When English settlers migrating north from Massachusetts Bay Colony reached the site of modern Portsmouth, they encountered the Piscataquas, Native Americans who were part of the Algonquin Federation. The settlers adopted the name Piscataqua for their new town but soon changed the name to Strawbery Banke, a comment on the lush fruit carpeting the area. By 1633, the townsfolk had built a grist mill that used the waters of the Piscataqua River, and the Great House, a large community residence.
In 1653 the 60 families living in the town petitioned to change its name to Portsmouth. When New Hampshire was separated from Massachusetts Bay Colony by royal edict in 1679, Portsmouth became the capital of the new colony. Surrounded by forests of oak and white pine and at the edge of one of the world's deepest harbors, Portsmouth developed an economy based on shipbuilding and trading. The town thrived on its agriculture and fishing businesses and the fast growing mast-building industry. Shipbuilding boomed as the colonies moved toward the Revolutionary War. During the conflict, Portsmouth's shipyards produced three ships—the America, the Raleigh, and the Ranger— along with numerous privateers.
Following the war, many new wharves and shipyards were built along Portsmouth Harbor. In 1800 a government yard was added, the Portsmouth Naval Shipyard, to build and repair warships. In the meantime, commercial trade was brisk, as Portsmouth formed one of the points in the New England-West Indies-Great Britain triangle. Rum, molasses, sugar, and cocoa from the West Indies were shipped to Portsmouth and stored in its warehouses. Some of the goods were shipped on to England, along with cargoes of New Hampshire lumber. Portsmouth's merchant fleet also sailed south to the Indies, laden with lumber, oil, and livestock. Coal from England was distributed inland from Portsmouth warehouses, completing the trade triangle.
The merchant class of Portsmouth lived very profitably from the trade, building large Federalist and Georgian-style manors and supporting the arts. The New Hampshire Gazette, originally called the Portsmouth Gazette, began publishing weekly in 1756. Portsmouth's fortunes declined in 1808 when Concord was named the state capital. Its fortunes suffered further with the invention of steamships and the growing popularity of the Massachusetts ports.
After the Civil War, Portsmouth became known for its breweries and shoe factories. The city was wired for electric lights in 1870 and free postal delivery began there in 1887. The construction of the Little Bay-Dover bridge in 1874 undermined the usefulness of the Piscataqua River as an avenue to inland communities. The Portsmouth Naval Shipyard continued to contribute to the country's military needs. In World War II, the yard's 20,000 employees built some 70 submarines. During 1953 the prototype submarine USS Albacore (a National Historic Landmark and Historic Mechanical Engineering Landmark) and the first two atomic-powered submarines were built in the yard.
Three bridges span the Piscataqua River in modern Portsmouth, one of which, the Memorial Bridge, was built to commemorate World War I. Ships continue to sail into Portsmouth, now an official port of entry and foreign trade zone. Modern cargoes consist of oil, gas, salt, limestone, and other products, with petroleum products comprising 90 percent of the cargoes. Much of the waterfront is now devoted to parks and gardens, while the once-bustling warehouses have been transformed into condominiums, shops, and offices.
Established in 1956, the Pease Air Force Base in Portsmouth was one of the first military installations in the country to close as a result of the 1989 Base Closure and Realignment Act. In March 1991, all 10,715 military and other related personnel, and their dependents, left and took with them an annual payroll of about $110 million. Their departure took a heavy toll on the region's economy, already suffering as a result of the recession that began in the late 1980s.
Although the loss of the base seemed extremely negative at the time, the closure actually provided a unique opportunity for New Hampshire and its Pease Development Authority (PDA) to initiate the development of Pease International Tradeport, which is both a commercial airport and an economic development project. Simultaneously, the Port of New Hampshire began a major expansion project, which has led to a great increase in the port's trade potential.
In 2005 the area faces the possibility of a major economic challenge with the proposed closure of Portsmouth Naval Shipyard recommended by the U.S. Department of Defense. Hearings began in July 2005 to discuss whether to retain the historic yard with a final decision expected in early 2006. The impact on the region would be significant as it employs some 4,500 workers; however, it would take several years before the site could officially be closed as environmental cleanup would be intensive.
The proliferation of Internet-based companies, or "dotcom" companies, brought approximately 400 related firms to the area in the late 1990s, though most went out of business during the economic downturn early in the new century. The prosperity that the financial influx brought resulted in great strides in cultural activities and dining establishments that remain.
While the population has declined significantly in recent decades—the most dramatic between 1990–2000 with a nearly 20 percent loss—the metropolitan area has steadily expanded. The business climate is advantageous as many incentive programs exist along with a lack of sales or income tax in the city and state. Rockingham County, in particular, has shown positive growth in business indicators since 2004 with a solid start in the first quarter of 2005 giving residents cause for optimism.
Historical Information: Historic District Commission, c/o Planning Department, City of Portsmouth, 1 Junkins Ave., Portsmouth, NH 03801; telephone (603)610-7216; fax (603)427-1593