Изображение на обложке было создано составителем и является общественным достоянием.
ПЯТЬДЕСЯТ ЛЕТ НА УОЛЛ-СТРИТ. Автор: ГЕНРИ КЛЬЮС, доктор права.
Гравюра Э. Г. Уильямса и брата, Нью-Йорк. Генри Кльюс.
ПЯТЬДЕСЯТ ЛЕТ НА УОЛЛ-СТРИТ
“TWENTY-EIGHT YEARS IN WALL STREET,” REVISED
AND ENLARGED BY A RÉSUMÉ OF THE PAST
TWENTY-TWO YEARS, MAKING A RECORD
OF FIFTY YEARS IN WALL STREET
BY
Henry Clews, LL.D.
SUBJECTS THAT ARE OF NECESSITY BRIEFLY TOUCHED
UPON IN ORDER TO KEEP WITHIN THE SCOPE OF THE
PRESENT WORK FIND FULLER EXPOSITION IN THE AUTHOR’S
“WALL STREET POINT OF VIEW,” FOR FURTHER
REFERENCE TO WHICH SEE NOTICE AT THE END
IRVING PUBLISHING COMPANY
Post Office Box 1915, New York City
Copyright, 1908,
By HENRY CLEWS
PREFACE BY THE AUTHOR.
15 TO 17 BROAD STREET NEW YORK.
Моим читателям:
На следующих страницах я намерен пролить свет на малоизвестные события, связанные со спекуляциями и инвестициями на Уолл-стрит, а также на состояние и прогресс страны с финансовой точки зрения за те пятьдесят лет, что я провел в этом великом денежном центре.
Эта тема достойна более искусного пера, но, за неимением других авторов, освещающих эту отрасль нашей национальной истории, я решаюсь представить простое повествование активного участника финансовых событий того времени, в которое мне довелось жить.
Я также сделал краткий обзор истории Уолл-стрит и связанных с ней финансовых дел с момента возникновения Фондовой биржи в Нью-Йорке.
Описывая людей и события Уолл-стрит, я свободно использовал жаргон спекулятивного братства, поскольку он лучше всего подходит для правдивого изображения их характеристик, хотя, возможно, и не вполне соответствует литературным нормам.
Я просто попытался изложить правдивую, без прикрас, историю, черпая материал из собственного опыта и записей надежных хроникеров.
HENRY CLEWS.
Нью-Йорк, 31 марта 1908 г.
СОДЕРЖАНИЕ.
INTRODUCTORY.
PAGE
My Part in Marketing the United States Civil War Loans xxxi
CHAPTER I.
MY DEBUT IN WALL STREET.
Results of the Panic of 1857.—Creating a Revolution in the Methods of Doing Business in Wall Street.—The Old “Fogies” of the Street, and How They were Surprised.—Their Prejudices and How they Originated.—The Struggle of the Young Bloods for Membership.—The Youthful Element in Finance Peculiar to this Country.—The Palmy Days of Little, Drew and Morse.—The Origin of “Corners,” and the “Option” Limit of Sixty Days 5
CHAPTER II.
WALL STREET AS A CIVILIZER.
Clerical Obliquity of Judgment About Wall Street Affairs.—The Slanderous Eloquence of Talmage.—Wall Street a Great Distributor, as Exhibited in the Clearing House Transactions.—Popular Delusions in Regard to Speculation.—What Our Revolutionary Sires Advised About Improving the Industrial Arts, Showing the Striking Contrast Between Their Views and the Way Lord Salisbury Wanted to Fix Things for This Country 13
CHAPTER III.
HOW TO MAKE MONEY IN WALL STREET.
How to Take Advantage of Periodical Panics in Order to Make Money.—Wholesome Advice to Young Speculators.—Alleged “Points” from Big Speculators End in Loss or Disaster.—Professional Advice the Surest and Cheapest, and How and Where to Obtain It 19
CHAPTER IV.
IMPORTANCE OF BUSINESS TRAINING.
Sons of Independent Gentlemen make very bad Clerks.—They become Unpopular with the Other Boys, and must Eventually Go.—Night Dancing and Late Suppers don’t Contribute to Business Success.—Give Merit its True Reward.—Keeping Worthless Pretense in its True Position.—Running Public Offices on Business Principles.—A Piece of Gratuitous Advice for the Administration.—A College Course not in General Calculated to make a Good Business Man.—The Question of Adaptability Important.—Children should be Encouraged in the Occupation for which they show a Preference.—Thoughts on the Army and Navy 25
CHAPTER V.
PERSONAL HONOR OF WALL STREET MEN.
Breach of Trust Rare Among Wall Street Men.—The English Clergyman’s Notion of Talmage’s Tirades Against Wall Street.—Adventurous Thieves Have No Sympathizers Among Wall Street Operators.—Early Training Necessary for Success in Speculation.—Ferdinand Ward’s Evil Genius.—A Great Business can only be Built up on Honest Principles.—Great Generals Make Poor Financiers, Through Want of Early Training.—Practical Business is the Best College 33
CHAPTER VI.
WALL STREET DURING THE WAR.
The Financiers of Wall Street Assist the Government in the Hour of the Country’s Peril.—The Issue of the Treasury Notes.—Jay Cooke’s Northern Pacific Scheme Precipitates the Panic of 1873.—Wall Street Has Played a Prominent Part in the Great Evolution and Progress of the Present Age 39
CHAPTER VII.
MORE WAR REMINISCENCES—BRITISH AND NAPOLEONIC DESIGNS.
How Napoleon Defied the Monroe Doctrine.—The Banquet to Romero.—Speeches by Eminent Financiers, Jurists and Business Men.—The Eloquent Address of Romero Against French Intervention.—Napoleon shows his Animus by Destroying the Newspapers Containing the Report of the Banquet.—The Emperor Plotting with Representatives of the English Parliament to Aid the Confederates and Make War on the United States 45
CHAPTER VIII.
FOREIGN INTRIGUES AGAINST AMERICAN LIBERTY.
How the Imperial Pirates of France and England Were Frightened Off Through the Diplomacy of Seward.—Ominous Appearance of the Russian Fleet in American Waters.—Napoleon Aims at the Creation of an Empire West of the Mississippi, and the Restoration of the Old French Colonies.—Plotting with Slidell, Benjamin, Lindsay, Roebuck and Others.—Urging England to Recognize the Confederacy.—Disraeli Explains England’s Designs and Diplomacy.—After the Naval Victory of Farragut and the Capture of New Orleans England Hesitates Through Fear, and Napoleon Changes His Tactics.—Renewal of Intrigues Between England and France.—Their Dastardly Purposes Defeated by the Victories of Gettysburg, Vicksburg and the General Triumph of the Union Arms 59
CHAPTER IX.
SECRETARY CHASE AND THE TREASURY.
The Depleted Condition of the Treasury when Mr. Chase took Office.—Preparations for War and Great Excitement in Washington.—Chivalrous Southerners in a Ferment.—Officials Up in Arms in Defence of their Menaced Positions.—Miscalculation with Regard to the Probable Duration of the War.—A Visit to Washington and an Interview with Secretary Chase.—Disappointment about the Sale of Government Bonds.—A Panic Precipitated in Wall Street.—Millionaires Reduced to Indigence in a Few Hours.—Miraculously Saved from the Wreck.—How it Happened 73
CHAPTER X.
THE NATIONAL BANKS.
Secretary Chase Considers the Problem of Providing a National Currency.—How E. G. Spaulding takes a Prominent Part in the Discussion of the Bank Act.—The Act Founded on the Bank Act of the State of New York.—Effect of the Act upon the Credit of the Country.—A New System of Banking Required 81
CHAPTER XI.
THE NEW YORK STOCK EXCHANGE.
History of the Organization for Ninety-four Years.—From a Button-Wood Tree to a Palace Costing Millions of Dollars.—Enormous Growth and Development of the Business.—How the Present Stock Exchange was Formed by the Consolidation of other Financial Bodies.—Patriotic Action During the War Period.—Reminiscences of Men and Events 87
CHAPTER XII.
“CORNERS” AND THEIR EFFECT ON VALUES.
