The Panic of 1907 was a severe financial crisis that foreshadowed the Great Depression. The name "panic" was fitting, as unemployment rose from 2.8% to 8%. Americans lost faith in the banking system and withdrew their money. Banks and businesses struggled, and the public became concerned about an unstable economy.
As unemployment climbed, many men took to the road. It is estimated that over half a million hobos were hopping trains in search of work. While "hobo" was often used disparagingly, most were simply men who had fallen on hard times and were looking for jobs.
Life as a hobo was difficult. Getting on and off moving boxcars was dangerous, and in bad weather, freezing to death was a real risk. Hobos often fought over scarce resources, and conflicts with railroad crews, who tried to keep vagrants off the trains, were common.
In October 1908, near Fryburg, a train conductor found three men hitching a ride. When he ordered them off the train, they pulled guns on him and his crew. Not wanting a gunfight, the conductor allowed them to stay on the train and called ahead to Medora, asking the sheriff to arrest them when the train arrived. The men were arrested for vagrancy but were soon released. They then made their way to Montana, where they were again arrested for vagrancy.
However, the railroad company was determined to pursue the matter and asked Sheriff Charles Willis of Billings County to act. On this date in 1908, it was announced that Montana had approved the extradition of the three men to Billings County. The charge was no longer just vagrancy, but assault with a dangerous weapon.
The Panic of 1907 lasted only about six weeks. The economy eventually recovered and remained stable. The number of hobos decreased until the Great Depression, when unemployment soared to over 20%, and men once again rode the rails in search of work.
Dakota Datebook by Dr. Carole Butcher
Sources:
- Bismarck Tribune. “Requisition for Gun-Players.” Bismarck ND. 11/22/1908. Page 1.
- KellogInsight. “Why the Panic of 1907 Led to a Recession.” https://insight.kellogg.northwestern.edu/article/why-the-panic-of-1907-led-to-a-recession Accessed 10/7/20224.
- Federal Reserve History. “The Panic of 1907.” https://www.federalreservehistory.org/essays/panic-of-1907 Accessed 10/7/2024.
- Smithsonian Magazine. “The Panic of 1907.” https://www.smithsonianmag.com/history/the-financial-panic-of-1907-running-from-history-82176328/ Accessed 10/7/2024.
- History Collection. “An Intimate Look into the Life of Hobos.” https://historycollection.com/look-life-hobos/#:~:text=The%20term%20originated%20in%20the%20United%20States%20around,%E2%80%98farmhand%E2%80%99%20or%20from%20a%20greeting%20like%20%E2%80%9CHo%2C%20boy%21%E2%80%9D Accessed 10/7/2024.
