USA > Illinois > Cook County > Chicago > Fergus' directory of the city of Chicago, 1839 > Part 7
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The year 1837 is especially memorable in the annals of Chicago as the period of protested notes. It was during this year that the consequences of speculation, (?) which had hitherto operated most favorably for the west, were experienced to a most ruinous extent. Chicago was intimately connected with speculation through all its progress. It was in its incipient stages at the period of the commencement of the city, but a disposition and tendency to it was apparent even then. It raged with great violence during '35-6, and a portion of '37, at which time it gave color and di- rection to most business transactions.
The history of this singular delusion is replete with instructive incidents. It seems unaccountable to the more sober judgment of these times how men, under any circumstances, could have been led so far astray- how prudence, foresight, and sagacity could, to such an extent, have lost their dominion and control over the human mind. But so it was. The rapid and unprecedented rise in the value of real estate, and the certainty of that rise, exerted a most seductive influence; very few were found able to resist the temptation ; all classes of people, ultimately abandoning the usual avocations of society, devoted themselves exclusively to speculation, and hazarded their all upon this sea of chance. This wild spirit found its way ultimately into the halls of legislation, and controlled the conduct and policy of states, as it had done that of individuals. It was under the influence of this spirit that those stupendous schemes of internal im- provement originated in many of the new states, which have entailed upon subsequent times the evils of debt, taxation, and, in some cases, national disgrace and dishonor. - Speculation led, in short, to the perpetration, on all hands, of acts of folly and absurdity seldom before heard of. The sources of wealth being regarded as inexhaustible, naturally created ex- travagant ideas of prosperity, and afforded to all the apparent means of indulging in every species of expenditure. It would be useless to follow speculation through its stages, as one act of absurdity succeeded another in rapid succession .- Are not these times and their consequences written 'in effaceless characters upon the memory of every reader?
But the day of wrath and retribution was at hand. Confidence and credit, too long abused, refused any longer to lend their aid. The un- fortunate victims of the delusion were suddenly awakened from their dream of wealth to the certainty of almost universal bankruptcy and ruin. Thousands, suddenly called upon to investigate the condition of their affairs, which, in the excitement of the moment, no one thought it neces- sary to attend to, found themselves involved to the extent of thousands and hundreds of thousands of dollars, and their real estate, from which alone the means of payment could come, depreciated in value-in fact, unsaleable at any price. Thousands, from affluence, were reduced, without warning or preparation, to poverty; some struggled for a time with their destiny, but the evil day came at last ; and scarcely one, ultimately, sur- vived the catastrophe. The comparatively small number of those who
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did finally escape the ordeal, it has been observed were indebted more to chance and good luck than to any unusual endowment of prudence and sagacity. The ablest business men of the age-those in whose judgment and capacity in ordinary times we should unhesitatingly repose the most implicit confidence, ventured as far and hazarded as much as any in this dangerous game.
To Chicago, in an especial degree, was the stroke which was thus inflicted upon the business interests of the country injurious and calam- tious. It was to her a season of mourning and desolation. Many of her most business and enterprising citizens were insolvent-all, to a greater or less extent, embarrassed in their circumstances. She had gone on hither- to in a state of uninterrupted prosperity-nothing had thus far occurred to check the progress of improvement. Could that state of prosperity have continued, Chicago would, by this time have ranked among the proudest cities of the land. But calamity came suddenly and unexpectedly ; and. for a time, she quailed under its effects.
But she was not, and could not be, entirely prostrated. Her position was too favorable, and her redeeming powers too abundant to permit her very. long to be seriously affected by any calamity, however great. She had, in common with the west, gained much by speculation. What had been accomplished could not be undone. Her works of improvement survived-her population was left to her, and more than all, her great and inexhaustible natural resources remained to bear her on to the consumma- tion of her high destiny. Her citizens returned to their habits of industry and economy, from which the force of evil example had seduced them. Her business men, taught a severe lesson by the past, bent all their ener- gies, and called into requisition all their experience to build up their injured credit, and to restore their business to a safe and permanent foundation. The consequences began gradually to develop themselves. But little was gained during '38-39; but in '40, things assumed a more favorable aspect, and since that time the increase of business and popula- tion has been most rapid. This will be more fully illustrated by a refer- ence to the census of different periods, and to the tabular statements of the amount, value, and character of the export and import trade of the place during each year, contained in another part of this volume.
