Finance and Economic Factors at the 1893 Fair
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| Chicago World's Fair: Birdseye View, Official Print. From: Artstor. wwww.artstor.org |
Initial Predictions
The initial financial predictions for the 1893 World’s
Columbian Exposition were optimistic, to say the least. In their “Report for
the President of the Chicago Company,” The National Committee estimated that
total expenditures for the fair would be “liberal beyond expectation,” at about
$17,625,435. He estimated the incoming revenue for the fair would be about 18
million, with 5 million coming from the sale of stock, 5 million from the city
of Chicago, 7 million from gate receipts, and 1 million from granting
concessions.[1]
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| Entrance Ticket to the World's Fair |
In reality, the Chicago Company soon discovered that their
predictions were wildly optimistic, and, by the summer of 1891, they realized
that they would not have enough money to finance the fair. Part of the reason for inaccurate financial predictions was
the confusion over the responsibility for executing the details of the fair. The
Chicago Company was in charge of building and design, while the National
Commission, a separate board of men, was in charge of the specific exhibition
space and internal details. A lack of communication between these two boards
resulted in unsound financial decisions. Artists and architects continually
made changes in decoration and design without worrying about cost, and these
decisions slipped between the oversight of the two separate boards.[2]
The continuous demand for more exhibition space and change in number of
exhibits slowly increased the cost of the fair as the plans for the exposition
grew. The Board of Commissioners allowed contracts to be made before receipt of
the funds to pay for the work were received, and much of the construction was done
on credit. As a result, by September of 1891, the Fair Officials were
scrambling for a way to continue to finance the exposition.[3]
Turning to Congress:
Troubles and Loans
On September 2nd of 1891, the head of the
Committee on Grounds and Buildings issued a report to the Chicago Company which
declared that they needed to either receive more money to fund the construction
of the fair or abandon the construction of some of the buildings. In December
of 1891, The Chicago Company petitioned congress requesting additional funds
for the construction of the fair, declaring that federal support was necessary
if America wanted to prove its authority to the world through a grand display a
the Fair. In February of 1892, President Harrison declared that he was
favorably disposed to federal support. Six months later, in August of 1892,
Congress passed a bill that granted 2.5 million dollars to the Fair officials,
which, although less than half the amount than what they had asked for, aided
the Chicago Company in saving themselves from insolvency. Fair officials also
turned to banks, taking out about 45 million in debenture bonds to fund the
construction of the fairgrounds.[4]
The Midway and
Finance
Another source of financial revenue that fair officials were
forced to turn to were vendors who saw the fair as an opportunity to make a
fortune in their individual businesses. Originally, fair officials had been
opposed to responding to requests from individuals who wanted to sell goods or
perform shows; they saw such circus acts and musical troupes as incongruous
with the classical ideal and aesthetic of the fair as a whole. Instead, fair
commissioners wanted to take an ethnographic approach to entertainment at the
fair. They hired G Browne Goode, an advisor from the Smithsonian Institution,
and F. W. Putnam, a professor at Harvard to assemble exhibits from around the
world that provided an educational representation of various cultures. These
exhibitions of social and cultural interest were to take place on the midway,
the strip of land that connected Jackson and Washington Park.[5]
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| Drawing, Unidentified Artist, Dance of the Dahomans in the Midway Plaisance, 1893 From: Artstor: www.artstor.org |
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| Unknown Photographer, Photograph of the Midway, 1893 From: Artstor: www.artstor.org |
However, the financial problems that fair commissioners
faced soon forced them to rethink this approach. Vendors, circus performers,
and other cheap forms of entertainment would provide financial revenue for the
fair. These individuals would pay for the use of the Midway, allowing the Chicago
company to receive large receipts from these sources that would allow them to
pay back the original investors they were indebted to. Further, such forms of
entertainment would draw crowds to the fair itself, raising gate receipts and
ticket sales. As a result, the Chicago Company decided to hire Sol Bloom, a 22
year old first-generation American who was known for his ability as a salesman.
Bloom directly clashed with the ideas of Putnam and Goode; he realized that
their ethnographic approach to the Midway would not raise sales for the fair as
a whole. He declared that “to have made this unhappy gentleman responsible
[Putnam] for the establishment of a successful venture in the field of
entertainment was about as intelligent a decision as it would be today to make
Albert Einstein manager of the…Bailey Circus!”[6]
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| Poster Advertising Portraits on the Midway, 1893 From: Artstor: www.artstor.org |
With the support of the Chicago Company, Bloom thus turned
the Midway largely into a concession and entertainment area. From the erotic “hootchy-cootchy”
belly dance in the “Street of Cairo” to the rowdy performances at Buffalo Bill’s
“Wild West Show,” the midway became a chaotic, colorful, and energetic site of
entertainment that stood in contrast to the stark white walls of the main
fairgrounds.Money-making concessions and sideshows made over $4 million
dollars, and Bloom became famous as the man who turned the Midway into the most
successful amusement area in the history of World Fairs.[7]
