[196-86b] WILLIAM GREEN DESHLER, same as above, m 2nd time, MARY ELIZABETH JONES, b 1849.
Children (8):
Mr. Deshler was a prominent banker, and was intimately acquainted with Salmon P. Chase, then Secretary of the Treasury, from early boyhood. On April 14, 1864, Mr. Deshler received a confidential telegram from Mr. Chase asking him to meet the latter at the Fifth Avenue Hotel, New York. Arriving in New York the next day, Mr. Deshler met Mr. Chase in his private room and learned from the latter how the eredit of the national government was impaired by the action of certain so called ‘“‘pseudo patriots.”
These facts are gathered from the memoirs of Mr. William G. Deshler which are now in the possession of his son, Mr. John G. Deshler, also a prominent banker of Columbus, Ohio. Mr. Deshler states in his memoirs that during the administration of Secretary Chase, he had frequent conferences with him, both through correspondence and in person; so that he was quite familiar with the conditions
of his department and with the wide extension of his operations in consequence of the breaking out of the rebellion. During his conference with Mr. Chase the latter stated:
“We are confronted here in New York, on every side, by the rankest treason. Men professing loyalty—with our flag at their desk—are secretly engaged in trying to break down the credit of the government by speculation in stocks and gold. They have a chain of operations, reaching from here to Richmond, by way of Montreal and Louisville. They have given the State Department great trouble in our strained foreign relations. The thing I am interested in directly and which has worried me, is that they have thwarted my negotiations with a syndicate of German bankers for a loan of two hundred million dollars.”
As he related the details of his negotiations his eyes snapped, his tone was bitter, his feelings intense to the point of vengeance. He said with emphasis, “That conspiracy must be crushed and the gang punished. I want you to take the matter in charge, make your own plans which we will talk over this evening.”
Handing Mr. Deshler a slip of paper he said, “‘Here is a list of that gang, and you will be surprised to see some of the names on it—honorable men, forsooth!”’ he said bitterly, “‘yet that list is reliable, as T am assured by the Secret Service Department.”
Upon seanning the list Mr. Deshler was surprised to see many of the names, as he knew some of the men personally and others by reputation as being among the best businessmen in New York. He thought to himself, ‘““Why don’t they shoot these men as they do our boys down South?” At this particular time the outlook of the war was not very pleasant; the Union army was massed to protect the eapitol—the battles of the Wilderness were fought afew days later-copperheads were rampant throughout the North; gold was soaring in price which meant greenbacks were going down; speculation in stocks was so wild that every evening in the lobbies of the New York Hotels were found crowds or mobs of howling brokers plying their trade; bonds and paper money were issued to pay war expenses; then as now many soldiers were called out and the ultra-democratic papers were objecting to the draft.
After a good deal of consideration and reflection Mr. Deshler worked out a plan which he submitted to Mr. Chase. This was the plan as he outlined it to the Seeretary.
“Tf I can sell a few millions of gold a little under the market rate, to be paid for in greenbacks, no checks on the banks or certificates of deposit to be taken, greenbacks will become searce, the banks will be alarmed, they will call in loans or demand increased margins as the market for gold and stocks declines. Then I will find out the ‘Specialties’ protected by the men in this list and look after them on the Stock Exchange; also I will offer a premium for greenbacks to be paid for with checks on the banks. In other words, my gold business will be done on a money basis only. Of course I must employ brokers and pay their commissions, but J will get the right kind of brokers—and all of their operations in stocks will be by bank checks. Thus the government will be buying its debts in the shape of greenbacks and paying them in gold, which it has in the Subtreasury; the law certainly allows that, but it doesn’t allow government funds to be used in stock operations. The gold and stock operations must not be mixed, but can be cooperative in producing the result desired. The stock part I must handle myself, and it must be left to me. The gold business will be done through the Sub-treasury where secrecy must be maintained for a short time at least.”’ °
Secretary Chase approved this plan of operation and it was agreed that they would meet at the office of the Subtreasurer of the United States the next day. Upon arriving at the subtreasurer’s office Mr. Deshler met not only Mr. Chase but Horace Greeley, whom he deseribed as ‘‘a rare picture with a big loose coat, his pockets stuffed with newspapers, his necktie shifted around with the knot under his ear, and a big brimmed hat set back on his head, making him look like a belated cherub with a misfit glory on.”
