by Judith Pella
“I beg your pardon?” said Joseph.
“You asked me earlier what brought me out,” Jackson said with a smile. “I had thought to escape the torments of Washington and the strife of political controversies.” He got to his feet, bowing again to Carolina. “However, I find they follow me just like an old hound to its master. Miss Adams, you are like a cool spring breeze. Refreshing! I truly enjoyed our conversation. I hope you will come see me before I journey home to the Hermitage.”
“I would very much like that.”
She watched in silence as her father and York accompanied Jackson back to the horses. She heard her father offer a carriage for the President and Jackson’s adamant refusal. She smiled at the President’s tenacity and considered herself quite lucky to have shared his company on that sweltering day.
49
Leland’s Schemes
“Samuel, these are very convincing counterfeits,” Leland praised his brother while studying the bank draft in his hand. He put one down and picked up another, noting each one to be a masterpiece. Just back from Europe and ready to get down to business, Leland had insisted that Samuel come to Washington for a very secretive meeting.
The pudgy, balding Samuel Baldwin grunted acknowledgment and struggled to pull down a waistcoat that was several sizes too small. Samuel, the younger of the brothers, looked several years older, probably due to his penchant for whiskey and tavern crawling every night. “I paid for the best and that’s what we got. You’ll find the same on the stock certificates.”
Leland put down the bank note and reached inside the leather satchel on his desk. He pulled out a stack of quality paper and smiled. “Just to touch these would make one confident of their validity.”
“Are you sure this thing will work? I understand the flooding of the market with counterfeit bank drafts, but why this sudden interest in the railroad?”
Leland sat down and motioned for his brother to do the same. “I’ve only recently come to understand the potential surrounding the railroad. While abroad I had a great deal of time to think this thing through. The economic state of this country can be likened to one of those newfangled circuses. You know, several things going on all at once.
“As you well know, Samuel, there’s a huge excess in the federal reserve due to land sales. Another area, I might add, where we can benefit ourselves with these counterfeit notes. Speculation is making a fortune for many already wealthy investors. Joseph Adams has managed to turn several very nice profits in land up north and to the west. I intend for us to be a part of that as well.”
Samuel took out a handkerchief and wiped his face. “I only hope this bolstering can be done in time. That Distribution Bill just passed by Congress is a comedy of errors. It’s going to pull federal monies from regular deposit banks and put them into the hands of the individual states. This will, I fear, squeeze the very life out of this bank unless we can somehow bolster the reserves of this institution before the first distribution payment in January comes due.”
“I believe we are in time,” Leland said, his eyes darting from Samuel to the closed office door, as though at any moment someone might intrude and learn his darkest secrets. “If I can manage to interest investors in railroad stock and get them to put up capital in exchange for these certificates, then I will have enough money to cover what will be taken from this bank. If not, I’ll be hard-pressed to explain the insolvency.”
“You are a convincing man, Leland, but I think even you might be strained to get investors without some formidable indication of its validity.”
“How difficult would it be to get investors for a venture backed by Joseph Adams?”
“People would line up. He’s both respected and trusted.”
“He intends to start the Potomac and Great Falls Railroad and has invited me to become his partner.”
“And he is privy to your idea of a ‘paper railroad’?”
“Heavens no! He’d die of apoplexy if he knew. But there is no way he could ever know. Adams is a dreamer and is more interested in the building of the railroad than in its operation. I am certain he will readily agree for me, as the business mind of the partnership, to handle all the financial matters regarding the railroad.”
“You may be able to get around Adams, but what happens when your investors have little or no return on their investment?”
“I offer to buy them out, of course. I can’t very well have a scandal on my hands.”
“What if Adams really starts to build?”
“I’m sure he will. But it is a lengthy and tedious process of obtaining charters and permissions from the state to build. Then, too, will be the chronic blunders related to shipping of supplies. We can blame the British for a great deal—there are enough alive today who well remember the burning of Washington at their hands. It should carry us far to place the responsibility of lost shipments and delays in receiving supplies on the shoulders of a country so many still despise. Without iron rail, we cannot lay track. And for those who very well might desire to see some physical progress, we will actually have requests for charters drawn up and perhaps an inexpensive survey, or better yet, a forgery of one already drawn up for another railroad. Can you check into that in Baltimore? I heard James say that they are working to decide what route will be surveyed west of Harper’s Ferry. Now with the resignation of Philip Thomas in place and the board searching for another president, there will be mass chaos, and it might be easy to obtain records if the right man is put in charge of the mission. As I recall, the B&O once considered moving west of Washington. This might be exactly the survey we’d need. Do you know someone who might help us?”
Samuel smiled, making the jowls of his bloated face wobble. “I know just the man.”
“Good, good. The key to this will be to solicit investors well known for their indifference to details. I can think already of a dozen or more Washington residents who will jump at the chance to be a part of the great railroad movement, but who will never look further than the stock certificates in their hands. If I can sell them on the possibilities of this great rail line, I could well see a million dollars pledged by fall.”
