Chapter 14 The War of 1812 / /Real Estate, 1812

What were the causes of the War of 1812?

The causes of the war were many. The second war with England, toward which America had been gravitating for many years, was brought very closely home to Philadelphia by reason of Great Britain’s important shipping interest.  Large sums of money were invested in, and a considerable portion of the population was directly or indirectly sustained by overseas commerce.  The various embargoes of England and France during the Napoleonic Wars, the general invasion of the rights of neutral powers, and the impressment of American seamen by the belligerents, led to a feeling of great resentment in the United States. The main problem was that England still treated the United States as part of its Empire. England seemed to forget that the War of Independence ever took place.

Since many differences could not be settled peacefully what happened?

President Madison signed an Official Declaration of War against Great Britain.

The United States needed to show the world that it could stand on its own, and that it would not be bullied by any nation.

Why did many citizens think that this was folly?

The young country did not need war; it was too busy building and expanding a nation. Besides the US Treasury was in the red and a war would be a costly expense.

Who was the Secretary of the Treasury in 1812?

Albert Gallatin was Secretary of the Treasury.

How did the President of the US and Mr. Gallatin expect to pay for a war?

A bond issue was floated in the amount of sixteen million dollars, of which only six million had been sold. It was then that Stephen Girard of Philadelphia and John Jacob Astor of New York and other smaller financiers were approached for the remaining funds. Stephen Girard invested a bit over eight million dollars and John Astor about two million.

Was this not a very risky investment?

Had the war not been won with the money of these men, the new nation might have collapsed and history might have been written in another way.

What concessions did Stephen Girard request of the government in exchange for his support?

He asked for none. Girard was happy to help his adopted nation in its hour of need. By purchasing risky government bonds, he proved to be a true patriot.

What more did Girard offer to give after providing the US Treasury with critical funding?

He offered to provide the US Government free use of his fleet of ships and volunteered to serve personally in the war effort without pay.

When did the War of 1812 end?

The war ended in 1814 by the signing of the Treaty of Ghent. Girard had given his nation a lesson in patriotism and courage and more importantly a love of country.

What ironic situation did Girard face with the Treasury Department?

Girard provided a substantial loan to the US Treasury Department to support the war with Great Britain, risking his entire fortune and then some. At the same time Gallatin was suing Girard for perceived infractions that Girard’s ship Good Friends had been accused of.¹

How did the abdication of Napoleon Bonaparte affect the attitude of Great Britain toward her former colonies?

After the defeat of Napoleon at Leipzig in 1813, the surrender of Paris to the Allies in March, 1814, and the abdication of Napoleon in April the situation of Great Britain changed completely. She was now free to give serious attention to her war with America, and in August a British squadron entered Chesapeake Bay. Troops were landed; the city of Washington was captured, and the Capitol, the President's house, the Treasury building, the Departments of State, of War, two private dwellings, a tavern, a newspaper office and two rope walks were set on fire. This done, the British returned quickly to their ships.

As fear gripped the country, what measures did Girard take to protect his investments?

To this fear that the city was in hourly danger of falling prey to the enemy, Girard had concerns of his own. He gathered up his goods and sent them by wagon to Reading. Having chosen that town as a place of deposit, Mr. Edward George, at the end of August, was sent there to arrange for the safe keeping of Girard’s possessions.

How did Joseph Bonaparte hope to involve Stephen Girard after Napoleon’s final defeat and exile on the island of St. Helena?

According to David Stacton who wrote extensively about the Bonapartes, a ship owned by Girard was being prepared for a long voyage to a faraway island in 1821. These preparations were halted when word was received that the fifty-one-year-old Napoleon had died.

Is there a specific example of Girard’s boldness in his commerce?

There are many examples. Girard's business judgment was probably as nearly infallible as was that of any other merchant in all history.  He combined boldness and daring in operation with prudence and conservatism--the same foresight which led him to invest in cotton during the period of the embargo when the market was flooded.²

Did Lafayette return to America after his courageous and generous participation in the American War of Independence?

