Page:The Biographical Dictionary of America, vol. 02.djvu/385

 COOKE

COOKE

the Washington transportation and packet line, of which Mr. Moorhead was president. He also ■wrote financial reports for a daily newspaper and his search for material to make up his arti- cles gave him an insight into newspaper, finan- cial and mercantile methods. In 1839 he found employment as clerk in the banking house of E. W. Clark & Co. of Philadelphia, and his prog- ress was rapid as he gained a knowledge of the different departments of the business. In 1841, eighteen months before he attained his majority, he was confidential clerk and held the power of attorney of the firm to sign all business papers. In 1842 he was admitted as a partner in the house. In 1846 and again in 1848 he assisted in negotiating the government loans required to carry on the Mexican war. He retired from the firm Jan. 1, 1858, and engaged in a brokerage and railroad construction business, 1858-61. He organized the banking house of Jay Cooke & Co. in Philadelphia, Pa., Jan. 1, 1861, with his brother-in-law, William G. Moorhead, as partner, and subsequently established branches in Washington, D.C., and in New York city.

Early in 1861 Mr. Cooke assisted Mr. Chase in obtaining the concerted action of the leading banks and bankers of New York and Philadeljihia in advancing to the government the sum of ^50,000,000 to meet the early expenses of the war. A meeting of these bankers was held in Wash- ington after this loan was granted, where they -consulted with Mr. Lincoln's cabinet through Mr. Chase, then secretary of the treasury, and the chairman of the representatives of the banks protested that they had reached the limit of safety and ability of the banks in the direction of government loans, and that if the rebellion could not be put down with the funds already furnished, no more could be obtained from the banks. The war, meanwhile, had increased the government expenses from one million dollars weekly to one million dollars daily, and the secre- tary of the treasury found it impossible to obtain the money from the usual channels. In this emergency Jay Cooke took a hopeful view of the situation and was appointed sole fiscal agent of

the government with authority to employ ex- traordinary methods in order to popularize the United States bonds with the smaller banks and the plain people of the country. He appealed to their patriotism rather than to their cupidity, to induce them to loan small sums to help put down the rebellion, and promising the gratitude of a nation and a reasonable interest on their investment, rather than excessive interest, as a return for their faith in the final result of the war. History has recorded the resvilt, and the general at the head of the financial army that supplied the sinews of war and made possible the continuance of the struggle for national life till victory came, was Jay Cooke, the fiscal agent of the government. His strategy defeated the combined systematic attacks on the financial credit of the government from a hundred hostile sources. This warfare to depress the market value of United States securities was for specula- tive and disloyal purposes and required the pur- chase, by Mr. Cooke, on his personal account from time to time, of large blocks of United States securities to strengthen and maintain the market and to counteract such schemes. He was, however, equal to every emergency and won the battle. The people had faith in his purpose and methods, came to his support and aided him in fighting the enemies of the government both at home and abroad, but imrticularly in the New York stock exchange and gold room. The Presi- dent, his cabinet and the general of the army sev- erally personally acknowledged the debt due to Mr. Cooke in raising for the defence and mainten- ance of the government upwards of §2,000,000,- 000. He I'eceived for placing the bonds a commis- sion of three-eighths of one per cent and had to pay out of this all expenses and all sub-commis- sions, leaving to him little besides the prestige and satisfaction of having achieved a great success in supporting a noble cause. After the close of the civil war he established the London house of Jay Cooke, McCulloch & Co., and the four houses continued a large and successful business. They became the financial agents of the Northern Pacific railroad which was being constructed and needed millions of dollars for the purpose. He secui'ed promises of §50,000,000 from capitalists in England, Holland, Germany and France, but when Louis Napoleon declared war against Germany the investors withdrew their offers. He then undertook to secure the money in the United States, and many millions were raised and expended. In 1873 the crash came and Jay Cooke was made a poor man. His fine residence at Ogontz, near Philadelphia, named for the Indian friend of his youth, was sold for the benefit of creditors. It was turned into a priA-ate school for young ladies some years later, after