{"id":4400,"date":"2025-02-20T14:02:56","date_gmt":"2025-02-20T19:02:56","guid":{"rendered":"https:\/\/chicago1.one\/?p=4400"},"modified":"2025-10-14T11:19:42","modified_gmt":"2025-10-14T15:19:42","slug":"the-growth-of-business-in-chicago-in-the-19th-century","status":"publish","type":"post","link":"https:\/\/chicago1.one\/en\/eternal\/the-growth-of-business-in-chicago-in-the-19th-century-4400","title":{"rendered":"The Growth of Business in Chicago in the 19th Century"},"content":{"rendered":"\n<p>Chicago is a major metropolitan area with a well-developed economy, trade, and many other sectors. This metropolis offers optimal conditions for conducting business, and the city government continuously develops programs to support entrepreneurs. However, things used to be quite different. Throughout its history, Chicago endured a series of shocks, yet despite these challenges, it became one of the <strong>largest economic and business metropolises<\/strong> in the U.S. after 1970, according to <a href=\"https:\/\/chicago1.one\/en\">chicago1.one<\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6a3159f85181f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3159f85181f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/chicago1.one\/en\/eternal\/the-growth-of-business-in-chicago-in-the-19th-century-4400\/#Early_Settlements_and_Land_Speculation\" >Early Settlements and Land Speculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/chicago1.one\/en\/eternal\/the-growth-of-business-in-chicago-in-the-19th-century-4400\/#Capitalisms_Impact_on_the_Citys_Economy\" >Capitalism\u2019s Impact on the City\u2019s Economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/chicago1.one\/en\/eternal\/the-growth-of-business-in-chicago-in-the-19th-century-4400\/#Raw_Materials_Lucrative_Trade\" >Raw Materials, Lucrative Trade<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/chicago1.one\/en\/eternal\/the-growth-of-business-in-chicago-in-the-19th-century-4400\/#The_Industrial_City\" >The Industrial City<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/chicago1.one\/en\/eternal\/the-growth-of-business-in-chicago-in-the-19th-century-4400\/#The_Citys_Economy_in_the_20th_Century\" >The City&#8217;s Economy in the 20th Century<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Early_Settlements_and_Land_Speculation\"><\/span>Early Settlements and Land Speculation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/cdn.chicago1.one\/wp-content\/uploads\/sites\/54\/2025\/02\/ad_4nxfvtamlcyvve1p9i-mgr-medguzmkeewokwbt6ckpumoso3bqlffowkz2yw41ospsl1dybsgj552ismmy_ntjt3ghs3vcitqqvsewthvfmjuuwmydtiukihg0xmmtwrmqebommndwkeygfq0zplinlp4mkvanurpytx3.jpg\" alt=\"\" \/><\/figure>\n\n\n\n<p>The arrival of Europeans in the Great Lakes region occurred during the so-called Age of Discovery. In the late 17th century, the French explorers <strong>Louis Jolliet and Jacques Marquette<\/strong> surveyed the area along the southwestern shore of Lake Michigan. Throughout the 18th century, the swampy lands of this region began to be settled by traders and adventurers from Europe and other parts of America. The influx of Europeans and Africans into this territory noticeably increased in the early 19th century.<\/p>\n\n\n\n<p>Only a few scholars have researched Chicago&#8217;s early commercial development history. They all assert that trade among farmers, Native Americans, and food contractors characterized the region&#8217;s economy until the 1830s. These same academics note that in the 1830s, before becoming a major trade center, Chicago went through a boom-and-bust cycle based heavily on <strong>land speculation<\/strong>.<\/p>\n\n\n\n<p>Most modern researchers of the economic development of the southern Great Lakes region, including Chicago and its surroundings, view the area within the context of the expanding capitalist market of the Western world. The fur trade, military installations, government investment in infrastructure, real estate speculation, and the sale of farm products led to the region&#8217;s inclusion in capitalist financial and commodity markets.