Denver Depression of 1893 facts for kids

The Denver Depression of 1893 was a tough economic time in Denver, Colorado. It started in 1893 because the price of silver dropped a lot, and it lasted for several years. This period brought many challenges to the city and its people.

Why the Depression Happened

Before 1873, the U.S. used both gold and silver for money. But in 1873, Congress decided to use only gold as the main money standard. Even so, Denver grew very fast in the late 1800s. This was thanks to many new silver mines. Also, laws like the Bland–Allison Act (1878) and the Sherman Silver Purchase Act (1890) made the U.S. government buy millions of ounces of silver each year.

Many people in Colorado depended on the mining industry. Miners and farmers in the West liked silver because it helped them pay off debts. But bankers in the East worried that too much silver would make gold-based money less valuable.

In 1893, President Grover Cleveland stopped the Sherman Silver Purchase Act. This made silver prices fall sharply. More silver was also found in places like Leadville and the San Juan Mountains. This extra silver made prices drop even more.

Denver was already struggling. Several years of dry weather and harsh winters had hurt farming. These problems, along with less money from foreign investors and too many silver mines, caused Denver's first big economic downturn.

How the Depression Affected People

When the silver market crashed in 1893, the price of silver fell quickly. Mining companies cut workers' pay. Many mines then closed because silver prices kept dropping. This meant lots of miners and other workers from the Colorado mountains lost their jobs. They came to Denver hoping to find work.

On July 12, 1893, politicians who supported silver met in Denver. They wanted to stop the repeal of the Sherman Silver Act, but it was too late. People started taking their money out of banks in a panic. This caused many banks to close. At that time, there was no federal insurance to protect money in banks. So, many people in the West lost all their savings. As Denver banks closed, property values dropped. Factories that processed silver stopped working. Even the city's streetcars had trouble getting people to ride and pay.

Help for Those in Need

The unemployed miners and workers found no jobs or much help in Denver. Rescue groups first offered tents and food. But they could not help everyone. Soon, they could only provide for women and children. The People's Tabernacle was a large effort that helped the sick. They offered free medicine, winter clothes, and a free bathhouse. They also had sewing classes and shelter for the homeless. But they also had to limit help to people who had lived in the city for more than 60 days.

The depression also made existing problems worse. For example, the American Protective Association (APA) helped Protestants find jobs. They sometimes did this by firing Catholics. About 10,000 Denver residents joined the APA after the depression began.

Some groups started community gardens to help with food shortages. By the fall of 1893, a "tent city" appeared at Riverfront Park along the South Platte River. The chamber of commerce gave wood to the homeless in the tent city. They hoped people would build rafts and leave. Some desperate people, known as Coxeyites, left their rafts in La Salle. They then took a train to Julesburg, where they were stopped.

By September 1893, a report said that 377 businesses had failed. Also, 435 mines had closed, and 45,000 people were out of work.

Leaving Denver

Because Denver could not help all the jobless people, some train companies offered cheaper or free tickets. This helped people leave Denver. For example, one railroad lowered fares to $6 for the trip from Denver to the Missouri River. This led to many people leaving the city. Denver's population dropped from 106,000 in 1890 to 90,000 in 1895.

Building During Hard Times

The only big project that kept going during the depression was the building of the Colorado State Capitol. This construction gave jobs to many people. It helped those working on the building itself. It also helped mines that provided the marble used for flooring. Governor Davis Waite wanted to use local materials as much as possible to create jobs for Coloradans.

In 1895, the Chamber of Commerce started the Festival of Mountain and Plain. This event was meant to cheer people up, like New Orleans' Mardi Gras. During the festival, people marched inside a long silver serpent. This celebrated the city's silver history. Stores had sales, and tourists could take pictures of Ute Indians and see Broadway shows.

Politics During the Depression

The economic crash made many people unhappy with the Republican Party. The Republicans had supported the gold standard, which many blamed for the silver industry's collapse. Because of this, the Populist political party easily won control of the Colorado state government in 1893. Davis Hanson Waite became the governor.

Governor Waite tried to fix problems in Denver in 1894. He wanted to remove police and fire commissioners he thought were protecting criminals. Some officials, including a well-known figure named Soapy Smith, barricaded themselves in city hall. Soldiers were sent to remove them. The Colorado Supreme Court eventually ruled that the governor could remove the commissioners.

Waite also suggested that Colorado should make its own money. He wanted the state to buy silver and send it to Mexico to be made into "Fandango Dollars." However, the public did not like this idea. In 1894, Albert Washington McIntire defeated Waite for governor.

Famous People Affected

Many well-known people in Colorado faced hard times because of the Denver Depression of 1893:

• Henry Brown, who owned the Brown Palace Hotel, spent his last years trying to keep his hotel from being taken by people he owed money to.
• John Evans lost his ownership of the Railroad Building.
• Horace Tabor lost all his money when silver prices fell. He had once been very rich from Colorado mines and owned many mines and properties. He was only saved from being poor in 1898 when he became Postmaster, a job he held until he died in 1899.
• Baby Doe Tabor, Horace Tabor's wife, lived about thirty years after her husband. She never got over losing the family's fortune. She eventually froze to death in a small cabin near one of the Tabors' famous silver mines.
• William Lang, who designed the Molly Brown House, died after being hit by a train in Illinois.
• Francis Schlatter became famous in 1895. He was seen as a "Christ-like figure" and supposedly performed many free miracles. Thousands of people lined the streets to be touched by him. Schlatter disappeared in November 1895, leaving a note saying his mission was finished.