Showing posts with label Mifflin Kenedy. Show all posts
Showing posts with label Mifflin Kenedy. Show all posts

2026/03/05

1851 - The Hide Trade on the Rio Grande

The Hide Trade on the Rio Grande


Two 1851 Letters to Charles Stillman

Among the many businesses that passed through Charles Stillman’s warehouses in Brownsville, one of the most important in the early 1850s was the trade in cattle hides. Two letters dated December 23, 1851, from New Orleans merchants give a glimpse of how that trade worked and why Brownsville quickly became a hub of international commerce.

The writers—B. S. Mann and M. W. McChesney, both operating from New Orleans—were part of the network of commission merchants who handled frontier products for sale in larger markets.


The Commodity: Salted Hides

The letters refer specifically to “salted hides.”

Hides were a valuable byproduct of the vast cattle herds roaming South Texas and northern Mexico. When cattle were slaughtered, the hides were preserved by salting so they could survive long journeys by wagon, steamboat, or sailing vessel.

Once cured, the hides were shipped to commercial centers where they were used in:

  • leather production

  • saddlery

  • harness making

  • boot and shoe manufacturing

  • industrial belts for machinery

In the mid-19th century, leather was one of the most essential industrial materials in the world.


Brownsville as a Collection Point

Stillman’s firm in Brownsville served as a collection and export point for hides produced throughout the Rio Grande frontier.

Ranchers and traders from:

  • the lower Rio Grande Valley

  • northern Mexico

  • the interior ranchlands

would bring hides to Brownsville, where merchants like Stillman purchased or consigned them for sale in larger markets.

From there the hides could be shipped by coastal vessel to New Orleans, one of the most important commercial ports in the United States.


New Orleans Commission Merchants

The two letters show how New Orleans merchants competed for Stillman’s business.

One correspondent notes that he had heard Stillman might be shipping hides through Witherell, Wade & Co., another commercial house. He writes to persuade Stillman to ship his hides instead through his own firm.

This type of competition was common. Commission merchants depended on frontier traders like Stillman to supply them with goods that could be sold in eastern or European markets.


Prices and Markets

The letter mentions hides being sold at about 9½ cents per pound.

That figure tells us several things:

• hides were sold by weight rather than by individual piece
• markets were closely watched for price fluctuations
• frontier merchants tried to time shipments for the best return

A merchant who could sell at even slightly better prices could attract large consignments.


The Commission System

The New Orleans merchant offers to handle Stillman’s hides for a 2½ percent commission.

Under this system:

  1. Stillman would ship hides to New Orleans.

  2. The commission merchant would sell them.

  3. The merchant deducted his commission.

  4. The remaining proceeds were credited to Stillman.

The commission house might then purchase goods requested by the frontier merchant—such as manufactured supplies—or send cash or bills of exchange.


A Growing International Trade

Although these letters concern hides, the same network handled many other frontier commodities:

  • cotton

  • wool

  • cattle

  • tallow

  • Mexican silver

From New Orleans the products could move onward to New York, Boston, or Europe, tying the remote Rio Grande frontier into the global economy.


Why These Letters Matter

These brief letters illustrate something important about Charles Stillman.

He was not merely a local storekeeper. By the early 1850s he had become a major intermediary in the trade between Texas, Mexico, and the wider Atlantic economy.

The hides stacked in Brownsville warehouses eventually became leather goods used thousands of miles away. The letters from New Orleans merchants show how eagerly larger commercial houses sought access to that trade.


Sidebar: What Was a “Commission Merchant”?

In the 19th-century trade world, a commission merchant was essentially a middleman who sold goods on behalf of someone else.

Frontier merchants like Charles Stillman in Brownsville often dealt in products produced far from major markets—cattle hides, cotton, wool, and other raw materials gathered along the Rio Grande. But selling those goods directly to manufacturers in places like New Orleans, New York, or Europe was difficult. Transportation, contacts, and market knowledge were required.