The Senate Committee on “Corners” and “Futures.”—Speculation Beneficial to the Country at Large.—A Regulator of Values, and an Important Agent in the Prevention of Panics.-“Corners” in all kinds of Business.—How A. T. Stewart made “Corners.”—All Importing Firms deal in “Futures.”—Legislation Against “Corners” would stop Enterprise and cause Stagnation in Business.—Only the Conspirators themselves get hurt in “Corners.”—The Black Friday “Corner.”—Speculation in Grain Beneficial to Consumers 95
CHAPTER XIII.
THE COMMODORE’S “CORNERS.”
The Great Hudson “Corner.”—Commodore Vanderbilt the “Boss” of the Situation.—The “Corner” Forced upon Him.—How he Managed the Trick of getting the Bears to “Turn” the Stock, and then caught them.—His able Device of Unloading while Forcing the Bears to Cover at High Figures.—The Harlem “Corner.”—The Common Council Betrayed the Commodore, but were Caught in their own Trap, and Lost Millions.—The Legislature Attempt the same Game, and meet with a Similar Fate 107
CHAPTER XIV.
DANIEL DREW.
Drew, like Vanderbilt, an Example of Great Success without Education.—Controlled more Ready Cash than any man in America.—Drew goes Down as Gould Rises.-“His Touch is Death.”—Prediction of Drew’s Fall.—His Thirteen Millions Vanish.—How he caught the Operators in “Oshkosh” by the Handkerchief Trick.—The Beginning of “Uncle Daniel’s” Troubles.—The Convertible Bond Trick.—The “Corner” of 1866.—Millions Lost and Won in a Day.—Interesting Anecdote of the Youth who Speculated outside the Pool, and was Fed by Drew’s Brokers 117
CHAPTER XV.
DREW AND VANDERBILT.
Vanderbilt Essays to Swallow Erie, and Has a Narrow Escape from Choking.—He Tries to make Drew Commit Financial Suicide.—Manipulating the Stock Market and the Law Courts at the Same Time.—Attempts to “Tie Up” the Hands of Drew.—Manufacturing Bonds with the Erie Paper Mill and Printing Press.—Fisk Steals the Books and Evades the Injunction.—Drew Throws Fifty Thousand Shares on the Market and Defeats the Commodore.—The “Corner” is Broken and Becomes a Boomerang.—Vanderbilt’s Fury Knows no Bounds.—In his Rage he Applies to the Courts.—The Clique’s Inglorious Flight to Jersey City.—Drew Crosses the Ferry with Seven Millions of Vanderbilt’s Money.—The Commodore’s Attempt to Reach the Refugees.—A Detective Bribes a Waiter at Taylor’s Hotel, who Delivers the Commodore’s Letter, which Brings Drew to Terms.—Senator Mattoon gets on the right side of Both Parties 127
CHAPTER XVI.
DREW AND THE ERIE “CORNERS.”
A Harmonious Understanding with the Commodore.—How the Compromise was Effected.—An Interesting Interview with Fisk and Gould in the Commodore’s Bed-Room.—How Richard Schell Raised the Wind for the Commodore.—Drew’s Share of the Spoils.—He Tries to Retire from Wall Street, but Can’t.—The Settlement that Cost Erie Nine Millions.—Gould and Fisk “Water” Erie again, to the Extent of Twenty-three Millions, but leave Drew out.-“Uncle Daniel” Returns to the Street.—He is Inveigled into a Blind Pool by Gould and Fisk, Loses a Million and Retreats from the Pool.—He then Operates Alone on the “Short” Side and Throws Away Millions.—He Tries Prayer but it “Availeth Not.”-“It’s no Use, Brother, the Market Still Goes Up.”—Praying and Watching the Ticker.—Hopelessly “Cornered” and Ruined by his Former Pupils and Partners 137
CHAPTER XVII.
INTERESTING EPISODES IN DREW’S LIFE.
Incidents in the Early Life of Drew; and How he Began to Make Money.—He Borrows Money from Henry Astor, Buys Cattle in Ohio and Drives them over the Alleghany Mountains under Great Hardship and Suffering.—His Great Career as a Steamboat Man, and his Opposition to Vanderbilt.—His Marriage and Family.—He Builds and Endows Religious and Educational Institutions.—Returns to his Old Home after his Speculative Fall, but can find No Rest so Far away from Wall Street.—His Hopes through Wm. H. Vanderbilt of another Start in Life.—His Bankruptcy, Liabilities and Wardrobe.—His Sudden but Peaceful End.—Characteristic Stories of his Eccentricities 147
CHAPTER XVIII.
