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Show THE HISTORY BLAZER XEII'S OF UTAH'S PAST FROM THE Utah State Historical Societlr 300 Rio Grande Salt Lake City I'T 84101 ( 801) 533- 3500 FAX ( 801) 533- 3503 The Panic of 1893 Severely Jolted Utah's Economy Tm NATIONWIDE DEPRESSION- OF- THE 1890s - was one of the most severe in United States history. More than one- sixth of America's railroads went into bankruptcy in 1893, and farm prices and income dropped to their lowest levels in three decades. Utah's economy, reliant upon agriculture, mining, and transportation, was hit particularly hard. Silver production declined 33 percent, copper 48 percent, and salt production suffered an incredible 92 percent fall. Needless to say, unemployment and economic despair ran high. In contrast to the barrage of New Deal legislation in response to the Great Depression of the 1930s, the federal government under Grover Cleveland adopted a laissez- faire attitude toward the Panic of 1893 and its aftermath. Cleveland left it up to municipalities and private charities to alleviate the distress. Even these local efforts proved minimal owing to the prevalent opinion that the dole destroyed character by giving something for nothing. Some cities did open soup kitchens, and others required that the destitute work in public parks or on the streets to earn relief. In Utah many citizens apparently turned to the Mormon church for assistance. Mormon leaders responded with what historian Leonard J. Amngton called " perhaps the most important regional effort in the nation to stimulate economic activity and raise incomes." Efforts to alleviate suffering included moral admonition, stop- gap relief, resettlement, and new industries. Church officials encouraged people to leave Salt Lake City for rural areas where the cost of living was lower and opprtunitie. s... f- o- r- self- help w- ere ..% .. - m.. o. re readily available. Leaders also instructed missionaries to discourage the migration of converts to Utah and urged Latter- day Saints to give their exclusive patronage to Utah industries. Salt Lake City congregations arranged for unused land to be loaned to the poor for vegetable gardens, and members were asked to fast one day a month and give the amount thus saved to local bishops for distribution to the needy. In March 1 894, 1,637 persons in Salt Lake City were receiving church aid. The high number in need of assistance prompted the church to organize the Industrial Employment Bureau which helped to match those looking for jobs with potential employers. Finally, in its most extensive efforts to combat employment problems, the church singled out several industries for special assistance and development. For example, it financially supported the construction of a $ 400,000 sugar factory in Lehi that by 1899 employed more than 100 workers and provided income to over 600 farmers. The church also became involved in the salt industry, constructing not only a salt refinery and railroad but also the Saltair bathing palace by the Great Salt Lake. The overall success of the church's relief efforts are hard to determine, but there was at least one downside to the church's extensive business activities. It led to renewed accusations by ( more) businessmen that Mormons sought to monopolize Utah's resources. Nevertheless, it seems that church leaders did help stem the tide of distress and, in the absence of outside aid, provided a measure of relief for suffering Utahns. THE HISTORY Bum is produced by the Utah State Historid Society a d funded inpart by a grant from thb Utah Statehood Centennial Commission. For more information about the Historical Society telephone 533- 3500. |
