We have looked at the phantom airships flaps a time or two (especially the 1896-1897 one) and I will be returning to it at greater length eventually but there I stumbled across an interesting article which is broadly dismissive of the phenomena but does provide some interesting information that allow us to put the 1897 flap in context:
Henri Giffard flew 27 kilometres in 1852 in an airship with a steam engine. But he couldn't steer it in the face of any kind of wind.
By 1863, Solomon Andrews had developed an airship that could be steered but had no engine.
In 1872, Paul Haenlein took to the skies in a ship that used coal gas both to inflate the envelope and power its engine.
But it wasn't until 1897 that David Schwartz made a successful flight from Tempelhof field – which became one of Berlin's three airports – in a rigid airship that was a direct forerunner of the globetrotting dirigibles created by Ferdinand von Zeppelin. After Schwartz's death, von Zeppelin bought technical data from his widow.
There was also an intriguing report on an aerial craft in the Scientific American of 1887, describing a craft strikingly similar to those reported a decade later, a craft which doesn't seem to have existed (or did it??):

There was also, he said, a great willingness to believe, which was why "the hysteria spread so rapidly... The main explanation would seem to lie in the widespread interest in aeronautics... Inventors were on the threshold of solving both the problem of controlling airships in flight and of devising heavier-than-air flying machines.
"There can be little doubt that the interest generated by these pioneer experiments provided an aura of credibility to the reports of an airship cruising over the Midwest."
"An aura of credibility..." Scientific American, first published in 1845, is America's oldest continuously published magazine. Though its aim has always been to bring an understanding of "popular science" to the layperson, it has also always been a well-respected journal.
The Jan. 1, 1887, edition published a story headlined: "A Novel Form of Aerial Vessel," with an engraving of "the invention of Mr. Moses S. Cole, of Greytown, Nicaragua ... It is claimed that this vessel can be raised, lowered, steered and propelled in any direction at the will of the pilot."
The story gave comprehensive details of how the airship was built – "an inflated balloon of semi-spheroidal form, while to the floor is attached a similar balloon" – driven and steered.
The only thing not covered in detail was what exactly powered Cole's brainchild.
Otherwise, the craft was presented as if it existed, had been tested, and was ready to go into operation.
Clearly, none of this was true. Such a machine would have been decades ahead of its time.
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Hat tip
Update
Frank Warren wrote a response which I find myself agreeing with (I avoided discussing this aspect of it and picked the bit I found interesting for the main post - Frank does a much better job of addressing those issues):
In your second paragraph you wrote:
“The technology required for a powered, lighter-than-air vessel that could be steered and travel against the prevailing winds, was far from being perfected.”
Just the opposite is true! There is a myriad of “Airship patents,” and related contrivances beginning in the early 1800’s. Moreover, there had been many successful test flights, as well as unsuccessful ones as early as the 1840’s; these were heavy-then-air ships, some “more like planes,” then the more popular “cigar-shaped” airships of the time. The point being, is that “actual craft” were being built and patented both in this country and Europe, and although the ideas started in the imagination of man, spurred by his desire to conquer flight, this precipitated the beginnings of man’s trek into the heavens and certainly wasn’t hallucinations as you intimate in your article.
John Stringfellow's steam powered tri-plane of "1868," flew successfully in short distances; it by the way was a tri-plane with a steam engine and is now on display at the Early Flight Gallery of the National Air & Space Museum, Washington, D. C. This was but one of several he built in that time period.
Jean Marie Le Bris's "The Artificial Albatross" had a successful test flight in 1856.
Mariott's, "Avitor Hermes performed a successful test flight in Burlingame Ca. in "1869!" This, a hydrogen gas filled cigar-shaped-envelope powered by a steam engine.
Paul Haenlein performed successful test flights of his Airship in "1872"; his ship was powered by 4 cylinder "gas engine." His ship was about the same size as today's "Goodyear blimps."
Henri Giffard performed a successful test flight of his Airship in "1852;" a propeller was powered by a small steam engine.
Félix Du Temple successfully flew his steam-powered aircraft in "1857."
Solomon Andrews flew his "Aereon" over "New Jersey" in "1865!"
These are but a few samplings what took place in the 19th century in regards to man’s quest for flight, and particularly the “airship,” and or “aeroplane.” The a fore mentioned men and their respective inventions were highly publicized, and gave birth to “Aerial companies,” as they needed funding to further their ideas and contrivances. There was nothing “imaginary” about it!
In fact, the very founder of Scientific American, “Rufus Porter, “ in 1849 flew a scale model” of an airship in New York which he had been working on since the 1820’s.
In conclusion, “man’s imagination” certainly played a part in “conquering the skies,” and began much earlier then most realize, as well as more successfully then you erroneously portray in your piece; however, “the imagination” in use was “ingenuity and cunning,” not hallucination or “mass hysteria” as you’ve lead your readers to believe.
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