Lafayette returned at the urging of President Monroe in 1824. Girard had the pleasure of serving on the committee for Lafayette’s visit. George Wilson, a Girard biographer, mentions the surprise that Lafayette expressed that Philadelphia had not erected a monument to George Washington.

At what point in his career did Stephen Girard become interested in real estate?

From 1825 to 1830 most of the money Girard made came from the banking business, and as it accumulated, he invested in real estate.  His most valuable purchase was seventy-two tracts totaling 29,494 acres in Schuylkill and Columbia Counties in Pennsylvania.

What specifics did the deed of the land show?

The deed issued to Girard by the trustees of the late First Bank on April 30, 1830, lists the 67 tracts of land by name and also the five tracts of land situated in Mahoning Township called: Clear Springs; Six Springs; Mill Seat; Three Springs; and Pleasant Valley. These five tracts later proved not to be a part of the Estate.

The deed to Girard was recorded in both Schuylkill County and Columbia County on May 10, 1830. The recording in Columbia County was necessary as the five separate tracts by that time were a part of that county.³

What further real estate did Girard invest in?

The money made by Girard during these years, 1825 to 1828, came from his bank, and seems to have been largely invested in real estate. Since 1812, there were forty-one purchases: farms in Passyunk and Moyamensing, houses and lots on Chestnut, Spruce, Water and Front Streets, Third, Fifth and Eleventh Streets at a cost of $366,652. Out of the city he had acquired a great tract in Louisiana.

What real estate did Girard consider buying for the school he planned to create for poor white fatherless boys?

An item of interest in Girard’s correspondence of 1807 is the purchase from John Dunlap of the block of land between Market and Chestnut Streets, and Twelfth Street. It was on this tract that Girard originally intended to locate Girard College.

At what cost did the seller set this property?

The cost was one hundred thousand dollars. This block, exclusive of improvements, rose in worth to more than six million dollars, and earned in the year 1909, in addition to interest on the cost of the improvements, nearly two hundred thousand dollars net, which was more than enough to support the College as originally planned by Girard.

When did Girard begin to give serious thought to writing a will?

After the peace of 1815, Girard began to consider what he should do with his millions after his death. He was then sixty-five and still expected to live many more years. It was not until he was seventy-eight that he entered into serious consideration of a plan for the final disposal of his immense estate.

Did Girard continue buying property after 1815?

Between 1815 and his death, he purchased nearly 200,000 acres and many buildings.  During the last nine months of his life, he purchased two houses on Walnut Street, sixty acres in the Neck (South Philadelphia), land on Spruce Street, a house on 6th Street, houses on Coates and John Streets, houses on 3rd Street, a house in the Neck fronting on the Schuylkill River, stores on the wharves and docks, and land in Schuylkill County.

What were some of the properties owned by Stephen Girard at the time of his death?

When he died, he owned the choicest land and buildings throughout old Philadelphia (now Society Hill).  Some properties were near 2nd and Spruce Streets, along Chestnut Street, Walnut Street, the block surrounded by 11th and 12th — Market and Chestnut Streets, Front and Delaware, 5th Street, Water Street, 2nd and Delancy Streets, 3rd and Philip Streets, and the area of today's Penn's Landing.  His properties in the Neck included 583 acres of farmland and several tenements.

What were the investment interests in Girard’s later years?

Girard's physical abilities were diminishing in the advance of his years, but his mental acuity remained at a high level; he saw opportunity where others did not. Coal and the railroad became a new, exciting and profitable challenge for him as he approached the twilight of his life. He purchased land in upstate Pennsylvania. The value that Girard perceived in making his bold venture was to be accrued as coal mining would bring him new riches. He was then seventy-nine years old. When he turned eighty-one, he invested in railroading, the vehicle that would carry the coal to the markets he envisioned would be there. Girard had previously been appointed to act as receiver for the First Bank to make final distribution of its assets.

His investigation as to the reason for the long delay in revealing the existence of these lands as belonging to the First Bank probably showed that coal had been discovered in the Pottsville region, mines had been opened, and that coal had been transported on the Schuylkill Canal since 1825. It would also seem possible that land speculators knowing of the coal discoveries had possibly influenced the trustees—or at least the trustee knowing of the existence of these deeds—to withhold any action on these tracts until the last possible moment.

