The Boom That Busted

It is now nearly three years since our city, at the flood of a flush speculative prosperity, began as it never had before to attract attention from every part of the Pacific Coast. We suddenly found our metropolis released from its usual rate of progress and booming ahead at a giddy speed. Money was plentiful, and every department of business was stimulated immediately. New buildings shot up in every direction like mushrooms. There was a tendency all around to rush headlong into all sorts of speculations and business ventures. No one appeared cautious of overreaching, and large numbers consequently incurred ruinous obligations. Hundreds invested in real estate by paying part of the purchase price and mortgaging the property for the balance. Our city was then the terminus of two competing lines of ocean steamers engaged in bringing freight and passengers from San Francisco at the lowest competition rates. They arrived each time crowded with fresh additions to our population—frugal immigrants and restless adventurers. Those who had means were easily induced to invest in real estate and building improvements. However, had we put in then and built our railroad across the mountains so as to afford an outlet for this immense tide of immigration setting in upon us, we should have held this stiff breeze. But this we did not do; the tide of immigration was summarily cut off and our city left like an inverted pyramid. We soon found that we had gone in debt beyond our means as a people; that pay day was at the door; that our population had far outgrown the resources of our city.