The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-11-17
CARLY LIFE or JAY COOKE.
SPECIAL CORRESPONDENCE OF THE aesA.p.

Genius OF the Great American Ftnaucser-
His Enterprise and Intrepid Spirit-iiis
Pie-emtneDce Among tae Masters oil Fi-
nance, Nick Biddir, JDhu Law. Gc.-Jay
Cookies Parents-The Material They Were
Made Of Inheritcd by Their San-YounG
Cooke nj schooi-The Child Father TO the
1Ian-First Start In i.ife-Pinck and Self
keiiance-iIOw He Succeeds.
SASDUsKY OHIO, Nov. 10, 1867.
II this good, old. steady going town by the cool
waves of Lake Erie csn boast Of nothing else but
its lumber piles. fishing yawls and beautiful grape
vineyards, it can OF least lay claim to being
the birth place Of one of the leading prominent
men Of this decado--the nations broker, banker
and financial engineer, Jay Cooke. II is q familiar.
il not a remarkable name, one that has been
blazoned forth amid announcements OF government
loans. mingled up with fve-twenties and seven
thirties aud cncircled by halo OF green.
backs and golden interest. During the war
1t was both conspicuous and commanding.
and seemed to influence tie ebb and flow of the
monetary tides as lunar attraction affects those Of
the ocean. People, innocent Of the myst. rious
ways Of finance, marvelled who he could be to
whom the sale Of millions day appeared as light
transaction as the changing of dollar bill and
they to whom great financial undertakings were
familiar looked with astonishment at the dash and
enterprise Of this bold speculator. 1t was so
wholly o1tsdo the ordinary transactions Of the
financial world, the negotiation of over . thou.
sand million dollars worth Of bonds by one indi-
vdual. that feeling Of admiration. not unminged
with envy and apprehension. was excited at the
event. Nor was the enterprise unaccompanied by
formidable risks and heavy responsibilities, for
time occurred in the nations travail when com.
promise with the enemy was suggested BY some
and surrender advocated by others; at q time too,
when this sangune agent OF the government
loan had issued atythree millions Of credit in
bonds for which he was responsible to the Trea.
sury and for which he looked with confidence to
the people fer payment. TWAS this intrepid faith
in the patriotism Of the masses, united to remark
able ability for lucid exposition Of monetary intri
caces and for certain tact in appealing to tho
national pride and impulse, that has made Jay
Cooke the most successful financial negotiator Of
modern times. Apart, however, from his charao-
ter ~ leading broker, we find his name 80 identi-
fed with the national banking system, directly. as
organizer and champion. that his course in the
part he has taken reminds one Involuntary Of
other masters Of finance who essayed to make ma
tions affiuent and happy through the medium Of .
difusive, uniform and concerted banking system.
That the admirers Of the present national bank
organization consider It - simple and bcauti-
full in design - il 10 vast and original in
may possibly be true; but
Il is very doubt u II all its theoretical exceIlences
wound have commanded for 1t ~ much attention
or established Il on its present extensive basis but
for the practical energy Of its champion Jay Cooke
Being predatory remarks t. the notice Of his early
career. IL will not be superuous to allude briefly
to what other great hnanciers accomplished in
their day, and show by contrast the claim for pre-
emnence between them.
John Law son OF an Ednburg goldsmith, started
out in the middle OF the last century, while yet
young and unknown, like Cooke, to win the sweets
Of fortune and the laurels Of renown.
He had . calculating brain, q tenacity OF purpose
. readiness OF resources ard an accomplished
address. he had withal dash and an enthusiasm
his many varied attributes. His genius lay in
finance, In calculating and combining problems
in that most delicate OF sciences and planning
schemes Of magnitude commensurate with his
daring ambition. History, however, relates that
after starting royal bank with right royal number
of shares, for the purpose he intended OF giving
. new aud improved banking system to Europe
and enriching half lite people, his whole scheme
bubble. Yet John Law meant honestly, but his
genius ct fault and his calculations imperfect
or later years in our own country we have had
Robert Morris, whose plan Of national banking
was approved shortly after being submitted, and
started under the title Of the Bank Of North
America. with Thomas Willing - president. IL
failed, however, and Alexander Hamilton, after
giving much time and thought TO the subject.
urged In an elaborate report . more enlarged
system Of banking, aiming at national extenso on
and representation, with government patronage,
twenty fold ordinary capital and general ramifca-
ton Of branch establishments. bill containing
most Of Hsnlilton's provisions passed Congress,
but the effort to recharter the bank in 1911 failed,
and the concern was wound up. The terrible state
ofthe finances in 1914 prompted Alexander Dallas
TO frame report for Congress in,refercnce 70 the
founding Of another national baak. This report
was the most lucid and mastery document that
had ever been submitted 70 the Legislature by
Secretary OF the Treasury. Its principles were in
great measure embodied In q bill which was
passed. few years after incorporating the fsnou.
United States Bank. During the administration Of
Old Hickory. Nicholas Bddle came prominently
upon the stage NJ president Of this bank, and
thenceforth until be resigned the country was
agitated by sole question--the rechartering OF
the bank. The charter expired in 1856. and tho
bank itself three years after. comparison might
here be instituted between Biddle and Cooke, a.
each rose in the same city TO measure Of rcDown;
the former, however, had more advantages Of
education, more opportunities for advancement,
together with an acknowledged cspaci-
ty for finance. Graduating with honors
a. Princeton College. young Biddls irav:
elled extensively through Europe, learned
various foreign languages and returned 10 his
native country gtteu ana accomplished man.
His career in Pennsylvania was a brilliant ono,
eliminating in his election 20 the Presidency Of
the United States BaRk, = position at that time
second only in influence 10 that Of Chief Msgis-
trate OF the nation. But Biddle's financial genius
aimed at nothing moro original than 20 secure the
rechartering Of tue bank, consolidate jts power
and make IL q tremendous lever In the political ~
fairs OF the country. The bank failed, as similarly
organised institutions did before, from the destruc.
tive influence Of Capitalization. John Laws
scheme had the same ceDtrslizing element, and
when u exploded IL spread ruin over hall CONT
nent The present national bank system. az put into
existence BY Cooke. exhibits the operation OF an
opposite principle. difusion. IL aims ~ creating
. government Of banking on somewhat the same
plan 90 . governments Of States, each one regulat.
ing W own Affairs, but all under the guidance Of
certain general laws. No such enormous scale OF
banking on . uniform plan and with uniform
currency has ever before been attempted, and
while the crude construction Of the design 10 ell
~ which Secretary Chase caa lay claim, jay Cooke
eas appropriate The credit 81 giving tangible
l. AZ ~-~ttL