Update time again. I might add a bit to the Lee's Recession part later with more details, but I'm still not entirely sure how exactly the economy would be affected.
Part Sixty-Two: The Postwar Recessions
Colorado Silver Boom:
The Colorado Gold Rush that had occurred in the early 1860s caused a boom in the territory's population, but after the National War that poulation increase was starting to die off as gold findings became less frequent. As people who had come to the territory for gold prospecting began to leave, some small mountain towns were abandoned. However, another mining boom that hit Colorado in the 1870s would bring another wave of immigration and lead to Colorado becoming a state in 1876.
One of the long term developments which aided the Colorado Silver Boom was better mining techniques such as the use of pyroglycerin in clearing mine shafts, which allowed for deeper mines in the later 19th century. However, the main cause of the boom in the short term was the Coinage Act of 1873. The Coinage Act of 1873 returned the country to primarily using gold and silver coins instead of the printed currency that was used during the National War. The increased demand for silver sparked a second rush on Colorado, although silver was already being mined in small qunatities near some cities in the mountains.
The Colorado Silver Boom was largely different from the previous gold rush because of the increased presence of railroads and larger mining companies. The Nederalnd Mining Company gained one of the largest grants for mineral rights during the Silver Boom on land in Clear Creek Canyon. Further south, railroads penetrated further into the Rocky Mountains and helped miners go further and further west. The city of South Park in the shadow of Mount Evans boomed during the 1870s because it served as a major trasnportation link on the Ferroplano, South Park, and Divide railroad which became a major connector from Ferroplano to silver mining towns like Leadville and Aspen.
The economic impact of the Colorado Silver Boom was felt all around the United States. During the 1870s, over 60 million dollars worth of silver was mined in Colorado mining districts. The increase in the supply of silver caused a rise in inflation as it was coined or brought into general circulation. In the short run, the Colorado Silver Boom contributed to the general recession in 1874 and 1875 as investment from banks leveled off from the post-National War economic boom.
Lee's Recession: The decades after the National War in the United States were a time of turbulence for the American economy. Having experienced a large state of expansion during the National War, the United States entered into a deep recession in March of 1866 as the former Confederacy began to reincorporate itself into the American economic system. This postwar recession lasted into late 1867, but picked up in time for Fremont to win reelection in 1868.
Despite a slight recession in 1870, the United States economy had expanded for the remainder of Fremont's presidency and into the beginning of Lee's administration. However, this postwar expansion could not last forever. By 1874, the economic troubles that faced Europe during and after the wars in the 1860s had arrived in the United States. This downturn was exacerbated by the Coinage Act of 1873 and the readmission of the final three former Confederate States to the Union. The Coinage Act of 1873 resumed specie payments after they were suspended during the National War. The supply of silver increased, leading to a short period of inflation and decreased economic activity.
The recession lasted into the summer of 1875 and saw a number of smaller railroads go bankrupt and be bought up by larger, more successful companies. Several shortlines were bought up by the Union Pacific Railroad including the Oregon Railroad from Langley to Vancouver and the Itasca Northern connecting Duluth, the capial of Itasca, with Minneapolis in Demoine. Lee even made a personal statement praising the expansion of Union Pacific. Lee supported the railroad because of its use of his plan for the Transcontinental Railroad and attended the final connection to the western terminus in Astoria in 1874. The recession started a major period of consolidation in the railroad and other industries that would continue through the end of the 19th century.
