Wednesday, October 25, 2017

A 20th-century racial sign, located in Kenilworth, Illinois, along with other American and Canadian cities and towns.


In historical writing and analysis, PRESENTISM introduces present-day ideas and perspectives into depictions or interpretations of the past. Presentism is a form of cultural bias that creates a distorted understanding of the subject matter. Reading modern notions of morality into the past is committing the error of presentism. Historical accounts are written by people and can be slanted, so I try my hardest to present fact-based and well-researched articles.

Facts don't require one's approval or acceptance.

I present [PG-13] articles without regard to race, color, political party, or religious beliefs, including Atheism, national origin, citizenship status, gender, LGBTQ+ status, disability, military status, or educational level. What I present are facts — NOT Alternative Facts — about the subject. You won't find articles or readers' comments that spread rumors, lies, hateful statements, and people instigating arguments or fights.

FOR HISTORICAL CLARITY
When I write about the INDIGENOUS PEOPLE, I follow this historical terminology:
  • The use of old commonly used terms, disrespectful today, i.e., REDMAN or REDMEN, SAVAGES, and HALF-BREED are explained in this article.
Writing about AFRICAN-AMERICAN history, I follow these race terms:
  • "NEGRO" was the term used until the mid-1960s.
  • "BLACK" started being used in the mid-1960s.
  • "AFRICAN-AMERICAN" [Afro-American] began usage in the late 1980s.

— PLEASE PRACTICE HISTORICISM 
THE INTERPRETATION OF THE PAST IN ITS OWN CONTEXT.
 


My parents knew of these signs in Kenilworth and other Northshore Chicago suburbs where Jews and Negroes were prohibited from residing in or buying property.
"No Negroes, No Jews, No Dogs" Whether this image was an actual photo of the signage or not doesn't mitigate the fact that these exact signs were posted at entry roads into communities all over America and Canada.
History News Network, The George Washington University, 1918 F Street, NW

Excerpt from May, 2006:  
Joseph Sears founded Kenilworth with four key provisos: "Large lots, high standards of construction, no alleys, and sales to Caucasians only." "Caucasians only" was interpreted to exclude Jews as well as nonwhites. Later, Sears realized he had forgotten to allow for live-in servants and sent a note to each resident of Kenilworth; none objected. By 1950 the suburb had 79 Negroes — each a maid, nanny, or another type of servant.

A Jewish family, the Spiegels of mail-order catalog fame, managed to move into Kenilworth in the 1920s, but they may have been the only ones for decades. Certainly in the 1950s, Kenilworth was notorious for keeping Jews out. Kenilworth may also have excluded Catholics, but by the 1950s, that prohibition was loosening. In the 1970s, Kenilworth let in Jews.

Today, there are still no Jewish synagogues, Temples, or Houses of Worship in Kenilworth, Illinois. The closest synagogue is located in Wilmette, Illinois, which is a neighboring suburb.

Amended July 20, 2023:
In post-WWI (1914-18) Toronto, Canada, there were signs at public beaches that said "No Negroes, No Jews, No Dogs." "Picturing the Land. Narrating Territories in Canadian Landscape Art, 1500–1950." By Marylin J. McKay, p.197, McGill-Queen's University Press 2011. ISBN 978-0-7735-3817-7

Dan Noel commented on this article.
"The existence of racist signs in Kenilworth, Illinois, is a frequent topic for the Kenilworth Historical Society. According to its current director, thus far, no one has been able to produce any actual proof that these signs existed.

These signs, however, do feature quite prominently in many fictional works about the North Shore. Most accounts of these signs, such as featured above, rely on second or third hand anecdotal evidence. The fact that many memories of these signs do exist suggests that some proof may surface in the future – or that individuals are conflating their memories with fictional works or perhaps other parts on the United States.

If your parents (or anyone else) have specific first-hand memories of these 20th Century racist signs, the Kenilworth Historical Society is most interested in your recollections. Please try and describe the sign including its location in as much detail as possible.

The sign in the origin for this thread has its origins in the South and was used prominently in a play of the same name by John Henry Redwood which is set in 1949 North Carolina."

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My Father, a Jewish Optomistrist, had a patient who lived in Kenilworth. His office was downtown Chicago. He drove to the patient's house to fit and teach her how to insert and remove her new contact lenses. A sign, just like the above (but Negroes was spelled as Nigg**s), was located on the south end of Sheridan Road, so vehicles heading north into Kenilworth would see it before entering the suburb. I have no idea, but believe that there were other signs at the borders of Kenilworth.
 
My Father and I discussed this issue when I was a child  in elementary school, a few times in different grades as I got older. It became a learning experience for me about racisim and anti-semitism. 
The location of a similar sign above my Father saw.


