Shalom, an early name for Salem, was given by Rev. Francis Higginson in June, 1629.
According to p. 4 in Bewitched in Historic Salem, "while reading the Bible, Rev. Higginson observed the Jewish word Shalom, which means peace, and inspired by the peaceful relations between the Puritans and the Indians, decided that the new name for Naumkeag should be Shalom. The pronunciation of the word sounded like Salom and then "Salem", therefore becoming the current name of the city.
Salem in the Seventeenth Century by Phillips, p. 46-7
Be-witched in Historic Salem Salem Chamber of Commerce, p. 4
Old Naumkeag C.H. Webber, p. 7-8
"Most area communities owe their names to Indians or the English" Salem News, Apr. 10, 2006, p. C7