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capitalisms_Impact_on_the_Citys_Economy\"><\/span>Capitalism\u2019s Impact on the City\u2019s Economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/cdn.chicago1.one\/wp-content\/uploads\/sites\/54\/2025\/02\/ad_4nxdntnc7oplr0prbhqlmvony3w04f0vuce4w9b54d_fdtmngsre5wz0ebwp5jly-yiluar5f8vkqnfnpivv6npnpgelcnzkkthcs_khee3fodjjes1nzjnf3j5mjhixmg2h1kuh0uwkeygfq0zplinlp4mkvanurpytx3.jpg\" alt=\"\" \/><\/figure>\n\n\n\n<p>In the early 19th century, developing capitalism transformed the region into a place of regular production and exchange of agricultural and industrial goods, all under Euro-American control. This expansion was evident in various ways: in the formation of the state and the build-up of the American government\u2019s administrative capacity in the region, the expansion of police authority, and the growth of both public and private investment in transportation infrastructure. The completion of the <strong>Erie Canal in 1825<\/strong>, which connected the Great Lakes to Buffalo, New York, shifted the center of economic power from the Ohio Valley to the southern shore of the Great Lakes.<\/p>\n\n\n\n<p>Entrepreneurs began investing in cities on the southern shores of the lakes, including Chicago, for many reasons. A primary one was the abundance of resources; for example, the soil in and around the city was <strong>immensely fertile<\/strong>, and there were deposits of iron ore and coal. Furthermore, this was complemented by a vast reserve of social and cultural resources. It is worth noting that the settlements in the Chicago area were predominantly populated by farmers and artisans accustomed to disciplined labor, regional calculation, and accumulation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Raw_Materials_Lucrative_Trade\"><\/span>Raw Materials, Lucrative Trade<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/cdn.chicago1.one\/wp-content\/uploads\/sites\/54\/2025\/02\/ad_4nxdntnc7oplr0prbhqlmvony3w04f0vuce4w9b54d_fdtmngsre5wz0ebwp5jly-yiluar5f8vkqnfnpivv6npnpgelcnzkkthcs_khee3fodjjes1nzjnf3j5mjhixmg2h1kuh0uwkeygfq0zplinlp4mkvanurpytx3.jpg\" alt=\"\" \/><\/figure>\n\n\n\n<p>While the best opportunities in the early 19th century were tied to raw material extraction, intercultural trade, and government contracts, agriculture soon took the leading position. Trade began to flourish alongside it. Since production, exchange, and consumption were closely linked in the Midwest, cities and towns, fields, forests, and factories supported one another in the developing economic cycle. The completion of the <strong>Illinois-Michigan Canal in 1848<\/strong>, which connected Chicago to the Mississippi River system, made the city on the southwestern shore of Lake Michigan one of the most important hubs in the regional economy of the Midwest.<\/p>\n\n\n\n<p>In the 1830s and 1840s, internal districts were created in the city, trade was actively conducted, and butchers, tanners, and distillers were at work. In 1847, <strong>Cyrus H. McCormick<\/strong> arrived in the city and, in 1848, opened the McCormick Harvesting Machine Company, which signaled the beginning of industrialization. This enterprise eventually sold its products not only in the Northwest but also worldwide. Between 1850 and the 1920s, Chicago transformed from a small regional trade hub into the <strong>second-largest city in the United States<\/strong>.<\/p>\n\n\n\n<p>As the American economy grew, the northeastern quadrant of the U.S. became the country&#8217;s manufacturing core. Improvements in transportation and communication increasingly linked the West to other regions. Chicago, which had everything necessary to capitalize on this development, began to take on more and more economic functions. The city&#8217;s growth and dynamism were inevitable. As the population increased, construction boomed, goods were supplied, and a wide range of services were provided.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Industrial_City\"><\/span>The Industrial City<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The 1850s saw the development of railroads, trade, and manufacturing in Chicago. During this period, people were mainly engaged in cattle farming and growing wheat and oats. By 1890, Chicago was the leading center for <strong>slaughtering cattle, meatpacking, lumber production, furniture, clothing, and tobacco products<\/strong>.<\/p>\n\n\n\n<p>By 1930, Chicago had become a more industrial city. Moreover, many types of processing industries\u2014sawing, planing materials, milling, and meatpacking\u2014gave way to higher-value industries based on metal production. As the city&#8217;s manufacturing industry developed and its products became more diverse, its markets also changed. By 1920, electrical equipment, iron and steel products, and machine tools from Chicago were sold not only in the U.S. but worldwide.