Perhaps one cannot penetrate more directly to the heart of the Gilded Age than in taking account of certain of its heroes, figures of earth whom it accounted great in its generation, and to whom its admiration flowed out in unstinted measure. It is our own secret desires we attribute to our gods, and if from the muck of the times a queer lot of heroes was singled out, if an undisciplined generation rioting in its new freedoms chose to honor men who had scrambled upward in uncouth ways, it only suggests that such figures were a composite picture of the secret desires of an age vastly concerned with getting on. From a host of striking personalities two must suffice to suggest the spirit of the times, authentic folk-heroes of the Gilded Age, fashioned out of the commonest stuff and realizing such greatness as multitudes of Americans were then dreaming of; and over against them a third figure, a mordant intellectual, who sardonically swam with the stream of tendency and in serving all the gods of the Gilded Age gained for himself a brilliant career.

Greatest of all the heroes of the age was the victor of Appomattox. His fame was in all men's mouths, and his reputation was substantial enough to withstand the attacks of enemies and the gross shortcomings of his own character. It was not for any singular or remarkable qualities of mind or personality that General Grant was taken to the heart of his generation, but rather because he was so completely a product of the times, so strikingly an embodiment of its virtues and weaknesses. In his spectacular career were the sharp contrasts that appealed to a plebeian people wanting in fine and discriminating standards of appraisal. He had come up from the people and the marks of his origins-the slovenly manners and uncritical force of frontier folk-ways-were stamped on him as indelibly as they were stamped on his fellow soldiers who proclaimed his greatness. To a later generation he seems an odd and unaccountable figure for the high role of national hero, yet he was as native and homespun as Lincoln, like him sprung from the common stock and learning his lessons from harsh experience, a figure blown to huge dimensions by the passions of civil war. A generation that discovered something praiseworthy in the "smartness" of Jim Fisk, in the burly acquisitiveness of Commodore Vanderbilt, or in the clever humbuggery of Barnum the Showman, certainly would judge with no very critical eyes the claims to greatness of a grim leader of armies who succeeded where so many before had failed.

General Grant was no conventional military hero. It was not the gold stars on his epaulets that dazzled his generation. The people of the North had seen too many gold stars rise and set on the military horizon, they had been stricken too sorely by the bitter struggle, to be caught by military popinjays. They had gone through the fire and any hero of theirs must himself have passed through the fire. It was something veracious in the man, something solid and unyielding in the soldier, something plain as an old shoe in the field marshal of bloody battles, that caught the imagination of the North and made Grant a hero-this together with a certain gift of pungent phrase, befitting the leader of democratic hosts, that served to spread his fame amongst the common people. Vicksburg did much for his reputation, but the demand for "unconditional surrender," sent to a Confederate leader, did far more. The words fixed his character in the popular mind. Here at last was a fighting man who instead of planning how to fall back, as other generals did, thought only of going ahead; so the popular judgment shut its eyes to his dull plebeian character and set a wreath on his brows. It rested there somewhat grotesquely. In spite of a deep unconscious integrity and a stubborn will that drove him forward along whatever path his feet were set on, he was the least imposing of military heroes. Short, stooped, lumpish in mind and body, unintellectual and unimaginative, devoid of ideas and with no tongue to express the incoherent emotions that surged dully in his heart, he was a commonplace fellow that no gold braid could set off. He hated war and disliked soldiering, yet accepting life with a stolid fatalism he fought his bloody way to ultimate victory.

Graduated from West Point after four sterile years of drill, quite uneducated and unread even in his profession, he served for a time at different army posts, went through the Mexican War-which he looked upon as a stupid imperialistic debauch-as quartermaster without gaining distinction, and eventually, oppressed by the eventless routine of garrison life, he fell into the habit of solitary drinking and was dismissed from the service. Misfortune that it seemed, it was his making. Only as a volunteer could he have risen so quickly to high command; as a captain or major in the regular army he would have been detailed as drill-master to the raw troops and have had no chance. Nevertheless hard times came with his dismissal. Indolent by nature and inclined to drift, he was as incompetent a man in practical affairs as one could find in a frontier township. But with a wife and children to support he must turn his hand to something, so he tried his luck at farming, selling real estate, and various odd jobs, yet all the time growing poorer and seedier, till the war came and picking him up flung him to mountain heights of popularity and reputation. Thereafter till his death he was accounted the greatest American of his generation. No accumulating evidence of his well-meaning but witless incapacity in civic and political affairs could pluck from his brows the wreath that had been thrust upon him.