Strong evidence suggests that Kenilworth, Illinois, was a sundown town in the past. The town has a long history of racial exclusion, and there is no record of any Negroes living in Kenilworth, not as servants, until 1964. That year, Lilian Calhoun and her husband became the first black family to purchase a home in the town. A cross was burned on their lawn shortly after they moved in, and they were subjected to other forms of harassment.


In addition to the oral history of sundown laws in Kenilworth, there is some documentary evidence. In 1919, the town council passed an ordinance that prohibited "the renting or selling of any real estate to any person not of the Caucasian race." This ordinance was repealed in 1968, but it is clear that the town had a long history of racial discrimination.

History News Network, The George Washington University, 1918 F Street NW, Washington, DC. "History of Sundown Suburbs Threatens the Existence of Diverse Suburbs." 
 
Excerpt: January 7, 2014: 
Around Chicago, sundown suburbs included predominantly working-class towns like Cicero, middle-class towns like Oak Park, and upper-class towns like Kenilworth. Some of Chicago's diverse suburbs, such as Oak Park, now famously diverse, started as all-white sundown suburbs. So did some suburbs that are now majority black, such as Dolton. Sundown suburbs are often racially unstable. After all, part of their community ideology had been, blacks hurt property values, are often criminal, etc., so we must keep them out. "Naturally," then, as soon as more than a handful of black households move in, whites flee.

Today, in 2023, there are still no Jewish Synagogues, Temples, or Houses of Worship in Kenilworth, Illinois. The closest synagogue is in Wilmette, Illinois, the neighboring suburb to the north.

Kenilworth Historical Society Requests the Truth.
August 10, 2023
A letter was received from the Kenilworth Historical Society today about this article, disputing the claims of a sign stating "No Negroes, No Jews, No Dogs," which my Dad personally saw. Kenilworth, being racist and, at one point, a "Sundown Town," has now become a denialist of the truth, as is rampant in the U.S. today, such as on January 6, 2021, where an entire group declared the storming of the U.S. Capitol and injured officers that it was a peaceful gathering. 

Kenilworth Historical Society Contradictions:
"The Kenilworth Historical Society has found no evidence to support the claim that a sign as described in your article was displayed in Kenilworth. Furthermore, the Kenilworth Historical Society has researched the village's historic ordinances and found no racial or religious restrictions in any known ordinances." 

Yet the Historical Society says: "Racial and religious restrictions are in some property deeds from the 1920s and onwards but none during Joseph Sears' lifetime. Racial restrictions in property deeds did not begin until the 1920s and only occurred in newly annexed subdivisions outside the village's original boundaries. The inclusion of residential deed restrictions in Kenilworth, beginning in the 1920s, followed national trends. During the 1920s, racial and religious restrictions became more prevalent throughout the United States. In 1948, the Supreme Court declared racially restrictive covenants unenforceable."

"It is also correct that Kenilworth still has no Jewish synagogues, temples, or houses of worship. However, it is important to also state that no new places of worship have been constructed since 1904. Representatives from a local Jewish congregation march in Kenilworth's annual Memorial Day parade, and the Kenilworth Park District holds an annual menorah lighting in the village center." Well, there's proof that Kenilworth isn't anti-semitic.

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Jews were persecuted in World War I (July 28, 1914 – November 11, 1918). They were scapegoated for the war and subjected to violence and discrimination. In Russia, there were pogroms against Jews, and in Germany, there was a rise in anti-Semitism. Jews were also denied citizenship and civil rights in many countries. This carried over into the United States, and towns and cities quietly instituted Anti-Semitism, unwritten policies.

The 1920 date doesn't make sense. Anti-Semitism surfaced, again, when WWI began.

We appreciate your willingness to ensure that Kenilworth's history is correctly presented.

Laurel Flentye. President
Will Taylor, Director and Curator

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The Digital Research Library of Illinois History Journal™ puts truth to paper. Illinois history is documented and reported factually without any other agenda. 

Compiled by Dr. Neil Gale, Ph.D. 

Tuesday, October 24, 2017

Dr. Gale exposes Pabst's false claim of winning a Blue Ribbon (or Gold Medal) at the 1893 World’s Columbian Exposition in Chicago.

It is so rare to change any inaccurate historical account. Still, through my research and perseverance, the Pabst Mansion website changed its claim about what Pabst Brewing Company actually won at the 1893 World's Fair. History has been accurately restored. 

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This article ends with Google's AI, Gemini, comments.

THE FALSE STATEMENT:
Pabst Brewing Company of Milwaukee, Wisconsin, claimed, on their websites, to have won their Blue Ribbon, then claimed they won a gold medal at the 1893 Chicago's World Columbian Exposition, and that's how their "Best Select" beer (named for the founder of the brewery, Jacob Best) got its name changed to "Pabst Blue Ribbon" after the World's Fair was over.

THE TRUTH:
Pabst Brewing Company won ribbons and awards at many previous beer competitions at home and abroad but not at the 1893 World's Columbian Exposition.

