Posted on Wednesday, September 24, 2025
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by The Association of Mature American Citizens
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On September 24, 1869, the United States witnessed a financial upheaval that came to be known as Black Friday — a crash that exposed deep flaws in political integrity, market manipulation, and presidential oversight. Two of the era’s most infamous financiers, Jay Gould and James Fisk, attempted to corner the gold market with help from the president’s own family, and their scheme shook both Wall Street and the Grant administration.
At the heart of the scheme were Gould and Fisk, who sought to drive up gold prices by controlling supply. Their plan hinged on the expectation that the government, under President Ulysses S. Grant, would refrain from selling off its gold reserves — a move that would keep gold scarce and its price high. Key to securing access to Grant was Abel Rathbone Corbin, who had married Grant’s sister, Virginia (“Jennie”) Grant. Through Corbin, the schemers cultivated relationships with Grant and influenced senior government officials.
As part of the plot, Corbin managed to see that Daniel Butterfield, an ally of the conspirators, was appointed Assistant Treasurer of the United States, the very officer responsible for gold sales. Butterfield agreed to tip off Gould and Fisk when the government was about to unload gold—thus allowing them to avoid losses.
But the scheme unraveled when Grant grew suspicious of Corbin’s behavior and of the influence Gould and Fisk were wielding. Learning of a letter between his sister and his wife about the plot, Grant realized the danger. In response, he ordered the sale of $4,000,000 in government gold, which flooded the market and caused prices to collapse. Investors who had speculated heavily—and taken on debt to do so—were ruined. Gould escaped major damage by selling before the crash; Corbin did not fare as well.
In the congressional investigation that followed, Butterfield was forced out, but protection by loyal Republicans limited damage to Grant’s reputation. Still, Black Friday remains a defining episode in his presidency—not simply because of the market chaos, but because it exposed how close business interests could come to manipulating the highest offices of government. Gould went on to significant power despite the setback; Fisk’s climb was shorter and ended violently.
Through vivid detail and dramatic turns, American Experience re-examines how ambition, corruption, family ties, and presidential responsibility converged in one of the nineteenth century’s most notorious financial scandals. It’s a story not only about gold and greed, but about the fragile line between influence and power, and how quickly trust—both public and personal—can be tested.
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