In his spectacular career Grant was an embodiment of the dreams of all the Beriah Sellerses of the Gilded Age. He was a materialistic hero of a materialistic generation. He was dazzled by wealth and power, and after years of bitter poverty he sat down in the lap of luxury with huge content. He took what the gods sent, and if houses and fast horses and wines and cigars were showered upon him he accepted them as a child would accept gifts from a fairy godmother. He had had enough of skimping meanness; with his generation he wanted to slough off the drabness of the frontier; he wanted the good things of life that had so long been denied him, and he was not scrupulous about looking a gift horse in the mouth. He sought out the company of rich men. He was never happier than when enjoying the luxury of Jay Cooke's mansion in Philadelphia or riding with A. T. Stewart in Central Park. As he grew fat and stodgy the vulgar side of his plebeian nature was thrown into sharper relief. He accepted gifts with both hands, and he seems never to have suspected the price that would be exacted of the President for the presents to the General. He never realized how great a bill was sent to the American people for the wine he drank or the cigars he smoked with his wealthy hosts; yet if the wine had been molten gold and the cigars platinum they would have been far cheaper. In return for a few boxes of choice Havanas, Jay Cooke laid his hands on millions of western lands for the Northern Pacific Rail­way. It was the way of the Gilded Age, and Grant was only doing what all his friends and associates were doing. If he accepted a fifty-thousand-dollar house in Philadelphia, his comrade General Sherman accepted a hundred-thousand-dollar house at Washing­ton. Such gifts were not bribes; they were open and aboveboard; it was the free and easy way of the times. What the age was careless about is the fact that it is hard to refuse a reasonable request from one's fairy godmother, and what the General never understood is that if one is President such a godmother is certain to be a very dangerous member of the family.

There was far too much of that sort of thing all about him for Grant to serve as President with credit to himself or profit to the country. Honest himself, he was the source of more dishonesty in others than any other American President. His eight years in the White House marked the lowest depths-in domestic affairs at least-to which any American administration has fallen. They were little better than a national disgrace. All the festering evils of post-war times came to a head and pock-marked the body politic from head to foot. Scandal and corruption whispered all about him, the hands of his closest advisers were dirty; yet he stubbornly refused to hear the whispers or see the dirt. In judging men and policies he was no more than a child. He could never distinguish between an honest man and a rascal. He was loyal to his friends and open-handedness he regarded as a mark of friend­ship. In the end it turned out that like the thieves of Jericho his blatant followers despoiled him of pretty nearly everything.

In what must pass for his political views Grant was as naively uninformed as a Wyoming cowboy. Utterly wanting in knowledge of political principles, he was a fit leader for the organized mob that called itself the Republican party, whose chief objective was the raiding of the treasure-box of which it was the responsible guardian. He had been nominally a Democrat and the first vote he cast for President he cast for Buchanan. After Lincoln's death he turned naturally to President Johnson and was one of his sup­porters till the wily Radical group got his ear and carried him over to the rival camp. They wanted his reputation to hide under, and they took possession of it with no great credit to the General's reputation. Thereafter he was a Republican of the Whig wing. It was where he belonged. He was swayed politically by his emotional reactions and it was natural for him to drift into the opulent camp of money and power. His frontier democracy sloughed away and with his generation he went over easily to a buccaneer capitalism. No social conscience obtruded itself to give him trouble. His millionaire friends were Whig Republicans and with his respect for rich men, his admiration for material success, he found himself in congenial company amongst the Whig group. About the only political policy he ever interested himself in was the policy of a protective tariff, and his Whig associates took care that his interest did not wane. Yet so completely did the naive General reflect the spirit of the Gilded Age that his noisy followers, conspiring to con­fuse in the public mind southern reconstruction and capitalistic expansion, and hiding a precious set of rascals in the folds of the bloody flag, came near to making him President for a third term. The General was bitterly disappointed at their failure, and the General's wife, who liked to live in the White House, was even more disappointed. To millions of Americans Grant was an authentic hero, to Mark Twain he was a very great man, and to Jay Cooke he was a pawn to be used in the noble strategy of fortune­seeking. What a comedy it all seems now-yet one that leaves an unpleasant taste in the mouth.

Yet to dismiss the stolid General thus is scarcely to do justice to the substantial core of the man. There remains the work written in pain during his last days, the two volumes of Memoirs that in their plain directness-as uninspired, says a late biographer, as "a bale of hay"- laid bare his honest simplicity and rugged meagerness. No blackguard and no charlatan could have written such pages. If General Grant was not the great man so many thought, he was a native growth from American soil, endowed like his age with a dogged will and a plodding energy, and he gave his country what he had. Though the branches of the tree were un­gainly and offered too hospitable shelter to unseemly birds of the night, the gnarly trunk was sound at the heart.

Another hero of the times likewise was flung up as it were casually out of obscurity and reaped an amazing harvest from the gigantic struggle. In those difficult years the name of Jay Cooke­"the financier of the Civil War," as his biographer calls him­became as familiar to the people of the North as the names of Grant and Lincoln, and was often joined with theirs as that of one of the saviors of the Union. He was the first great American banker, and good fortune sent him into the world at a moment when his skill in brokerage found opportunity for free play. The war was as great a godsend to Jay Cooke as it was to Grant, for alone amongst our money-lenders he realized the problems and foresaw the profits in a popular system of war financing. He was a pioneer in exploring all the potentialities of the banker's trade, and in his dramatic exploitation of salesmanship and his skillful manipulation of money and credit he marked out the highway our later financiers have traveled. Jay Cooke occupies too significant a place in the history of American capitalism to be overlooked in casting up the accounts of the Gilded Age.