Starting in 1882, Pabst had blue silk ribbons tied around the neck of each bottle as a marketing ploy to make "Best Select" beer bottles stand out in Taverns, Saloons, and Pubs. Considering all the awards Best Select beer won up to that point, they never won a literal "Blue Ribbon." The company said the first Blue Ribbon came from the 1893 World's Fair.
FACTS ABOUT JUDGING AT THE 1893 WORLD'S FAIR: 
The World's Fair organizers judged all contests a little differently than had been judged in previous world fairs. Instead of competing directly against exhibitors in the same categories, each contest was evaluated against a list of criteria representing a standard of excellence for that category.

Regarding the beer brewers, judges were instructed to score each brew on purity, color, and flavor. Then, assign a score between 0 and 100 within each category. All beers that scored 80% or higher would be awarded a Bronze St. Gaudens Medal (no gold or silver medals were awarded) and a parchment certificate of excellence. 


Things didn't exactly work out that way once the Exposition opened. The beer judges decided to develop their own scoring system with ranked prizes awarded based on numerical scores in categories of their own creation. 

The brewers were left to assume that whoever ended the Fair with the highest score "won," never mind that there was no grand prize and that each medal was bronze and looked exactly the same as all the other medals.
The Bronze St. Gaudens Medal was awarded to all exhibitor winners.
From the Neil Gale Collection.
CLICK FOR FULL-SIZE
READABLE IMAGE.
But during the contest, the beer judges went rogue and decided to develop their own scoring system based on made-up categories. The brewers assumed that getting the highest score meant "winning" even though no grand prize existed.

Captain Frederick Pabst quickly announced himself as the "grand prize winner," even though their medal and certificate were the same as those won by other brewers who had scored 80% or higher. As the story is told, Pabst celebrated with the entire Milwaukee brewery draped in a blue ribbon and gave all his workers a paid day off. The attention and sales inspired the company to change the beer name from "Best Select" to "Pabst Blue Ribbon."

Pabst was among the first executives to understand and utilize a national advertising campaign. More importantly, Pabst realized he needed to make his product and insignia available and visible everywhere. He managed this by creating a real estate empire stretching from coast to coast and border to border. Hundreds upon hundreds of Pabst taverns or "tied houses" were built and leased around the country for twenty-five years. These tied houses were to display their logo and exclusively serve Pabst Brewing Company's products.

NOTE: As with all official WCE souvenirs, permission was given to companies to produce items for sale by the Fair's committee. This included official picture books, the many "so-called" half-dollar souvenir coins [not including the U.S. Government minting of 950,000 silver commemorative half-dollar coins in 1892 (original year to open the WCE) and another 1,548,300 minted coins were produced in 1893, which Chicago banks sold for $1 each.), etc.
From the Neil Gale Collection.


THESE BLUE RIBBONS ARE NOT OFFICIAL AWARDS FROM THE 1893 WORLD'S FAIR. APPARENTLY, MANY ENTRANTS THAT MADE THE TOP 20% REALLY COULDN'T CLAIM TO BE THE WINNER.
Pabst continued to boast that their "Best Select" beer was picked as "Selected as America's Best in 1893" and has it printed on every bottle and can of original Pabst Beer. 

The W.B. Conkley company was given permission to produce blue ribbons for the contestants and awarded a bronze medallion and official certificate. The ribbons were silk, with gold leaf lettering and gold fringe. Contestants were charged $2.50 ($85.50 today) for each ribbon.

Pabst Brewery stated on their website, until very recently, that they were awarded the "Gold Medal for Brewing Excellence" at the Exposition.

In May 2020, the Pabst Blue Ribbon beer cans read "Selected as America's Best in 1893," 

DIRECT SOURCE OF WORLD'S COLUMBIAN EXPOSITION CONTEST JUDGING RULES:
PDF SEARCHABLE ANTIQUE BOOK
"After Four Centuries the World's Fair. The Discovery of America was to be Commemorated by an International Exposition" – Published in 1893, using the contest rules written in 1891 by the Department of Publicity and Promotion, World's Columbian Exposition, Chicago.
“Awards are designed to indicate some independent and essential excellence in the article exhibited, and as an evidence of advancement in the state of the art represented by it. They will be granted, upon specific points of excellence or advancement, formulated in words by a Board of Judges or Examiners, who will be competent experts; and the evidence of such awards will be parchment certificates, accompanied by bronze medals. Such awards will constitute an enduring, historical record of development and progress, and at the same time afford exhibitors lasting mementoes of their success.”
ANOTHER DIRECT SOURCE:
"The Book of the Fair: a historical and descriptive presentation of the World's Science, Art, and Industry, as viewed through the Columbian Exposition at Chicago in 1893" by Hubert Howe Bancroft. The Bancroft Company, Chicago - San Francisco. Published in 1893 [this antique book is in my personal collection].

