Tag Archives: Inspirational

Mapping Intertwined Love’s Geographical Settings

For January 7, 2013’s WordPress.com weekly challenge participants were invited to incorporate their Google Maps embed feature by plotting out some of the favorite places that you’ve been, or the places you want to go…or the geographical sites in Intertwined Love

So I did.

BOSTON, MASSACHUSETTS: A group of Revolutionary War military men gathered at the Bunch of Grapes Tavern and determined that land in the Northwest Territory, in Ohio, could be used as a way to pay military men for their war service. A group of unidentified men known as the Scioto Associates succeeded in acquiring a sub-grant under the 1987 Ohio Land Grant.

PARIS, FRANCE: The Scioto Associates sent a representative to Paris to meet a commitment to sell part of their newly acquired land in Europe. Joel Barlow was their representative in Paris. Luckily for Barlow the French Revolution created a desire for Frenchmen to leave France and the land sold like hotcakes.

ALEXANDRIA, VIRGINIA: The French who purchased land in Ohio left Le Havre, France and sailed into Alexandria. Many left Alexandria to travel over multiple mountain ranges to (to continue reading click on Writing Challenge: Map It Out—Travel With Me Through My Novel-in-Progress )

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Stock & Money Market Speculation Today and in the 1790s

STOCK & MONEY MARKET SPECULATION TODAY

AND IN THE 1790s

Question: What do Bernie Madoff and William Duer have in common?

Answer: Both were once respected investors forced into insolvency resulting in stock market (money) deterioration and the collapse of dozens of their investors.

Question: What does Timothy Geithner have in common with Alexander Hamilton?

Answer: Geithner is the current Secretary of the Treasury of the United States. Hamilton was the first Treasury secretary.

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Before continuing I must make a disclaimer: I’m not an economist nor do understand the fine points—or even the non-fine points—of the issue under discussion. I’m writing this post to increase my understanding of William Duer’s role in the first Wall Street crash. This issue is core to the writing of my historic romance novel, in which I must present the issues in a basic manor that can be understood by my future readers. If any of you can add clarification to these issues, feel free to comment in the comment box at the end of this post.

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History doesn’t always repeat itself, but it is often said to rhyme.

Or does it echo?

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Duer and Madoff reflect the root problems of two sudden and dramatic declines in the value of bank stocks: excessive greed.

While Madoff’s name has been sufficiently newsworthy that most Americans recognize his name, Duer is relatively unknown to many of today’s citizens.

I came in contact with him because of his land speculation in Ohio and Maine. The Ohio speculation was done under the guise of the Scioto Associates, a group of military and political personages hoping to make money off the post-Revolution land in Ohio. Duer managed to help a “secret” group purchase a huge tract of land along the Ohio River. Ultimately, Duer, along with Gen. Henry Knox, were responsible for the original French settlement at Gallipolis by a group of French émigrés.

When the Scioto land speculation went foul (another story) Duer and Knox managed to purchase two million acres of land in Downeast Maine. In the midst of all this Duer was involved in manufacturing and banking speculations. All the speculations went far beyond his means and resources.

The multiple speculations he was involved with brought his downfall and, had it not been for Alexander Hamilton’s intervention, it could have destroyed the new country that had yet to reach its toddler age.

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William Duer was a prominent patriot who served as a member of the Continental Congress, a New York judge, and a signer to the Articles of Confederation. After the Revolution, Alexander Hamilton appointed Duer as assistant secretary of the treasury.

In December 1790 Hamilton proposed the establishment of the Bank of the United States, a federally chartered but essentially private corporation. The charter was passed by Congress in February 1791, and on February 25th was signed into law by President George Washington.

In July of 1791 the bank’s stock subscriptions (scrips) went on sale. They sold out within hours, so quickly that many would-be investors could only try to bid them away from those persons who were fortunate enough to have obtained them. The demand was so high for scrips that a frenzied borrowing and buying  occurred. Soon the scrips’ selling price doubled, then went even higher, and people borrowed money to purchase them.

In October 1791, the stock holders of the Bank of the United States held an organizational meeting, which Duer attended. He was elected to a committee to prepare the bank’s by-laws.

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When Duer learned that federal law prohibited Treasury officials from speculating in federal securities he quit the position as assistant secretary  of the treasury—he did this because he sensed an opportunity to Continue reading