Upon being introduced to the Subtreasurer, Mr. Chase said, ‘“Mr. Deshler wants to use some money during the next few days, and you will let him have what he wants, taking his receipt, which will be your sufficient voucher.”’ The Subtreasurer was so astonished that he said, ‘“Do I understand that your order is unlimited?’’ ‘‘Yes,’’ replied the Secretary. ‘Will you kindly put your order in writing?” asked the Subtreasurer, which Mr. Chase accordingly did and handed it to him. After the Secretary had left, the Subtreasurer said to Mr. Deshler, ‘‘Is the Secretary a relative of yours?” ‘No,’ replied Mr. Deshler, “but how much gold have you on hand?” The treasurer gave him the number of millions and muttered to himself, ““Remarkable.” Upon leaving. Mr. Deshler asked him to have a considerable sum of money in bags ready for delivery when he would eall upon him for them.
Mr. Deshler then went to some of the prominent bankers of New York in whom he had perfect confidence, and received from them letters of indorsement guaranteeing any contracts that he should make. Armed with this letter and with the backing of the Treasurer of the United States, and with his own individual means used in the purchase of stocks, he went into the market to sell gold at a discount
and to buy greenbacks at a price above the market price. The result was that after spending several million dollars in gold in the purchase of greenbacks and selling several million dollars in gold below the price of the raiders, the projects of the gold conspirators were defeated. He kept feeding the market with gold and purchasing greenbacks at higher prices every day. Greenbacks rose and gold went back, which was the purpose desired by Mr. Chase. The financial condition of the country became such that Mr. Chase readily disposed of his war bonds. The gamblers in gold discovered on the second day that it was government gold that was being thrown on the market and of course that created a tremendous panic, for they well knew that with the government as a competitor their end was in sight.
Reference to newspapers and financial journals of that day will give an account of the panic which ensued. One paper states that the money market was so much disturbed that blocks of stock were thrown overboard at almost any price; that one per cent interest a day was paid; that banks would not pay out greenbacks; that legal tenders were worth two per cent more than certified checks; that a large number of bull operators were broken. These operators that were crushed were members of the gang that had conspired to cripple the United States government in its most critical period.
Mr. Deshler went to Washington and reported to Secretary Chase what he had done. The Secretary, of course, was greatly pleased and offered to remunerate Mr. Deshler for his services. However, Mr. Deshler declined to receive any pay and only accepted a draft of $123.93 for his expenses.
That Secretary Chase was well pleased with Mr. Deshler’s accomplishment is manifested in the letter which he wrote him dated April 26, 1864. As stated above, Mr. Deshler declined to receive any compensation for his services, but he was given as a souvenir a cane, all the materials of which were made from the wreck of the ‘‘Merrimae”’ which had been blown up by her rebel commander the morning after the capture of the ‘‘Norfolk.’”’ Itis stated that but four of these canes were made; one of them was presented to President Lincoln, one to the Smithsonian Institute, and two to Mr, Chase, one of the latter coming into the possession of Mr. Deshler, and which now reposes in the museum of the Ohio State Archaeological and Historical Society. This cane bears the inscription: “Salmon P. Chase ‘Merrimac’ to April, 1864 William G. Deshler 88/64.” The inscription ‘‘88/64” means that gold went to “88” in 1864. The plan of the conspirators was to send gold to 200 and greenbacks down to fifty cents. This plan was successfully defeated through the efforts of Mr. Deshler. [Vid. Ohio Archaeological and Historical Quarterly, Vol. X XI X, No. 4.]
Children’s own families: