Fifty years in Wall Street
market. When speculators frequently had their margins “wiped out,” and
were almost beggared of everything except their votes, they found that
consolation which Wall Street refused them, in the sympathetic hearts of
Tweed’s “heelers,” who pointed to the poor office-holders of the
Republican party, representing them as the sole possessors of Pandora’s
box, which contained all evils that flesh is heir to.
So these financial disasters were brought about by the Tweed party for
the purpose of getting their friends into office, which always paid
tribute to the Boss when he was instrumental in elevating a person to a
fat position. He, himself, did not want any better office than receiver
general of this tribute.
In those days a Presidential election was largely influenced by the way
Pennsylvania went, so that it had grown into a political maxim, “As goes
the Keystone State so goes the Union.”
In the Spring of 1872, the year in which General Grant was the
Republican candidate for the second term, when it was decided that
Horace Greeley should be the Democratic candidate, great efforts were
made to produce a panic in Wall Street. It was arranged by the Tweed
party that the panic should take place simultaneously with the State
election in Pennsylvania, so as to illustrate the evil results of
Republican rule, and turn the influence in favor of Mr. Greeley’s
election.
I received intimation of this politico-speculative conspiracy, and
communicated my information to Senator Conkling, who was stopping at the
Fifth Avenue Hotel at the time. I told him that the Democrats were
working up a panic to help to defeat General Grant. He said it was the
first he had heard of it, but it was so like a move that Tweed and his
party would make, that he felt there was just cause for alarm about it,
and he requested me to go and see Governor Morgan, and also George
Opdyke, on the subject. I found that the Governor was at a church
meeting, and I left my card telling him to call upon me at the rooms of
the Republican National Committee, as I wanted to see him upon important
business. I left word for Mr. Opdyke to call also.
The Governor soon presented himself at the Committee rooms, and I
divulged to him my information and suspicions. He did not exhibit so
much interest as I imagined the importance of the case demanded, and he
appeared to doubt the correctness of the report of the political
intentions of the Tweed Ring, or rather he seemed to imagine that the
Ring was hardly capable of a move that involved such subtlety and depth
of design. Therein he greatly underestimated the power, resources and
statecraft of Peter “Brains” Sweeney. The Governor was of a phlegmatic
temperament, and it was difficult to convince him of anything that was
not very clearly demonstrable. I told him that my information was of
such a positive and reliable nature that I knew I was right, and that if
there should be a panic in Wall Street I had serious apprehensions that
it would prove disastrous to the Republicans in the national campaign.
Governor Morgan appointed a meeting for the next day to discuss the
matter more fully and obtain further light upon the subject. I took with
me to see the Governor, whom I had now convinced of the reality of the
political plot, Mr. George Opdyke and Mr. H. B. Claflin.
In the meantime the Governor had seen Travers, who, being an inveterate
bear on the situation, had an inkling of what was in progress to break
the market. The Governor had satisfied himself that my representations
were correct, and that trouble was really brewing. He then entered with
earnestness into the question of the best policy to be adopted to
obstruct the schemes, and frustrate the purposes of the Democratic
party.
I then suggested, that as the matter did not admit of delay, it was
highly essential that some one, or more, of us should go to Washington
to see General Grant. The Governor said he could not go. I could not go,
and neither could Mr. Claflin. So Mr. Opdyke, who was very ready in such
matters, consented to bear the important message in person, provided we
all agreed to back him up by writing a strong letter to the President,
setting forth the facts in relation to the emergency. This we did, and
Mr. Opdyke left at once for Washington. This was on Friday evening, and
he transacted his business with more than ordinary despatch, and
returned on Sunday morning. He sent for me, and told me that he had
explained the matter to the President, who felt exceedingly grateful for
the warning which he and our letters had conveyed, and that he had
forthwith consulted with the Secretary of the Treasury, and it was
resolved to order the purchase, on Monday, of ten millions of bonds, and
the sale of ten millions of gold, for the purpose of averting, in
advance, any financial disturbance that might arise through the project
of the Tweed Ring to create an artificial stringency in the money
market.
Then I saw that these men who were engaged in the conspiracy to create a
panic, and benefit themselves both politically and financially by its
results, were a deeply designing lot, and that under the law, gold could
be bid up, the highest bidders obtaining it, having the option of either
paying by depositing their money in payment for it in the National
depositories, which were the Fourth National Bank and the Bank of
Commerce, or else depositing it in the Sub-Treasury. If deposited in the
latter it would be locked up, and the effect intended by the Treasury,
to make money easy, would be neutralized, in so far as the influence of
the money as a circulating medium was concerned.