It is with feelings of pride and satisfaction that the friends of Chicago can refer to the experience of the past six years, as furnishing an enduring monument to the industry, enterprise, and perseverance of her people, and as establishing, beyond controversy, the existence and permanency of her sources of prosperity. If, with an impoverished community, at a period of general prostration of the business interests of the country, under the pressure of heavy municipal and enormous State liabilities, with resources comparatively undeveloped, and the works of public improvement unfin- ished, Chicago has accomplished so much, what may not reasonably be expected when these and all obstacles are removed from her way?
A glance at her geographical position will convince the most skeptical that Chicago is but the nucleus about which is destined to grow up, at no remote period, one of the most important commercial towns in the west. Situated on the waters of the only great Lake exclusively within the United States-being the termination, on the one hand, of the navigation of the Lakes, and on the other, of the Illinois and Michigan Canal- affording great natural facilities for a harbor, by means of Chicago River and its branches-the excelling site for a capacious ship basin in the very heart of the town, at the junction of said branches-having dependent upon it a region of country vast in extent, and of extraordinary fertility,
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it must always be the dividing point between two great sections of the Union, where the productions of each must meet and pay tribute. It is susceptible of the easiest demonstration that the route by the Lakes, the Canal, and the Western Rivers, when once the channels of communication are completed, will, for cheapness, safety, and expedition, possess advan- tages superior to every other. Among the advantages of this route, the climate, so favorably adapted to the preservation of produce, deserves especial notice.
The commercial interests, then, of the east, and especially of the great valley of the west, will be intimately connected with Chicago, as a place of transshipment and deposit-and the value and amount of trade in produce, in lumber, salt, and in every description of merchandize which will centre here, is beyond our present powers of computation, and can. only be measured by the future wants and capabilities of the country.
Those important works-the harbor and canal-upon which so many interests depend, justly demand the most serious consideration ; and it is highly gratifying to allude to their present most flattering prospects. It is now reduced almost to a certainty, that Chicago, after the expenditure of so much solicitude, and a large amount of money, is speedily to be fur- nished with a safe, commodious, and permanent harbor. Under the supervision of our present able superintendent, the work is prosecuted with a degree of vigor that must be crowned with success.
The principal difficulty encountered during the progress of the harbor has been occasioned by the deposition of sand and the formation of bars at its mouth. The plans heretofore adopted to surmount this difficulty have failed upon trial, and are now abandoned. Two plans have been proposed the present season, which have attracted considerable attention .. One of these, suggested by Captain J. McClellan, the present superintend- ent, recommends the construction of a pier north of the present ones, at a distance from them greater than the length of the present bar, and is based upon the supposition that the sand would form a bar around it.s. head, and not reach the entrance of the harbor. The other plan, which has been adopted, and is now being carried into effect, proposes the exten- sion of the north pier, in the form of a circle, a distance of 990 feet, which will bring it into the line of the original direction of that pier. A good channel for vessels of every class will then exist from the head of the south pier, around the bar, that pier being extended no farther into the Lake. If this plan succeed, Chicago will be furnished with a harbor, not inferior to any on the Lakes.
We have the most flattering assurance that the work upon our other and not less important branch of public improvement-the Illinois and Michi- gan Canal-will be resumed the coming season, under the operation of - the late law of the Legislature. The history of this great work, which was contemplated from the first settlement of the State, and has been the subject of legislation for more than twenty years, presents a remarkable instance of the obstacles which frequently oppose the accomplishment of the greatest undertakings. The first survey of the canal was made in 1823. In 1825, a bill was passed to incorporate the Illinois and Michigan Canal Company; but no stock being taken under the charter, it was repealed at the next special session. In 1827, act of March 2, Congress appropriated each alternate section of land within five miles of the pro- posed line. In 1829, a board of commissioners was organized, with power to determine upon the route, and to discharge other duties con- nected with the work. Chicago, Ottawa, and other towns on the line, were laid out by the board, and sales of lots effected. The work was
