An Evening with President Grant
On September 15, 1873, Jay Cooke, a legendary financier, hosted President Ulysses S. Grant at his lavish estate near Philadelphia. Cooke had founded America’s first investment bank and financed the Northern Pacific Railway, which stretched from Lake Superior to Puget Sound. What they discussed remains unknown, but Cooke desperately needed the government’s help to save his bank.
The Risky Bet on Railroads
Cooke’s company had sold bonds to finance the Northern Pacific Railway. Railroads were America’s first billion-dollar businesses, but they required huge capital investments. As laborers faced harsh conditions and Native Americans resisted, the railroad struggled, and Cooke’s investment became increasingly risky.
The Panic of 1873
Three days after meeting Grant, Cooke’s bank went bankrupt, sparking chaos on Wall Street. The New York Stock Exchange closed for the first time in history. The collapse led to the first “Great Depression,” lasting five years and bankrupting thousands of businesses, including the Freedman’s Savings Bank, which held savings of many formerly enslaved Americans.
Cooke’s Downfall and Recovery
Despite losing everything, Cooke regained his fortune through silver mining in Utah and died wealthy in 1905. His collapse, however, marked a turning point in the American financial system.
The Panic of 1873: How One Bank Crashed an Economy 🤑
An Evening with President Grant
On September 15, 1873, Jay Cooke, a legendary financier, hosted President Ulysses S. Grant at his lavish estate near Philadelphia. Cooke had founded America’s first investment bank and financed… pic.twitter.com/4DeGdcXErX— Detective Tiger's Stories (@TigerDetective) October 27, 2024