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
