Portsmouth became the capital of the colony of New Hampshire in 1679. Surrounded by forests of oak and white pine and at the edge of one of the world's deepest harbors, Portsmouth early became a center of 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.
Merchant mariners of Portsmouth lived profitably from the trade and were able to build large manors. The New Hampshire 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.
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.