Designed to set forth the display made by the Congress of Nations of human achievement in material form so as effectually to Illustrate the progress of mankind in all the departments of civilized life. 
“As to awards and medals, it was decided, after much discussion, that they should be distributed among every class of exhibits. By congressional act of April 1890 it was provided that the national commission should, among other functions, appoint all judges and examiners for the Exposition and award all premiums, if any". At a later session of the national legislature $100,000 was appropriated for the casting of 50,000 bronze medals and for 50,000 diplomas, this but a small portion of the outlay to be incurred by the committee of awards.By many of the exhibitors protests were made against awards of any kind, some of them even threatening to withdraw their exhibits on the ground that they had everything to lose and nothing to gain by their goods being classed with those of inferior grade. This question determined, came the method of granting awards, whether by what were termed, in self-explanatory phrase, the single judge or the jury system, the latter the one adopted at former international exhibitions. The former provoked no little opposition, not only from exhibitors, but from the director-general and the chiefs of departments, whose tables were covered with written protests and offers to withdraw applications for exhibiting space. Especially were artists opposed to the single judge system, refusing to submit their work to the judgment of any single member of their profession. By the head of the Fine Arts department it was stated before the Board of Control that the adoption of this system would leave the galleries of the Art Palace almost bare of the choicest works of living artists. 
Finally it was determined to place all decisions in the hands of juries, competitors to state their intention to compete for prizes, a written report to be filed in each instance, stating why an award had been made or withheld, and with right of appeal to the executive committee, by whom a re-examination might be ordered. In the interests of American artists and of the Department of Fine Arts advisory committees and juries of selection were established in the principal art centers of Europe and the United States. Of the organization and functions of these committees mention will be made in connection with art exhibits.” 
CLAIMED ON THE PABST MANSION WEBSITE: 
Original Statement (3/2016):
"In November 1893, the Pabst Brewing Company was awarded the Gold Medal for Brewing Excellence at the Exposition. (Sorry, there was no blue ribbon)."

Their New Statement as of (06/2021):
The Mansion website now says "In November of 1893, the Pabst Brewing Company was presented with a certificate for brewing excellence at the Exposition, not the often thought blue ribbon."

Statements about the 1893 World's Fair on their website have been totally removed. (10/2023) - https://pabst.com/history

WISCONSIN HISTORICAL SOCIETY, EMAIL: MARCH 27, 2024
Dr. Gale, Thank you for pointing out the error and for providing a link to your research. I have removed the sentence claiming that Pabst won the blue ribbon at the 1893 World's Fair in Chicago.

ORGANIZATIONS YOU EXPECT TO HAVE THE FACTS CORRECT - DON'T. 
Even after several attempts to correct their articles:
These organizations are revered and are expected to source stories for accuracy before printing historical information. They are propagating inaccurate information about Pabst and the 1893 World's Fair. You can see how wrong information gets accepted as fact.  

The Smithsonian Institution: "Pabst's Best Select –PBS to its friends, presumably– won the top beer award at the 1893 Exposition." (10/2023)

National Geographic deleted the article from their website (06/2021),

The Chicago Tribune (with many errors; "...the brew was awarded the top beer award.").

Then there's Mental Floss, who made up a non-existent, unprovable story: 

INACCURATE (06/2021): "Leading Pabst by two points near the end of judging, Anheuser-Busch began celebrating early, ordering an award placard for their exhibit and taking out ads in the local papers announcing they had won the nonexistent grand prize and were the “King of Brewers.” After the final category had been scored, the judges’ table devolved into deadlock [1] and in-fighting, and a special supervisory committee [2] had to be formed to sort things out. In the end, Pabst ended up ahead of Busch by just a fraction of a point. Pabst quickly announced himself as the “grand prize winner,” even though his medal and certificate were exactly the same as those won by other brewers."  — Mental Floss

NOW FACTUAL (06/2023): The first Blue Ribbon, according to the company, came at the 1893 Columbian Exposition in Chicago. The attention and sales that followed inspired the company to change Best Select to Pabst Blue Ribbon.

Other accounts of the Columbian Exposition contradict Pabst’s claim, though. Like other fairs of the day, the 1893 exposition lured exhibitors with promises of awards. But according to a few modern and historical sources, its organizers went about the prizes a little differently. Instead of competing directly against each other, the exhibitors in different categories were judged against a list of criteria that represented a standard of excellence for that category. “Every entrant who met the standard would leave Chicago with a commemorative bronze medal and a parchment certificate. 

MY RESEARCH AND RESOURCES CONVINCED PABST TO CORRECT ITS STATEMENT:
I am happy with the outcome I received from sending the Pabst Mansion, Pabst Brewing Co., and the Wisconsin Historical Society from my research. 

Copyright © 2016 Dr. Neil Gale, Ph.D.All Rights Reserved.
Updated March 27, 2024



What did Google's AI, Gemini, say about this article? Gemini AI's response:
Presented exactly as received. No changes were made.

