Hail Dear Readers!
Hamilton Bush here, once again, with local lore and Chattanooga area chitchat.
These days, old Hamilton is probably having thoughts similar to many of you, dear readers. The 401(k) retirement plan that yours truly had counted on to have substantially appreciated as he rapidly approaches his golden years seems to have evaporated overnight – maybe not completely – but a substantial portion thereof.
Now, old Hamilton ponders his own circumstance with that of corporate giants such as AIG and the Big Three automakers, right along with those pillars of the financial services industry, such as Bear Stearns, Lehman Brothers, Wachovia, etc., etc., etc. The trillions of dollars that the U.S. government has designated for the most massive bailout effort in history have been set to prime the pump, and to apply the proverbial paddles to the fibrillating heartbeat of the economy to shock it back to a semblance of normality.
Your history scribe can certainly understand how the ailing economy must be feeling right now. Particularly since he vaguely remembers a bender or two in years past and the morning after when his head felt like it was going to burst in similar fashion to the housing bubble. Then, there were the times when yours truly has been simply under the weather – headache, sore throat, fever.
To the point… it seems logical, after all, that the economy, like other circumstances in life, needs a hefty dose of medication at times, a period of recovery, and a big boost of confidence to return to full vigor. Here’s hoping that those of you who have suffered mightily already due to the current economic downturn will see better times in the not too distant future. While it may be of little comfort today, we can always afford to be a bit optimistic that this, too, shall pass.
Dear Hamilton Bush,
I am feeling a little down in the dumps due to the economic difficulties we have been hearing about. Of course, I’m sure there have been other troubled times in our history. Can you tell me about any other times such as these?
Sincerely,
Singin’ The Blues
Dear Blues,
Economic expansions and contractions have been ebbing and flowing since nations came into being and currency has been used to purchase goods and services. Here, in our fair city and environs, one does not have to think long or hard to remember the difficulties at the gasoline pump during the Arab Oil Embargo of 1973, which led to acute shortages of just about everything related to petroleum. In 1974, President Gerald Ford urged all Americans to wear the WIN button. The message on that catchy little item stood for “Whip Inflation Now.”
Then came the energy crisis of 1979, when we were all urged to layer our clothing during the winter and set the thermostat at 68 degrees in our homes. During the late 1970s, inflation also began to take off and contributed to a recession which took hold in 1980-81. Some said that the economic downturn was due to a tight monetary policy driven by then-Federal Reserve Chairman Paul Volcker, who was trying mightily to bring inflation under control.
Although your history hound is far from being a competent economist, the basic understanding is that the classic definition of inflation runs something like “too much money chasing too few goods,” so a tightened fiscal policy meant that interest rates increased at a rapid pace, causing consumers to spend less but the prime rate to hit a peak of 21.5 percent in the summer of 1982. When compared to the current prime rate of somewhere from 3.5 to 4.0 percent, the effect is obvious. Some industries such as housing, the manufacturing of finished goods, and automobile production and sales suffered mightily. Unemployment across the great United States reached nearly 11 percent.
Certainly, the 1970s and 80s were not the earliest adverse economic periods in the history of our city, the nation, or the entire world. The Great Depression persisted from 1929 until World War II, with millions out of work, long soup lines, and a loss of faith in the credit and banking systems. President Franklin D. Roosevelt gave the country hope and told a worried and fatigued populace in his 1932 inaugural address:
“This great Nation will endure as it has endured, will revive and will prosper. So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance…”
These were stirring words, delivered at a time when the nation’s confidence was clearly on the wane. Is this such a time? If so, we would do well to heed those words spoken 77 years ago. Your history hound trusts that the stirring words we, as a people, long to hear today will be accompanied by assertive, bipartisan action on the part of our elected officials (just a smidgen of editorializing, but yours truly cannot resist).
By the bye, here’s a bit of added perspective for you. Although we can only scratch the surface in limited space, dear reader, you may be interested to know that another economic downturn, known as the Long Depression – which was indeed long and was said to have lasted until 1896 - was precipitated by the Panic of 1873 and wrapped around a second Panic in 1893. Well, such catchy names for these events make your scribe wonder aloud how this dark period will be remembered. How about “The Big Bunch of Bailouts of 2008” or “The Fantastic Financial Flop.” Should you have suggestions, please forward them.
Dear Hamilton Bush,
My wife and I recently celebrated our 25th wedding anniversary with a wonderful dinner at the St. John’s Restaurant on Market Street. The fare was excellent, the atmosphere was inviting, and the service was topnotch. Seems that I recall the same building sitting derelict for a number of years, while other nearby buildings were also in decline and eventually torn down. Can you fill me in on the story of the St. John’s structure?
Regards,
Satisfied at St. John’s
Dear Satisfied,
Old Hamilton at your service and happy to oblige. The St. John’s Restaurant, located at 1278 Market Street, is indeed a happening locale, along with its casual dining neighbor, the trendy Meeting Place. Retail shops and apartments also occupy the building, which began its sojourn as a hotel during the days when the Southside of Chattanooga was experiencing its first boom.
Much of the development on the Southside took place in conjunction with the opening of the grand Terminal Station in 1909, and that structure now houses the main building of the Chattanooga Choo Choo complex. A number of years prior to the erection of the Terminal Station, real estate developer and entrepreneur J.C. Stanton opened the Stanton House Hotel on Market Street between what was then 9th Street (now Martin Luther King Jr. Blvd.) and Main Street.
In doing so, Stanton exercised a bit of political clout and convinced the city fathers to move Main Street in order for it to run directly past the front door of his establishment. Another contributing factor in the city’s approval was that the lay of the land, naturally southeast to northwest, was more easily taken advantage of than the original grid from north to south. Well, the resulting reorientation of Main Street created several triangular blocks south of Martin Luther King Jr. Blvd.
In 1915, the structure which houses the St. John’s Restaurant was built and opened as the Ellis Hotel. With the classic look of a “flatiron” building, the hotel was designed by noted local architect R.H. Hunt and occupied one of the distinctive triangular corner lots. Incidentally, in earlier years, the site had been occupied by other hotels and the downtown U.S. Post Office. Well, the Victorian-style Ellis Hotel was built of terra cotta and brick, configured with 76 rooms, and encompassed 24,000 square feet. Attention to detail included significant marble, wrought iron, and plaster accents.
During the 1920s, the name of the establishment was changed to the Austin Hotel. Then, once again, it was the Ellis Hotel for a brief period before becoming the Gilbert-Ellis Hotel in 1933. Seems like our subject had a bit of an identity crisis for a while. Nevertheless, in 1967, the name settled on St. John’s. By 1971, the structure was sold for $200,000 and converted into apartments for low-income dwellers.
In 1983, the building was in a state of disrepair, purchased by the City of Chattanooga, and slated for demolition. Our subject, however, refused to go gently into that good night, as so many other historic Chattanooga structures had previously done. With the assistance of Cornerstones historic preservation group, renovations were conducted in 1995, while the remainder of the dilapidated block fell to the wrecking ball. In 1999, the building reopened and your favorite restaurant was in business about that time, its dining room situated at the south corner of the building in the former hotel lobby.
It does old Hamilton’s heart good to report on such a success story, blending historical preservation and modern mixed-use development. A tip of the cap to Cornerstones, the restaurateurs, the retailers, and the residents!