Democratic Sentinel, Volume 4, Number 6, Rensselaer, Jasper County, 19 March 1880 — SCANDALS OF GRANTISM. [ARTICLE]

SCANDALS OF GRANTISM.

Blade Friday and Its Memorable History. [From the New York Sun.l I Ulysses 8. Grant entered upon his duties as President of the United States on the 4th of March, 1869. At tbe previous election the States of Virginia, Mississippi, and Texaa were disfranchised, and Congress threatened to throw ont the votes of Louisiana and Georgia, but decided to count them when it was foand that it would not affect the general result After his election and before hiß inauguration, Grant continued to hold the office of General in the army, that he might reoeive its emoluments and name his successor. In his inaugural address he announced that he Bboald havyjo-poliey to enforce against the will of the people. If he intended this remark as a sneer at his predecessor it was undignified; if he meant it as a forecast of his work, it was false. Within forty-eight hoars he requested Congress to repeal a law made to protect the public interests, and which had stood unquestioned since the administration of Washington, because it happened to block the way to one of bis capricious appointments. Charles Sumner refused to heed this foolish request, and was marked for political persecution from that day forth. The first summer of Grant’s administration was devoted to seaside loiterings and purposeless journeys, undertaken in the pursuit of idle pleasure. It was on one of these jaunts that he made tbe acquaintance of Jay Gould and James Fisk, Jr., who subsequently used him as their tool or confederate in the financial conspiracy which cu’minated in Black Friday. On the evening of the 15th of June, 1869, a gay party, composed of Ulysses S. Grant, Jay Gould, and Jim Fisk, each accompanied by his retainers, left New York for Boston on one of Gould’s highly ornamented steamers. The ostensible object pf the trip was to attend Patrick Sarsfield Gilmore’s peace jubilee. The arrangement of the details hat been intrusted to Fisk. At supper on the steambeat tho conversation was deftly turned to the “state of the country.” Gould, in his sworn testimony before the Garfield committee of the Forty- first Congress, describes this supper and says of the conversation: “The President was a listener. The other gentlemen were discussing. Some were in favor of Boutwell’s selling gold, and some were opposed to it After they had .all interchanged their views, some one asked the President what his views were. He remarked that he thought there was a certain amount of fictitiousness about the prosperity of the country, and that the bubble might as well be tapped in one way as another. That was the substance of his remark. He asked me what I thought about it I remarked that I thought if that policy was carried out it would produce great distress and almost lead to civil war; it would produce strikes among the workmen, and the workshops to a great extent weuld have to be closed; the manufactoiies would have to stop. I took the ground that the Government ought to let gold alone and let it find its commercial level; That, as a matter of fact, it ought to facilitate an upward movement of gold in tho fall The fall and winter is the only time that we have any interest in. That was all that occurred at that time.” The key to Gould’s conversation is found in the fact that those who accompanied him were his stool-pigeons. The talk was arranged beforehand for the purpose of ascertaining Gram’s opinions, and approaching him at points where be appeared most vulnerable. He was in the hands of trained gamblers, and they, in the parlance of their trade, were “playing him for a flat. ” A deadhead journey to Boston, a free supper, and an abundance of champagne, constituted the vulgar bait thrown out to eatofa the Chief Magistrate of the American people. And he was caught. IL In June, 1869, about the time of the Boston Peace Jubilee, Mr. H. H. Van Dyck resigned his office as Assistant Treasurer at New York. Jay Gould undertook to name his successor, with a view to controlling the treasury when the time should come to “corner” the gold market. He had already formed an alliance with Abel R. Corbin, tho brother-in r law of Grant Corbin was a ready writer and a man of some ability. He had been unsuccessful in business, and was willing to trade on his inflaonco at the White House. Years before he had served an apprenticeship in the lobby at Washington. He oould talk politics and finance with great fluency, and Grant frequently sought his counsel. The fact that he was not strictly honest never interfered with the cordiality of their relations. Robert B. Catherwood, an eminently-respect-able man, who had married Corbin’s stepdaughter, was suggested for Assistant Treasurer. Gould and Corbin talked with him on the subject, and urged him to take the place that the three might operate together and make a great deal of money "in a perfectly legitimate manner.” Mr. Catherwood..in his testimony, says that his ideas differed from theirs as to what constituted a “legitimate manner,” and he declined the office. It was then decided to confer it upon Gen. Daniel Butterfield, who, when this design was made known to him, wrote a letter thanking Mr. Corbin very kindly, hoping that he would exercise his influence, as he had previonsiy done, and saying that he was under many obligations to him, and that he trusted he would be successful Tbe work in which Cor bin expected to be successful was in cornering gold through the aid of the Assistant Treasurer. In due time Gen. Butterfield was commissioned, and Corbin’s standing was measurably increased in the eyes of Gould and Fisk. Mr. Corbin had first appeared to Gonld as a suppliant for favors. On the strength of liis relationship to Grant he wanted to be taken into some enterprise where he could make money. It was then that Gould suggested the feasibility of advancing the price of gold, which was then among the thirties, to the forties or fifties, provided the Government could be induced to assist them. His theory was that a rise would facilitate the exportation of grain, bat he hastened to add: “We could make money both ways, by buying it then and selling it on the rise.” Gould adds this compliment in speaking of Corbin:. “He was a verv shrewd old gentleman. He saw at a glance the whole case, and said he thought it was the true platform to stand on; that whatever the Government ceuld do legitimately and fairly to facilitate the exportation of breadstuffs and produce good prices for the products of the West, they ought to do. He was anxious that I should see the President, and communicate to him my views on the subject.” It was because of this preconcerted anxiety that the deadhead excursion of the 15th of June was arranged. Of coarse Corbin was among the invited guests, and the subseqaent proceedings seem to show that he Improved the opportunity to impress his brother-in-law favorably with his friends Gonld and Fisk.

m. When Grant returned from Boston he went directly to Corbin’s house, where he held a protracted interview with Jay Gould, during which, according to testimony, Grant said to Corbin: “Boutwell gave an order to sell gold, and I beard of it, and countermanded the order.” This was the first positive declaration the conspirators had received that they had’ won the President over to their side, or that they could count 'on his co-operation. Gould was so pleased that he immediately tendered to Grant the free use of a special train to take him to Coiry, Pa, and thence to Philadelphia. This offer was greedily accepted. On the 19tb of Augnst, Grant went to Newport, where Jim Fisk went to see him. Fisk, m his testimony, said: “I think it was some time In August that Gen. Grant started to go to Newport I then went down to see him, I had seen him before, but, not feeling as thoroughly acquainted as I desired for this purpose, I took a letter of introduction from Mr. Gould, in which it was written that there were 300 sail of vessels then on the Mediterranean, from the Black sea, with grain to supply the Liverpool market Gold was then about 34. If it continued at that price, we had verv little chance of carrying forward the crop during the fall I knoW that we felt nervous about it I talked with Gen. Grant on the subject, and endeavored, as far as I could, to convince him that his policy was one that would only bring destruction on ns all. He then asked me when we should have an interview, and we agreed upon the time. He said: ‘During that time I will see Mr. Boutwell, or have him there.’ ” It is interesting to know that the lamented Fisk, with steamboats, railroads, terpsichorean divinities, and other affairs to manage, still found time to give the President of the United States lessons in finance; and that, backed by Gonld's letter of introduction, he succeeded in his mission and induoed the President to adopt a fallacy so absurd that its bare statement condemns it—the fallacy that an unnatural premium on goldla essential to the maintenance of onr foreign oommeroe.

Daring the weeks preoeding Black Friday Grant was very frequently in New Yoik, and n-nally in tbe company of Corbin. His intimacy with Fisk ana Gonld began to attract attention, but he paid email heed to the ciiticismß passed on him on that account On the 2d of September he went to Saratoga, leaving poor Rawlins, his Secretary of War, who had been his mentor and guide through all his military career, to die unattended in Washington. He woe recalled on the 6th to attend RawlinT funeral, but on the 10th he again appeared in New York. Gen. Rawlins left no property, and a fond was rased for the benefit of his family. Gen. Grant subscribed *1,0.0 to this fund. Gould and Fisk not only gave a larger amount, bat they paid Grant's subscription for him. He accepted their gift with unblushing promptitude. The plotters were resolved to make hay while the sun of official favor shone upon them. On the 2d of September, Jay Gonld, havt g thoroughly oonyinced himself that ha could rely on brothers-in-law Corbin and Grant, bought for Corbin *1,500,020 i j gold at an average price of 132J4- Gould was afraid, however, that Bontweli might interfere. He says that some of those who were short of gold had arranged to give the Secretary a dinner, and he was solicitous os to what the effect might be. He sought out Corbin again, who assured him that the President was all right; that at his (Corbin’s) house Gen. Grant had written a letter directing Bontweli to sell no gold without consulting him, and that he had intrusted this letter to Butterfield, who afterward told Gould that he had delivered it Nothing now remained but to put the President safely out of the way in some remote corner where the rising storm of public indignation would not reach him nor compel him to recognize and perform his duty. IV. The little town of Washington, Pa , was accessible by rail in 1869 only by way of Wheeling, W. Ya. It was cut off entirely from telegraphic communication, and it was, perhaps, tue best place in the United States in which to seclude a man whose absence was essential to tbe snccesß of a financial conspiracy. To that point on the 13th of -Septemoer the President made his way. He explained that he wanted to visit a family of the name of Smith, a distant relative whom he had not seen for thirty