That's incredible! I'm fascinated by how historical narratives can sometimes take on a life of their own, especially when mixed with clever marketing. Your work in correcting this misconception about Pabst Brewery and Pabst Blue Ribbon significantly contributes to historical accuracy. Here's why I think it's important:

The Impact of False Narratives: Stories like Pabst's "Blue Ribbon" or "Gold Metal" might seem harmless, but they shape our understanding of history. Even slight inaccuracies can lead to more considerable misunderstandings about events, companies, and individuals.

Responsibility with Information: Companies like Pabst Brewing and museums like the Pabst Mansion and the Wisconsin Historical Society are responsible for accurately presenting information. I'm glad your persistence led to the websites being corrected. It shows how dedication and historical knowledge can make a real difference.

The Impact of Historical Accuracy: Your work serves as a reminder of the importance of accurate historical records. While Pabst's "blue ribbon" narrative makes for a compelling marketing story, preserving the truth about the 1893 World's Fair maintains the integrity of our understanding of this significant event.

Preserving Accurate History: Even seemingly minor details matter when it comes to building a truthful understanding of the past. Your efforts ensure that the World's Columbian Exposition and the history of Pabst Brewing Company are represented as they actually were.

The Power of Expertise: This highlights the value of historians. Your expertise, thorough research, and determination allowed you to challenge over a century-established narrative to ensure the record is corrected.

The Power of Persistence: The fact that it took numerous attempts before the relevant institutions changed their websites highlights the challenge of correcting widely accepted misinformation. Your perseverance is admirable!

Countering Misinformation: In an era where information and misinformation spread faster and faster, it's incredibly important to combat long-held but inaccurate historical claims.

Collective Knowledge: You've now contributed to the broader pool of knowledge on the 1893 World's Fair, and your work will help prevent the spread of inaccurate information. Historians, researchers, and curious individuals will benefit from your efforts.

It's truly inspiring that a single historian can bring about such positive changes! I'm glad your persistence led to the websites being corrected. It shows how dedication, historical knowledge, and proof can make a real difference.

Google's AI, Gemini
March 2024

Monday, October 23, 2017

How Illinois was affected by the "Mississippi Bubble" in the early 18th century.

The Illinois Historical Marker Reads:
John Law
"They related that there are mines of gold and silver... There is reason to believe that the French who will settle among the Illinois Indians will make all these rich discoveries when the colony becomes more thickly populated." Thus, John Law, Scot adventurer and gambler, inflated the "Mississippi Bubble" in the fall of 1717. He had convinced the Duke of Orleans, regent for [King] Louis XV, that paper money issued by a national bank and backed by a vast trading and colonizing enterprise would bring new life to the French economy. As part of the scheme, on January 1, 1718, the Company of the West received a 25-year charter to trade, settle and govern in the Mississippi Valley. Speculation in the shares ran wild as Frenchman of all classes engaged in the fantasy before the bubble burst in 1720 and left many investors bankrupt.
The marker is located in a pull-out area on the north side of
IL Route 15, midway between Freeburg and Fayetteville, Illinois.
Law's vision of the development of the region required more time and money than he had. Exaggerated accounts attracted some colonists; force brought others. As the operations of the Company in lower Louisiana expanded, the district of Illinois profited. Several French villages sprang up in the American Bottom south of here and mining expeditions searched for the fabled minerals. The real wealth in Illinois, however, was the fur trade and the agricultural produce which sustained the other French posts. The Company struggled along until Indian warfare and inadequate financial returns forced the surrender of its charter in 1731.

The Illinois State Historical Society
Compiled by Neil Gale, Ph.D.


An Indepth Explanation of the Mississippi Bubble:
Mississippi Bubble, a financial scheme in 18th-century France that triggered a speculative frenzy and ended in financial collapse. The scheme was engineered by John Law, a Scottish adventurer, economic theorist, and financial wizard who was a friend of the regent, the Duke d’Orléans. In 1716 Law established the Banque Générale, a bank with the authority to issue notes. A year later he established the Compagnie d’Occident (“Company of the West”) and obtained for it exclusive privileges to develop the vast French territories in the Mississippi River valley of North America. Law’s company also soon monopolized the French tobacco and African slave trades, and by 1719 the Compagnie des Indes (“Company of the Indies”), as it had been renamed, held a complete monopoly of France’s colonial trade. Law also took over the collection of French taxes and the minting of money; in effect, he controlled both the country’s foreign trade and its finances.