“Yes, but how much of that money will be taken from you in January?”
“I’m not certain, but it doesn’t matter. One way or another, we will still be in a good position to have whatever we want. Haven’t we managed to purchase your new home with the counterfeit bank notes? It’s only an added bonus that the banks on which those notes have been drawn have failed or will fail in time.” Leland’s smug expression made him more closely resemble his brother.
“So, did you do anything besides plot and plan while in Europe?” Samuel asked with a laugh.
“I spent a great deal of money,” Leland retorted. “Which is exactly why we need to get right to work!”
“I don’t believe it!” Leland slammed down the newspaper and jumped up from the breakfast table, nearly overturning it with his protruding stomach. “Jackson is insane!”
Edith calmly took her husband’s tirade in stride while servants cowered in the background. “What has the President done to upset you this time, dear?”
Leland glowered at his wife, whose statement had made him feel as though he’d simply been overlooked in being invited for a social gathering. “It’s beyond you to understand,” he snapped, picking up the paper again. “I must get to the bank at once!”
The walk to his bank had done nothing to calm his temper. As far as Leland was concerned, July eleventh would forever be a black day. Unable to get backing for Senator Benton’s bill to force the receipt of gold and silver only for public lands, Jackson had merely waited until Congress had adjourned, then declared an executive circular.
Leland spread the paper on his desk and again read the article, still unable to believe the deed had really been done. In the words of the paper, the President’s intent had been “ . . . to repress alleged frauds, and to withhold any countenance or facilities in the power of the government from t
he monopoly of the public lands in the hands of speculators and capitalists, to the injury of actual settlers . . .” To achieve this he had directed, the newspaper read further, “that only gold and silver should be received as payment for public lands, except in the case of bona fide resident settlers who were not buying over 320 acres of public land.”
The conclusion of this was to further discredit banks, and Leland could well read the writing on the wall. There simply wasn’t enough gold or silver to back the number of drafts already in circulation. Jackson thought that by discrediting the bank drafts, he would discourage land sales and bring a stop to speculation and inflated prices. This way, honest settlers would be purchasing the land instead of greedy speculators.
A knock at his door made Leland glance up sharply from his seething thoughts.
“Hello, Father,” James said, striding into the bank office without waiting for an official welcome. “You were already gone from the house when I came down for breakfast, and Mother said you were quite enraged over something.”
Leland glanced up from the paper. “Have you seen this?”
“The paper? No, not at all. Why, should I have?” He plopped down in the chair opposite his father’s desk and waited for an answer.
“Jackson has gone behind the backs of Congress to inflict his will upon the people of this great nation. I’m enraged, all right. Read it for yourself!” He hurled the paper at a stun-faced James.
James read the words and shrugged. “Gold and silver is good, isn’t it?”
Leland shook his head in complete exasperation. “This circular will devalue bank drafts and leave everyone scrambling to hoard gold and silver. The bank may well fold because of this.”
“The article says he’s done this in order to aid westward settlers and lower the prices of inflated property.”
“That’s what he says, but you know as well as I do that he detests the banks and wishes to see them put under.”
“That’s ridiculous,” James replied. “The existence of your bank is an example of his encouragement, is it not? Did you not establish this institute upon the demise of the Bank of the United States?”
“This is different. Jackson fears the power of those who hold the wealth of the nation. He doesn’t want anyone to benefit too greatly from this land rush west, unless it benefits him as well. First the Distribution Bill and now this!”
“But the Distribution Bill certainly isn’t anything to cause you that much concern.”
“If you were working at my side, as you should be, you’d know full well just how devastating that bill will be to us.”
James shrugged and crossed his arms. “I would make a poor banker. My ignorance of your concern is proof of that.”
Leland slammed down his fists. “The Distribution Bill will pull a large sum of money from this bank. Without that money to invest and earn interest on, the bank makes no money. Take enough of the assets from the bank, and before you know it, the bank will fail for lack of resources and earnings. Furthermore, if word gets out that I’m concerned in the least about this distribution, people will remove their money under the misguided notion that the bank is already in severe jeopardy.”
“Is it?”
“Is it what?” By now Leland was red-faced and breathless.
“Is it a misguided notion that the bank is in jeopardy?” James’ eyes never left his father’s face.
Leland’s attempt to regain control left him momentarily vulnerable to his son’s scrutiny. “Banking,” he finally said, sitting down hard, “is a troubling business.”
“Yet you wish me to be a part of it?” James asked in disbelief. “How have I grieved you that you would wish this headache upon your only child?”
Leland nodded and said, “Perhaps you’re right. Maybe you are better off with your railroads. As a matter of fact, I have seen the error of my thinking in regard to the future of those iron beasts. I have decided to join with Adams in the line he has proposed.”
“What? Why, that’s marvelous news, Father!”
Leland calmed a bit. “Yes, well, time will tell whether this venture is worthy of our praise or not.”
