Olympia Cut Salaries and School Terms to Survive the Panic of 1893
Facing depression, Washington’s capital city slashed official pay, shortened the school year to six months, and bet on harbor work and a new capitol to pull itself out.
OLYMPIA — The general outlook for Olympia for the year 1895 is much more favorable than for the preceding two or even three years, speaking in a business sense, and the prevailing opinion among business men is that from this time on the depression will steadily decrease until normal financial conditions are reached. Olympia, of course, has shared in the general hard times, but in a less degree than her sister cities of the Sound.
The city council, headed by Mayor Mann, has made strenuous exertions to reduce the expenses of the city government to the minimum. The salaries of all city officials have been reduced, in some instances as much as 50 per cent. The police department has been reduced to the smallest number consistent with the safety and order of the city, also at reduced salaries. The school term has been shortened from ten months to six months; the visiting teachers, drawing teachers and all extras have been dispensed with, and the regular teachers have assumed those duties in addition to the ordinary branches. But as the corps of teachers under Professor Heeler has been exceptionally good, the pupils have advanced satisfactorily.
Under the liberal appropriation by Congress, the improvement of Olympia harbor is going ahead with marvelous rapidity under Captain Symons of the United States Engineer Corps. The city government seized this opportunity to fill in the Fourth Street roadway at an expenditure of about $10,000. They have bulkheaded all that could safely be done to leave space for ingress and egress of the tides. It is reasonable to suppose that in the near future the government will place locks in the space now left open, which will make a fresh-water basin from the line of Fourth Street to Tumwater, a distance of a mile and a half.
The construction of the capitol, now being rapidly pushed forward, together with work about to commence upon the large Catholic college—where an expenditure of about $50,000 is expected—is calculated to inspire hope and confidence in the near future and will add greatly to our prosperity.
Areas of land in the immediate vicinity of Olympia heretofore regarded as worthless by the old settlers are being utilized by planting fruit trees of every species suitable to the climate; about 70,000 prune trees alone have been planted in the past two or three years near Olympia. The year just closed has witnessed no business failures of any prominent houses, and several new enterprises have been started which are meeting with fair success. Empty houses are a good deal scarcer than last summer. S. L. Harris, a prominent retail dealer, says he is buying much more extensively than last year; collections are better and inquiry free. Postmaster A. W. Winner states there has been a steady increase in postal business since July 1, 1894. M. O’Connor, hardware and stove dealer and stationer, says he feels justified in keeping his stock up to the demands of trade and is much encouraged about the business prospect.
“The school term has been shortened from ten months to six months … the salaries of all city officials have been reduced, in some instances as much as 50 per cent.”
Olympia’s 1894 austerity—salary cuts, a six-month school year, and public works as stimulus—could be lifted from a modern municipal budget debate. The story is a reminder that recessions have always been paid for in reduced public services, and that cities often bet on infrastructure to climb out.
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