Showing posts with label Panic of 1893. Show all posts
Showing posts with label Panic of 1893. Show all posts

March 1, 2015

Primary Sources and Anecdotes on Kingston's Mythical Past

Much has been written about Kingston, New Mexico. Since the 1970s, and perhaps earlier, stories in the popular press are usually ornamented with statements about the tiny berg being the largest town in New Mexico; having three newspapers; two dozen saloons; Twain and President Cleveland visiting.

For several years we've gathered historical information around Hillsboro, Lake Valley and Kingston, and it's oddly the latter where myths arose and persist. Most recently, New Mexico Magazine repeated these myths in a feature story.

Below is a collection of annotated primary sources that are listed in chronological order. Key dates to keep in mind: the east slope of the Black Range was prospected in the late 1870s; Kingston as a town came to life in late 1882. As a place name, it does not exist before August 1882.  In 1893, the federal government changed its monetary policy and over night, the price of silver slumped, and the silver miners moved on.

We consider the information as either a "primary source," that is, information provided by a direct observation, or anecdotal, or a story passed along without direct observation (Ex: N.W. Chase's 1888 "Cornerstone" letter).

1882
Kingston is but two months old in this Las Vegas Daily Gazette story.

In October, the Lincoln County Leader reported 350 to 500 people in Kingston.

The Albuquerque Morning Journal reports 50 house built in a day; reporter speculates arrivals could go to 100 persons per day.

The Albuquerque Morning Journal reports only 45 men working in the mines in November.

An estimated 1,200 people are in Kingston in this Albuquerque Morning Journal story.

The Rio Grande Republican reports in November, an estimated 5,000 folks in Kingston.

A correspondent for the Engineering and Mining Journal documented his November 22 visit.

This December story notes 150 families in Kingston.

Kingston closes out the year with a party.

1883
This prospectus on Kingston was published in early 1883 by Kingston Tribune editor, Charles Greene. By the end of 1883, he had moved his newspaper to Deming.

The Black Range expected solid growth of Kingston and nearby Percha City.

1884
This McKinney business gazetteer covers Hillsboro and Lake Valley businesses, but Kingston is curiously absent. It's awkward to use, but go to page 1456.

1885
At the often reported height of Kingston's activities and population, this 1885 business journal reveals only 300 people in Kingston, jibing with the 1885 Territorial census that counted 329 people in Kingston and outlying Danville camp. This journal provides an invaluable look at town business, listing names and occupations. Go to page 322, but look elsewhere therein for more details on our area.

1887
Where was President Cleveland when a prankster signed his name on the Victorio Hotel register?

Kingston town plat survey conducted by the General Land Office.

George Rowell's newspaper directory shows the Shaft serving a Kingston population of 725.

1888
The Gospel in All Lands documents 1,000 people in Kingston, a narrative from Rev. N.W. Chase.

Rev. N.W. Chase penned a letter in 1888 for the cornerstone of the Kingston church, and cites that Kingston had 3,000 people a few years earlier. The original letter (no scan available) is in the Methodist archives in Albuquerque, and a copy is kept at the Black Range Museum.

1890
The U.S. Census Bureau documents 633 people living in Kingston and 816 in the mining district; 37 Chinese people lived in Sierra County (less than 400 over the entire territory).

1891
The Territorial Bureau of Immigration documents a population of 5,132 in Sierra County.

The American Newspaper Directory reveals that the Shaft served a Kingston population of 1,500.

1893
The country falls into an economic depression; silver prices slump and Kingston miners leave.

1894
The Territorial Bureau of Immigration documents a population of 1,000 in Kingston.

1895
Kingston fails to show up on maps and atlases until the early 1890s. It's on this Rand McNally published 1895.

1904
This February 26, 1904 article from the Silver City Enterprise was misquoted in a story in the Hillsboro Historical Society's newsletter, December 2014.  The 1904 article states that Kingston had a population of 5,000 in the 1880s.  The newsletter article characterized this Enterprise story as there being that many living in Kingston in 1904.