“I must say, I’m impressed. You had once thought so little of the railroad. What changed your mind?”
“Perhaps you did, in part. Our discussion with Joseph Adams was an enlightening one for me. I had never truly understood the possibilities for the future in light of the slow return on one’s investment.”
“While it is true that initial costs keep stockholders from realizing much in the way of return on their money, the outcome in the long run will be tremendous. Mark my words!” James added.
Leland noted his son’s enthusiasm. “I suppose I am glad you have pursued the Baltimore and Ohio. With the knowledge you gain there, perhaps you can one day come on board our company and offer the expertise we will need to see us through to completion.”
“Why not start now?” James questioned. “I have never been adverse to working at your side, Father, only to working at your side in a bank. What son would not be proud to assist his father in such a futuristic adventure? Especially one that holds such promise.”
Leland felt slightly panicked. He didn’t like the idea at all of James’ involvement in his shady scheme. “The B&O is a good experience for you and will allow you training that we will need. At this time, there is more in the way of bureaucracy and paperwork than what would keep your interest. However, when we actually find ourselves starting the venture in a physical sense, then yes, it would be my honor to have you at my side.”
James smiled broadly. The pride in his expression made Leland want to look away, but instead he held his son’s admiring gaze. Of course he would do nothing to see James ruined, but perhaps after enough time had passed with little action to the P&GF line, James would lose interest and stay with his beloved B&O.
50
Wedding Plans
By August the heat and humidity had driven most of the area families north. People feared the sickness that always seemed to come in the damp unbearable weather of summer. Fevers, particularly yellow fever, ran rampant all along the Potomac.
Hampton Cabot wrote regularly, much to Carolina’s dismay. He had requested permission of her father to correspond directly with her and had received the same without it ever being mentioned to her. Now, through these letters, he was constantly pledging his undying devotion. The latest missive told of his impending arrival, and Carolina sincerely prayed she would have cause to be elsewhere when he arrived.
James was a regular visitor to the plantation, and Carolina usually found reason to avoid him as well. At least she could enjoy York’s visits as the family sat around the dining table with him. And amid talk of James and Virginia’s upcoming wedding, York mentioned a certain young woman named Lucille Alexander.
“Her father is a congressman from Philadelphia, and they are renting a house in the city,” York announced at the table one evening.
“How wonderful!” Margaret exclaimed. “I’ve heard of the Philadelphia Alexanders. A splendid family with a well-respected name.”
York exchanged a smile with Carolina. Carolina was glad for York’s company. She’d missed him greatly in his absences at school, but with his move to Washington she was reminded of just how fleeting their childhood was. Now Virginia was marrying, and York, with his interest in this Alexander woman, might well do the same. Maine was off to seminary in England and seldom came home for any reason, given the distance and expense of crossing the Atlantic.
“So the wedding is to be in six weeks?” York questioned, bringing the focus of the conversation to Virginia and James.
“There’s still so much work to be done. I fear I’ll never be ready in time,” Virginia said in a way that let everyone know she expected sympathy.
“Poor dear,” Margaret cooed. “You’ll deserve a good rest when it’s all finished.”
“Yes, no doubt a long honeymoon abroad would do the trick,” Joseph said with a sly g
lance at James. “I’ve been speaking with James about sponsoring such a trip.”
“Oh, Papa!” Virginia exclaimed. “Truly? A trip to Europe!”
“My parents believe it to be overly praised.” James seemed almost uninterested in the conversation. Or perhaps that was simply Carolina’s imagination.
“Europe?” Virginia questioned in complete disbelief. “I can’t believe it! Perhaps old people have not the capacity to properly appreciate it. I’ve always wanted to honeymoon abroad, and now my dream will come true. Oh, thank you, Papa.”
Her pleasure was as evident as James’ indifference. Carolina found herself studying him, wondering what secret it was that troubled his soul. It was so subtle, except to one who was a close observer. Later when they retired to the sitting room upstairs, Carolina momentarily relented of her determination to avoid him and tried to strike up a conversation with James, hoping to fathom the cause of his peculiar mood.
She started first with the trip abroad. “Exactly how long will you be abroad?” she asked casually, looking at Virginia but hoping James would speak.
“At least three months,” Virginia replied. “You simply cannot go abroad for a shorter time.”
“But, Virginia . . . dear, I don’t have three months to give,” James said.
Glad that only she and her sister were occupying the room with James, Carolina waited for the protest that Virginia was sure to make.
“Whatever do you mean?” Virginia was true to Carolina’s expectations. “This is our honeymoon trip, and I expect for everything else to take second place. Three months would put us back home in time for the Christmas social season.”
“I’m sorry, Virginia. I’ve just agreed to work full time with the B&O. After our marriage we’ll move to Harper’s Ferry, where I’ll help work with the survey crew.”
“Harper’s Ferry!” Virginia exclaimed, losing all pretense of self-control. “I do not wish to live in Harper’s Ferry. Why didn’t you tell me of this earlier?”