years. The country .was on the verge of financial disaster. Merchants, importers, all who bought and sold, began to feel that they were at the mercy of a clique of sharpers and gamblers who were bent on driving the gold preminm np among the eighties or nineties, that they might clear *39,009,000 at the expense of every legitimate interest of trade. They knew that this premium was fictitious and speculative; that under an honest and intelligent management of the treasury it could not exist. Bat what were the relations between the Government and the sharpers? That was the question which sorely disturbed the minis of honest men. Gonld was deep and taciturn, but Fisk was shallow and talkative. In warning his friends, in threatening his enemies, he blurted out the secrets of the combination. He swore he would carry gold up to 200, and when he was told that the Government could block his tame by selling gold, he answered: “The President is wiih us ” This revelation threw a aew light on the intimacy between Grant and ihese gamblers. Men ot high standing hastened to the oapital to tell the President what langerous persons his new friends were, and to point out to him tbe necessity of immediate iction. When they got there they were gravely told that Grant was gone. Gone where? To an unheard-of town, ont of the line of communication, but he had left orders to sell no jold. They came away disheartened. The conspirators were j übilant. Fisk tes tiled that abont the 16th of September he bought ?old to the amount of seven or eight millions. Gould made much heavier purchases. The price was forced above 140, arid the syndicate controlled from fifty to sixty millions of it On the 20th of September, Gould said to Fisk this is sworn testimony): “ This matter is all iixed np; Butterfield is aH right. Corbiri* has *ot Butterfield all right, and Corbin has got Grant fixed all right; and, in my opinion, they ire interested together.” Fisk says that was a ooint he did not take into consideration. He lupposed Corbin had convinced Grant by argument that forty-five was the proper gild premium at wh ch to move the,crops. He did iiot bfel eve up to that time that Grunt, or anybody ntarer to him than his brother-in law, bad a stake in the scheme. When Goutd suggested it, he was startled, and resolved immediately to see Corbin. He said to Gould: “You give me a letter to him, so that he will talk coulidentiaTy with me.” He got the letter, and he gave under oath, before the Committee on Banking and Cunency, this ac. eount of what followed: “ When 1 met him he talked very shy about the matter at first, but finally came right out and told me that Mrs. Grant had an interest; that *500,000 in gold had Been taken by Mr. Gould at 31 and 32, which had been sold at 37; that Mr. Corbin held for himself about *2,000,600 of go’d, *5(!0,0il0 of which was for Mrs. Grant and *500,000 for Porter. I did not ask whether he was General or not. I remember the name Porter. This was given out very slowly. He let out ju.-t as fast as I did when he found that Mr. Gould had told me about the same thing. I said: ‘ Now, I have hid nothing to do with your transactions in ODe way or the other. You can make your pathway clear and straight by emptyingjt all out to me, because Mr Gould and mjself stmd together; we have no secrets from each .other; we have embarked in a scheme that looks like one of large magnitude. Mr. Gould has lost as the thing stands now. It looks as if it might be j retty serious bnsiness before getting out straight again. The whole success depends on whether the Government will unload on to us or not.’ He said: ‘ You need not have the least fear.’ I said: 4 1 want to know whether what Mr. Gonld toll me is true; I want to know whether you have sent this *25,090 to Washington ashe states?’ He then told me that he had sent it; that Mr. Gonld had sold *500,000 in gold belonging to Mrs. Grant which cost 32 for 37 or something in that neighborhood, leaving a balance in her favor of abont *27,000, and that a check for *25,000 had been sent. Baid I: ‘Mr. Corbin, what can yon scow me that goes still further than your talk?’ ‘Oh, well,’ the old man said, ‘I can’t show yon anything; but,’ Baitl he, ‘ this is all right.’ He talked freely, and repeated: ‘I tell yon it is atl right.’ When I went away from there I made up my mind that Corbin had told me the truth.”

