Deflation
Deflation occurred periodically in the U.S. during the 19th century (the most important exception was during the Civil War). This deflation was at times caused by technological progress that created significant economic growth, but at other times it was triggered by financial crises — notably the Panic of 1837 which caused deflation through 1844, and the Panic of 1873 which triggered the Long Depression that lasted until 1879. These deflationary periods preceded the establishment of the U.S. Federal Reserve System and its active management of monetary matters. Episodes of deflation have been rare and brief since the Federal Reserve was created (a notable exception being the Great Depression) while U.S. economic progress has been unprecedented.
San Francisco riot of 1877
From 1873 through the rest of the 1870s a severe economic crisis swept the United States of America known to history as the Long Depression. Economic contraction in the eastern United States proved the motivation for many to pull up stakes and try to reestablish themselves in the West coast mecca of California. Indeed, between the years 1873 and 1875 an estimated 150,000 workers made their way to the "Golden State," many of whom settled in the state's only metropolis, San Francisco.