1907
History of New Mexico by George Anderson has Kingston at 1,800 people in 1882.

1913
The El Paso Herald reported that Kingston had a population of 2,000 in the early 1880s.

1919
Hearst's magazine reports that Kingston swelled to 6,000 people in the early 1880s.

1935
New Mexico magazine states that Kingston had 1,500 residents (see Facebook cite below).

1936
Black Range Tales says that 7,000 people lived in Kingston.


Silver City Enterprise 2/26/04 (part 1)

Silver City Enterprise 2/26/04 (part 2)


You can find more documentation, census records and newspaper directories, on the Hillsboro Historical Society's Facebook site in the "Photos" section.

You can read about the newspaper that tried to make a go of it in Kingston, in this previous post.

You should read beyond this arcana on the origins of Kingston's mythic population, and check out what some of the territory's newspapers were saying about the area for yourself.  You won't be disappointed. You'll read about the comings and going of folks, the values of the mines, the business successes and failures and an occasional killing. You can read about the newspaper that set up shop under a tree, a photo of which was in the most recent HHS newsletter. That press wasn't Kingston's first. You'll read what the observers saw and thought at the time--and how lucky we are to have that available to us.

Kingston, 1890, Starr Peak is visible to the east. Black Range Museum.




January 6, 2012

Kingston in Myth and Memory

By Craig Springer
To see the old photos, you can tell that Kingston was a busy place for a time. But that time didn’t last.
Set on the east flank of the Black Range in western Sierra County, Kingston is today a relic of the distant past. On some maps, it’s a ghost town. But everyone living there is alive--engaged in business, creating art, active in retirement. It’s an old mining town at the head of the Middle Percha Creek. From a distance, the Black Range looks the part of a long purple armada. The 10,000-foot Hillsboro Peak stands like a silent sentinel above. Vision through the gray distant haze over steep folded mountainsides becomes clearer as you get closer. And so it is with the myth of Kingston being New Mexico’s largest territorial town.
Kingston had its start with the discovery of silver. In the early 1880s, prospectors from nearby Hillsboro, Lake Valley, and Georgetown worked under the continual threat of Apache depredations as they scratched dirt for signs of precious metal. Like most of the Black Range, the surface is more rock than soil. It’s the rock that drew attention; it was rich with silver ore. In October 1882, James Porter Parker, a civil engineer and former Confederate Lt. Colonel and General George Custer’s roommate at West Point platted a townsite. The portly fellow became Sierra County’s first Assessor two years later.
Kingston topped out at about 1,500 residents ca. 1893. Starr Peak and the Caballo Mountain are seen in the distance. The stone church stands in the right margin of the photo. Photo Black Range Museum
Kingston was to get bigger. A Methodist minister in January 1888 reported on the progress of a stone church to serve Kingston’s 1,000 residents. There was work to do: “If I could take the reader along the main street on our way to a school-house for evening service, he would see the typical mining town in all its wickedness.” The minister lamented the gambling, smoking, drinking and a woman singing in soprano at the back of a hall. 
The town grew bigger yet -- but only in myth. In travel guides, state tourism office promotions, and academic writings by professional historians, you will see a phrase repeated so often that a myth has turned to “memory,” that Kingston once exceeded 7,000 residents and was the largest town in New Mexico. It’s even on Forest Service signs. Seven thousand is about as big as Truth or Consequences is today. And it’s a bogus number, usually attended by an equally bogus count of the number of newspapers that kept shop in town: three.


One is led to think that three publications competed for readers and advertisers. Actually, 10 newspapers published in Kingston from 1883-1893, but all were very short-lived titles except the Weekly Shaft. From April 1885 to March 1886 during Kingston's supposed prime the town lacked a newspaper. The Mines of Kingston, a March 1883 prospectus on the then five-month-old town of Kingston, was published by the weekly Tribune. Editor and publisher Charles W. Greene would pull up stakes and move the newspaper to Deming by Kingston's first birthday.
Those prospects may had already changed by the time the Bureau publication hit the streets. The economic Panic of 1893 and with silver prices going south, Kingston was all but abandoned. 
How such a myth got started is a bit of a mystery. The earliest writing on an inflated town size, a purported 5,000 people, that I found was in Log of a Timber Cruiser, published 22 years after Kingston was abandoned. 