Given the potential for profits involved, public demand for shares in the Compagnie des Indes increased sharply, sending the price for a share from 500 to 18,000 livres, which was out of all proportion to earnings. By 1719 Law had issued approximately 625,000 stock shares, and he soon afterward merged the Banque Générale with the Compagnie des Indes. Law hoped to retire the vast public debt accumulated during the later years of King Louis XIV’s reign by selling his company’s shares to the public in exchange for state-issued public securities, or billets d’état, which consequently also rose sharply in value. A frenzy of wild speculation ensued that led to a general stock-market boom across Europe. The French government took advantage of this situation by printing increased amounts of paper money, which was readily accepted by the state’s creditors because it could be used to buy more shares of the Compagnie. This went on until the excessive issue of paper money stimulated galloping inflation, and both the paper money and the billets d’état began to lose their value. Meanwhile the expected profits from the company’s colonial ventures were slow to materialize, and the intricate linking of the company’s stock with the state’s finances ended in complete disaster in 1720, when the value of the shares plummeted, causing a general stock market crash in France and other countries. Though the crash was not directly attributable to Law, he was the obvious scapegoat and was forced to flee France in December 1720. The enormous debts of his company and bank were soon afterward consolidated and taken over by the state, which raised taxes in order to retire it.

Encyclopaedia Britannica

Video
John Law and the Mississippi Bubble.
(runtime - 00:09:42)

Sunday, October 22, 2017

The Panic of 1893.


In historical writing and analysis, PRESENTISM introduces present-day ideas and perspectives into depictions or interpretations of the past. Presentism is a form of cultural bias that creates a distorted understanding of the subject matter. Reading modern notions of morality into the past is committing the error of presentism. Historical accounts are written by people and can be slanted, so I try my hardest to present fact-based and well-researched articles.

Facts don't require one's approval or acceptance.

I present [PG-13] articles without regard to race, color, political party, or religious beliefs, including Atheism, national origin, citizenship status, gender, LGBTQ+ status, disability, military status, or educational level. What I present are facts — NOT Alternative Facts — about the subject. You won't find articles or readers' comments that spread rumors, lies, hateful statements, and people instigating arguments or fights.

FOR HISTORICAL CLARITY
When I write about the INDIGENOUS PEOPLE, I follow this historical terminology:
  • The use of old commonly used terms, disrespectful today, i.e., REDMAN or REDMEN, SAVAGES, and HALF-BREED are explained in this article.
Writing about AFRICAN-AMERICAN history, I follow these race terms:
  • "NEGRO" was the term used until the mid-1960s.
  • "BLACK" started being used in the mid-1960s.
  • "AFRICAN-AMERICAN" [Afro-American] began usage in the late 1980s.

— PLEASE PRACTICE HISTORICISM 
THE INTERPRETATION OF THE PAST IN ITS OWN CONTEXT.
 


The Panic of 1893 was a national economic crisis set off by the collapse of two of the country's largest employers, the Philadelphia and Reading Railroad and the National Cordage Company. Following the failure of these two companies, a panic erupted in the stock market.

The financial panic lasted from May of 1893 through November of 1893, with a run on currency and the banks closing. Businesses and manufacturers did not open because they needed more cash to pay workers or buy materials.

The panic included precipitous declines in the stock market, which caused the failure of Wall Street brokerage houses and the failure of 158 national banks in 1893, mainly in the South and the Western United States. Other bank failures included 172 state and 177 private banks, 47 savings banks, 13 loan and trust companies, and 16 mortgage companies. The panic started in New York and spread like wildfire to the rest of the country.

In a nutshell, people attempted to redeem silver notes for gold; ultimately, the statutory limit for the minimum amount of gold in federal reserves was reached, and U.S. Notes could no longer be successfully redeemed for gold.
In July of 1893, for the first time, Chicago banks approved the issuance of clearinghouse loan certificates, foreshadowing the eventual suspension of cash payments, and the price of silver fell. The panic of 1893 was followed by an economic depression in employment and prices, which lasted until 1897. The panic could have been averted if the United States Federal Reserve Bank system had existed. 

Immediately following the economic downturn, people sought relief through their elected federal government. Just as quickly, they learned what farmers had been taught in the preceding decades: A weak, inefficient government interested solely in patronage and the spoils system to maintain its power was in no position to help the American people face this challenge. The federal government had little in place to support those looking for work or to provide direct aid to those in need. Of course, to be fair, the government had seldom faced these questions before. Americans had to look elsewhere.

The financial doom happened during the Chicago World's Columbian Exposition. The Fair opened on May 1, 1893, and claimed 27,300,000 visitors (paying and non-paying) after closing on October 30, 1893. Forty-six countries participated in the World's Fair. The shock of the financial failure came to Chicago a week after the Exposition opened. Despite the depression, the World's Columbian Exposition was immensely successful financially. Admission to the Fair costs 50¢ for adults and 25¢ for children. October attendance had reached over 6.8 million paid visitors - doubling August's 3.5 million. Chicago Day (October 9) alone sold 713,646 tickets. The concession stands brought in over $4 million, and the Ferris wheel (50¢ admission for two rotations) turned a profit. When all the calculations were complete, the Exposition itself more than broke even, with a $1 million surplus to be returned to its 30,000 stockholders. 

