Home > Black Friday (1869)

During the American Civil War, the United States government issued a large amount of money that was backed by nothing but credit. After the war ended, people commonly believed that the U.S. Government would buy back the "greenbacks" with gold.

In 1869, a group of speculators, headed by Jay Gould and James Fisk, sought to profit off this by cornering the gold market. Gould and Fisk first recruited Grant's brother-in-law, a financier named Abel Corbin . They used Corbin to get close to Grant in social situations, where they would argue against government sale of gold, and Corbin would support their arguments.

Corbin convinced Grant to appoint General Daniel Butterfield as assistant treasurer of the United States. Butterfield agreed to tip the men off when the government intended to sell gold.

Grant, however, became suspicious of Corbin's sudden interest in the gold market and uncovered the plot. He then ordered the sale of $4 million in government gold.

On September 20, 1869, Gould and Fisk started hoarding gold, driving the price higher. On September 24, the price of an ounce of gold was $30 higher than when Grant took office. But when the government gold hit the market, the price of gold plummetted within minutes. Investors scrambled to sell their holdings, and many of them, including Corbin, were ruined.

Fisk and Gould escaped financial harm. Subsequent CongressionalThe United States Congress is the legislative branch of the United States federal government. The structure and responsibilities of Congress are defined in Article One of the United States Constitution. The United States Congress is bicameral, meaning tha investigation into the scandal was limited because Virginia Corbin and First LadyFirst Lady of the United States is the unofficial title of the hostess of the White House. The position is traditionally filled by the wife of the President of the United States, and the title is sometimes taken to apply only to the wife of a sitting pres Julia GrantJulia Dent Grant ( January 26, 1826 December 14, 1902), wife of Ulysses S. Grant, was First Lady of the United States. Daughter of Frederick and Ellen Wrenshall Dent, Julia Boggs Dent had grown up on a plantation near St. Louis, Missouri. In memoirs prepa were not permitted to testify. However, Butterfield was removed from his post.