  7. ↑ Steeples 1998. page 154.
  8. ↑ Leonard 1990. page 103.
  9. ↑ Ubbelohde 1982, page 229.
  10. ↑ Steeples 1998. page 76.
  11. ↑ Ubbelohde 1982, page 229.
  12. ↑ Leonard 1990. page 109.
  13. ↑ Leonard 1990. page 107.
  14. ↑ Steeples 1998. page 116.
  15. ↑ Leonard 1990. page 104.
  16. ↑ Ubbelohde 1982, page 229.
  17. ↑ Cotton, website
  18. ↑ Cotton, website
  19. ↑ Everett 2005. page 79.
  20. ↑ Leonard 1990.page 110-111.
  21. ↑ Steeples 1998. page 173.
  22. ↑ Ubbelohde 1982. page 231.
  23. ↑ Leonard 1990. page 106.
  24. ↑ Leonard 1990. page 103.
  25. ↑ Leonard 1990. page 103.
  26. ↑ Leonard 1990. page 105.

Related Research Articles

<span class="mw-page-title-main">Winfield Scott Stratton</span> American prospector and philanthropist from Colorado

Winfield Scott Stratton was an American prospector, capitalist, and philanthropist. He discovered the Independence Lode near Victor, Colorado on July 4, 1891, and became the Cripple Creek Mining District's first millionaire in 1894. He provided to build buildings, improve the street car system, build the first professional ball park, and provided funds to people in need.

<span class="mw-page-title-main">Leadville, Colorado</span> City in Colorado, United States

Leadville is a statutory city that is the county seat, the most populous community, and the only incorporated municipality in Lake County, Colorado, United States. The city population was 2,633 at the 2020 census. It is situated at an elevation of 10,158 feet (3,096 m). Leadville is the highest incorporated city in the United States and is surrounded by two of the tallest peaks in the state.

<span class="mw-page-title-main">Panic of 1893</span> 1893–97 financial crisis in the United States

The Panic of 1893 was an economic depression in the United States that began in 1893 and ended in 1897. It deeply affected every sector of the economy and produced political upheaval that led to the political realignment of 1896 and the presidency of William McKinley.

<span class="mw-page-title-main">History of Colorado</span> History of the U.S. State of Colorado

The region that is today the U.S. State of Colorado has been inhabited by Native Americans and their Paleoamerican ancestors for at least 13,500 years and possibly more than 37,000 years. The eastern edge of the Rocky Mountains was a major migration route that was important to the spread of early peoples throughout the Americas. The Lindenmeier site in Larimer County contains artifacts dating from approximately 8720 BCE.

<span class="mw-page-title-main">Davis Hanson Waite</span> American politician (1825–1901)

Davis Hanson Waite was an American politician. He was a member of the Populist Party, and he served as the eighth Governor of Colorado from 1893 to 1895.

<span class="mw-page-title-main">Colorado Silver Boom</span> Period of silver mining activity in Colorado, U.S.

The Colorado Silver Boom was a dramatic expansionist period of silver mining activity in the U.S. state of Colorado in the late 19th century. The boom started in 1879 with the discovery of silver at Leadville. Over 82 million dollars worth of silver was mined during the period, making it the second great mineral boom in the state, and coming 20 years after the earlier and shorter Colorado Gold Rush of 1859. The boom was largely the consequence of large-scale purchases of silver by the United States Government authorized by Congress in 1878. The boom endured throughout the 1880s, resulting in an intense increase in both the population and wealth of Colorado, especially in the mountains. It came to an end in 1893 in the wake of the collapse of silver prices caused by the repeal of Sherman Silver Purchase Act.

<span class="mw-page-title-main">Free silver</span> Economic policy issue in the United States

Free silver was a major economic policy issue in the United States in the late 19th century. Its advocates were in favor of an expansionary monetary policy featuring the unlimited coinage of silver into money on-demand, as opposed to strict adherence to the more carefully fixed money supply implicit in the gold standard. Free silver became increasingly associated with populism, unions, and the perceived struggle of ordinary Americans against the bankers, monopolists, and robber barons of the Gilded Age. Hence, it became known as the "People's Money".

