Black Friday, September 24, 1869 also known as the Fisk/Gould scandal, was caused by two speculators’ efforts to
corner the gold market on the
New York Gold Exchange. It was one of several scandals that rocked the presidency of
Ulysses S. Grant. During the
reconstruction era after the
American Civil War, the
United States government issued a large amount of money that was backed by nothing but credit. After the war ended, people commonly believed that the U.S. Government would buy back the “
greenbacks” with gold. In 1869, a group of speculators, headed by
James Fisk and
Jay Gould, sought to profit off this by cornering the gold market. Gould and Fisk first recruited Grant’s brother-in-law, a financier named
Abel Corbin. They used Corbin to get close to Grant in social situations, where they would argue against government sale of gold, and Corbin would support their arguments. Corbin convinced Grant to appoint General
Daniel Butterfield as assistant
Treasurer of the United States. Butterfield agreed to tip the men off when the government intended to sell gold.