Grant scandals
Grant scandalsBlack friday Scandal 1869
Early in Grant's first term, two gold speculators Jay Gould and James Fisk hoped to buy gold at $130 per ounce and sell it at $160 per ounce. They tried o corner the gold market. They went to Grant, who had no understanding of monetary issues, and convinced him to tell Treasury Secretary George Boutwell to stop selling gold. The price rose to $162 per ounce before Grant realized what he was tricked into doing. Grant ordered Boutwell to release $4 million in gold. The price plummeted and ruined many investors including Gould and Fisk.
Credit Mobilier Scandal 1872
Credit Mobilier was a construction company that helped build the Union Pacific Railroad. The company was owned by some union Pacific stockholders who gave the construction company huge contracts. They were funneling money from Union Pacific, a company that they owned little stock, into Credit Mobilier, where they owned a majority of the stock. With Union Pacific receiving government subsidies and funds, the investors were stealing government money. To avoid a governmental inquiry into the transaction, the investors gave...
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