Editing Ulysses S. Grant (section)

===Financial affairs===

Soon after taking office, Grant took conservative steps to return the economy to pre-war monetary standards.{{sfn|Simon|2002|p=249}} During the War, Congress had authorized the [[United States Department of the Treasury|Treasury]] to issue banknotes that, unlike the rest of the currency, were not backed by gold or silver. These "[[Demand Note|greenbacks]]" were necessary to pay the war debts, but caused inflation and forced [[Gold standard|gold-backed money]] out of circulation.{{sfn|McFeely|1981|p=279}} On March 18, 1869, Grant signed the [[Public Credit Act of 1869]], which guaranteed bondholders would be repaid in "coin or its equivalent". The act committed the government to the full return of the [[gold standard]] within ten years.{{sfnm|1a1=White|1y=2016|1pp=476–78|2a1=Simon|2y=2002|2p=248|3a1=Burdekin|3a2=Siklos|3y=2013|3pp=24–25}} This followed a policy of "hard currency, economy and gradual reduction of the national debt." Grant's own ideas about the economy were simple, and he relied on the advice of businessmen.{{sfn|Simon|2002|p=249}}

====Gold corner conspiracy====
{{further|Black Friday (1869)}}
[[File:Black Friday 1869.jpg|thumb|Photograph of the blackboard in the New York City Gold Room on [[Black Friday (1869)|Black Friday]], showing the collapse of the price of gold]]

In April 1869, railroad tycoons [[Jay Gould]] and [[James Fisk (financier)|Jim Fisk]] conspired to corner the gold market in New York.{{sfnm|Simon|2002|1p=248|Chernow|2017|2p=672|Calhoun|2017|3p=125|Kahan|2018|4p=54}} They controlled the Erie Railroad, and a high gold price would allow foreign agriculture buyers to purchase exported crops, shipped east over the Erie's routes.{{sfnm|Calhoun|2017|1pp=125–28|Kahan|2018|2p=54}} Boutwell's policy of selling gold from the Treasury biweekly, however, kept gold artificially low.{{sfn|Calhoun|2017|p=128}} Unable to corrupt Boutwell, the schemers built a relationship with Grant's brother-in-law, [[Abel Corbin]], and gained access to Grant.{{sfnm|Brands|2012a|1pp=437–443|McFeely|1974|2p=134|Chernow|2017|3p=673|Calhoun|2017|4pp=128–129|Kahan|2018|5p=55}} Gould bribed Assistant Treasurer [[Daniel Butterfield]] to gain inside information into the Treasury.{{sfnm|McFeely|1981|1pp=136, 323–324|Chernow|2017|2p=674|Kahan|2018|3pp=55–56}}

In July, Grant reduced the sale of Treasury gold to $2,000,000 per month.{{sfn|Calhoun|2017|p=130}} Fisk told Grant his gold selling policy would destroy the nation.{{sfn|Calhoun|2017|p=131}} By September, Grant, who was naive regarding finance, was convinced a low gold price would help farmers, and the sale of gold for September was not decreased.{{sfnm|Brands|2012a|1pp=437–43|Simon|2002|2p=248|Calhoun|2017|3p=130}} On September 23, when the gold price reached {{frac|143|1|8}}, Boutwell rushed to the White House and talked with Grant.{{sfn|Calhoun|2017|pp=140–141}} On September 24, known as [[Black Friday (1869)|Black Friday]], Grant ordered Boutwell to sell, whereupon Boutwell wired Butterfield to sell $4,000,000 in gold.{{sfn|Calhoun|2017|p=141}} The [[bull market]] at Gould's Gold Room collapsed, the price plummeted from 160 to {{frac|133|1|3}}, a [[bear market]] panic ensued, Gould and Fisk fled, and economic damages lasted months.{{sfnm|Brands|2012a|1pp=445, 636|Chernow|2017|2pp=677–88|Calhoun|2017|3p=141}} By January 1870, the economy resumed its post-war recovery.{{efn|An 1870 Congressional investigation chaired by [[James A. Garfield]] cleared Grant of profiteering, but excoriated Gould and Fisk for their manipulation of the gold market and Corbin for exploiting his personal connection to Grant.{{sfnm|Brands|2012a|1pp=445–46|Simon|2002|2p=248}}}}{{sfnm|McFeely|1981|1p=328|Smith|2001|2p=490}}