In 1821, Governor Lewis Ca.s.s of Michigan Territory and Solomon Sibley, with Henry R. Schoolcraft as their secretary, representing the United States, met three thousand Indian braves at Chicago. Topinebee and Meeta were spokesmen for the tribes. In consideration of five thousand dollars, to be paid annually for five years, the Pottawatomies and other tribes ceded to this Government 5,000,000 acres of land lying in Michigan and Illinois. The marvellous real estate transactions subsequently negotiated in Chicago, whereby citizens have multiplied their millions, have not eclipsed this profitable investment of the Federal Government in 1821.

Although some minds foresaw a possible future for Chicago in this centre of a rich domain owned by the Republic, there was no rush to the spot. In 1823, the officials of Fulton County, of which the village was then a part, levied a tax of five mills to the dollar upon property in the new port, with the result that there was carried back to the county treasury the sum of $11.42. Surely a small beginning to lead to taxes in 1900 amounting to $19,086,408.36. In 1823, when the sum of $11.42 was the aggregate of taxes collected from Chicago, the total a.s.sessed value of property was $2284. In 1900, the actual valuation of Chicago property was fairly $2,000,000,000.

No one, perhaps, of the few settlers who drifted to the place dreamed of such mighty possibilities, yet as early as 1831 the future of the city was a chosen topic of conversation among those enthusiastic pioneers. One of these, Dr. Elijah D. Harmon, true to his baptismal name, was singularly prophetic. He located in Chicago in 1831, acquired a section of land, built a sod fence about it, and there planted fruit trees of all descriptions.

Mrs. Kinzie states that the south path to the settlement led by Dr.

Harmon's nursery, and that as people pa.s.sed he sought to impress upon them "the certain future importance of Chicago."

In 1830, lots were being sold at prices ranging from $10 to $50. In that year Thomas Hartzell purchased eighty acres (being the west half of the northeast quarter section) for $1.55 an acre. Low as these prices were, they were an advance upon valuations a few years before. In the archives of the Chicago Historical Society is a letter written to John Wentworth by Father St. Cyr, recounting how one Bonhomme sold the north half of Chicago to Pierre Menard for $50, but that the latter, finding land cheaper near Peoria, and more fertile, repented of his bargain, and hurrying back unloaded what he believed to be a poor investment upon John Kinzie, who was not unwilling to take the property at the same figure at which Menard had purchased it. By 1835, values had so increased that the investment had made Mr. Kinzie rich.

The belief which soon began to take possession of the minds of white men, that the little settlement was to be a city set in the midst of a new empire of civilization, had also aroused the celebrated Indian, Black Hawk.

He was convinced that, unless the tribes could be federated into compact opposition to their conquering enemies, the hunting-grounds of his people would speedily be converted into the homes and cities of the paleface.

Emulating the career of Tec.u.mseh, Black Hawk in 1832 addressed a grand council, attended by representatives of fifty tribes. "Let all our tribes unite," said he, "and we shall have an army of warriors equal in numbers to the trees of the forest." The appeal was eloquent and moving, but Shawbonee, who had been with Tec.u.mseh when that leader fell at the battle of the Thames, answered Black Hawk. "Your army," he cried, "would equal in number the trees of the forest, and you would encounter an army of palefaces as numerous as the leaves of those trees." The arguments of Shawbonee prevailed, the native attempt at coalition was defeated, and henceforward the activities of the white races in peopling the valley of the Mississippi and building to the northward, on the sh.o.r.e of Lake Michigan, its great metropolis, proceeded without any one to molest or make afraid. Thus Shawbonee (whose name is variously spelled), in successfully opposing the red men's far-reaching conspiracy, a.s.sisted materially in advancing the interests of Chicago. In token of this service, the Historical Society has given his portrait a place of honor, and has preserved the record of his deeds.

[Ill.u.s.tration THE UNITED STATES GOVERNMENT BUILDING, CHICAGO.]

Late in July, 1833, three years after the ca.n.a.l surveyor, James Thompson, had surveyed and mapped out the town which was to be, a public meeting was held to decide whether incorporation should be effected. There were twelve votes in favor of incorporation, and one against, and the place made its start among historic towns. A few days later the following election notice was posted:

"Publick notice is hereby given that an election will be holden at the house of Mark Beaubien, on Sat.u.r.day, the 10th day of August, at 11 o'clock in the forenoon of that day, for the purpose of choosing five trustees of the Town of Chicago."

"CHICAGO, August 5, 1833.

"E.S. KIMBERLY, Town Clerk.

"N.B. The poll will close at one o'clock."

