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Boom Town Gone Bust
  By Daryl Watson
 

What happened?  Galena had been the original boom town, growing by leaps and bounds.  The town was the envy of the Northwest Territory.  It was the lead mining that had started it all.  By 1845, over 80% of the nation's lead moved through Galena, most of it to waiting steamboats for the journey to St. Louis and beyond.  At the head of the navigation on the Fever (now Galena) River--just a few miles from the Mississippi--the town was ideally located.  No other river port was closer to the mines and smelters.

Through shrewd business practices, Galena's merchants and movers monopolized the trade on the Upper Mississippi River.  Their control extended well beyond lead.  Alliances with St. Louis interests and majority control of the largest steamboat line on the Upper Mississippi River made Galena a wealthy town.  Retail and wholesale activity was rampant.  Settlers moving into Wisconsin, Iowa, and Minnesota depended on Galena's mercantile interests to survive.  By 1850, lead had become only one part of a large, complex commercial center.

As Galena's star rose, accumulated wealth was transformed into elegant mansions and substantial commercial buildings.  By the mid-1850s Galena's lead production was down, but business activity overall was increasing.  The future still looked good.

But the seeds of demise had already been sown, for in a few short years Galena would suffer relative decline and neglect.  The buildings stayed, but the businesses did not.  What happened?  Today we can identify six major reasons.

1. River siltation:

The Galena River was never well suited to navigation.  Severe erosion and siltation caused by mining and agricultural activities made a bad situation worse.  Periodic efforts at dredging were ineffective.

 

2. Coming of the railroad:

With the coming of the Illinois Central Railroad in 1854, Galena no longer had a captive market.  Suddenly any town along the line could handle trade and traffic that formerly had to go through Galena.  The town fathers, tied economically, if not intellectually, to the river trade, underestimated the impact of the railroad.  In 1855, the railroad extended to the Mississippi, effectively eroding Galena's economy.

 

3. Low lead prices and reduced production:

While prices fluctuated, the output of lead from the district declined.  The better deposits had been worked; the leasing system was abandoned, and production was becoming more capital intensive.  Increased production in the Missouri mines and importation from England helped keep prices uncertain.

 

4. Panic of 1857:

A nationwide depression that hurt many towns almost crippled Galena.  Economic over-extension and increasing competition caused a severe recession that lasted beyond the Civil War.  The assessed valuation for the city dropped by more than 75% between 1857 and 1867.  Municipal bond-holders were asked to take 25 cents on the dollar.

 

5. Civil War:

The war disrupted Galena's existing trade patterns.  Largely tied to the Mississippi River and the north-south trade routes of St. Louis and New Orleans, Galena's wholesale trade was isolated with the blockade of the river.  Chicago and the railroads, representative of stronger East-West trade patterns, picked up the slack, undercutting Galena mercantile interests in the process.

 

6. City politics:

Too much faith in the status quo and an increasing polarization between Republicans and Democrats lead to a weakened city government.  Leadership and direction were not adequate for addressing the problems confronting the city.

 

As the years passed, Galena recovered somewhat.  But it was no longer the busy regional trade center that it had once been.  As a result, building activity slowed, and few structures were torn down.  People simply made do.

 

Today we are glad that continued progress passed Galena by.  Because of a twist of fate, an architectural treasure has come down to us--ready, with a little polishing, to be as valuable to us as to those who built it.

 

 


 

 

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