Then, in August 1936, WPA writer Clay Vaden interviewed Sadie Orchard in Hillsboro. Orchard told Vaden that Kingston thronged with 5,000 residents in 1886. You can read what Vaden documented from Orchard in the Library of Congress holdings.


That same year Sierra County pioneer, James McKenna published Black Range Tales and upped the Kingston population by 2,000. And so it’s become gospel since, that Kingston was New Mexico’s largest town. 


The entire population of Sierra County didn’t reach 7,000 until 1950, according to the U.S. Census Bureau.


Craig Springer and his wife Felicia own the historic George T. and Ninette Stocker Miller home in Hillsboro. He's a professional writer in Santa Fe County.

December 17, 2011

Bridal Chamber Mine a Centennial Journey

by Craig Springer
The Bridal Chamber, perhaps the richest silver mine in the history of the American Southwest, is the story twice-told.  And we're telling it again, here, thanks to the Office of the State Historian.

The Bridal Chamber is located in Lake Valley, New Mexico, once a thriving boomtown. The 1885 Territorial Census counted 183 people living in Lake Valley while nearby Hillsboro had 376 residents, and 329 people lived in Kingston, according to the University of New Mexico's Bureau of Business and Economic Research.   All three towns were busy places.  Lake Valley was the jumping-off place for train passengers.  Those not staying at Lake Valley moved on by stage to the other two mining towns of western Sierra County.

Enjoy this Centennial Journey (click here), an audio presentation in celebration of the New Mexico's 100 years of statehood.

The labor force that extracted the mineral wealth of the Bridal Chamber lived at Lake Valley, seen here circa 1890. Photo Black Range Museum.


Timbers prop open the Bridal Chamber as mine workers pause for a photo in a moment of levity. Photo Black Range Museum.


Extracting minerals from the earth is a labor-intensive affair, as evidenced by this Bridal Chamber reduction operation at Lake Valley. Photo Black Range Museum.

July 24, 2011

Panic of 1893

By Brandon Dupont, Ph.D.
While it was later eclipsed by the 1907 financial crisis and the Great Depression, the Panic of 1893 remains one of the most severe financial crises in American history. Its impact on Sierra County, New Mexico was lasting. Silver mining towns, like Kingston, were all but abandoned in short order.

This 1895 poster for the Broadway melodrama, The War of Wealth, depicted the national economic crisis, and the run on banks that effected lasting change at Kingston and silver mines in the West.  Library of Congress.

The panic, and the economic depression that followed through the year 1897, had wide-ranging effects on the national economy, including an unemployment rate that remained stubbornly above 10 percent for five consecutive years. Its impact goes beyond just the widespread bank runs and the negative effects of high, persistent unemployment; perhaps more importantly, the crisis brought the decades-long debate over the bimetallic standard to the forefront, culminating most colorfully in William Jennings Bryan’s 1896 presidential campaign. Bryan’s “Cross of Gold” speech ended with a flourish:  "Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests and the toilers everywhere, we will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold."

Named for U.S. Mint engraver,
George Morgan, the Morgan Dollar was
common currency in 1890. U.S. Mint.
Since bimetallism was an important factor in 1893, as evident in Bryan’s speech, a quick review should be helpful. Starting with the first Treasury Secretary Alexander Hamilton, the U.S. economy had been on a bimetallic standard. Under that standard, U.S. currency was equivalent to a certain quantity of gold and a certain quantity of silver; initially, the prices were set such that 15 ounces of silver were equivalent to 1 ounce of gold. Because of deviations between this official price and the world market price, only one of the two metals would circulate in the American economy at any given time. From Hamilton’s 1792 coinage act until 1834, silver was in circulation because gold was undervalued at its official price; therefore, it made economic sense to export gold coins to Europe, exchange them there for silver, then import that silver back into the U.S. This all changed in 1834 when the official ratio was changed to 16 ounces of silver per 1 ounce of gold, which then made gold overvalued so that it slowly began to replace silver, which was either hoarded or exported. Starting in 1834, the U.S. moved to a currency system where gold was the circulating coin. Silver dollars remained largely out of circulation from 1836 until the 1873 coinage act. 

