“Person Recollections of the Banking House of Drexel & Co.”

Yellowed paper with R.S. Russell's reflections of the Drexel & Co. banking firm handwritten in black script.



Transcript of “Person Recollections of the Banking House of Drexel & Co.” by R. S. Russell, 1898
MC.00.071 John R. Drexel III and Alice Troth Drexel papers, 20150520148_001-019
Drexel University Archives
[Note: Original spelling and grammar have been retained as much as possible.]
[Visual description: Handwritten manuscript in black ink on loose yellowed sheets of paper.]

1)
Person Recollections of the Banking House of Drexel & Co.

In a recent paper read before our circle, I gave some personal recollections of Jay Cooke & the great
support which he gave to the Treasury Department in the negotiations of the loans of the U.S. during
the way of the rebellion.—
Mention was made in that paper of the Establishment in 1837 of the banking house of E. W. Clark & Co.
In Phila. & its success & present continuance under the same firm name & style having as its members
principally the sons & grandsons of the original founder.
I propose in this paper to give a short sketch in the same line of personal recollections of the
2)
Eminent well known Banking Houses, both in this country & Europe of “Drexel & Co.”—
The year 1837 was originally favorable to the business of that of “ Uncurrent Money “ Brokerage ”―All
the banks throughout the country suspended specie payments and their issues were at a discount in the
Commercial Centres of the country & New York and Phila. were then the chief Centres of the commerce
of the U.S.
Merchants from the West & South came East in person & spent serv several weeks in the work of
selecting a stock of goods for the spring & summer trade in their respective localities.——
They began to arrive in Philadelphia about the middle of Feb’y and brought with them the funds needed,
in the notes of the banks of their several states & those adjoining. It is almost like a story of early
civilization to give in
3)
detail the manner in which business was then done, in what would now be called a very primitive
way―but that does not belong to this paper.
As payments were were made almost entirely, certainly in greater part, by uncurrent money, it was at
once to “3rd St.” where the brokers offices were established, and sold to the broker who would buy it at
the lowest discount. For two years, it was my duty as “the counting house boy” in a wholesale Importing
Hardware House to do these errands. A package of serv several hundred $ would be given to me by the
principal of the counting house, it would consist of the notes of 15 or 20 banks, I would go into 3rd St. &

Transcript of “Person Recollections of the Banking House of Drexel & Co.” by R. S. Russell, 1898
MC.00.071 John R. Drexel III and Alice Troth Drexel papers, 20150520148_001-019
Drexel University Archives
make the rounds of 5 or 6 offices & get bids & sell to whoever made the lowest bid. A boy of 16 or 17 on
such errands would very quickly
4)
find out, & have favorite brokers—Some whole pleasant manners would first attract his attention &
further acquaintance would show their fairness or unfairness in dealings, and naturally, all else being
equal, he would give such his preference among the Brokers offices in 3rd St. were two, in the one or
the other of which I almost always sold what I had to sell. One was E. W. Clark & Co. where Jay Cooke
always delt with me, and the other was Francis. M. Drexel. The office of the latter was on the opposite
or West side of 3rd St. & E. W. Clark & Co. on the east side. Mr. Drexel’s office was a vey very modest &
unpretentious one of very limited dimensions & furnishments inside, but was precided over by a man of
most courteous manners, who talked broken English in a voice most musical in its tone & singularly―
pleasant to hear. He was very
5)
shrewd both in making bargains, & the pithy & pointed words & expressions by which he enforced his
side of the transaction. He would quickly impress a boy as a man of absolute integrity and truthfulness,
yet one who wanted to make as good a bargain as he possibly could, & his tact & skill in learning from
his boy customer the rate or rates which his neighbors had offered was early noted. A bargain once
made, no flaw or deviation in carrying it out strictly as ever could be, at least in my memory, laid to his
charge.—This could not be said of some of his neighbors. There were many men in 3rd St. then, whose
characters & mode of doing business I soon learned & as soon learned to avoid them—not so however
with Francis M. Drexel & E. W. Clark & Co.—Mr. F. M. Drexel was born in Dornbirn, Tyrol, Austria in
1792. He came to Phila. in 1817. Of his history from that time until he went into business in 1837, I know
nothing, except what the following incident will furnish.—In the winter
6)
of 1849 I was holding a position in the Dauphin Deposit at Harrisburg, Pa. Robert J. Ross was the cashier
& had formerly been a midshipman in the U.S. Navy.—Mr. Drexel was spending several weeks at
Harrisburg seeking some legislation, the Legislature being then in session—one afternoon the two men
were together in the Cashiers room & Mr. Drexel was giving Mr. Ross the incidents of his early life & told
of having gone to South America about the time that Simon Bolivar became the dictator of the U. S. of
Columbia & was at the height of his fame & very popular—Mr. Drexel painted his portrait, & sailed for
Europe, & had a very large number of lithograph copies made of it, and returned to South America
hoping to realize a handsom sum from the venture. He found on his arrival that a Counter Revolution
had occurred & Bolivar was no longer the favorite & his hopes of profit were blasted.— He continued
there sometime & finally went to the sea coast, I think to Rio Janerio [Rio de Janeiro], with the results of
his work & time, in specie,
7)
having it securely packed in kegs for transportation.— He intended taking passage in a Merchant Vessel
to sail on a given day & found on his arrival that the vessel had left her moorings & was at the entrance
of the Harbor & at anchor waiting for wind & tide. In this extremity he called on the commander of a

