Скачать или смотреть THE PANIC OF 1792 COVER UP

Are you familiar with the name Mr. William Duer?
I don't blame you. William Duer is practically forgotten now. But back in his day, Duer was referred to as "The King of the Alley," and he was more responsible for creating Wall Street than all of the other men together.

But he was actually behind the 1792 panic In Wall Street.

He single-handedly stormed the stock market. So we thought of telling you the story of the panic of 1792. Excited? Then stay tuned.

Duer was the son of a highly prosperous West Indian planter and was born in England in 1743.

Duer, who received his education at Eton and immigrated to America in 1773, immediately rose to prominence in New York society, and he developed sympathy for the colonists' grievances against Britain.

In addition to serving as a judge in New York and signing the Articles of Confederation, Duer was elected to the Continental Congress. He was appointed as secretary to the Board of Treasury by none other than Mr. Alexander Hamilton.

You are aware of Hamilton, of course. You may remember Alexander Hamilton most as the man on the $10 note. He was also the first-ever secretary of the Treasury.

So, you can imagine the power of Mr. Duer. With that Power he also welcomed greed.

Because of this position, Duer had access to the inner workings of American finance in the late 1780s. In 1791, he left his post at the Treasury and formed a partnership with Alexander Macomb, one of New York's most prominent financiers.

In March 1792, Duer started gambling on the shares of the Bank of New York using Macomb's funds as well as his own contacts and insider information.

Duer and his fellow speculative bankers devised a complex scheme to inflate and then quickly deflate the price of bank stocks. They also attempted a double dip by insuring each other's notes. The objective was to control the market for 6s, or 6% delayed bonds, which were used to purchase shares in the new central bank.

Like any gambler, Duer couldn't resist betting on every bank stock he could discover. He began borrowing when Macomb's funds ran out. He obtained a bank loan. He took out loans from brokers. He took loans from store owners, street sweepers, and shoe shiners. He took out every money he could find in loans. He persisted in taking out even larger loans, his stocks were rising steadily, and Duer and his new buddies simply couldn't get satisfied. Even the local funeral home joined in the fun. Insane! right?