Surrounded by small towns and cities that competed for business from the hinterland's farmers, the city suffered a major setback in the Panic of 1857. Despite this, Omaha quickly emerged as the largest city in Nebraska. After losing the Nebraska State Capitol to Lincoln in 1867, many business leaders rallied and created the Jobbers Canyon in downtown Omaha to outfit farmers in Nebraska, South Dakota, Wyoming and further west. Their entrepreneurial success allowed them to build mansions in Kountze Place and the Old Gold Coast neighborhoods.