That is where commission merchants came in.

A commission merchant would:

• receive shipments of goods from distant merchants
• sell those goods in a larger commercial market
• deduct a small percentage—called a commission—for their services
• send the proceeds back to the shipper, often in cash, credit, or bills of exchange

In the letters shown here, New Orleans merchants are offering to sell Stillman’s salted cattle hides for a commission of about 2½ percent.

The arrangement worked both ways. After selling the hides, the commission merchant could also purchase goods that frontier merchants needed—tools, cloth, hardware, or manufactured items—and ship them back to Texas.

Through this system, remote frontier towns like Brownsville became connected to the commercial networks of New Orleans, New York, and even Europe.

What began as a wagon load of hides from a ranch on the Rio Grande might eventually become leather used in boots, harnesses, or machinery belts thousands of miles away.

Sidebar: Why Hides Were Valuable on the Frontier

In the early 1850s, cattle were plentiful across the ranchlands of South Texas and northern Mexico. Yet surprisingly, the most valuable part of the animal was often not the meat—but the hide.

Before refrigeration and large-scale rail transport, beef could not easily be shipped long distances. On the frontier, much of the meat from slaughtered cattle was consumed locally or simply wasted. What could be preserved and transported was the hide.

After a steer was killed, its hide was removed and packed in salt to prevent decay. These “salted hides” could then survive the long journey by wagon or coastal vessel to larger markets such as New Orleans.

Once there, the hides were sold to tanneries and leather manufacturers. Leather was an essential industrial material in the 19th century. It was used to produce:

• boots and shoes
• saddles and harnesses
• belts that powered factory machinery
• military equipment and wagon gear

Because demand for leather was constant, hides became a dependable frontier commodity.

Merchants like Charles Stillman collected hides from ranchers throughout the Rio Grande region and shipped them to commission merchants in major ports. The hides moved through commercial networks stretching from Brownsville to New Orleans, New York, and even Europe.

In this way, the cattle roaming the brush country of the lower Rio Grande became part of a much larger global trade.

Sidebar: The Hide Trade and the Rise of the Great Ranches

The trade in cattle hides along the Rio Grande during the 1850s helped lay the foundation for some of the largest ranching enterprises in Texas history.

At the center of this frontier economy was Charles Stillman of Brownsville, whose warehouses served as a major collection point for hides gathered from ranches throughout South Texas and northern Mexico. Stillman did not operate alone. He was part of a network of merchants and entrepreneurs whose partnerships shaped the economic future of the region.

Among those closely connected to this trade were Mifflin Kenedy and Richard King, two transportation contractors who supplied the U.S. Army and later became prominent ranchers. In the early years their business included hauling freight, moving goods along the coast, and participating in the hide trade that passed through Brownsville and other Gulf ports.

Hides from cattle slaughtered on the frontier were salted, packed, and shipped to New Orleans, where commission merchants sold them to tanneries and leather manufacturers. From there the leather was turned into boots, harnesses, saddles, and industrial belts used across the United States and Europe.

As cattle herds multiplied across South Texas, some traders began to realize that controlling the land and livestock themselves could be even more profitable than merely trading the hides. Men like Richard King and Mifflin Kenedy, already experienced in the frontier cattle trade, eventually invested in vast ranching operations.

One of those ventures would become the King Ranch, founded in 1853. What began partly as participation in the hide trade soon evolved into one of the most famous cattle empires in North America.

Thus, the salted hides stacked in warehouses along the Rio Grande were more than a frontier commodity. They were part of the economic forces that helped transform South Texas from a remote borderland into a region of powerful ranching dynasties.

1854 0719 Mifflin Kenedy letter to Charles Stillman





Transcription

Envelope

Mr. Charles Stillman
Care Messrs Smith & Dunning
No. 65 South Street
New York


Letter

Brownsville July 19th 1854

Mr Charles Stillman
New York

Dear Sir,

Enclosed you will find bill of exchange in your favour No. 92 for seventeen hundred pounds sterling (£1700) at sixty days sight, of this date, on Messrs Duff & May, of Manchester, England.