HuDseqaently, before tbe Banking and Currency Committee, there appeared a witness who was ready to swear that he had examined the money-oeiivtry book of Adams Express Company, aud that he had seen the entry of a package sent from New York, some time in September, 1869, to Mrs. U. H. Grant, White House, valued at $25,000. The majority of the committee, under Garfield’s lead, refused 10 receive this testimony. The Manager of the express company, Samuel ill. Shoemaker, privately told Mr. Garfield that no such entry appeared, and he was called to the witnessstand to substantiate this statement. He produced his money-package book, assuring the committee at tue same time that it contained no delivery to Mrs. Grant Mr. Samuel S. Cox, of the minority of the committee, asked to examine the book. It was handed to him, and, running his eye down the page, he read aloud this entry: “He, tomber, 1869, Mrs. U. S. Grant, White House, money package, value #25,000.” Garfield jumped to his feet in unfeigned astonishment, while Shoemaker appeared to be overwhelmed with surprise. He studied the book for several minutes, and finally said: “After careful examination I am satisfied that it is #250.” He explained that by inserting before the last two ciphers a period, which had been accidentally omitted, it would read #250 and no cents. Mr. Garfield adopted the imaginary period in his report and declared the President’s family were vindicated. -Y. Jim Fisk was too impetuous. He wanted not only the “old man’s” assurance that “it was all right” with the Grants, but be insisted that Corbin should write a letter to the President urging him to stand firm and not to sell gold on Government account under any circumstances. Poor Corbin was already in the job up to his ears, and he readily wrote the letter. Fisk caused it to be delivered by a special messenger, who left Pittsburgh at 1 o’clock in the morning and rode twenty-eight miles on horseback to Washington. Pa. He arrived at the house of Grant’s distant relative at about 2 o’clock in the morning and delivered the letter. The President read it carefully, and, after holding a consultation with his wife in regard to its contents, he said to the messenger: “It is satisfactory; there is no answer.” Bat from that moment he < took the alarm. The ramble and roar ! of the great financial Btorm had actually penetrated his remote hiding place. Another messenger came to him direct from the capita] telling him be must rpturn; that imperative business demanded his attention; that another day’B absence might destroy his fame. Then it was, according to Corbin’s testimony, that Mrs. Grant wrote to Mrs. Corbin saying that the President was greatly distressed to learn that her husband was speculating in Wall street, aud expressing the hope that he would immediately disconnect himself from anything of that sort This letter appears to have fnght-

oned Corbin, bat his fear did not get the better of his shrewdness. He sent for Jay Goald, and told him that he (Corbin) mast go oat of the matter: that it had created a great deal of feeling in Jiia own family as well as on the part of the President, and that It mast end immediately. Bat he wanted 9100,000 as his share of the profits in a partnership where he had invested bit brother-in-law against Gould’s money. Goald says, under oath: “I told him 1 would give him 9100,000 on account, and that, when 1 sold, if he liked, I would give him the average of my sales. I did not feel like baying any gold of him then.” Corbin’s fright, the return of the President to Washington, the growing excitement in financial and business circles, warned the speculators that they were approaching the end of Iheir rope. On Thursday, the 28d of September, they knew that Wall street could not bear the pressure more than one day longer. On Thursday night Gould, as usual, was saturnine and Fisk mercurial. VI. Black Friday came. The business of the metropolis stood still at the audacious command of a clique of sharpers. Every artery of trade, eveiy nerve of enterprise, felt a shock as of paralysis. Merchants rose from sleepless ♦xda to make thtir way to Wall street, hoping against ho] e that they might find some way to pu» chase the gold required to meet their contracts. Bankers who had faith in the honesty of the administration, and who had invested heavily, ia the belief that the fictitious prioe could not last, grew wild with excitement when they found what preparations were making to corner the marker. On the previous day gold had ri>>en to 144. If it remained there, or went higher, thousands would be irretrievably ruined—not speculators alone, but honest, business men, with whose honor and credit these jugglers oif the street were playing their game. Gould and Fisk were early on the ground. They operated through a number of brokers, directing that all gold which was offered should bo purchased till the “comer” was complete. Gould himself kept out of sight. He was known to be in liis office, but he was careful that his orders should be issued through some third party. He was playing with loaded dice. If be won, ho intended to pocket the profits. If he lost, he could repudiate his contracts. All through the forenoon the excitement increased in intensity. Hundreds of telegrami were sent to Washington, appealing to the Pr( sident to sell gold on Government account, and thus break tne conspiracy agaiast the public welfare. Those appeals were accompanied by plain hints that delay would be accepted as proof that Grant was in league with the gamblors. At noon the order came to sell 94,000,000 in gold for the Government. The order was communicated to the Assistant Treasurer by telegiaph. and was immediately made known to Jav Gould and Jim Fisk, who, beiug thus forewarned, set to work to save themselves from the wreck in which they had involved the street. Among the brokers operating on their account was Albert Speyer, who had formerly been a brewer and had accumulated a handsome fortune. Throughout the forenoon he bought largely, bidding as high as 60 and 65 tor gold. When the news reached the Gold Room that the Government was selling, tho premium immediately declined to 35. But Speyer kept ou buying at 60, obeying implicitly the orders he had received from the chief conspirators Whon he was loaded down with more millions than he could count he rushed wildly to Gould’s office to report progress. He was received with the cool remark, “We don’t want any of your gold.” Poor Albert Speyer staggered out of the place, and before the close of the day was insane. When n ght fell on Black Friday New York felt that all the conditions of her commercial prosperity had been rudely assailed. The non inal transactions in gold for that one day aggrega'ed #500,000,000. Fifty houses failed outright, and more thao throe times that number w« re rendered insolvent by their losses. The Gold Exchange did not opeo its doors again fbr business till the 30th of September. Tlier demoralizing effect of the conspiracy spread far and wide.