Undoubtedly, this information convinced Girard that these lands had great value and he decided that his business interests would be better served if he acquired them. The trustees had held the tracts for 19 years, and shortly after the deeds were turned over to the receiver, Girard, an advertisement appeared in a Philadelphia newspaper that these tracts of land deeded to them by the First Bank would be sold at public auction at the Merchant's Coffee House on April 17, 1830. The auction was held as scheduled and Stephen Girard, being the highest bidder, purchased the 67 tracts for $30,000.

Did these coal lands prove to be a good investment for Girard?

The lands were exceedingly valuable. After litigation and compromise, they had been reduced to about nineteen thousand acres of which only about five thousand were coal-bearing. Up to the beginning of 1942, they produced about 119,869,794 tons of anthracite.⁴

What was the purpose of the Danville and Pottsville Railroad, 1826-1840?

The purpose of the proposed Danville and Pottsville Railroad was to open both the Shenandoah and Mahanoy Valleys, connect them by a tunnel, and mine the coal from the lands encompassed. On April 8, 1826, the Pennsylvania legislature passed an act which incorporated the Danville and Pottsville Railroad Company and granted it the right to hold not more than 1,000 acres of coal lands.⁵

What was the professional opinion about the effectiveness of this railroad?

Chief engineer, Moncure Robinson estimated that the railroad was twenty years ahead of its time just as Girard’s anthracite was ahead of its time by a generation.⁶

What can we learn about the vessels that Girard sailed, leased or owned during his lifetime?

It’s a long complicated answer. Let’s start at the beginning when Girard was a young man.

On what vessels did Girard serve as a pilotin?

Girard’s first service, as a pilotin, was with the Pélerin; the date was 1764.  He performed apprenticeship duties on six vessels between 1764 and 1772.The vessels were: Gloire; Dorille; Esperance; Superbe; Les Deux Frères and the Pélerin.

.What were the years that Girard served as mate or lieutenant?

He served in these capacities between 1772 and 1776. The word lieutenant was imported from the French language into English. Lieu means place; tenant means holding. The officer holding the place of or seconding the captain is the lieutenant.

How many vessels did Girard own or partially own over the years?

He was the owner or part owner of 24 vessels.

What were the types of these vessels?

They were mostly brigs and schooners at first. As Girard’s fortune increased and the voyages became longer to include South America, China and India, he added ships to his inventory. Confusion among ship names may be due to the fact that Girard’s captains were told to carry dual papers for their vessels, especially in dealing with trade to the Cap where capricious tariff restrictions caused American ships to become inventively deceptive.

How did the idea materialize to establish a home for orphans?

Girard had thought about this possibility for many years. Without revealing the reason for his inquiries, William Duane, his lawyer-friend, would gather information during his travels and discuss them with Girard.

Did Thomas Jefferson influence Girard’s plans for a school for orphans?

Girard founded his college with the idea of helping the helpless. Thomas Jefferson’s ideas on education impressed Girard greatly. Girard once made a trip to Monticello; and he spent two days at the University of Virginia. This was really remarkable, because time for Girard was a very precious commodity.

How did the wording “poor white male orphans” come into the will?

In Girard’s day, girls were rarely educated. All they needed to know, they learned at their mothers’ side. The thought of educating an African slave was also beyond his scope of understanding.

At Girard’s death what was the assessed value of his real estate holdings?

He owned prime property and buildings that generated enough revenue to allow his estate to continue growing long after his death.  George Morgan's book, The City of Firsts, A Complete History of Philadelphia, reported that in 1926, Girard's property in the city, excluding Girard College, was assessed at $20 million.

When did Girard purchase the property on which Girard College would be built?

On June 6, 1831, Girard paid William Parker $35,000 for the forty-five acre farm located on Ridge Road in Penn Township, then in suburban Philadelphia.  By codicil to his will he changed the location for his school to the Peel Hall farm.  William Duane, his lawyer, indicated the change was made because Girard preferred that the College be built outside the congested city.

 
Link to Following Section