The Civil War was not the huge economic boon the mining companies hoped it would be in the beginning. In fact, nothing seemed to work out the way the companies had envisioned. While on one hand, between 1860 and 1865, the number of active mines increased from 23 to 36, copper production actually dropped by two and a half million pounds between 1861 and 1864.

The beginning of the war created problems on the national level that were keenly felt in the Copper Country. The outbreak of the conflict brought about an abrupt end of business being conducted between the northern states and the southern states. Debts owed by southern agricultural growers to norther parties were not paid, which contributed to financial panic. Other factors contributed to the panic as well, which resulted in the collapse of the national banking system.

Until paper currency was issued by the Federal government, paper money only existed as bank notes, which were issued by privately owned banks. The notes could be redeemed by people holding accounts with that particular bank in exchange for federally issued coins. Bank notes were not legal tender, but they were backed by gold and silver. Unfortunately, if the bank failed, the notes became worthless. The Federal government began issuing paper currency – “greenbacks” – but they were not backed by gold or silver.

With little or no credit available, the banking system was in a state of collapse, goods normally bought on credit could only be purchased with gold or silver coin, of which there was very little.

With the close of the 1861 navigation season rapidly approaching, a credit of several hundred thousand dollars was necessary to see a community through the winter. Unfortunately for everyone, with no available money, credit was next to impossible to secure.

To compound matters, a general air of depression had begun to permeate the region, as the financial panic combined with early Union military defeats, to create a sense that the government had been destroyed and the country had dissolved. Residents, both American and foreign, began to show signs of restlessness, and then tendencies to outright violence.

No paydays led many workers to refuse to work and engage in wild cat strikes. Store houses were looted, strikers threatened to burn mine engine houses and stamp mills. Several mines, fearing complete anarchy, had secretly ordered muskets and hidden them in mine offices, then drilled select men in defense.

Eventually, the mining companies combined and came up with a solution, or sorts. While not entirely lawful, the solution resolved many issues, and kept the Copper Country solvent until the government was able to issue paper money. They began issuing their own currency. Company currency, issued in five and ten dollar species, were signed by the clerks of the mining companies and issued to employees on paydays. They were redeemable at the company’s offices, and were accepted as binding currency throughout the region. The mining companies of the iron ranges handled their financial situations in the same way. Long after federal paper money became abundant in the copper region, the mining companies continued to issue their own currency until the government compelled them to stop. The money was redeemed at the individual companies’ main offices.

Company notes did not resolve all the issues in the region, however. Discontent continued to escalate and crimes ranging from petty crimes to looting stores. John H. Forster, manager of the Pewabic mine on Quincy Hill, recounted a story in which the threat of an attack on the Pewabic stamp mill was averted when the mill superintend prepared to defend the mill by attaching hoses to the mill’s boilers. The promise of being hosed by steam quieted the rioters.

As the war progressed, labor shortages intensified. Men leaving for the service is recorded as totaling 833 from all three counties. A larger contribution to the labor shortage was that thirteen new mines had been started up, drawing men productive mines. Many of these mines were in the development stage, and did not produce copper before the close of the war; they simply put men to work in unproductive mines at a time when they were needed at mines that were trying to increase production for the war effort.

At a time when the region was adjusting to instability on several levels, the mining companies added to it by deciding to import new workers from Scandinavia, a plan that, like so many others, did not work out for the companies.

Editor’s note: Graham Jaehnig can be reached at gjaehnig@mininggazette.com.