<\/p>\n\n\n\n<p>From the 1850s to the 1930s, Chicago was the major wholesale and retail center of the Midwest. Bankers and financiers issued loans and provided financial services, while the city&#8217;s commodity exchanges ensured stability in agriculture. Through all this, the metropolis remained the nation&#8217;s leading railroad center. As the U.S. automotive industry became more centralized in the Great Lakes region, Chicago played a leading role in the <strong>freight industry<\/strong>. The city soon began actively investing in education and healthcare.<\/p>\n\n\n\n<p>Chicago&#8217;s economy and businesses suffered severely during the <strong>Great Depression<\/strong>, as demand for manufactured goods sharply dropped, and job cuts began in heavy industry. Conversely, the Chicago economy boomed during World War II.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Citys_Economy_in_the_20th_Century\"><\/span>The City&#8217;s Economy in the 20th Century<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/cdn.chicago1.one\/wp-content\/uploads\/sites\/54\/2025\/02\/ad_4nxeeodsc3rnl-odddfs0lsujajojfupixq55sxm8y4wzh7jg_mtaccj1a5j-azmfqplms3jq8jplx5gaj-95d4a0yqtiqpieqexcq4vtughii7zo-t9fbsgw5xldww9d9qpasicikeygfq0zplinlp4mkvanurpytx3.jpg\" alt=\"\" \/><\/figure>\n\n\n\n<p>In the 1970s and 1980s, the city&#8217;s economy showed confident growth, even despite serious problems associated with industrial restructuring and reorganization.<\/p>\n\n\n\n<p>The modern metropolis has managed to maintain a strong and <strong>high-tech industrial profile<\/strong> and remains a hub for trade and distribution. Publishing is widely represented in Chicago, and it is a leading center for finance, banking, and insurance in the U.S. Furthermore, it remains the primary transportation hub for the country\u2019s interior; for instance, <strong>O&#8217;Hare Airport<\/strong> is one of the busiest in the world, the city handles more rail freight than any other in the U.S., and it has excellent roadways and is a major inland port.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chicago is a major metropolitan area with a well-developed economy, trade, and many other sectors. This metropolis offers optimal conditions for conducting business, and the city government continuously develops programs to support entrepreneurs. However, things used to be quite different. Throughout its history, Chicago endured a series of shocks, yet despite these challenges, it became [&hellip;]<\/p>\n","protected":false},"author":456,"featured_media":2800,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1164],"tags":[3417,3427,3421,3414,3423,3416,3413,3420,3419,3422,3425,3415,3426,3424,3418],"moimportance":[81],"motype":[1158],"moformat":[93],"class_list":{"0":"post-4400","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-19th-century-chicago","9":"tag-20th-century-chicago","10":"tag-chicago-business-history","11":"tag-chicago-industrialization","12":"tag-chicago-railroads","13":"tag-commercial-history","15":"tag-economic-growth-illinois","16":"tag-erie-canal-impact","17":"tag-great-depression-chicago","18":"tag-illinois-and-michigan-canal","19":"tag-land-speculation-1830s","20":"tag-meatpacking-industry-chicago","21":"tag-midwest-trade-center","22":"tag-ohare-airport-freight","23":"moimportance-retranslyacziya-v-agregatori","24":"motype-eternal","25":"moformat-longrid-korotka"},"modified_by":"Yevheniia Shevchenko","_links":{"self":[{"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/posts\/4400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/users\/456"}],"replies":[{"embeddable":true,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/comments?post=4400"}],"version-history":[{"count":1,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/posts\/4400\/revisions"}],"predecessor-version":[{"id":4401,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/posts\/4400\/revisions\/4401"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/media\/2800"}],"wp:attachment":[{"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/media?parent=4400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/categories?post=4400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/tags?post=4400"},{"taxonomy":"moimportance","embeddable":true,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/moimportance?post=4400"},{"taxonomy":"motype","embeddable":true,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/motype?post=4400"},{"taxonomy":"moformat","embeddable":true,"href":"https:\/\/chicago1.one\/en\/wp-json\/wp\/v2\/moformat?post=4400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}