At first, the 1873 act seemed only to legally recognize the demonetization of silver dollars; after all, they had not been used since 1834. Even the representatives of the silver interests in Congress did not object to the legislation. But in a curious twist of history, what was thought to be mere legislative housekeeping quickly became a highly politically charged issue. Silver prices had started to fall in 1872, but the decline accelerated shortly after the 1873 legislation mostly because of increased silver supplies from new mines in the American West. Because of the falling silver prices, U.S. silver producers had an incentive to bring silver to the U.S. mint for coinage. They did just that only to discover that they were legally barred from having silver coined by the 1873 legislation, which they quickly dubbed the “crime of ’73.” 
Kingston came to life in fall of 1882. Its roughly 1,200 residents circa 1890 were tucked in the narrow Middle Percha Creek canyon captured on a glass-plate negative here by photographer J.C. Burge. Photo Black Range Museum

By 1878, the silver interests were successful in getting Congress to pass the first of two significant silver purchase laws, the Bland-Allison Act, but the pro-silver interests were not satisfied because that legislation did not provide for unlimited coinage of silver. The second significant Congressional action did not come until the 1890 Sherman Silver Purchase Act. This legislation also failed to provide for unlimited silver coinage but it did increase the amount of silver purchased every month by the U.S. government, and by then, silver mining was in full-swing in Kingston and Lake Valley, New Mexico.

All of this led to considerable uncertainty by the early 1890s as to whether the U.S. economy could remain on the gold standard. Adding to the problems, the Treasury’s gold reserves had fallen to dangerously low levels by 1893; this was exacerbated by news that the Treasury would stop redeeming the notes issued under the 1890 act in gold if the reserves fell below $100 million. 

Lots of flags waved in Kingston at the patriotic event circa 1890. Only the Percha Bank building remains today, and is a beautiful museum.  The bank incorporated in 1886 by President McKinley pal, Jefferson Raynolds, and boasted holding $30,000 in cash in 1890. J.C. Burge photo courtesy Black Range Museum.
These long-running issues of gold versus silver certainly played a role in the 1893 crisis but there were many other contributing factors. Important among them were significant distress in western agricultural markets caused by declining crop yields and falling agricultural prices. Another factor in the depression was the slowdown in railroad construction that had peaked in the railroad boom of 1880s. Moreover, American exports to Europe had dropped as European economies struggled. 

The Percha Bank building stands on the left, looking west, in 1919. The Panic of 1893 devastated silver mining towns throughout the West. Kingston produced $6.2 million in mineral wealth, mostly silver, according to a 1904 report. Photo courtesy Black Range Museum.
The crisis culminated in the summer of 1893 with widespread bank runs. Of course, this was long before the introduction of federal deposit insurance (that does not arrive until 1933), so any risk that a depositor’s bank would fail tended to immediately lead that depositor to withdraw funds from the bank. Bank runs, wherein large numbers of depositors did just this, spread rapidly and, while they occurred nationwide, they were concentrated in the western states. In total, nearly 500 banks in the U.S. suspended their operations at least for a time to weather the storm. The economy officially went into recession in January 1893, a few months prior to the waves of bank runs that hit that summer. The affect was felt locally -- Kingston being a silver town was abandoned and never rebounded. After a brief economic recovery in late 1894 and into 1895, the economy plunged back into recession by the end of 1895 and would not officially climb out of recession until the summer of 1897. 

A legacy of the 1893 crisis remains with us today: the National Monetary Commission, whose work and recommendations led to the formation of the Federal Reserve System in 1914, noted in its report on financial crises that, while the causes of crises were varied, the method of handling them was simple. There should be, the report concluded, a reserve of lending power because the ability to increase loans from a central reserve to meet the demands of depositors “would have allayed every panic since the establishment of the national banking system [in 1864].”  Locally, the hillsides around Kingston are pocked with the work of expectant silver prospectors in what they left behind.