Transcript of “Person Recollections of the Banking House of Drexel & Co.” by R. S. Russell, 1898
MC.00.071 John R. Drexel III and Alice Troth Drexel papers, 20150520148_001-019
Drexel University Archives
Man-of-War then lying in the harbor, belonging to the U.S.N. & told his story & and this commander
most courteously ordered a young officer to take a boat & crew & pull him & his kegs of specie out to
the merchantman & put him on board, which was done.— At this point Mr. Ross asked him what year
that occurred & the name of the U.S. ship & that of her commander. Mr. Drexel told him the names of
both, when Mr. Ross said, “I was the young officer that was in command of that boat, I remember the
circumstances well & felt quite proud of being selected to do it.”—
So these two men, who had known each other for 10 or 12 years, thus found an incident in the lives of
both,
8)
that was before only thought of by each as a pleasant one in their individual lives, was now made doubly
so by this mutual recognition, & Mr. Ross calling me to the room related it.—
The business on 3rd St. steadily prospered. He had as his clerks his two Sons, Francis A. Drexel &
Anthony J. Drexel who entered their father’s office in 1839 & were taken into partnership January 1st
1846 forming the firm of Drexel & Co.—both these sons & a younger one, Jos. W. Drexel, were trained
under the eye of their father & steadily grew in the esteem of the merchants & business men of Phila. &
most especially so with the bankers of the interior of the country with whom they maintained a large
correspondence. The issues of the banks in the interior of Penna. furnished almost the entire circulation,
& with the issues of banks in the adjoining states, found
9)
its way to Philadelphia in all the channels of trade & came into very general use, & as resumption of
specie payments did not take place until 1844 and then was very gradual in coming into general
practise, & as this currency was not available for deposit in the Banks of Phila. it can readily be seen that
the dealings therein by a broker would be very large.— The conservative character of Mr. Drexel & his
fair dealings with customers gave him the largest share of this trade, this wealth increased & this was
added to by most judicious investments in Real Estate Contiguous to Philadelphia
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(as also noted points in the West, notably Chicago & Erie Pa.—this time inserted above 1st line & line
above)
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which suffering from the general depression was bought at low prices & held on to, so that 20 & 30
years after it was sold at most enormous profits.—This judicious & shrewd foresight guided by a most
conservative judgment was
10)
always a marked feature in the character of Francis M. Drexel.— He was a safe advisor to younger men, I
sought his council frequently & always found him ready to give it, & always found it to prove sound &
wise. He was always very wary & very close in making bargains & this extended to the most minute
detail. I have stood ser several minutes at his counter chaffering with him over a consession of 1/16th of

Transcript of “Person Recollections of the Banking House of Drexel & Co.” by R. S. Russell, 1898
MC.00.071 John R. Drexel III and Alice Troth Drexel papers, 20150520148_001-019
Drexel University Archives
1%, but it always ended in the sale to him of the amount & most generally he carried his point & got the
consession which even then was better than the offers of his neighbors.— The resumption of specie
payments that began first in the eastern cities, gradually extended with the reviving prosperity of the
country, to the whole country & made this “uncurrent money business” a thing of the past & the
bankers engaged in it found in the many increasing
11)
Channels of Commercial Activity ample scope for their capital & ability.—
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(Left out) Francis M. Drexel died June 3rd 1868 & the firm of Drexel & Co., Phila. & Drexel Sather &
Church, San Francisco which had been founded by him were thereafter managed by his two sons—
Anthony J. Drexel & Francis A. D. the latter died on February 15th 1885.—The name & fame & credit of
the House is now & always has been 1st class throughout the Commercial world.— The firm of Drexel,
Harjes & Co., Paris was founded by the Phila. Firm (Anthony J. Drexel, founder.)
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Mr. Jno. H. Harjes & his son Jno H. Jr. are the resident partners. Mr. Winthrop who went from this side
to open the House there died January 7th 1893.—This firm in Paris one well known to all citizen of the
U. S. who visit France. The Phila. firm in 1870
12)
established the firm of Drexel, Morgan & Co., New York.
The partners (DM & Co.) besides the Phila. Firm, are J. P. Morgan—J. P. M. Jr., G. S. Bowdoin., C. H.
Coster & Temple Bowdoin. The Banking House occupied by this firm was built by Anthony J. Drexel at
the corner of Broad and Wall Sts. New York.
[Line Break]
The immense acquisition of Territory that this country obtained after the war with Mexico, including the
present states of Calafornia, Nevada and Colorado, & the present Territories of New Mexico & Arizona
followed by the discovery of gold in 1848 opened a new & wide field for enterprise, & here Capital
found ready employment.— It was about 1854 that Mr. Drexel established the Banking House of “Drexel
Sather & Church” at San Francisco, which during its career held as high as a position on the Pacific Slope,
as did the parent firm
13)
in the Atlantic States. This firm continued until the death of Francis M. Drexel, on June 3rd 1863 as also
another established in Chicago.— The death of the father threw upon the two Sons:—Anthony J. Drexel,
and Francis A. Drexel, the management of these firms, & both the firms in San Francisco & Chicago were
withdrawn & the Phila. Firm received their undivided attention, & their credit was unrivalled—they
established the banking firm of Drexel, Harjes & Co. Paris, the resident partners of which are the Phila.
Firm, John H. Harjes & Jno. H. Jr.

