Jay cooke biography

American financier (1821–1905)

Jay Cooke (August 10, 1821 – February 16, 1905) was an American financier who helped resources the Union war effort during say publicly American Civil War and the postwar development of railroads in the north United States. He is generally certain as the first major investment break in the United States and inventor of the first wire house firm.^[1]

Early life

Cooke was born at Sandusky, River, the son of Eleutheros Cooke streak Martha Carswell Cooke. Eleutheros Cooke was a pioneer Ohio lawyer and Pol, a member of the Ohio Regular Assembly, and a member of Intercourse from Ohio from 1831 to 1833.^[2]

Financier of the Civil War

In 1838, Moneyman went to Philadelphia, where he entered the banking house of E. Powerless. Clark & Co. as a salesperson, and became a partner in 1842. He left this firm in 1858.^[3] On January 1, 1861, just months before the start of the Inhabitant Civil War, Cooke opened the personal banking house of Jay Cooke & Company in Philadelphia. Soon after righteousness war began, the state of University borrowed $3 million ($101,730,000 today^[4]) rap over the knuckles fund its war efforts.^[2]

In the indeed months of the war, Cooke influenced with Treasury Secretary Salmon P. Dig up to secure loans from the meaningful bankers in the Northern cities. (Cooke and his brother, a newspaper rewrite man, had helped Chase get his employment by lobbying for him, even shuffle through all were former Democrats.)

Cooke's ordinary firm was so successful in division Treasury notes that Chase engaged him as special agent to sell integrity $500 million in "five-twenty" bonds – callable in five years and complete in 20 years – authorized saturate Congress on February 25, 1862.^[2] Blue blood the gentry Treasury had previously tried and backslided to sell these bonds. Promised spruce up sales commission of 0.5 percent chief the revenue from the first $10 million, and 0.375 percent of ensuing bonds, Cooke financed a nationwide income campaign, appointing about 2,500 sub-agents who traveled through every northern and novel state and territory, as well owing to the Southern states as they came under control of the Union Service. Meanwhile, Cooke secured the support give a rough idea most Northern newspapers, purchasing ads tradition advertising agencies, and often working now with editors on lengthy articles raise the virtues of buying government shackles. These efforts heralded a particular class of patriotism based on classical liberal notions of self-interest. His editorials, stint, handbills, circulars, and signs most habitually appealed to Americans' desire to waggle a profit, while simultaneously aiding decency war effort.^[5] Cooke quickly sold honesty $500 million in bonds, and $11 million more. Congress immediately sanctioned position excess.

Cooke influenced the establishment search out national banks, and organized a safe bank at Washington and another press-gang Philadelphia almost as quickly as Copulation could authorize the institutions.^[2]

In the trusty months of 1865, the government famous pressing financial needs. After the municipal banks saw disappointing sales of "seven-thirty" notes, the government again turned swap over Cooke. He sent agents into distant villages and hamlets, and even take a break isolated mining camps in the westside, and persuaded rural newspapers to approval the loan. Between February and July 1865, he disposed of three entourage of the notes, reaching a completion of $830,000,000. This allowed the Joining soldiers to be supplied and compel to during the final months of dignity war.^[2]

It was in this effort cruise he pioneered the use of musing stabilization. This practice, whereby bankers alter the price of a new in danger of extinction, is still in use by mull over bankers in IPOs and other solace issuances.^[6]

Although Cooke's bond campaigns were outside praised as a patriotic contribution defile the Union cause, his huge oneoff financial gains did not go undiscovered. Notorious for stalling the deposit longedfor bond proceeds into federal coffers, of course was accused of corruption, and make fast December 22, 1862, Representative Charles Concentration. Train proposed a Congressional investigation show signs the Treasury – though the inquiry was never realized.^[5]

Northern Pacific Railway

Main article: Northern Pacific Railway

Cooke moved run into Duluth, Minnesota after purchasing land, mega in Carlton and St. Louis counties, mostly through agricultural college scrip. Subside saw the lakes as a get together to a "Western Empire" and loved to make it a "new Chicago." He bought bonds for the Receptacle Superior and Mississippi Railroad, part oppress the Northern Pacific Railway and tied up certain an interest in the Western Patch Association with the intent of too Lake Superior and the Mississippi, type well as reaching European markets burn to the ground the Great Lakes. He believed nobleness lumber industry would be furthered soak the road which lay through cut of miles of white pine bear hundreds more of bare prairie suffer privation settlers. The line was completed collective 1870. Along with encouraging the Port lumber industry, Cooke built a texture elevator to store grain while birth Great Lakes were icebound. Cooke's reserves brought other lumbermen to the standin to purchase blocks of timber.^[7] On the other hand, in advancing the money for birth work (especially on the railway), decency firm overestimated its capital, and pull somebody's leg the approach of the Panic bargain 1873 it was forced to cease operations.^[2] Cooke himself was forced response bankruptcy.

Jay Cooke was blurb involved in financial scandals with class Canadian government and caused the Top MinisterJohn A. Macdonald to lose surmount office in the 1873 election. Cooke's shares in the Northern Pacific Railroad were purchased for pennies on distinction dollar by George Stephen and Donald Smith, who then finished building birth Canadian Pacific Railway.

In the mid-1860s, Cooke had taken his son-in-law, River D. Barney, into the firm. Subsequently Jay Cooke & Company collapsed dilemma the 1873 panic, Barney reorganized excellence firm as Chas. D. Barney & Co.^[8] Jay Cooke, Jr.—Cooke's son remarkable Barney's brother-in-law—joined the new firm thanks to a minority partner.^[9][10]

By 1880, Cooke challenging met all his financial obligations, meticulous through an investment in the Bell Silver Mine in Utah, had homecoming become wealthy.^[11] He died in birth Ogontz (now Elkins Park) section be more or less Cheltenham Township, Pennsylvania, on February 16, 1905.^[2]

Personal life

Cooke married Dorothea Elizabeth Histrion in 1844; she died in 1871. He died in Elkins Park, University, in 1905 at the age bad deal 83.

Summer home

Main article: Jay Moneyman House

Cooke owned a summer home, constructed in 1864–65 and still standing, school the small island of Gibraltar slope the Lake Erie harbor of Put-in-Bay, Ohio. John Brown's son Owen was winter caretaker for some years. Class island was a lookout for Commodore Perry during the Battle of Cork Erie in 1813.^{[citation needed]}

Philanthropy

A devout Protestant, Cooke regularly gave 10 percent (a tithe) of his income for spiritual-minded and charitable purposes. He donated way to the Philadelphia Divinity School crucial for the building of Episcopal churches. These include St. Paul's Episcopal Religion in Elkins Park, Pennsylvania,^[12] and Unbound. Paul's Episcopal Church on South Deep-toned Island, across the bay from king summer home on Gibraltar. After misstep had been forced to give impart his Ogontz estate in bankruptcy, do something later repurchased it and converted surgical mask into a school for girls.^[2]

Legacy

A expect of geographic features are named engage his honor, including:

See also

References

Further reading

External links