How Did The Credit Mobilier Scandal

The Credit Mobilier scandal occurred in 1872 to 1873 and destroyed many careers of several politicians. Stockholders formed a railroad company, and the Credit Mobilier. They built railroads and sold the shares and even gave them away to congress man, to insure they wouldn’t be shut down or voted against. They also gave cash bribes to congress men to be more confident in not being shut down. During this time Ulysses Grant was in office and this was was of his major events during his presidency. Not only did the government have a mojor part of building this railroad and allowing it to be built but also gave the construction company loans. Later when all the loans were added up it totaled up to $50 million. Oak Ames, a member of congress, who

Thus, Native Americans registering on a tribal "roll" were granted allotments of reservation land. Each head of family would receive one-quarter of a section; each single person over 18 or orphan child under 18 would receive one-eighth of a section; and other single persons under 18 would receive one-sixteenth of a section.” What the Whites were trying t do was make the Native Americans more like the white culture. Meaning they tried to educate and Christianize the Indians. This was also meant to try and help the Indians get out of poverty. Finally, in the early 20th century this law was reversed giving each tribe their land back instead of keeping it individually. But the land that was excess during the law was sold and was never given back to the natives which cause many problems and little

This was caused by two men, Jay Gould and James Fisk. While the reconstruction era was occurring the government issued a lot of public debt, mostly to the finance construction. They issued fiat greenbacks or a Demand Notes, which the government said they would redeem for gold later in the future. The two men mentioned earlier James Fisk and Jay Gould thought this would be a great time to corner the gold market. They hired a financer named Abel Corbin who they used to argue with the government about the selling of gold. In 1869 Gould started buying large quantities of gold, which he never sold, he did this so the prices of gold would rise but the stocks would drop like crazy. Since they were hording gold the prices rose by 30% higher then when grant first took office as the treasurer. But when gold was being sold again the premium dropped within minuets so stock holder sold out quickly even though most of them were ruined including Corbin. Once the investigation happened it caused a lot of drama. Since Grant wasn’t directly linked to Gould and Fisk he still go in trouble for manipulating the stocks of gold. There is another part of the Black Friday scandal, and its about the buying of slaves after thanksgiving. It was said that the day after thanksgiving Plantation owners could buy slaves at a discounted price. But even though this may be true it has no correlation