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commenced in the year 1836, and was suspended in 1842. The law under which this work was eontracted, provides that the canal shall be 60 feet wide at the surface, 40 feet at the base, and six feet deep; that it shall commence at Chicago, on eanal land, and terminate at the mouth of the Little Vermillion River, making a distance of 9512 miles. It was to be constructed upon the deep cut principle, and to be fed from the waters of Lake Michigan. By a recent survey, a method has been discovered by which it is believed that a sufficient supply of water ean be procured from Fox River for a canal upon the shallow cut plan. The sum of about $5, - 000,000 has thus far been expended upon the work. To complete it upon the plan contemplated by the late law, about $1,600,000 more has been estimated to be necessary. If that law goes into effect, as present ap- pearanees seem clearly to indicate, the canal will be finished in about three years. We shall then have the greatest continuity of inland water communication in the world-extending from the Atlantic Ocean by the Erie Canal, along the chain of Lakes, through our eanal, the Illinois and Mississippi Rivers, to the Gulf of Mexico. This will be a glorious eon- summation for Illinois, and for every interest connected with her. The vast resources connected with the eanal itself, the resources which it will develope throughout the State, will enable her in a short time to discharge all her debts-to establish her credit-and to redeem her reputation. Already has the prospect of the completion of this work effected a revolu- tion in public sentiment, and has caused emigration to set strongly in this direction. The reports which have been circulated in regard to the cir- cumstanees and prospects of the State have been discovered, upon exam- ination, to be founded in falsehood and misrepresentation. The public are now satisfied that the climate is as healthy and salubrious as any por- tion of the west-that the soil is infinitely superior-that our taxes, even under the effect of that severe ordeal through which we have passed, uni- formly have been less than any of the adjoining States and Territories- and that the prospects of the value of real estate, the high price of pro- duce, and the facilities of a convenient market, will render it the most desirable State in the Union. We may trust that the day is not far dis- tant when Illinois will assume her proper position among the States of the Union-when her friends will be enabled to hurl back the imputations which have been cast upon her character-when she can no longer, with a shadow of truth or justice, be stigmatized as the land of speenlators and repudiation ! Until then, she must calmly bide her time.
In conclusion of our subject, it may be proper to refer more particularly to some important considerations and facts connected with the present condition of Chicago, hitherto only incidentally alluded to.
The city, for some time past, has been considerably embarrassed with debt, in consequence of the necessity which has existed of borrowing money to carry on its works of improvement. The existing liabilities of the city amount to $8977.55, viz .: bonds to Strachan & Scott, $5000; bonds for Clark Street Bridge, $3000; bonds' for barrier to the Lake, and interest, $977.55. The increasing revenues derived from taxation and other sources will soon afford the means to extinguish these liabilities entirely. The tax of the present year, at the rate of assessment of this year, amounts to $7852.45; the school tax, at half a mill per cent., to $685.24. A large amount of city property, which heretofore has been unproductive, will, the next year, become taxable, particularly the Canal lands and the reservation. The amount of the tax for the coming year, unless a reduction should take place, may safely be estimated at $12,000. In addition to this, there is now in the treasury, unappropriated, $1854,
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and the current expenses paid. The management of the fiscal affairs of the city, by our present common council, is entitled to the highest praise. The financial ability of the mayor has been recently tested in the manage- ment of a negotiation at New York, by which a reduction of three per cent. has been effected upon the interest of the largest debt of the city, and may be regarded as equivalent to a new loan. The credit of the city is now established upon a permanent foundation, and cannot be easily shaken. City scrip for some time has been at par.
Our common schools are worthy of especial notice. They are sustained in part by the school fund, and in part by taxation. The fund originally amounted to about $39,000; but nearly one-half of this amount has been lost by injudicious loans. These schools are justly the pride of the city, and the interest which is manifested in them is an evidence of the impor- tance which the community attaches to education. We have also a medi- cal college chartered by the Legislature in 1837, and several schools sus- tained by private munificence. Independent of these, we have several other institutions, which are exerting a beneficial influence. Among them, the Mechancis' Institute and the Young Men's Association are prominent in importance. These institutions, while sustained as they have been hitherto, will be both useful and ornamental to the city. Both of them have libraries, containing, in the aggregate, about 2500 volumes. The Mechanics' Institute has a department in the Prairie Farmer, devoted exclusively to the interests of the mechanical arts, -the Young Mens' Association a reading room, where most of the publications of the day are regularly received, and accessible to the public. There is, in addition to these libraries, a circulating library, containing about 1500 volumes. We have other societies designed to meet the intellectual wants of the community, among which may be mentioned the Chicago Lyceum-the oldest literary society in the place. Our theatre-a very pretty one-has been in operation the past season, and met with some encouragement; but it must be confessed that, at present, the prospects of the drama are not flattering.