Of Yankee-Puritan stock, he was born in the frontier hamlet of Sandusky, Ohio, when the Western Reserve was at the beginning of its development. His father was a country lawyer of Federalist­Whig affinities, proficient in high-flown western oratory, who liked to be much in the neighborhood eye. He was a pushing, self­confident fellow, highly patriotic, soberly moral, fearing God and loving his country, who felt that the government he supported so heartily should serve him and his town with equal heartiness. His readiness in florid speech won him a single term in Congress, and he used his position as a heaven-sent opportunity to promote a government road from Sandusky-which it seems was not prospering as its inhabitants had expected it would-deep into the Indian country. It was a good Clay-Whig scheme of internal improvement; it would open up a rich timber country, and be highly profitable to the real-estate promoters of Sandusky. Cradled thus in speculation and faith in a benevolent government, his three sons grew up native Whigs, with vigorous Puritan-Yankee minds, who found no difficulty in reconciling the interests of God and Mammon. Eager to get on "the right side of fortune," they went into the three professions of banking, journalism, and the law. The eldest, Pitt, found the law little to his liking; the youngest, Henry, labored diligently at journalism, at Sandusky and later at Columbus, where he was part owner of the Ohio State Journal and "boss" of young William Dean Howells, who was likewise seeking to rise through the medium of journalism. It was the family itch for politics that took him to Columbus, and although the venture was financially unsuccessful it brought him influential connections. He was useful to Governor Salmon P. Chase, after­wards to be Lincoln's Secretary of the Treasury, and to John Sherman, who was later to become a great influence on financial policies at Washington. His reward came in the shape of an appointment to do the government binding, reputed to be worth $25,000-a commission that allowed him to unload his paper on some investors who speedily lost the $20,000 they put into it.

Henry Cooke's Whiggery was justifying itself, yet to both Pitt and Henry it soon became clear that Jay had hit upon the true road to wealth. At twelve years of age he had begun his career in his father's store at Sandusky, and with characteristic enterprise he put in some side lines and became "quite a capitalist." At fourteen he ventured so far as St. Louis to help in a general store, and at the age of seventeen he went to Philadelphia and took a place in a broker-banker's office. That was in 1839, a golden time for brokers, when every business man must keep a sharp eye on the table of banknote discounts and see to it that bad paper was worked off. Into this world of discounts and premiums the young clerk plunged with immense zest. "The business I am engaged in is of the most respectable kind and the house is the first in the city,"⁴ he wrote to Pitt Cooke. "He was ambitious, industrious, and faithful to each day's duties," his biographer reports of him. His quick mind ran to calculations and his slender sensitive fingers seemed made for telling money. He was soon the admiration of the office, an expert in detecting counterfeits, a walking table of "wild-cat" currency, with a genius for smelling out possible com­missions. Every art of extracting profits from note-shaving, gold­juggling, delayed payments, and other devices known to the world of brokerage, he speedily made himself master of. When he reached his majority he was entered a member of the firm, and before he was thirty he aided his partners-"noble" fellows he called them, of honest Puritan extraction-in squeezing huge commissions out of the financing of the Mexican War. "It was a grand time for brokers and private banking," he remarked; and late in life he wrote glowingly of his cleverness in twice overreaching the Secretary of the Treasury. It was quite legal and the patriotic banker was vastly pleased to report, "So we victimized him again."⁵ He was the brains of the company and under his guidance the business piled up profits at an astonishing rate. During the panic of 1854 he wrote: "We use our money at 1 1/2 to 3 per cent. per month from day to day and frequently it pays 1/8 to 1/4 a day. We have done a noble business since 1st of January; profits up to 1st July $135,000."⁶ On the reorganization of the firm in 1858 he withdrew, and three years later, on January 1, 1861, he opened the doors of what was soon to become the greatest banking-house in America, Jay Cooke and Company of Philadelphia.

He was then in his fortieth year and his private fortune he reckoned at $150,000. But with the breaking-out of the war, opportunity knocked at the door of the new bank. Ardently patriotic, Jay Cooke was anxious to do his bit for the cause, but he seems never to have thought of going to the front. He came of fighting Revolutionary stock, but love of the battlefield had died out of the family. His father had been drafted for the War of 1812, but hired a substitute who was unfortunate enough to be killed, and none of the three sons got nearer the front than the Treasury Department at Washington. It was there that the battles of the Cooke brothers were fought. Henry Cooke went to Washington to attend the inauguration of the new administration, and twenty­one days later Jay Cooke modestly proposed a plan for mobilizing the resources of the firm in defense of the country. On March 25, he wrote to his brother:

What we wish to do with the Treasury is to have the Department al­low us to make the frequent transfers that are made from point to point instead of giving the business to Adams and Company [Express]. We can make those transfers and the Department when flush can give us 30, 60, 90 or 120 days time, as it is no loss to them, and the interest in the mean­time would be clear profit and to be divided.⁷

When the magnitude of the task in which the country was en­gaged became clear to him he was no longer content with a single banking-house at Philadelphia. A branch at Washington under the shadow of the Treasury was highly desirable, and Henry Cooke was the man for the business. A born lobbyist, a close friend of John Sherman-who was looking out for a profitable opening in some war business for a brother-and of Secretary of the Treasury Chase, he let no grass grow under his feet. The war loans had not been taken freely and in July, Jay Cooke wrote to Chase suggesting a close alliance between the Treasury and two Philadelphia firms, Jay Cooke and Company and Drexel and Company.

