Fifty Years in Wall Street

by Henry Clews, Henry Clews

The definitive look at Wall Street in the 19th Century Perhaps the 19th century's best book on Wall Street, Fifty Years in Wall Street provides a fascinating look at the financial markets during a period of rapid economic expansion. Henry Clews was a giant figure in finance at that time, and his firsthand account brings this colorful era to life like never before. He reveals shocking stories of political and economic manipulation and how he helped bring down the mighty Boss Tweed. He writes eloquently about the madness of the markets and how the era's greatest speculators amassed their fortunes. This book provides an expansive view of Wall Street in an era of little regulation, rampant political corruption, and rapid financial change. Henry Clews was born in England in 1836 and emigrated to the United States in 1850. In 1859, he cofounded what became the second largest marketer of federal bonds during the Civil War. Later, he organized the "Committee of 70," which deposed the corrupt Tweed Ring in New York City, and served as an economic consultant to President Ulysses Grant.

Genres: Finance, Business, History

384 pages, Paperback

First published February 2, 2006

Reviews

[Henry · Rating 5 out of 5]

- (Fantastic memoir of Clews, an Englishman, who had a great authority over the Wall Street in the 1800s. It's a fascinating read because as Clews mentioned repeatedly, that history always repeats itself in one way or another. And all the major themes in Clews' stories are as boringly relatable today as in say, the Netherlands' Tulip Mania in 1600s or the South Sea Bubble in 1700s)

- Clews came into power on Wall Street as a discount broker of yesterday (like Schwab & E-Trade taking over the old guard, and Robinhood taking over Schwab & E-Trade by commission-by-orderflow)

- Due to the habit of people on Wall Street, ones who don't know how the game is played gambles, and "rich will get richer, and poor poorer"

- Clews observed that there are indeed the very minority of men who posses vast mental capability to speculate and continue speculate well, but such men are rare and not for the general mass

- Clews see "information" as dangers, particularly the media whose job is to mislead the public by selling incomplete news: "Speculators lose because the information on which they base their operations is insufficient; more because it is false; and others because, while their information is correct, they do not know how to turn it to account'

- "Circulation of pseudo news is the frequent cause of incalculable losses"

- Clews noted that there are always losers who are either "permabulls" or "permabears". Market turns all the time, thus strategy must be adaptive and not perenment

- Stagnancy sometimes runs for a long time. Clews noted that a wise speculator simply leave during those times and enjoy their families

- Wall Street saved the US government several times as default/civil war loomed. Ironically, at the time private property loans were seen more stable than governmental loans

- Before the looming civil war, few saw it would last that long

[Jim · Rating 3 out of 5]

Originally published in 1908, this classic is Wall Street icon Henry Clews' personal account of some of the big names and events that helped shape America's financial markets in the second half of the 19th century. This isn't just a retelling of things already widely known and reported. Instead, theres are Clews' personal thoughts and insights into the personalities of many of the major Wall Street players of the time themselves, including Vanderbilt, Drew, Keene, Gould, and the Tweed Ring. Clews also gives his views on the causes and results of panics, speculation, and attempted corners. Reading these accounts reminds the reader of how less regulated the American stock market was during that period compared to modern day and how fortunes could be made and lost in mere days based on behavior that would today be deemed unethical and sometimes criminal. Overall, it's a fun and insightful look behind the curtain from someone who was a contemporary of those he writes about.

[Derek Wong]

Good

[Yushi · Rating 4 out of 5]

Slightly difficult to read initially as the operators were mostly from the 1800s. Good recollections of the spectators' fervor. Also reminded me of GRE vocab.

[Dan Zwirn · Rating 4 out of 5]

Essential reading not only for those interested in Wall Street history but those who are active in trading markets today.

[Aharon · Rating 3 out of 5]

A worthy addition to the burgeoning genre of memoirs about selling bond during the Civil War.