Sherman History, from City of Sherman website:

The City of Sherman was created by an act of the 1846 Texas Legislature and was named after General Sidney Sherman, a hero of the Texas Revolution. The original townsite proved lacking in water and fuel, so in 1848, the town was moved to its current site, with all subsequent anniversary celebrations marked from that point.

At its new location, Sherman overcame adversity as it grew from a frontier town into a modern city. In its earliest days, Sherman was a stop on the famous Butterfield Stage line. Gradually, the frontier economy gave way to a farm economy, with cotton as the staple crop. Cotton gave rise to Sherman’s first industries of milling and cottonseed oil processing. One of these early industrial sites is still in use, although the owners and products have changed through the years. As it grew, Sherman developed educationally and culturally, gaining the nickname of “the Athens of Texas” from its many schools and cultural events.

This, too, is reflected in present day Sherman. Thriving Austin College is the oldest institution of higher learning in Texas, and Sherman boasts its own symphony orchestra, this being most unusual for a city its size. Sherman suffered a major setback when, in 1896, a huge tornado ripped into the southern and western sections of town, killing and wounding over 100 citizens. Sherman was able to surmount this challenge, as it was the 1930 burning of the courthouse by a racially motivated mob. World War II brought economic prosperity to the area, with the establishment of a pilot training base called Perrin Field. Unfortunately, this base closed in the 1960’s, resulting in a reversal of economic fortunes. Through the good and the bad, Sherman continued to grow.