Transcript of “Person Recollections of the Banking House of Drexel & Co.” by R. S. Russell, 1898
MC.00.071 John R. Drexel III and Alice Troth Drexel papers, 20150520148_001-019
Drexel University Archives
[Double dotted line}
Arranged by J. R. D.
The purchase of the ground upon which the “Drexel Building” in New York now stands, attracted much
attention at the time from the fact that the price paid for it was computed to be over $5,000,000 per
acre. It was
14)
conceded to be in the centre of the most valuable acre of land on Manhattan Inland.
For a great many years the Phila. Firm were located @ 34 South 3rd St.— It now occupies the very large
and commodious Banking House built for their purpose by the late Anthony J. Drexel @ the S. E. Cor.
Chestnut & 5th Sts.
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These firms (D. & Co., D. M. & Co., & D. H. & Co.) have the same reputation, only in a larger degree,
which the late Francis M. Drexel, very early acquired, that of sound Conservative Judgement, & a
capacity for handling very great transactions, as it is well known to every reader of current events in the
world of Railroads and Finance.
Jos. W. Drexel, the youngest Son of F. M. Drexel, was never, I believe, a member of the Phila
15)
His sphere in life & his tastes led him in a different line, & he was well known both in Phila. & New York
for his excellent hospitality & refined taste in the fine arts & music, in the latter of which also his brother
Frank was well known.
It was Jos. W. Drexel who owned the cottage at Mount Mc Gregor where General U. S. Grant spent the
last few weeks of his life, & where the General died July 23rd 1886.
The cottage had been placed by Mr. Drexel at his disposal.
Jos. W. Drexel died March 25th 1888.
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The several Firms of “Drexel” have gone through the all the Commercial & Financial—panics that have
occurred since they first began their career & have never suspended, not only so, they aided many
friends at the time of these panics & by this timely aid they were carried safely through.
16)
In 1857 the several firms of E. W. Clark & Co. failed on the 3rd of October & reinstated themselves by
Jan. 1st 1858 again the Phila. Firm failed in Sept. 1873 and reinstated themselves in less than two (2)
months after, but the firm of Drexel & Co. have always gone through safely each and every financial
storm.—

Transcript of “Person Recollections of the Banking House of Drexel & Co.” by R. S. Russell, 1898
MC.00.071 John R. Drexel III and Alice Troth Drexel papers, 20150520148_001-019
Drexel University Archives
In concluding this “personal recollection” reference may very properly be made to a recent Act of
Anthony J. Drexel, in the building and endowment of our Industrial School, in West Phila. and which is
founded so strongly & has for its scape such a far reaching influence that will forever put his Name high
up on the Roll of Public benefactors. # The amount thus used for the Endowment & building
Equiptiment of the “Drexel Institute”
17)
was $1,500,000 and in this act, Mr. Drexel, most wisely became his own executor. It is amply provided
for, and to have also perpetual succession through succeeding generations. In this as well as in many
other acts, Mr. Drexel is rounding out his noble & illustrious Life, for he is now verging on the allotted
time of “three score and ten”—(but did not live to do so “JRD”) His personal habits have never been
extravagant but most regular & temperate & like his Father & two Brothers he has always been noted
for his unostentatious hospitality and his pure love for domestic life.— To those who have been
admitted to the privacy of his home life, and who have partaken of the hospitality there dispensed, the
beautiful picture has left a life long impression. It is not easy to
18)
obtain an entrance into this most beautiful domestic circle not into the full—confidence of its “Owner”
Those only are admitted who by steady growth & the steadfast adherence to all those traits of character
that form the basis of true nobility, are admitted, and the number of those are “Legion” and all find in
him the true Christian gentleman. One who by His acts plainly shows that He uses the fruits of a long &
eminently successful business Career as a good steward of his creator & his Redeemer, who said
“Inasmuch as ye have done it unto one of the least of these my brethren, ye have done unto me,” (Well
done then good & faithful servant, enter thou into the joy of the Lord. JRD)
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By R. S. Russell “There would be less outcry against millionaires, if there were more of them like A. J. D.
During his lifetime he gave millions to charity & education & his will provides for millions more.
19)
N. Y. Tribune. July 22 1893
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There would be less outcry against millionaires if there were more of them like Anthony J. Drexel.
During his lifetime he gave millions to charity and education and his “Will” provides for a like disposition
of millions more.—
[Wavey line]