We would wish to make our business mostly out of the Treasury operations and we feel sure that we could by having a proper understanding with yourself greatly help you in the management of your vast negotiations. . . . We could not be expected to leave our comfortable homes and positions here without some great inducement and we state frankly that we would, if we succeeded, expect a fair commission from the Treasury in some shape for our labor and talent. If you feel disposed to say to us. . .that you will give us the management of the loans to be issued by the government during the war, allowing us a fair commission on them, . we are ready to throw ourselves into the matter heartily. . . ⁸

It was quite an amazing proposal and one that Secretary Chase dared not accept. Bankers and brokers in New York and Boston would scarcely approve a monopoly of loan-commissions granted to two Philadelphia houses. But Jay Cooke would not acknowledge defeat. He cultivated the acquaintance of the Secretary, lent him money, entertained his family, presented him with gifts, and gave him sound advice. He took the harassed servant of the people to his warm and generous heart and was vigilant in keeping him out of the clutches of Copperhead profiteers. His opportunity came in October, 1861, when in competition with other brokers he under­took the sale of a new bond-series. His success was so great that he won the complete confidence of Secretary Chase, and it was only a matter of time when he should secure his coveted monopoly. In February, 1862, he opened the branch house at Washington, immediately opposite the Treasury building, and Henry Cooke soon made its offices an indispensable club for Congressmen and government employees. He was charmingly cordial and during the next ten years he knew everybody and every political move at the Capital. With the same bland and deacon-like appearance as his brother, he was master of the art of ingratiating himself into the confidence of influential men, and successive Secretaries of the Treasury-Chase and Fessenden and McCulloch-were easily induced to look with partial eye upon the firm of Jay Cooke and Company. When Grant returned to Washington after the war he was soon like a brother to Henry Cooke, and when the General had tasted the quality of cigars kept for his use at Jay Cooke's Philadelphia home, his heart warmed to the kindly banker.

Meanwhile the firm was discovering innumerable ways to help win the war; amongst others Henry Cooke put through a congressional franchise for a street railway at Washington, and the new cars were soon carrying citizens and soldiers to and fro, to their great content and the company's great profit. He was hourly in and out of the Treasury and he knew as much about the government business as the Secretary. The interests of the firm extended with amazing rapidity; other banks came under their control and their agents were everywhere. Their later successes in selling bonds were a revelation to older-fashioned brokers. On the day that Richmond fell the "financier of the Civil War" marked out the lines of a pretentious country house that was to cost a million dollars and to be­come a show place of America, where Secretaries of the Treasury, Presidents, and great men from every walk of life were to find a wel­come release from their cares. "As rich as Jay Cooke" had become a common saying from the Atlantic to the Pacific. The gigantic war had been no ill wind to the money-teller of 1861.

In certain aspects Jay Cooke may be reckoned the first modern American. He was the first to understand the psychology of mass salesmanship. It was his fertile brain that created the syndicate and conceived and executed the modern American "drive." Under his bland deacon-like exterior was the mind of a realist. He assumed that every man has his price, but he knew that few men like to acknowledge the fact even to themselves; so he was at immense pains to cover our poor human nakedness with generous professions. If he were to lure dollars from old stockings in remote chimney-corners he must "sell" patriotism to his fellow Americans; and to do that successfully he must manufacture a militant public opinion. The soldier at the front, he announced in a flood of advertisements, must be supported at the rear. It was every loyal American's war, and patriotism demanded that idle dollars-in greenbacks-should be lent to the boys in blue, and a grateful government would return them, both principal and interest, in gold. To induce slacker dollars to become fighting dollars he placed his agents in every neighborhood, in newspaper offices, in banks, in pulpits-patriotic forerunners of the "one-minute men" of later drives. They also served their country, he pointed out, who sold government bonds on commission. He subsidized the press with a lavish hand, not only the metropolitan dailies but the obscurest country weeklies. He employed an army of hack-writers to pre­pare syndicated matter and he scattered paying copy broadcast. His "hired friends" were everywhere. In a hundred delicate ways he showed his appreciation of patriotic cooperation in the bond­sales-gifts of trout caught with his own hand, baskets of fruit from his own garden. He bought the pressings of whole vineyards and cases of wine flowed in an endless stream to strategic publicity­points. Rival brokers hinted that he was debauching the press, but the army of greenbacks marching to the front was his reply. It all cost a pretty penny, but the government was liberal with commissions and when all expenses were deducted perhaps two millions of profits remained in the vaults of the firm, to be added to the many other millions which the prestige of the government agency with its free advertising brought in its train.