On the appointed day, twenty-eight electors, the full number of citizens ent.i.tled to suffrage in the new town, found their way to Mark Beaubien's house and availed themselves of the privilege of freemen. Thirteen of them announced their willingness to shoulder the responsibilities of office. The first business transacted by the trustees was the establishment of a free ferry across the river at Dearborn Street; the second, the reconstruction of the "estray pen" into a solid and sufficiently commodious log jail.

These two programmes--the extension of commercial facilities and the stern suppression of lawlessness--have ever since been conspicuous in the city's history.

Then the town was born. Its development into a munic.i.p.al t.i.tan is one of the marvels of history. In 1830, P.F.W. Peck arrived on a schooner, bringing with him a small stock of goods. "He built," says Mr. Colbert, "a small log store near the fort, which made an important addition to the trade of Chicago." In the year 1900, just seventy years later, the amount of wholesale goods distributed from this centre throughout the country amounted to $741,000,000, the volume of drygoods alone being $143,000,000; groceries, $99,000,000; clothing, $35,000,000; shoes, $58,500,000; books and paper, $70,000,000, and other items in proportion; while the manufactured products sent forth aggregated in value $786,000,000, and the total business of the city reached the high figure of $1,963,000,000. The year that concluded the nineteenth century recorded transfers of real estate amounting in round numbers to $87,000,000, in striking contrast to that early transaction wherein Chicago's first investor repented him of paying $50 for the northern half of the city.

But the little town was not to achieve great things without a struggle.

Fire, flood, panic, and pestilence had first to be faced and fought. The small band in the incorporated town started out determined to develop the settlement into a city, notwithstanding the dismal prophecies of certain learned men that a city would never rise on this unpropitious swamp.

Professor William H. Keating, geologist and historiographer, had furnished the pioneer townsmen with the melancholy message:

[Ill.u.s.tration AUDITORIUM HOTEL, CHICAGO.]

"The dangers attending the navigation of the lake, and the scarcity of harbors along the sh.o.r.e, must ever prove an obstacle to the increase of the commercial importance of Chicago. The extent of the sand banks which are formed on the eastern and southern sh.o.r.e by the prevailing north and northwesterly winds will likewise prevent any important works from being undertaken to improve the port of Chicago."

In the light of this prediction it is interesting to note that in 1900 the vessels mooring or weighing anchor there numbered 17,553, and brought and carried away cargoes aggregating 14,236,190 tons. Nevertheless, for some years, because of the quagmire condition of streets and the frequent inundations from lake and river, Chicago was termed derisively the "amphibious town." By filling in the land, the city long since literally lifted itself out of the mud, the level of streets to-day being eight feet above the original marsh. But even before the transformation of the town into a city, it was plain that the founders had come to build it into a centre of trade and population. Encouraging progress was being made on the Illinois and Michigan Ca.n.a.l, the population of the town was increasing, neighboring prairies were being tilled, and the water carriers who drove their carts into the lake, filled their barrels, and then distributed water by the bucketful, were giving way to the Hydraulic Company. A new era was at hand, and Chicago on the 4th of March, 1837, became an organized munic.i.p.ality.

The first census, taken in July, 1837, showed a population in the city of 1800 men, 845 women, and 1344 children. With a colored population of 77, the grand total of inhabitants in this its first year's existence as a city was 4066. To-day its population is nearing the two-million mark.

O.D. Wetherell, ex-city Comptroller, recalls a letter, written at an early date by a citizen, in which the prediction was made that some day Chicago would become a city of 10,000 people! At the time, that prophecy seemed to be more wildly optimistic than would a prediction now that the city might ultimately harbor the amazing total of ten million persons.

The early promoters of Chicago were sanguine of a great future, but none dreamed of the amazing destiny in store. At a political gathering in 1838, addressed by Stephen A. Douglas and John T. Stuart, his competing candidate for Congress, a local orator, warmed by the enthusiasm of the occasion, uttered what was derisively referred to the next day as "flamboyant prophecy."

"The child is already born," he exclaimed, "who shall live to see Chicago a city of 50,000 souls."

"Town lots, town lots!" shouted the audience in amiable sarcasm, not wishing the visiting statesman to depart with the suspicion that dreams of real-estate speculation had destroyed the sanity of the whole community.

For three years the town had been the centre of a great land craze, one of the first real-estate booms that have played so important a part in the location and development of Western cities. Dr. Horace Chase, writing in 1883 from Milwaukee, says:

"Soon after the sale of lots in Chicago, in 1833, I think, Robert Kinzie, on his way to Detroit, stopped at Marsh's trading post near Coldwater. There happened to be several of us present and Bob began to boast about Chicago and what a great city it would become. 'Why,'

said he, 'I bought some of the best lots in Chicago for twenty dollars apiece, and those lots are worth sixty dollars apiece to-day!' It seemed to us utterly absurd that a lot should be worth sixty dollars, when two hundred dollars would buy one hundred and sixty acres of the best quality. Not a single person in the crowd believed Bob's yarn."

