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In the mid-1800s, Chicago and St. Louis were two major trading centers in the American Midwest. However, Chicago’s rise as a dominant city was not inevitable and was largely due to the advent of railroads. St. Louis had historically been a major trade center, serving as the upriver trading partner of New Orleans and a hub for fur traders. It had a broad levee that served as a break-in-bulk point for goods traveling up and down the Mississippi River.

In the 1850s, the arrival of railroads in the Midwest shifted the balance of power from St. Louis to Chicago. The Chicago, Alton, and St. Louis railroad extended to Alton, just upstream from St. Louis, putting the two cities in competition. The more important event was the arrival of the Chicago and Rock Island railroad at the Mississippi River, which allowed goods to bypass the difficult rapids north of St. Louis and be transported directly to Chicago. This shift in transportation infrastructure led to a shift in trade patterns, with upriver residents turning away from St. Louis and towards Chicago.

Chicago’s rise as a dominant city was also influenced by changes in trade relationships. St. Louis had traditionally relied on New Orleans for its southern trade and Philadelphia for merchandise from the East. However, the decline of these cities relative to New York, combined with Chicago’s rail connections to the East, gave Chicago an advantage in trade.

Throughout the 19th century, Chicago’s population and commercial influence grew rapidly, while St. Louis struggled to regain its former trade. By the 1870s, Chicago had become a financial and commercial center, with a larger population and more capital than St. Louis. The two cities had different hinterlands, with Chicago’s extending much further west. Chicago became the gateway to the West, controlling trade in an extensive region that included Illinois, Wisconsin, Iowa, and parts of Kansas and Nebraska.

The rise of Chicago as a gateway city had profound effects on the western landscape. It reshaped the system of central places in the region, with cities and towns emerging beneath Chicago’s shadow. The city system that developed in the Midwest was organized around Chicago, with Chicago-based firms controlling industries such as meat-packing and financing investments throughout the West. The influence of Chicago extended even to states like Iowa, which lacked a regional metropolis of its own and relied on Chicago as its chief market.

Ultimately, the rise of Chicago and the decline of St. Louis were not just about the geography of capital and trade. They were also about the ways people lived, worked, and traded within these cities. The changing landscape of the Midwest included the physical structures of grain elevators, packing plants, and retail stores, as well as the boxes and crates that bore the name “Chicago” and became a familiar sight on the sidewalks of cities like Omaha.

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