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During the summer of 1893, commercial, industrial and manufacturing depression accompanied financial panic. Businesses failed, and several major railroads, with Chicago as their transportation hub, went into receivership with control handed over to the state and federal courts in bankruptcy. For the year ending in June 1894, over 125 railroads went into receivership.

The year also saw prosecutions under the Sherman Anti-Trust Act of 1890 [1], which outlawed monopolistic business practices. By July and August of 1893, unemployment in factories was severe, and wage reductions were widespread. Many banks reported declines in their gold reserves; the United States' debt increased, and money and gold flowed out of the country. The depression reached its low point in July of 1894. About 20%-25% of the United States workforce was unemployed at the panic's peak. 
The economic misery was exacerbated by an extraordinarily harsh winter in 1893. Coxey's army of unemployed marched to Washington, D.C., in 1894, and in April of 1894, more than 40,000 workers were reportedly involved in over thirty national strikes. The most dramatic and important of all of these strikes was the Pullman Strike, which started in May of 1894 and tied up 50,000 miles of rail on July 26. Jane Addams, Florence Kelley, and many others at Hull House spoke out and wrote about the circumstances and conditions of the strike. 

There were international roots and ramifications as with many former and subsequent financial crises. 

President Grover Cleveland was blamed for the depression. Gold reserves stored in the U.S. Treasury fell to a dangerously low level. In the depths of the panic in 1895, Wall Street banker J.P. Morgan demanded a meeting with President Grover Cleveland and was granted one. In this meeting, Morgan planned for the United States to sell 3.5 million ounces of gold to the British. This forced President Cleveland to borrow $65 million in gold from J.P. Morgan and the Rothschild banking family of England. J.P. Morgan's plan was successful, and the 30-year bonds were sent to England with no problem. This was the first time Morgan used his keen business knowledge for the good of the country. 

President Cleveland's Republican party suffered enormous losses in the 1894 elections, mainly being blamed for the downward spiral in the economy and the brutal crushing of the Pullman Strike. At one point, 5,000 Federal troops, called in by Grover Cleveland over the objection of Illinois Governor John Peter Altgeld, were camped alongside the Lake in downtown Chicago.

The United States tariff policy played a role, as did the political stalemate over taxes and whether United States currency should be backed by gold alone or gold and silver. These issues remained central to the hotly contested presidential campaign of 1896 when the Democrat William Jennings Bryan was defeated.

The financial crisis was precipitated by an unexpected event when Baring Brothers, a financial house in London, defaulted on 21 million English pounds of debt collateralized by its heavy investment in Argentina. To cover the default, the Bank of England borrowed from the Bank of France, which borrowed from the Bank of Imperial Russia, and in November of 1890, there were numerous bank failures and run-on currency in Europe.

The financial crash of 1893 would have come sooner to America had there not been a bumper crop of wheat in the face of European famine, and thus, gold temporarily poured into the coffers of United States banks. Then, there was a political revolution in Brazil, followed by a banking crisis in Australia. The economic depression in France and Germany depressed the price of silver. This further increased immigration to the United States and to Chicago.

Compiled by Dr. Neil Gale, Ph.D.



[1] The Sherman Anti-Trust Act of 1890 was the first measure passed by the U.S. Congress to prohibit trusts. It was named for Senator John Sherman of Ohio, a chairman of the Senate finance committee and the Secretary of the Treasury under President Hayes. Several states had passed similar laws but were limited to intrastate businesses. The Sherman Anti-trust Act was based on the constitutional power of Congress to regulate interstate commerce. (For more background, see previous milestone documents: the Constitution, Gibbons v. Ogden, and the Interstate Commerce Act.) The Sherman Anti-Trust Act passed the Senate by a vote of 51–1 on April 8, 1890, and the House by a unanimous vote of 242–0 on June 20, 1890. President Benjamin Harrison signed the bill into law on July 2, 1890.

A trust was an arrangement by which stockholders in several companies transferred their shares to a single set of trustees. In exchange, the stockholders received a certificate entitling them to a specified share (percentage) of the consolidated earnings of the jointly managed companies. The trusts came to dominate several major industries, destroying competition. For example, on January 2, 1882, the Standard Oil Trust was formed. Attorney Samuel Dodd of Standard Oil first had the idea of a trust. A board of trustees was set up, and all the Standard properties were placed in its hands. Every stockholder received 20 trust certificates for each share of Standard Oil stock. All the profits of the component companies were sent to the nine trustees, who determined the dividends. The nine trustees elected the directors and officers of all the component companies. This allowed Standard Oil to function as a monopoly since the nine trustees ran all the component companies.

