Changes

The 1790s were hard times for the city. The Bank of England's suspension of specie payments caused the network of Atlantic credit to unravel, leading to a mild recession. The [[Quasi-War]] with France in 1798-1800 caused major disruptions to Baltimore's trade in the Caribbean. Finally, a yellow fever epidemic diverted ships from the port, while much of the urban population fled into the countryside. The downturn widened to include every social class and area of economic activity. In response the business community diversified away from an economy based heavily on foreign trade.<ref> Richard S. Chew, "Certain Victims of an International Contagion: The Panic of 1797 and the Hard Times of the Late 1790s in Baltimore," ''Journal of the Early Republic'' 2005 25(4): 565-613</ref>  

The 1790s were hard times for the city. The Bank of England's suspension of specie payments caused the network of Atlantic credit to unravel, leading to a mild recession. The [[Quasi-War]] with France in 1798-1800 caused major disruptions to Baltimore's trade in the Caribbean. Finally, a yellow fever epidemic diverted ships from the port, while much of the urban population fled into the countryside. The downturn widened to include every social class and area of economic activity. In response the business community diversified away from an economy based heavily on foreign trade.<ref> Richard S. Chew, "Certain Victims of an International Contagion: The Panic of 1797 and the Hard Times of the Late 1790s in Baltimore," ''Journal of the Early Republic'' 2005 25(4): 565-613</ref>  

===Baltimore and Ohio Railway===

===Baltimore and Ohio Railway===

Baltimore faced economic decline unless it opened routes to the western states, as New York had done with the Erie Canal. In 1827, twenty-five merchants and bankers studied the best means of restoring "that portion of the Western trade which has recently been diverted from it by the introduction of steam navigation."  Their answer was to build a railroad--one of the first commercial lines in the world. The Baltimore & Ohio Railway became the first chartered railroad in the United States; twenty thousand investors purchased $5 million in stock to import the rolling stock and build the line.  It was a commercial and financial success, and invented many new managerial methods that became standard practice in railroading and modern business. The B&O became the first company to operate a locomotive built in America, with the "Tom Thumb" in 1829. It built the first passenger and freight station (Mount Clare in 1829) and was the first railroad that earned passenger revenues (December 1829), and published a timetable (May 23, 1830). On December 24, 1852, it became the first rail line to reach the Ohio River from the eastern seaboard.  Its lines are still profitable, though it was merged into the CSX system in 1987.  

Baltimore faced economic decline unless it opened routes to the western states, as New York had done with the Erie Canal. In 1827, twenty-five merchants and bankers studied the best means of restoring "that portion of the Western trade which has recently been diverted from it by the introduction of steam navigation."  Their answer was to build a railroad--one of the first commercial lines in the world. The [[Baltimore and Ohio Railroad]] became the first chartered railroad in the United States; twenty thousand investors purchased $5 million in stock to import the rolling stock and build the line.  It was a commercial and financial success, and invented many new managerial methods that became standard practice in railroading and modern business. The B&O became the first company to operate a locomotive built in America, with the "Tom Thumb" in 1829. It built the first passenger and freight station (Mount Clare in 1829) and was the first railroad that earned passenger revenues (December 1829), and published a timetable (May 23, 1830). On December 24, 1852, it became the first rail line to reach the Ohio River from the eastern seaboard.  Its lines are still profitable, though it was merged into the CSX system in 1987.

 

===Peabody and Philanthropy===

===Peabody and Philanthropy===

George Peabody rose from humble beginnings to become one of the nation's most powerful businessmen. Based in Baltimore, Peabody developed an extensive network of financial and mercantile institutions that laid the groundwork for J. P. Morgan's financial empire. Peabody relocated to London in 1837 and later helped install the first transatlantic telegraph cables. During the 1860s, Peabody began his celebrated philanthropic career, endowing libraries and museums and aiding the poor on both sides of the Atlantic. Peabody's legacy inspired Andrew Carnegie and other captains of industry to offer some of their wealth to serve the public good.<ref> Elizabeth  Schaaf,  "George Peabody: His Life and Legacy, 1795-1869," ''Maryland Historical Magazine'' 1995 90(3): 268-285, </ref>

George Peabody rose from humble beginnings to become one of the nation's most powerful businessmen. Based in Baltimore, Peabody developed an extensive network of financial and mercantile institutions that laid the groundwork for J. P. Morgan's financial empire. Peabody relocated to London in 1837 and later helped install the first transatlantic telegraph cables. During the 1860s, Peabody began his celebrated philanthropic career, endowing libraries and museums and aiding the poor on both sides of the Atlantic. Peabody's legacy inspired Andrew Carnegie and other captains of industry to offer some of their wealth to serve the public good.<ref> Elizabeth  Schaaf,  "George Peabody: His Life and Legacy, 1795-1869," ''Maryland Historical Magazine'' 1995 90(3): 268-285, </ref>