With such prestige and with the greatest fluid resources as yet accumulated by any American, it was inevitable that the Rothschild of the North should play a bold part in the speculations of the Gilded Age. Jay Cooke vastly enjoyed the game and it was idle to expect him to sit back quietly when others were playing for high stakes. In those halcyon days promoters were as thick as flies about a dead carcass; wild-cat railroads had succeeded wild­cat banks as short-cuts to wealth; and in an unlucky moment Jay Cooke was tempted. He had expected to be made Secretary of the Treasury by President Grant, but failing of appointment in spite of countless boxes of twenty-five-cent cigars provided for the General's pleasure, he determined to back the Northern Pacific Railway enterprise. The company had been chartered in July, 1864, receiving a congressional grant of 12,800 acres of public land for every mile of track laid in the states, and double that amount in the territories. As the proposed line would run almost entirely through territories the grand total was reckoned at 47,360,000 acres.⁹ Early land-sales were at the rate of $6 an acre. At such valuation the prospective value of the grant through the terri­tories was $153,600 for every mile of track, yet in portions of an earlier line absorbed by the company the road had been built for $8,225 a mile, and a stretch of 112 miles at the rate of $9,500.¹⁰ To be sure there were great stretches of unsalable land, but in compensation the company was free to run its surveys so as to embrace choice mineral deposits, virgin timber, water-power, and town sites.

As Jay Cooke contemplated the possibilities his buoyant temperament took fire, and he dreamed of empire-building. He quickly rationalized the project into a great patriotic undertaking that would carry the blessings of civilization to the farthest Northwest. He would lay open to the poor man the rich wheat lands of the Dakotas, the mineral wealth of the Rockies, the vast timber re­sources of the Puget Sound territory. He would annex western Canada by benevolent absorption. It was a dream worthy of the Gilded Age and Jay Cooke was chief amongst the Beriah Sellerses of the day. He threw himself into the project with boundless optimism, and proved again his right to be called a great financier. He proposed to sell the Northern Pacific as he had sold government bonds. He had learned that to catch the little fish he must first catch the big fish, for the shilling is timid till the pound shows the way. He must create confidence, cost what it would, and to that end he opened a huge pool and created a special syndicate. Stocks, jobs, cash, influence, were distributed judiciously where they would do good. In the language of stock-jobbing much "sweetening" was used.¹¹ And there was need of much "sweetening," for the times were inauspicious. Jay Cooke drove the publicity work with his old vigor, but sales were slow, and as the great patriotic venture showed signs of lagging he turned for help to a sympathetic government.

His engineer had made a careful estimate of the prospective cost of the road, which including rolling-stock, terminals, a branch line to Portland, and interest on bonds during the construction, came to $42,638 a mile for the entire line.¹² But the financier was not satisfied "with the magnificent property the government has given us," and made ready to buy from Congress a revision of the terms of the charter, which amongst other things would widen the land­grant belt through the territories to 120 miles, convey a second right-of-way zone from the Rocky Mountains to the Pacific, and permit the company to hypothecate the whole before the terms of the contract were fulfilled. It was an audacious proposal even to a generation used to audacious proposals. There was bitter opposition, for the rumblings of the Credit Mobilier scandal were already disturbing the halls of Congress; but his lobbyists used "the company's money freely" to bring in the common breed of Congressmen, and the Cooke brothers employed their well-practiced skill to take care of such important persons as Speaker Blaine of the House, Vice-President Colfax of the Senate, and President Grant. The matter was handled with great delicacy in the case of the latter-"the glorious honest man," the banker called him. "He sent a fishing-rod and creel to the President's little son Jesse, for which he was duly thanked in a childish hand." He invited the General to a day's fishing-trip, and together the heroes whipped the trout stream in the most charming comradeship. "It may be thought," remarks his biographer, "that such machinations were unbecoming in a man of Mr. Cooke's moral dimensions."¹³ But surely delicate "machinations" were not unbecoming to such "moral dimensions." "We let the other side do most of the talking," wrote the deacon-like Henry Cooke, who kept the Sabbath as strictly as his brother, "and we do the voting." The President's cabinet was bitterly divided on the issue, but wheels turn on well­greased axles and delicate attentions have their reward. The bill was signed and the building of the Northwest empire could go forward.

Unfortunately, however, black days were pressing hard on the great success. The money of the company ran in fructifying streams through Europe and America but the expected crop was short. Thirty papers were subsidized in Germany; agents lived in ducal palaces; commissions, stocks, bonuses, were plowed in for manure; but the crop of bond-sales was still scanty. Ugly rumors were abroad. There was talk of a congressional investigation, and when General Banks offered a resolution of inquiry Jay Cooke was hurt to the quick. An investigation he regarded as no other than persecution of legitimate business, and he wrote to his brother: "He ought to be expelled from Congress for such outrageous at­tacks upon the great interests of the country. . . . If I get at him I will give him a piece of my mind, and no mistake, for his impertinence and foolishness."¹⁴ Then the Credit Mobilier scandal broke and in a panic he wrote to Henry Cooke denouncing the proposal to stop payment on the interest-coupons of the Union Pacific.

