The good times which followed the Civil War were in a few years followed by a financial depression that extended over the whole country and reduced innumerable financial establishments to ruin.
These financial troubles began in Philadelphia with the failure of the banking house of Jay Cooke & Co., September 18, 1873. Mr. Cooke’s bank had given such help to the United States Government during the period of the war that he was frequently called the “Financier of the Rebellion.”
When this banking institution collapsed there followed a run on other banks, the effects of which soon spread throughout the United States.
The excellent “Pennsylvania Colonial and Federal,” by Howard M. Jenkins, says: “The condition of the times was rendered more deplorable by a series of labor difficulties, extending from 1874–1877. In 1874, there was a conflict in Westmoreland County between Italian and resident miners, in which four of the Italians were killed. The same year there was a railroad strike at Susquehanna on the New York and Erie Railroad. A number of trains were seized by the mob, and order was not restored until after the Governor had sent the State militia into that region. In January, 1875, the miners of the Lehigh and Schuylkill regions began a strike, which lasted six months. There was but little violence; yet the Governor found it necessary to order the militia to the scene of the disturbance.”
In 1877, the spirit of lawlessness increased, culminating in a series of destructive riots in different parts of the State. The cause of all this trouble was the railroad strike, which began on July 16, and soon became general throughout the United States.
In the beginning of July, a circular was issued from the offices of the Baltimore and Ohio Railroad, announcing a reduction of 10 per cent from the wages which the men were then receiving. A new schedule of wages was announced, to take effect on July 16. At all points along the railroad, there were demonstrations against this reduction. A strike was ordered, and before midnight of the 16th the immense property of the Baltimore and Ohio was in the hands of the rioters.
On July 19 the employes of the Pennsylvania Railroad at Pittsburgh inaugurated a strike, and stopped the passage of all freight trains east and west. By the evening of the 20th, a large number of freight trains were tied up in the city. The striking workmen resisted all efforts of the railroad officials to remove these trains, and threatened acts of violence. At this time Governor John F. Hartranft was on a trip across the continent, but upon the call of the Sheriff the Adjutant General ordered the Sixteenth Division of the National Guard to assist in restoring order.
Adjutant General James W. Latta arrived at Pittsburgh on July 21, to take personal charge of all the troops ordered out. The First Division of the National Guard was also called into service, and on the forenoon of the 21st, the troops took position upon the hill overlooking the tracks at Twenty-eighth Street.
At 2 o’clock in the afternoon the troops from Philadelphia arrived, and they at once proceeded to open the road. As they approached Twenty-eighth Street, the crowds pressed in upon them and stones were thrown by the mob.
There was considerable firing on both sides, and in the melee twenty soldiers were wounded. In the evening the soldiers withdrew to the roundhouse and adjacent buildings. At midnight the rioters determined to drive them out by burning the freight cars in the vicinity. The result was a great conflagration, in which vast quantities of freight were consumed and all the rolling stock and buildings of the Pennsylvania Railroad at Pittsburgh were destroyed.