PANICS.—THEIR CAUSES.—HOW FAR PREVENTABLE.
Not Accidental Freaks of the Market.—We are Still a Nation of Pioneers.—The Question of Panics Peculiarly American.—Violent Oscillations in Trade Owing to the Great Mass of New and Immature Undertakings.—Uncertainty about the Intrinsic Value of Properties.—Sudden Shrinkage of Railroad Properties a Fruitful Cause of Panics.—Risks and Panics Inseparable from Pioneering Enterprise.—We are Becoming Less Dependent on the Money Markets of Europe.—In Panics much Depends upon the Prudence and Self-control of the Money-Lenders.—The Law which Compels a Reserve Fund in the National Banks is at Certain Crises a Provocative of Panics.—George I. Seney.—John C. Eno.—Ferdinand Ward.—The Clearing House as a Preventive of Panics 157
CHAPTER XIX.
OLD-TIME PANICS.
The Panic of 1837.—How it was Brought About.—The State Banks.—How they Expanded their Loans under Government Patronage.—Speculation was Stimulated and Values Became Inflated.—President Jackson’s “Specie Circular” Precipitates the Panic.—Bank Contractions and Consequent Failures.—Mixing up Business and Politics.—A General Collapse, with Intense Suffering 175
CHAPTER XX.
THE TRUE STORY OF BLACK FRIDAY TOLD FOR THE FIRST TIME.
The Great Black Friday Scheme originates in patriotic motives. Advising Boutwell and Grant to sell Gold.—The part Jim Fisk played in the Speculative Drama.-“Gone where the Woodbine Twineth.”—A general state of Chaos in Wall Street.—How the Israelite Fainted.-“What ish the prish now?”—Gould the Head Centre of the Plot to “Corner” Gold.—How he Managed to Draw Ample Means from Erie.—Gould and Fisk Attempt to Manipulate President Grant and Compromise him and his Family in the Plot.—Scenes and Incidents of the Great Speculative Drama 181
CHAPTER XXI.
CAUSES OF LOSS IN SPECULATION.
Inadequate Information.—False Information.—Defects of News Agencies.—Insufficiency of Margins.—Dangers of Personal Idiosyncrasies.—Operating in Season and out of Season.—Necessity of Intelligence, Judgment and Nerve.—An Ideal Standard.—What Makes a King Among Speculators? 201
CHAPTER XXII.
VILLARD AND HIS SPECULATIONS.
Return of the Renowned Speculator to Wall Street.—Recalling the Famous “Blind” Pool in Northern Pacific.—How Villard Captured Northern Pacific.—Pursuing the Tactics of Old Vanderbilt.—Raising Twelve Million Dollars on Paper Credit.—Villard Emerges from the “Blind” Pool a Great Railroad Magnate.—He Inflates his Great Scheme from Nothing to One Hundred Million Dollars.—His Unique Methods of Watering Stock as Compared with those of George I. Seney 209
CHAPTER XXIII.
FERDINAND WARD.
Peculiar Power and Methods of the Prince of Swindlers.—How he Duped Astute Financiers and Business Men of all Sorts, and Secured the Support of Eminent Statesmen and Leading Bank Officers, whom he Robbed of Millions of Money.—The most Artful Dodger of Modern Times.—The Truth about the Swindle Practiced upon General Grant and his Family. 215
CHAPTER XXIV.
HENRY N. SMITH.
How Mr. Smith Started in Life and became a Successful Operator.—His connection with the Tweed “Ring,” and how he and the Famous “Boss” made Lucky Speculations, through the use of the City Funds, in Making a Tight Money Market.—On the Verge of Ruin in a Pool with W. K. Vanderbilt.—He is Converted to the Bear Side by Woerishoffer, and Again Makes Money, but by Persistence in his Bearish Policy Ruins himself and Drags Wm. Heath & Co. down also 223
CHAPTER XXV.
KEENE’S CAREER.