My object in sending you this exchange is this — Messrs B. String & Co., Santa Gertrudis, have given us note for Seventeen Hundred and five hundred dollars payable in American gold, at the house of Messrs Smith & Dunning, No. 65 South Street, New York, at the maturity of their note due on the first day of August next, with one month interest at ten per cent per annum.

Interest for this month of July.

You will please dispose of the exchange for our credit and return the proceeds to us by first opportunity.
Should any balance remain please place it with Messrs Smith & Dunning to my account.

I am much obliged to you for the trouble you have taken in this matter, and you are the only one in New York that knows anything about this exchange.

Yours truly
M. Kenedy


(Note: Handwriting suggests “M. Kenedy,” very likely Mifflin Kenedy himself rather than attorneys.)


What the Letter Actually Means

This is a financial instrument transaction, not a legal matter.

Kenedy is sending Stillman a bill of exchange drawn on Manchester, England and asking him to cash or negotiate it in New York.

Step-by-step explanation

1️⃣ Someone in Texas (likely Kenedy’s partners) owed money.

2️⃣ Instead of sending coin, they issued a bill of exchange payable in England.

3️⃣ Kenedy sends the bill to Charles Stillman in New York, because Stillman had the financial connections to convert it.

4️⃣ Stillman would:

• sell the bill
• deposit proceeds
• credit Kenedy

This is typical merchant banking practice in the 1850s.


The Important Names

Charles Stillman

Frontier merchant-banker and founder of Brownsville.

At this time he acted as:

• banker
• clearing agent
• exchange broker

He handled international financial instruments.


Mifflin Kenedy

One of the most important figures on the Texas-Mexico frontier.

• freight contractor for U.S. Army
• rancher (Santa Gertrudis region)
• shipping merchant
• partner with Richard King in early years

This letter shows him operating in high-level financial trade.


Smith & Dunning

New York commission merchants and financiers.

Their address:

65 South Street, New York

South Street was the shipping and mercantile district of Manhattan.

Many Rio Grande merchants used them as New York agents.


Duff & May (Manchester)

Manchester textile merchants or bankers.

This tells us the exchange was tied to:

cotton trade between Texas and England.


Why the Letter is Historically Important

It shows the financial infrastructure of the Rio Grande trade.

Money rarely moved in coin.

Instead merchants used:

• bills of exchange
• London/Manchester credit houses
• New York intermediaries

The system looked like this:

Brownsville merchant
      ↓
Bill of exchange
      ↓
Charles Stillman (New York broker)
      ↓
Manchester bank
      ↓
Textile trade settlement

What This Tells Us About Stillman

Stillman was not just a frontier storekeeper.

He was functioning as a trans-Atlantic financial broker.

That is why Kenedy writes:

“You are the only one in New York that knows anything about this exchange.”

This implies:

• trust
• experience with foreign bills
• long-standing business relationship


Connection to the Rio Grande Economy

In the 1850s Brownsville trade system, the main commodities were:

• cotton
• hides
• wool
• cattle
• silver from Mexico

Bills of exchange allowed merchants to convert frontier trade into European capital.

Stillman was one of the key intermediaries.


A Detail Worth Noting

The interest rate:

10% per annum

That is extremely high by modern standards but normal for frontier credit.

It reflects:

• distance
• transport risk
• currency instability


A Small Historical Observation

The letter date:

July 19, 1854

This is only five years before the Cortina War (1859).

At this moment:

• Stillman
• Kenedy
• King
• others

were building the commercial elite of the lower Rio Grande.

Their financial networks would shape the region for decades.


This letter is actually evidence of a three-continent trade network:

Brownsville → New York → Manchester → Mexican markets.