[Ill.u.s.tration THE ART INSt.i.tUTE, CHICAGO.]

As an example of the spirit which animated these old pioneers who came in the early days to the great city that was to be, the story of one man furnishes an interesting ill.u.s.tration. The writer had it from the lips of the man himself, who recently died at the ripe age of eighty-two.

"I had heard of the West," he said, "in the little hamlet in New England where I was born. My ambition was fired, and I determined at all hazards to seek my fortune there. I soon found myself in Buffalo with seven dollars in my pocket, and with this I had to pay my transportation to the young city in the West. After considerable 'higgling' with the captain of a schooner I arranged for deck pa.s.sage at a cost of three dollars. Part of my money was then expended to get some cotton cloth. This I sewed up in the shape of a bag, and into it I put some shavings to soften the hard planks of the deck of the ship at night. The balance of the money went for boiled ham, cheese, and bread.

"I was twenty years old, had been a farm boy, and had attained no special knowledge of any manual trade.

I arrived in Chicago and found it a dismal, swampy place, but with every appearance of thrift and activity. My money was exhausted, and work was indispensable. Going along the one important street or road I found a man building a rather pretentious boarding house. He asked me if I 'came off that ship in the harbor,' and when I answered 'yes,' he inquired whether there were any carpenters on board. I told him there was none excepting myself. He wanted to know if I could 'lay out work' so that his men could saw and hammer, which was all they could do. It seemed to me that I could 'lay out work'

better than anything else, and engaged myself to him at four dollars a day. Two days satisfied my new boss that my technical knowledge was deficient, and he paid me off. I soon afterwards found work in a harness shop, and by a.s.siduity and attention I acquired a knowledge of that business. Thus I got my start."

This man lived continuously in Chicago for more than sixty years. By early and judicious investments in real estate he acquired wealth. He bought a lot, now centrally located, for $400, and sold a part of it thirty years later for $62,500. He sold it too soon, however, for that same corner will bring at the present time not less than $500,000. At his death he left an estate valued at between $5,000,000 and $6,000,000.

Fortunes were made over night. In 1835 the Federal Government opened a land office, and this intensified the excitement. Boundless acres of outlying farmland changed hands in Chicago. Towns and cities that had no existence save on the blue prints of imaginative and wily promoters were plotted, and their mythical blocks sold to hasty and credulous investors. But the panic of 1837 brought both legitimate and illicit real-estate traffic to a close with a crash. The dishonest and the defrauded went down in a common ruin.

By 1838 the sheriff was the only real-estate agent who could dispose of property, and at these forced sales the returns were meager. Panic paralyzing business, a mysterious disease like Asiatic cholera stopping progress on the ca.n.a.l, and a drought destroying crops, impoverishing streams, and spreading devastating fever in the city, was the calamitous record of 1838.

Chicago as a city began with $1993 in its treasury. The need for munic.i.p.al improvement was imperative. Where to get money for sanitary drainage, for the paving of a few streets, and the purchase of two fire engines, was a problem. The Common Council appointed a finance committee with power to act.

[Ill.u.s.tration STATUE OF ABRAHAM LINCOLN BY ST. GAUDENS.]

Peter Bolles was made chairman. It was finally decided to borrow $25,000 from the State Bank of Illinois, pledging the city to redeem the obligation in five years. In due time the committee submitted as its report the following letter:

"STATE BANK OF ILLINOIS,

"SPRINGFIELD, May 31, 1837.

"PETER BOLLES, ESQ.,

"_Dear Sir_:

"Your letter of the 18th, addressed to the president of this bank and proposing on behalf of the city of Chicago a loan from this bank of the sum of $25,000, has been laid before the directors of the bank, and, I regret to have to state, declined.

"I am very respectfully,

"Your o'bt serv't,

"N.H. RIDGELY, Cashier."

In 1900 the city which sixty-three years before could not borrow $25,000, could boast of bank clearances amounting to $6,795,876,000.

The poverty and disasters of early days seemed only to nerve the city to renewed determination and prepare her to meet with stoic faith the appalling calamities of later years. In this resume it is only possible to catalogue the misfortunes that visited her. Floods swept away her shipping, fire destroyed her acc.u.mulating industries, raging epidemics reduced her population--cholera alone in 1854 causing 1424 deaths--and financial panic again and again returned to manacle activities. Many times in Chicago's history citizens could well exclaim: "One woe upon another's heels doth tread, so fast they follow!"

Unconquerable in the presence of these recurrent visitations, the city pressed forward to her place as the metropolis of the Mississippi empire.