The city's roots are traced to the winter of 1879, when a group of miners ignored pleas by Frederick Pitkin, governor of Colorado, to return across the Continental Divide due to an uprising of the Ute Indians. Originally named Ute City, the small community was renamed Aspen in 1880, and, in its peak production years of 1891 and 1892, surpassed Lead ville as the United States' most productive silver-mining district. Production expanded due to the passage of the Sherman Silver Purchase Act of 1890, which doubled the government's purchase of silver. By 1893, Aspen had banks, a hospital, two theaters, an opera house and electric lights. Economic collapse came with the Panic of 1893, when President Cleveland called a special session of Congress and repealed the act. Within weeks, many of the Aspen mines were closed and thousands of miners were put out of work. It was proposed that silver be recognized as legal tender and the Populist Party adopted that as one of its main issues; Davis H. Waite, an Aspen newspaperman and agitator was elected governor of Colorado on the Democratic Ticket; but in time the movement failed.
Eventually, after wage cuts, mining revived somewhat, but production declined and by the 1930 census only 705 residents remained. Remaining, however, were fine stocks of old commercial buildings and residences, along with excellent snow. Aspen's development as a ski resort first flickered in the 1930s when investors conceived of a ski area, but the project was interrupted by World War II. Friedl Pfeifer, a member of the 10th Mountain Division who had trained in the area, returned to the area and linked up with industrialist Walter Paepcke and his wife Elizabeth. The Aspen Skiing Corporation was founded in 1946 and the town quickly became a well-known resort, hosting the FIS World Championships in 1950. Paepcke also played an important role in bringing the Goethe Bicentennial Convocation to Aspen in 1949, an event held in a newly designed tent by