He Starts in Speculation as a “Curbstone” Broker.—A Lucky Hit in a Mining Stock Puts Him on the Road to be a Millionaire.—His Speculative Encounter with the Bonanza Kings.—He Makes Four Millions, and Major Selover brings him to Wall Street, where they Form an Alliance with Gould, Who “Euchres” Both of Them.—Selover Drops Gould in an Area Way.—Keene Goes Alone and Adds Nine Millions More to His Fortune.—He Then Speculates Recklessly in Everything.—Suffers a Sudden Reversal and Gets Swamped.—Overwhelming Disaster in a Bear Campaign, Led by Gould and Cammack, in which Keene Loses Seven Millions.—His Desperate Attempts to Recover a Part Entail Further Losses, and He Approaches the End of His Thirteen Millions.—His Princely Liberality and Social Relations with Sam Ward and Others 229
CHAPTER XXVI.
OUR RAILROAD METHODS.
Deceptive Financiering.—Over-Capitalization.—Stock “Watering.”—Financial Reconstructions.—Losses to the Public.—Profits of Constructors.—Bad Reputation of our Railroad Securities.—Unjust and Dangerous Distribution of the Public Wealth 241
CHAPTER XXVII.
THE GEORGIA BOND REPUDIATION.
How a Sovereign Southern State Cheated the Northern Men who Helped Her in Distress.—A New Way to Pay Old Debts.—Cancellation by Repudiation of Just Claims for Cash Loaned to Sustain the State Government, Build Public Schools and Make Needed Improvements.—Bottom Facts of the Outrage.—The Recent Attempt to Place a New Issue of Georgia Bonds on the Market while the Old ones Remain Unpaid.—The Case before the Attorney-General of the State of New York.—He Examines the Legal Status of the Bonds in Connection with the Savings Banks.—His Decision Prohibits these Institutions from Investing the Hard Earnings of the Working People in these Doubtful and Dangerous Securities.—A Bold Effort to have the Fresh Issue of Georgia Paper put upon the List of Legitimate Securities of the New York Stock Exchange Firmly Opposed and Eventually Frustrated 255
CHAPTER XXVIII.
ANDREW JOHNSON’S VAGARIES.
“Swinging Around the Circle.”—How Mr. Johnson Came to Visit New York on His Remarkable Tour.—The Grand Reception at Delmonico’s.—The President Loses His Temper at Albany and Becomes an Object of Public Ridicule.—His Proclamation of “My Policy” Ironically Received.—Returns to Washington Disgraced.—The Massacre of New Orleans.—The Impeachment of the President 289
CHAPTER XXIX.
THE DIX CONVENTION.
How the War Democrat, General Dix, was Elected Governor by the Republican Party.—The Candidates of Senator Conkling Rejected.—How Dix was Sprung on the Convention, to the Consternation of the Caucus.—Judge Robertson’s Disappointment.—Exciting Scenes in the Convention.—General Dix declines the Nomination, but Reconsiders and Accepts on the Advice of His Wife and General Grant.—How Dix’s Election Ensures Grant’s Second Term as President 297
CHAPTER XXX.
CONSEQUENCES OF THE UTICA (DIX’S) CONVENTION.
A Chapter of Secret History.—Conkling gets the Credit for Dix’s Nomination and His “Silence Gives Consent” to the Honor.—Robertson Regards Him as a Marplot.—The Senator Innocently Condemned.—The Misunderstanding which Defeated Grant for the Third Term, and Elected Garfield.—How the Noble “306” were Discomfited.-“Anything to Beat Grant.”—The Stalwarts and the Half Breeds.-“Me Too.”—The Excitement which Aroused Guiteau’s Murderous Spirit to Kill Garfield 307
CHAPTER XXXI.
GRANT’S SECOND TERM.
The Best Man for the Position and Most Deserving of the Honor.—How the “Boom” was Worked up in Favor of Grant.—The Great Financiers and Speculators all Come to the Front in the Interest of the Nation’s Prosperity and of the Man who had Saved the Country.—The Great Mass Meeting at Cooper Union.—Why A. T. Stewart Refused to Preside.—The Results of the Mass Meeting and how they were Appreciated by the Friends of the Candidate, Leading Representatives of the Business Community and the Public Press Generally, Irrespective of Party 313