<span class="mw-page-title-main">Horace Tabor</span> American prospector, businessman, and politician (1830–1899)

Horace Austin Warner "Haw" Tabor, also known as The Bonanza King of Leadville and The Silver King, was an American prospector, businessman, and Republican politician. His success in Leadville, Colorado's silver mines made him one of the wealthiest men in Colorado. He purchased more mining enterprises throughout Colorado and the Southwestern United States, and he was a philanthropist. After the collapse in the silver market during the Panic of 1893, Tabor was financially devastated. He lost most of his holdings, and he labored in the mines. In his last year, he was the postmaster of Denver.

<span class="mw-page-title-main">James Joseph Brown</span> American businessman

James Joseph "J.J." Brown, was an American mining engineer, inventor, and self-made member of fashionable society. His wife was RMS Titanic survivor Margaret Brown.

<span class="mw-page-title-main">Argentine Central Railway</span>

The Argentine Central Railway was a 3 ft narrow gauge railroad in the United States built from the Colorado and Southern Railway at Silver Plume, Colorado, to Waldorf, Colorado, and onward to the summit of Mount McClellan. Construction began on August 1, 1905, and the line was opened to Waldorf a year later on August 1, 1906, a distance of about 16 miles. It was financed and organised by Edward J. Wilcox, owner of 65 mining properties in the Argentine region that were consolidated into the Waldorf Mining and Milling Company in 1902. His headquarters at Waldorf was accessible only by pack mule for much of the year.

Eben Smith was a successful mine owner, smelting company executive, railroad executive and bank owner in Colorado in the late 19th century and early 20th century.

Thomas J. Tarsney was a Populist politician and author in Colorado in the late 19th century.

The History of Denver details the history of the City and County of Denver, Colorado, the United States from its founding in 1858 to modern-day. Ever since the gold rush, Denver has been Colorado’s gateway and major metropolis. With its location at the intersection of the plains and the mountains, its people and institutions have tied together the sections of the state and served as a point of contact between Colorado and the wider world. As the state’s political capital and largest city, Denver has been the natural center for decision-making. New programs and ideas have typically spread outward through the public agencies and private organizations that have Denver headquarters.

Gold mining in Colorado, a state of the United States, has been an industry since 1858. It also played a key role in the establishment of the state of Colorado.

<span class="mw-page-title-main">Leadville mining district</span> Mining district

The Leadville mining district, located in the Colorado Mineral Belt, was the most productive silver-mining district in the state of Colorado and hosts one of the largest lead-zinc-silver deposits in the world. Oro City, an early Colorado gold placer mining town located about a mile east of Leadville in California Gulch, was the location to one of the richest placer gold strikes in Colorado, with estimated gold production of 120,000–150,000 ozt, worth $2.5 to $3 million at the then-price of $20.67 per troy ounce.

<span class="mw-page-title-main">Baby Doe Tabor</span> American pioneer (1854–1935)

Elizabeth McCourt Tabor, better known as Baby Doe, was the second wife of Colorado pioneer businessman Horace Tabor. Her rags-to-riches and back to rags again story made her a well-known figure in her own day, and inspired an opera and a Hollywood movie based on her life.

<span class="mw-page-title-main">Holden/Marolt Mining and Ranching Museum</span> United States historic place

The Holden/Marolt Mining and Ranching Museum is located on the former Holden Lixiviation Works facility on the western edge of the city of Aspen, Colorado, United States. It consists of two remaining buildings from the facility, as well as the relocated McMurchy/Zupancis domestic buildings. In 1990 the property was recognized as a historic district and listed on the National Register of Historic Places, the only district in the city to be so recognized.

<span class="mw-page-title-main">Smuggler Mine</span>

The Smuggler Mine is located on the slopes of Smuggler Mountain, on the north edge of Aspen, Colorado, United States. It is the oldest operating silver mine in the Aspen mining district, and one of the few still operating from Aspen's early boom years. In 1987 it was listed on the National Register of Historic Places.

<span class="mw-page-title-main">Bibliography of Colorado</span> Bibliography of the U.S. State of Colorado

This is a bibliography of the U.S. State of Colorado.

<span class="mw-page-title-main">Augusta Tabor</span>

Augusta Pierce Tabor was the wife of a merchant and miner, Horace Tabor, the first white woman to live in the Idaho Springs mining camp, and a Denver philanthropist. She was inducted into the Colorado Women's Hall of Fame in 1991 for her contributions to social service and philanthropy.

References

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.