Now I want you to go to the Attorney General at once and tell him how wrong this whole procedure is. This whole persecution of the Union Pacific is nonsense, and is damaging our credit abroad. If the government sets the example of enjoining the payment of interest coupons, who will buy a bond abroad? The whole thing is wrong, ill advised and scandalous. . . . Williams ought to make a public apology for such an attack and instruct the lawyers to desist from anything of the kind. The bonds are long since in the hands of innocent holders, and, if they were not, they could never reach them in this way. Some wily speculators have put the idea into the heads of the government lawyers and they, without knowing anything of its effect upon business, have made this attack. It will damage us hundreds of millions unless withdrawn at once. No man of sense would buy a railroad bond or anything else in this country if such legal proceedings are to be permitted under the sanction of the highest officer of the government.¹⁵

Jay Cooke's ethics were simple. Whatever helped bond-sales was patriotic and right; whatever hurt them was wicked and immoral. Let government take care of business and business will take care of the country. That the newspapers could not see this great truth, but often indulged in wild demagoguery, was painful to one who had been generous to them. "It is too bad," he wrote of a certain attack, "that these newspapers are permitted by the law thus to interfere with great public works."¹⁶ But the black days were at hand. The Credit Mobilier scandal was a whirlwind reaped from the sowings of the Gilded Age. With the outbreak of the Franco-Prussian war bond-sales stopped short in Europe and the firm of Jay Cooke and Company was broken. September 18, 1873, the New York house suspended payment; the house of cards tum­bled to pieces; and a panic swept the country. The crash was as spectacular as the rise; it had been built on credit and when credit was shaken it fell.

Because he had amassed a great fortune Jay Cooke was regarded by his fellow Americans as an intelligent man whose opinions were entitled to heedful consideration. A national figure in finance must become a national figure in the public councils; and this added function he assumed with the utmost seriousness. As the power behind the United States Treasury he regarded himself as responsible for the program of the Treasury; and he made use of his immense publicity-machine to shape public opinion in regard to taxation, funding, and the currency. His "views" of those questions were as simple as a child's primer. In brief they were: no taxes for the extinction of the debt; consolidate the debt and fund it in a form attractive to capital; retire the greenbacks and return at once to specie payments. Like others who had made money out of the war he did not take kindly to the idea of returning a part of it in taxes to pay off a debt that was highly profitable to him as a broker and banker. The men of '65 had fought and suffered to secure the blessings of liberty to their posterity, and it was only fair that posterity should help pay the bills. To popularize this pregnant thought he subsidized a pamphlet contributed by one of his hack-writers, entitled Our National Debt a National Blessing; but the Hamiltonian argument overshot the mark and aroused bitter opposition. In this as in his attitude towards currency­contraction and funding he was thinking exclusively in terms of the money-lender. Very likely he was probably not so much self­seeking as ignorant. Intellectually he was poverty-stricken and outside the narrow realm of brokerage and banking he was only a child. He read nothing, thought little and was unconcerned with social or economic principles. His business life was regulated by a set of ready-made formulas, in which ideas played no part. William Cullen Bryant rightly judged him in the following comment:

We counsel Mr. Jay Cooke in all good will, not to abandon his proper vocation of dealing in stocks and government securities, for the sake of giving lectures on political economy-a subject which he does not under­stand. We do not say that he might not understand it if he had given it his attention, but that he has evidently never done, and knows no more of the matter than Red jacket knew of Greek. We advise all who have any money to invest to take Mr. Jay Cooke's seven-thirty bonds, and eschew his political economy. His seven-thirties are first rate, his political economy is a tissue of mistakes.¹⁷

Any program that lay outside the bounds of his formulas he regarded as dangerous radicalism, and any policy that threatened to reduce his commissions he regarded as unchristian. He bitterly disliked Secretary Boutwell of the Treasury, who rejected his guidance, and he wrote to his brother:

I observe . . . that Boutwell is to leave the Treasury. I think that if he does not propose to do any better than he has in the past it will be a grand move for Grant to put some more practical person in his place. A man who has no more breadth of thought . . . and no more spunk than to let the country drift along without even an attempt at funding the debt, and who insists upon keeping up an enormous taxation for the foolish object of paying off rapidly a debt that no one wants paid off, excepting gradually, it will be a great benefit to have replaced by some one who will take an opposite course.¹⁸

A month later one of the causes of the hostility was suggested by a member of the firm:

All of our transactions with Boutwell have shown conclusively that he will never permit one dollar to be made out of the business of the Treasury, if he can possibly prevent it. With all his friendly feelings I cannot re­member a single dollar that we have made directly or indirectly out of his administration of the Treasury, . .¹⁹

Against the Greenback movement his hostility was bitter. He regarded it as an attempt to repudiate the "plighted faith" of the nation, and in 1867 he issued a pamphlet, written to order, aimed at combating the movement. In the opinion of a subsidized admirer it was "able, unanswerable and timely," calculated to do immense good in a country where universal suffrage encourages the "attempts of demagogues to excite the poor against the rich, labor against capital, and all who haven't money against the banks who have it."²⁰ How deeply the members of the firm felt in presence of any threat to the money interests is suggested in a letter from Henry Cooke of October 12, 1867.