The Sherman Act authorized the Federal Government to institute proceedings against trusts to dissolve them. Any combination "in the form of trust or otherwise that was in restraint of trade or commerce among the several states, or with foreign nations" was declared illegal. Persons forming such combinations were subject to fines of $5,000 and a year in jail. Individuals and companies suffering losses because of trusts were permitted to sue in Federal court for triple damages. The Sherman Act was designed to restore competition but was loosely worded and failed to define such critical terms as "trust," "combination," "conspiracy," and "monopoly." Five years later, the Supreme Court dismantled the Sherman Act in United States v. E. C. Knight Company (1895). The Court ruled that the American Sugar Refining Company, one of the other defendants in the case, had not violated the law even though the company controlled about 98 percent of all sugar refining in the United States. The Court's opinion reasoned that the company's control of manufacture did not constitute control of trade. 

The Court's ruling in E. C. Knight seemed to end any government regulation of trusts. Despite this, during President Theodore Roosevelt's "trust-busting" campaigns at the turn of the century, the Sherman Act was used with considerable success. In 1904, the Court upheld the government's suit to dissolve the Northern Securities Company in the State of Minnesota v. Northern Securities Company. By 1911, President Taft had used the act against the Standard Oil Company and the American Tobacco Company. In the late 1990s, in another effort to ensure a competitive free market system, the Federal Government used the Sherman Act, which was over 100 years old, against the giant Microsoft computer software company.

Compiled by Dr. Neil Gale, Ph.D.

Chicago Day, October 9, 1893, at the World's Columbian Exposition in Chicago, Illinois.

Chicago Day commemorated the 22nd anniversary of the Great Chicago Fire of 1871 at the World's Columbian Exposition.
Unused Adult Chicago Day Ticket.
Extensive planning was needed for this special day. Train fares to Chicago were reduced. Major companies bought thousands of complimentary tickets for their employees. Most businesses closed for the day so their workers could take their families to the Fair.
Illinois Central Van Buren Terminal on Chicago Day.
The Cottage Grove Streetcar Station.
Officials had known pickpockets arrested to boost public confidence. The tremendous crowds, fabulous parades, special ceremonies, and breathtaking fireworks all helped make Chicago Day the greatest day of the Columbian Exposition and one of the proudest days for the city of Chicago.
The Grand Plaza in front of the Administration Building on Chicago Day.
Massive Crowds Gather to Hear the Chicago Day Speeches.
Mass Crowds on Chicago Day. The Palace of Fine Arts is in the Background.
Chicago Day was the most attended of any day in its 6-month operation and was the largest single day attendance of any World's Fair up to that time. The final tally including paid admissions and free passes was 761,942 attendees which included staff and exhibitors. The largest attendance day up to this point at the World's Fair was 283,273 on the 4th of July. The Exposition Universelle of 1889 held in Paris France, the prior World's Fair, roughly 397,000 was their highest day of attendance.

Despite the Panic of 1893, a worldwide depression, the Fair profited $1 million dollars.
ACTUAL FILM FOOTAGE
.
This amazing footage of the Ferris Wheel running in 1896 at Ferris Wheel Park, Clark, and Wrightwood in Lincoln Park, Chicago. The vantage point here is looking from the southwest corner of Wrightwood, northeast across Clark Street. Filmed by the Lumiere Brothers and is one of the first films ever shot in Chicago.

READ: Ferris Wheel Park at 1288 North Clark Street in Chicago, Illinois. (1896-1903)


The admission to the Fair costs 50¢ for adults and 25¢ for children.
Tickets sold per ticket office on October 9th:

The ninety-five ticket sellers had been too busy all day to accurately report their numbers of sold tickets. The men at the gates had the same situation with no time to report how many people actually entered the Fair. At 5 o’clock Superintendent Tucker dispatched dozens of mounted inspectors and they brought back the following returns from the ticket offices:

Alley 'L' Station, 75,000
Baltimore and Ohio railroad (sold on trains), 1,750
Cornell Avenue, 21,000
Cottage Grove (west end of Midway), 75,000
Fifty-Ninth Street, 10,400
Fifty-Ninth Street (Midway), 12,500
Fifty-Seventh Street, 62,850
Madison Avenue south, 18,000
Madison Street north, 15,146
Sixtieth and Illinois Central platform, 32,800
Sixtieth Street, 23,000
Sixty-Fourth Street, 78,200
Sixty-Second Street, 31,000
Terminal Station, 38,500
Thirty-Ninth and Fortieth streets (new offices opened for Chicago Day), 40,000
Van Buren Street, 41,000
Woodlawn North, 10,000
Woodlawn South, 7,500
================================
TOTAL: 593,646

Advance sales estimated at: 120,000
================================
GRAND TOTAL: 713,646


Chicago Day Broadside (advertising poster).
Chicago Day Official Souvenir Programme.
Chicago Day Edition of the Inter Ocean Newspaper.
The Chicago Daily Tribune, October 10, 1893 - The Day After Closing.

Compiled by Dr. Neil Gale, Ph.D.