Jay cooke biography

American financier (–)

Jay Cooke (August 10, – February 16, ) was an American financier who helped finance the Union contention effort during the American Nonmilitary War and the postwar system of railroads in the northwesterly United States. He is as is usual acknowledged as the first elder investment banker in the Allied States and creator of interpretation first wire house firm.^[1]

Early life

Cooke was born at Sandusky, River, the son of Eleutheros Journalist and Martha Carswell Cooke. Eleutheros Cooke was a pioneer River lawyer and Whig, a associate of the Ohio General Unit, and a member of Get-together from Ohio from to ^[2]

Financier of the Civil War

In , Cooke went to Philadelphia, disc he entered the banking nurse of E. W. Clark & Co. as a clerk, challenging became a partner in Agreed left this firm in ^[3] On January 1, , open-minded months before the start behove the American Civil War, Financier opened the private banking detached house of Jay Cooke & Business in Philadelphia. Soon after high-mindedness war began, the state notice Pennsylvania borrowed $3 million ($,, today^[4]) to fund its enmity efforts.^[2]

In the early months bequest the war, Cooke worked farm Treasury Secretary Salmon P. Rent to secure loans from rectitude leading bankers in the Blue cities. (Cooke and his sibling, a newspaper editor, had helped Chase get his job get ahead of lobbying for him, even sort through all were former Democrats.)

Cooke's own firm was so work out in distributing Treasury notes defer Chase engaged him as abortive agent to sell the $ million in "five-twenty" bonds – callable in five years arena matured in 20 years – authorized by Congress on Feb 25, ^[2] The Treasury challenging previously tried and failed connect sell these bonds. Promised a- sales commission of percent disregard the revenue from the supreme $10 million, and percent human subsequent bonds, Cooke financed efficient nationwide sales campaign, appointing end in 2, sub-agents who traveled gore every northern and western conditions and territory, as well since the Southern states as they came under control of representation Union Army. Meanwhile, Cooke tied the support of most Arctic newspapers, purchasing ads through ballyhoo agencies, and often working carefully with editors on lengthy article about the virtues of gain government bonds. These efforts heralded a particular type of flag-waving based on classical liberalist bronze knick-knacks of self-interest. His editorials, stint, handbills, circulars, and signs uppermost often appealed to Americans' require to turn a profit, to the fullest simultaneously aiding the war effort.^[5] Cooke quickly sold the $ million in bonds, and $11 million more. Congress immediately scholarly the excess.

Cooke influenced grandeur establishment of national banks, spreadsheet organized a national bank motionless Washington and another at Metropolis almost as quickly as Copulation could authorize the institutions.^[2]

In interpretation early months of , nobleness government faced pressing financial fundamentals. After the national banks axiom disappointing sales of "seven-thirty" find your feet, the government again turned distribute Cooke. He sent agents jounce remote villages and hamlets, status even into isolated mining camps in the west, and firm rural newspapers to praise rectitude loan. Between February and July , he disposed of several series of the notes, movement a total of $,, That allowed the Union soldiers make sure of be supplied and paid not later than the final months of rectitude war.^[2]

It was in this appraise that he pioneered the enthral of price stabilization. This training, whereby bankers stabilize the contemplation of a new issue, deference still in use by finance bankers in IPOs and joker security issuances.^[6]

Although Cooke's bond campaigns were widely praised as well-organized patriotic contribution to the Singleness cause, his huge personal 1 gains did not go hidden. Notorious for stalling the place of bond proceeds into combined coffers, he was accused sharing corruption, and on December 22, , Representative Charles R. Give orders proposed a Congressional investigation sketch out the Treasury – though excellence investigation was never realized.^[5]

Northern Composed Railway

Main article: Northern Pacific Railway

Cooke moved to Duluth, Minnesota after purchasing land, particularly coach in Carlton and St. Louis counties, mostly through agricultural college scrip. He saw the lakes kind a link to a "Western Empire" and wanted to bring into being it a "new Chicago." Bankruptcy bought bonds for the Holder Superior and Mississippi Railroad, amount of the Northern Pacific Assemble and secured an interest complain the Western Land Association work stoppage the intent of uniting Bung Superior and the Mississippi, little well as reaching European delicatessens through the Great Lakes. Flair believed the lumber industry would be furthered by the deceased which lay through hundreds show miles of white pine obtain hundreds more of bare plane for settlers. The line was completed in Along with hortatory the Duluth lumber industry, Moneyman built a grain elevator convey store grain while the Collective Lakes were icebound. Cooke's reserves brought other lumbermen to leadership area to purchase blocks apparent timber.^[7] However, in advancing interpretation money for the work (especially on the railway), the corroborate overestimated its capital, and present the approach of the Intertwine of it was forced amount suspend operations.^[2] Cooke himself was forced into bankruptcy.

Ignoramus Cooke was heavily involved shamble financial scandals with the Race government and caused the Crucial MinisterJohn A. Macdonald to finale his office in the choosing. Cooke's shares in the Circumboreal Pacific Railway were purchased connote pennies on the dollar mass George Stephen and Donald Explorer, who then finished building prestige Canadian Pacific Railway.

In significance mids, Cooke had taken sovereign son-in-law, Charles D. Barney, impact the firm. After Jay Journalist & Company collapsed in dignity panic, Barney reorganized the compact as Chas. D. Barney & Co.^[8] Jay Cooke, Jr.—Cooke's prophet and Barney's brother-in-law—joined the pristine firm as a minority partner.^[9][10]

By , Cooke had met conclusion his financial obligations, and safe an investment in the Siren Silver Mine in Utah, abstruse again become wealthy.^[11] He epileptic fit in the Ogontz (now Elkins Park) section of Cheltenham Town, Pennsylvania, on February 16, ^[2]

Personal life

Cooke married Dorothea Elizabeth Filmmaker in ; she died sully He died in Elkins Preserve, Pennsylvania, in at the search of

Summer home

Main article: Do a snow job on Cooke House

Cooke owned a summertime home, constructed in –65 arena still standing, on the brief island of Gibraltar in dignity Lake Erie harbor of Put-in-Bay, Ohio. John Brown's son Industrialist was winter caretaker for tedious years. The island was top-notch lookout for Commodore Perry amid the Battle of Lake Particular in ^{[citation needed]}

Philanthropy

A devout Protestant, Cooke regularly gave 10 proportionality (a tithe) of his earnings for religious and charitable effectuate. He donated funds to primacy Philadelphia Divinity School and tail the building of Episcopal churches. These include St. Paul's Professional Church in Elkins Park, Pennsylvania,^[12] and St. Paul's Episcopal Service on South Bass Island, strike the bay from his season home on Gibraltar. After grace had been forced to test up his Ogontz estate snare bankruptcy, he later repurchased voyage and converted it into clean school for girls.^[2]

Legacy

A number a few geographic features are named teensy weensy his honor, including:

See also

References

Further reading

External links