You know how I have felt for a long time past in regard to the course of the ultra infidelic radicals like Wade, Sumner, Stevens, et id omne genus. They were dragging the Republican party into all sorts of isms and extremes. Their policy was one of bitterness, hate, and wild agrarianism without a single Christian principle to give it consistency, except the sole idea of universal suffrage. . . . These reckless demagogues have had their day and the time has come for wiser counsels. With Wade uttering agrarian doctrines in Kansas and fanning the flame of vulgar prejudices, trying to array labor against capital and pandering to the basest passions; with Butler urging wholesale conscription throughout the South and wholesale repudiation throughout the North so far as the national debt is concerned; with Stevens joining hands with the traitor Vallandigham and advocating the idea of a flood of irredeemable paper money sufficient in volume to drown the whole country; with Pomeroy and Wade and Sprague and a host of others clamoring for the unsexing of woman and putting the ballot in her hand . . . what wonder it is that the accumulated load was too heavy for any party to carry and that it broke down under it?²¹

There can be little doubt that the spectacular career of Jay Cooke quite dazzled his contemporary fellow citizens. Nothing like it had before appeared in America. The greatest salesman that the rising middle class had yet produced, a financier who understood the psychology of mass appeal, a propagandist of truly heroic proportions, he was reckoned no other than a magician by all the lesser money-grabbers of the Gilded Age. From nothing he built up a vast fortune. Scrupulous in all religious duties, a kind husband, a generous friend, benevolent in all worthy charities, simple and democratic in his tastes, ardently patriotic, uncreative and unintellectual, he exemplified all the substantial middle-class virtues of a people newly given to the worship of a sterile money economy. To call him a vulgarian and the chronicle of his life nauseous would scarcely be charitable. The record of his days has been laid before us, naked and mean, by his biographer, who has done his best to construct a hero from the poor materials. No doubt he was a hero of his generation-and perhaps of ours also.

If General Grant and Jay Cooke were naive heroes, ignorant as the generation that delighted to honor them, Charles A. Dana, the journalist of the Gilded Age, was a disillusioned intellectual who after immersing himself in the golden dreams of the forties, put away all Utopian hopes and made use of his brains to serve himself. Disappointed with idealism, he turned materialist and dedicated to capitalistic exploitation the abilities that before had been given to a venture in cooperative living. A brilliant fellow, playing the new game in Gilded Age fashion and winning a brilliant success, he was a conspicuous victim of the bankruptcy of idealism that is the price of all wars, and his later triumph as editor of the New York Sun only served to measure the greatness of his fall. The career of Dana is a cynical commentary on the changing spirit of America from the days of Brook Farm to the days of Mark Hanna.

A child of the Puritan frontier, Dana early crossed over into New York State and became a shop-boy in the backwoods village of Buffalo at a time when the Indian trade was important enough to justify him in learning Algonquin. In these early manhood days he was living in the midst of the coonskin democracy, and falling in with the frontier spirit he became an ardent Jacksonian. He was eager for an education and quitting Buffalo he went to Harvard, but his eyes failing him after two years, he joined the Brook Farm community where he speedily became one of the chief counselors, and was deeply concerned for the success of the experiment. In those generous years he was a militant idealist, widely read in socialist literature and warmly espousing associationism as a cure for the evils of competition. Upon quitting Brook Farm after the burning of the Phalanstery he joined Greeley and for fifteen years was one of the directing minds on the Tribune. In 1848 he went abroad as foreign correspondent, saw much of the revolutions of that great year, studied the temper of the French and German people, analyzed the popular leaders and programs with singular acuteness, and found his sympathies warmly enlisted in the cause of the lower classes. He was then thirty-nine, and his active mind had gathered up all the diverse radicalisms-Jacksonian, Utopian, European proletarian-of his revolutionary generation. Shrewdly observant and with a sensitive social conscience, he was amply equipped to become such another critic of the Industrial Revolution as England had bred from its bitter experience.

But the war intervened, and after the war a dun twilight gathered about the hopes of the forties. Few generous enthusiasms survived those years of struggle and Dana in his editorial rooms underwent successive changes of heart. The realist slowly dis­possessed the idealist and then the cynic swallowed up the realist. The last forty years of his life were spent undoing the work of his earlier years. His political philosophy went to pieces and the policy of the Sun became a mere hodge-podge of jingo programs, an irrational bundle of personal prejudices and private interests. His reaction from associationism carried him over to a stark and ruthless individualism. He saw all about him the strong and capable as the masters of the earth, with social justice an outcast and mendicant begging from house to house. The millennium to which belongs the ideal of social democracy which he had earlier served, he could no longer make out from any present bend in the road, and putting away his faith he went with the masters. The reaction began during the Tribune days with his espousal of the American System-the first outcropping of the middle-class qualities of his mind-and thereafter he drifted steadily to the right and the Dismal Swamp of exploitation. With augmenting wealth and the sense of power that came from the great success of the Sun he became the apologist and defender of capitalism, phrasing with clever vivacity all the sophistries of Gilded Age argument. Professing to be a Democrat, he made much of states rights and governmental laissez faire. He would countenance no interference with the principle of free competition, but would reduce the government to the role of policeman to keep the peace. He professed to believe that the dry bones of Manchesterism were a living democratic faith. He ridiculed the proposal for pure-food legislation, civil service reform, the control of monopolies, professing to see in every such move the insidious beginnings of an un-American bureaucracy. No social pretext justified in his eyes the regula­tion of business enterprise. Centralization of economic power he accepted as in the nature of things, and the popular denunciation of trusts he called "the greatest humbug of the hour." His argument was simple and to the Gilded Age wholly satisfactory.

