At the outset of the Civil War, Philadelphia was a major hub of commercial enterprise, manufacturing, transportation and heavy industry in the nation. By 1860, the city boasted of 6,314 manufactories, including 525 in textiles, 649 in iron and steel and 1,523 in garments and apparel. Over 17 percent of the laborers in Philadelphia worked in manufacturing areas.182 Despite a number of economic crises that preceded the outbreak of war—such as the loss of Southern markets, a persistent recession, the loss of hard currency and accompanying bank closures, falling stocks of goods, unemployment and uncertainty—most businesses adapted. The flurry of activity as the call for troops and the contracts for arms, clothing and equipment bolstered the economy.183
Prior to Secession, Philadelphia had enjoyed substantial trade with the Southern states. These ties were now severed with economic losses and the creation of uncertainty. But quickly, the city’s manufacturing base adjusted, and an upswing in government work and contracts brightened the outlook. Just weeks after Lincoln’s election, the Public Ledger was already reporting that the city manufacturers seemed undisturbed by the state of affairs, and optimism prevailed on the economy.184
Philadelphia firms began to manufacture military goods in great quantity, especially in shipbuilding and engine machinery along the Delaware River. Thomas Potter made knapsacks, employing over 2,400 workers. Clothing and uniform production increased. Henry Simons produced wagons, gun carriages and ambulances. The North, Chase & North Foundries produced shot and shell. Sheble & Fisher pitchfork and rake factory converted to producing swords and bayonets, and Van Dyke Lamp Company turned out one thousand pairs of cavalry spurs per day. Baldwin Locomotive Works on the southwest corner of Broad and Spring Garden ramped up production to keep up with the demands of the military railroad, erecting new shops and foundries and adding workers during the war.
William Horstmann & Sons, one of the largest prewar military regalia, uniforms and military goods firms, expanded its business exponentially, even spinning off the manufacture of certain types of goods to subcontractors, such as the making of battle flags for military units. Two former craftsmen at Horstmann left to create their own firm, Evans & Hassell, which then competed with Horstmann for contracts to make regimental battle flags. Charles Stokes, a textile manufacturer, turned to military contracts and produced army trousers. He humorously ran advertisements in the press asking: “What is the use of a great seat of war for a standing army?” He promised that his establishment made “breeches to cover the rear!”185
The development of a massive and efficient system of organized supply of manufactured goods was perfected during the war by Philadelphia-raised Quartermaster General Montgomery C. Meigs. His competent efforts created the impetus that led to the manufacture of all the numerous items necessary to the management of the war and marshaled private industry to rise to fill the contracts to supply the goods needed. Many military items were also manufactured at the Philadelphia Quartermaster Depot, known as the Schuylkill Arsenal, at Grays Ferry. This facility was managed for the Quartermaster’s Department by Colonel George H. Crossman. Crossman and Meigs, after an initial period of ramping up and inefficiency, were able to establish a very efficient system of contracting that led to the ability to completely outfit military units for service as they were needed. In this system, the state apparatus cooperated closely with the U.S. Army to outfit the volunteers as they came into service.186
Philadelphia also featured a large pool of willing laborers, many of whom were skilled in their crafts. Although the war forced declining real wages after adjustment for inflation, there was never a shortage of work. Labor was also supported by a benevolent community that provided funds and support for the families of workers who entered military service. A budding labor movement was also established in Philadelphia that would grow stronger in the postwar years.
There were also dangers at home in the workplace. Accidents were common, and the city faced a tragedy on March 29, 1862, when Professor Jackson’s cartridge factory on Tenth and Reed Streets in Southwark blew up. The explosion killed seven workers, including two women and the owner’s son, and wounded over sixty-five. Sparks, as well as body parts, were thrown onto homes in the vicinity in a horrible tragedy, as recorded in the press.187
Practically every kind of product, goods and provision was manufactured in Philadelphia on government contract. Some of the largest and most noted firms included Alfred Jenks Company at Richmond and Franklin Streets in Bridesburg, which produced thousands of Springfield pattern rifled muskets; Francis Jahn, which produced swords; Thomas Sparks, which made bullets and shot; and Bush Hill Iron Works, which produced naval Dahlgren guns. The list is long and laced with the names of commercial manufacturers who turned to the production of military items. This was in addition to the government arsenal and armories. The navy yard employed close to three thousand workers building or repairing ships. The Frankford Arsenal produced shot, shell, mini-ball cartridges and percussion caps in enormous quantities. The Schuylkill Arsenal Quartermaster Depot continued to produce vast quantities of uniforms, camp equipage (cooking implements, tentage, tent poles, canvas, etc.), harness and saddles and leather goods. Lead production, cordage, lumber, brewing and sundry other items necessary to an active military campaign were also produced in Philadelphia factories.188
Philadelphia companies also produced an array of items and goods needed by the Quartermaster in quantity. Items such as flags, banners and guidons, brass musical instruments, medical supplies, surgical instruments, artificial limbs for amputees, medicines, boots and shoes, as well as leather goods for military uses, were turned out on contract by the factories and firms of Philadelphia to meet the needs of individuals and entire commands. There were such a large number of textile mills operating in Germantown producing clothing, uniforms, blankets and hosiery that the term “Germantown Goods” signified the prowess of that sector of production.
Even the fanciful needs of the soldier and the citizen were met by the tripling of beer brewing, whisky distilling and entertainment, including the new CDV (carte de visite) photograph fad that was so popular during and after the war. Frederick Gutekunst had a photographic studio on 704 Walnut Street that rivaled Matthew Brady’s studios. Also, food production was a major industry, supplying sugar, hard bread and canned goods to the troops. In short, there was really no item that could not be supplied to the military or homefront by Philadelphia manufacturers.189
These manufacturers profited greatly during the war from government contracts, tariff protection and flexible methods in production and markets. The large increase in wartime production led to increased capital investment, especially in textiles, iron and steel industries, during the war and sustained afterward into peacetime. Wartime commander Colonel William Gray, for example, went from manufacturing swords to gas fixtures after the war.190