In order, therefore, to provide for that probable contingency, my firm
subscribed for the whole ten millions of gold, the names being the
clerks of my office. We were awarded eight millions, and we paid the
money into the Bank of Commerce, and the Fourth National Bank, through
which it was brought into circulation.
Thus ten millions of greenbacks and also ten millions of gold came fresh
from the Sub-Treasury into circulation immediately, promptly
anticipating and defeating the machinations of the Ring.
The Tweed Ring being “all broke up” on this deal, the effect was magical
on the market. The plans of the conspirators had been entirely upset,
and the Pennsylvania election took place a few days afterward with an
overwhelming majority for the Republicans.
Had the panic, which was projected by the Ring, taken place, the result
might have been otherwise, and the re-election of Grant thus
jeopardized.
After this triumph over Tweed and his gang, I set my wits to work to
plan their overthrow. I saw that their power was entirely money power,
obtained by official position through official theft. I was satisfied
that these patriots who had put their hands up to the elbows in the City
Treasury of New York were bent upon buying, stealing or otherwise
obtaining their way to the National Treasury at Washington.
They had hoped to do there on a large scale what they had accomplished
on a smaller scale in the city of New York, where they were becoming
restive under their limited resources.
It was with the view of suppressing the dangerous aspirations of this
band of political marauders that I originated the well known Vigilance
Committee of Seventy, and at the first meeting to organize this
committee I nominated sixty-five of its members.
The committee was thus backed at the start by so many prominent citizens
as to make it at once a power in the community.
Then for the first time in many years the citizens of New York were
emboldened to become outspoken on the subject of political plunder and
tyranny, and against the officials who had ruled the city with a rod of
iron.
For a long time previous to this there had been grave suspicions that
robbery on a large scale was being perpetrated, but no one dared to give
utterance to the fact except with bated breath and in half smothered
whispers. No one, with the possible exception of a few who were not
taxpayers, had the temerity to open his mouth to say a word against the
desperate men who controlled the destinies of the city, through fear
that on the event of any remark reaching the ears of the Boss or his
minions, the property of the person thus offending should be marked up
to an artificial value and his taxes accordingly increased. This was one
of the most effective methods pursued by the Ring to choke off
unfriendly criticism by the rich men of the city. In this way the power
of some of the most influential citizens became paralyzed, being held in
complete subjection under the terrorism of this subtle system of
blackmailing.
The power the Ring possessed of covering up the rascality of its members
and bamboozling the public is hardly conceivable at this day except by
those who had experience of it at the time. As an instance of this I may
state that some time prior to the appointment of the Committee of
Seventy certain accusations were ventilated against Richard Connolly,
the City Comptroller. He put on a bold front, and insisted upon an
investigation of his department by a committee of leading and prominent
citizens. He named his committee, who were Moses Taylor, Marshall
Roberts and John Jacob Astor. These were men against whom no person
could have any objection. They were wealthy and independent citizens,
and it might have been difficult at the time to have selected any other
three who commanded greater confidence in the community. The
investigation, through the unblushing effrontery and audaciousness of
Connolly and his “pals,” resulted in an acquittal of Mr. Connolly, which
gave him a new lease of political life, and rendered it more dangerous
than ever for any one to utter a word of hostile criticism against his
methods of managing the city finances.
Results showed, when the Ring was exposed, that Connolly had made the
very best use of this investigation in appropriating additional sums out
of the City Treasury.
The Ring was now supreme in city affairs, and the city was under a reign
of terror. This state of things existed until the summer of 1872, when
the Committee of Seventy got into harness, after which the despotic
thieves that had ruled the roost so long, were driven from power one
after another in rapid succession, and scattered to the four corners of
the globe.
The task of ousting this brazen band of plunderers, root and branch, was
attended with considerable difficulty, as their resources were so
numerous and powerful. When they were no longer able to exercise their
arbitrary power they stooped to every form of cajolery and bribery in
order to adhere to the remnant of their official authority. As an
illustration of this, I may state that at the beginning of my efforts in
connection with the Committee of Seventy I was waited upon by a member
of the Ring and asked if I would not accept the position of City
Chamberlain. I said: “That is a matter, of course, which I could not
decide upon at once, as there is no vacancy at present. It will be time
enough for me to consider the matter when a vacancy occurs, and then
when the position is offered to me.”
This answer carried with it an intimation, which I had intended, with a
view of drawing out some of the internal methods of procedure in such
cases, that I would probably accept the position and help to smooth over
impending revelations. I thought that the end which the Committee had in
view justified this means of mildly extorting an important secret in
methods of Ring management, that was calculated to aid us in the work of
municipal reform.
Next day I was again waited upon by one of Tweed’s most trusty friends,
who graciously informed me that the City Chamberlain had resigned, and