The objects of trade being to buy as cheap as possible, to sell as dear as possible, and to get control of the market as far as possible, the formation for these purposes of these gigantic and widely extended partnerships is just as natural and regular as the partnership of two shoemakers or of two blacksmiths.²²

Thus far Dana must be reckoned a belated disciple of the Manchester school. The days of transcendental and Utopian idealism were past and he knew it. The Gilded Age had traveled far from such naive enthusiasms and it was time to face reality. But his realism was only a gesture to cover his surrender to capital­ism. It was not honest. When his principle of individualism trod on his own toes he threw it aside with no compunctions. He was a laissez-faire Democrat only when a free field favored business, but when business desired government assistance he made no scruple to turn Whig. Accepting the principle of private exploitation under the drive of the acquisitive instinct, and content with the social ethics of Captain Kidd, he would weaken government or strengthen government as business profits dictated. In these later years he became cynically class-conscious, while professing to deny the existence of classes. He would disarm the government as against the capitalist, but he would triple-arm it against the farmer and workingman. He was shrill in his demands for a high protective tariff for the manufacturers, huge grants of public lands for speculative railway companies, and a monetary system in the control of the bankers. But for the economic demands of the western farmers he had only contempt-the agrarians were flying in the face of economic law as economic law was understood by the high priests of capitalism. When he talked about "honest money" he laid his brains on the shelf. He would have no other money than the gold standard, and to achieve that object he never suffered candor to weaken his plea. He bitterly opposed the income tax and when the Democratic platform of 1896 suggested the reorganization of the Supreme Court to reverse the decision on its constitutionality, he turned demagogue and indulged in talk about "the destruction of the independence of the judiciary." When it was proposed that the railways be nationalized he protested that he could not "imagine anything more absurd, unpatriotic, and dangerous"-on the assumption no doubt that railways existed to pay dividends on their stock. "Still more alarming" to him was the "clearly implied approval of lawless violence contained in the denunciation of what is denominated in the [Democratic] platform `government by injunction.' Veiled in the language of moderation, the wild light of anarchy shines through."²³ He urged upon government the necessity of holding the labor unions in strict control, he was eloquent in defense of the individual laborer's sacred right of "free contract," and he was loud in applause of President Cleveland's lawless suppression of the Pull­man strike. When it came to Bryan and Populism he lost his head and became quite maudlin.

Dana was no fool to be deceived by his own insincerity. On the contrary he was highly intelligent and knew perfectly well what he was about. Having gone over to capitalism, he would fight its battles with whatever weapons came to hand, and like a son of New England he would cover his breast with a shield of morality. He became the chief journalistic exponent of the "lawless violence" he was fond of attributing to other social classes. He turned into a flaming jingo imperialist, talked patriotically about "adequate" coast defenses, demanded a great navy, and was the loud­est spokesman of the blowsy doctrine of "Manifest Destiny." He was always peering through his glasses to discover some fresh territory to annex-Haiti, Cuba, Mexico-and so late as 1887 he was still calling for the annexation of Canada. Naturally he approved President Cleveland's Venezuelan proclamation and he probably would have enjoyed a tussle with the British lion. In his morality he was quite as truculent as in his patriotism and in his advocacy of capitalism. Perhaps it was a salve to a conscience that could not have been easy. He hated political corruption and he attacked the sordid looting that marked President Grant's administration with gusto. He took sardonic delight in giving the widest publicity to the classic corruptionist phrase of the day­"He understands addition, division, and silence." He erected into a fetish the cry "Turn the rascals out!" yet while helping to pry loose one set of rascals from their spoils he was busily providing another set with his demand for subsidies and tariffs. It was a situation that must have amused the cynical Dana. He had long since left off worrying about the damned human race. It was more sensible to pile up one's plate at the barbecue and send the bill to the American people. He had made a huge success and what mattered it if his old Brook Farm associates, Ripley and Curtis, no longer spoke to him when they met?

11 The list of his "beneficiaries," some of whom were drawn in delicately and some realistically, included, according to his biographer, Vice-President Colfax, Speaker Blaine and James A. Garfield of the House, Governor Rutherford B. Hayes of Ohio and Governor Geary of Pennsylvania, General Horace Porter, President Grant's private secretary, Senators John Sherman, William Windom, and Ben Wade, Dele­gate Garfielde of Washington Territory, Bayard Taylor. Amongst the papers were Henry Ward Beecher's Christian Union, Greeley's Tribune, the Philadelphia Press, the Washington Chronicle, the London Times.