The book making and publishing business has been commenced under favorable auspices. In illustration of the condition of this department of trade, we may allude to the third volume of Mr. SCAMMON'S REPORTS OF THE SUPREME COURT, printed by Messrs. ELLIS & FERGUS, and now about ready for publication. The fact that the execution of this volume is equal, if not superior to the two former ones, which were issued from two of the best presses of the East, is highly creditable to our city, and must be gratifying to the profession generally.
In facilities for the accommodation of the travelling public, Chicago has made great progress. In early times our inns were miserable in the ex- treme. Now we have eighteen hotels and houses of public entertainment, some of them large and splendid establishments, not inferior to any in the West. The great amount of travel passing through here during the season of navigation renders tavern keeping a very profitable branch of business.
An extensive staging business has grown up here, and may be referred to as an instance of enterprise and public spirit on the part of those engaged in it. The several lines of stages centring here, for speed, safety, and comfort, are not excelled by any in tlie country.
The Hydraulic Company, designed to supply the city with pure water from the Lake, was incorporated in 1836, and has already been the source of great utility to the city, both in supplying water for domestic purposes, and for the extinguishment of fires. The stock is owned principally by merchants, and in time must become the source of great profit.
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( From the Chicago Tribune.) THE ANNALS OF CHICAGO.
Such is the title of a lecture before the Chicago Lyceum, Jan. 21, 1840, by J. N. Balestier ; with an introduction by the author, written in 1876; and also a review of the lecture by a correspondent of THE CHICAGO TRIBUNE; just republished by the Fergus Printing Company, of this city. The lecture has been out of print for several years ; but a correspondent of the TRIBUNE found a copy in the State Library at Madison, Wis., and Mr. R. Fergus has done an excellent service to the city by having a copy made, and republishing it. Probably not one in a thousand of our present citizens knew that such a lecture was ever delivered. It was well and ably done; and, as it is the oldest thing of the kind extant, and its contents are compre- hensive and valuable, we hope it will be so widely distributed in our private and public libraries that there will be no danger of all the copies being destroyed in any fire that may hereafter occur in the history of the city.
1 The first number of " The Annals of Chicago" has been received from the Fergus Printing Company, who are to be credited with issuing a very handsome piece of typography. This first number of the "Annals" covers a lecture delivered in 1840, by Joseph N. Balestier, on the early history of the city. The lecture, with introduction and notes, makes a cheerful pamphlet of forty-eight pages, covering much valuable and hitherto inaccessible information. The same publishers propose soon to issue a complete "Directory of the City of Chicago " in 1839 .- The Chicago Tribune ..
CHICAGO, Jenuary 15, 1876.
ROBERT FERGUS, ESQ.,
Dear : ir :- I am greatly indebted to you for your kind consideration in sending me "The Annals of Chicago," with Introduction, etc., by Mr. Balestier, and Notes. You have cone a good work in this republication. I knew Mr. B. very well, although I did not hear the lecture. At that time I was residing on my farm in Will County, having been driven there by failing health, in 1839, after a residence of six years in Chicago.
To the first settlers of Chicago everything relating to its early history possesses peculiar interest. and so to them at least your pamphlet is a treasure. Yours very truly,
J. D. CATON.
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JUST ISSUED !
THE LAST OF THE ILLINOIS AND A Sketch of the Pottawatomies.
READ BEFORE THE CHICAGO HISTORICAL SOCIETY, DECEMBER 13, 1870,
ALSO
ORIGIN OF THE PRAIRIES
READ BEFORE THE OTTAWA ACADEMY OF NATURAL SCIENCES, DECEMBER 30TH, 1869, BY Hon. JOHN DEAN CATON, LL.D., LATE CHIEF-JUSTICE OF ILLINOIS.
CHICAGO : FERGUS PRINTING COMPANY, 244-8 ILLINOIS STREET. I876.
JUST ISSUED !
THE
ANNALS OF CHICAGO:
A LECTURE
DELIVERED BEFORE
THE CHICAGO LYCEUM,
JANUARY 21, 1840, BY JOSEPH N. BALESTIER.
REPUBLISHED FROM THE ORIGINAL EDITION OF IS40,
WITH
AN INTRODUCTION,
WRITTEN BY THE AUTHOR IN IS76. AND ALSO
A REVIEW OF THE LECTURE,
PUBLISHED IN THE
CHICAGO TRIBUNE IN IS72.
PRICE 25 CENTS. SENT BY MAIL ON RECEIPT OF PRILLE.
CHICAGO : FERGUS PRINTING COMPANY, 244-8 ILLINOIS STREET, IS76.
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