Tag Archives: Business history

19th Century, Agriculture, Business, farming, Food, History, Intercession, Minnesota, State Government

Bonanza Farms 1875

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1875
“Investors grow wheat on a grand scale in the Red River Valley. Their “bonanza farms” cover thousands of acres and are harvested by huge crews and the latest machinery.
A financial panic in 1873 stopped the construction of the Northern Pacific Railroad to the Red River Valley. In order to pay back its Eastern investors, the bankrupt company allowed its investors to exchange their bonds for land. As a result, large urban investors immediately became owners of thousands of acres of land (unlike homesteaders who had to live on the land for five years to get 160 acres). The new owners turn the land into large-scale commercial farms run by hired managers with cheap labor and expensive machinery.” *

Lord, You hate corruption of any sort in any relationship. “The LORD detests dishonest scales, but accurate weights find favor with him.” Proverbs 11:1** This Panic of 1873, again at the hands of the railroads under federal authority, really stole land from the homesteaders. (The principle of sowing and reaping? The homesteaders just years before may have been party to land being swindled from the Dakota.) Anyway, we are people capable of both sharing and defrauding land from our neighbors.

Will You forgive us this debt? Will You cause restoration and repentance to grow in the heart of this State and Nation? Will You forgive Minnesotans’ resentments against the Federal Government? Will You forgive the Railroads for manipulating the Panic of 1873 to their benefit? Will You remove this curse from our land, skies, waters, and hearts? Thank you that You deal with us in such a generous manner!

http://www.mnhs.org/about/dipity_timeline.htm
**http://biblehub.com/proverbs/11-1.htm

 

 

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19th Century, Business, Civil War, Economics, Intercession, Jesus, justice, law, Minnesota, omnipresent history, Real Estate

Financial Panic Changes the Economic Climate July 1, 1857  

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Fueled by wild speculation in land prices, the economy of Minnesota Territory became overheated. This speculative bubble burst in July when banking failures in the East began to spread panic in the West. The resulting crash in land values caused credit to dry up in Minnesota. Local banks closed and other business failed as well. The economy of Minnesota did not improve until the Civil War.*

Father, how often has this happened in our history as human beings? How often has money, property, or wealth been manipulated to bring an otherwise peaceful people to war? Lord, we seem immune to recognize the inner causes of these type of panics and economic downturns; we want what we do not have. Will You forgive us our desire for easy money? Will You forgive the greed of the banks involved: Eastern or Western or foreign?

Will You wipe out the painful judgments of our states’ debtors towards these banks, and their unforgiveness of debt? Will You forgive us for being seduced by the spirit of speculation to the detriment of our brothers and sisters? It seems there is a perpetual battle between those who value the land as a home that sustains life and those who view it only as a profitable commodity. Lord, will You give balance to our judgments of the land, and free our land of the curses we have committed against it?

*Note – PrayThroughHistory uses the timeline located for several years at the Minnesota Historical Society Web site, at this URL: mnhs.org/about/dipity_timeline.htm .

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