August 3, 2003

Jewish Patriot of Revolutionary War

It is well known that the first Jews to settle in the new-world continent of North America - fleeing religious persecution at Recife, Brazil -- reached Dutch New Amsterdam (New York city) in 1654.

Not generally recognized are the crucial contributions of Haym (pronounced Hi-yeem) Salomon in the War For Independence from which was born the United States of America.

The dozen Jewish families seeking refuge were not well received. They were excluded from the militia and levied a tax for it instead.

Asser Levy pressed for the right to stand guard along with all other men at the stockade wall (today's Wall Street) stretching across the south end of Manhattan Island. Finally the alternative tax was abolished and Jewish men took their turns with enthusiasm.

Levy opened a butcher shop. When the Dutch surrendered New Amsterdam to the British in 1664 he became a prominent citizen of the colony renamed New York. A sprinkling of Jews helped settle the other British colonies - notably Philadelphia and Boston.

Thus, those of Judaic faith were intimately involved in the rising spirit of religious tolerance and personal liberty from which sprang a new nation of representative democracy.

A True Patriot

Salomon was a 30-year-old Polish immigrant to New York about 1770. He spoke eight languages fluently and was a successful financial broker and commodity trader. Thus, he had the trust and contacts to handle a wide range of financial transactions in those days when rapid verification of credit was impossible.

It is interesting that Salomon's contribution to the Revolutionary War is recorded on the CIA.gov official website:

"The same day that Nathan Hale was executed in New York, British authorities there arrested another Patriot and charged him with being a spy. Haym Salomon worked as a stay-behind colonial agent after General Washington evacuated New York City in Sept. 1776.

"Salomon was arrested in a round-up of suspected Patriot sympathizers and confined in an old sugar warehouse prison.

"Because he spoke several European languages, he was released to the custody of Gen. Von Heister, commander of Hessian mercenaries, who did not speak English. A German language interpreter was essential for the commissary procurement department.

"While in custody, Salomon induced a number of German troops to resign or desert.

"Eventually paroled, Salomon did not flee to Philadelphia as had many of his New York business associates. He resumed his brokerage business [and married Miss Rachel Franks].

"Salomon continued to serve as an undercover agent. He used his personal finances to assist American patriots held prisoner in New York.

"He was arrested again in August of 1778, accused this time of being an accomplice in a plot to burn the British fleet and to destroy His Majesty's warehouses in the city.

"Salomon was condemned to death for sabotage. While awaiting execution, he bribed his guard and escaped.

"This time, Salomon fled to Philadelphia. There he came into the open in the role for which he is best known - as an important financier of the Revolution.

"It is said that when Salomon died -- in bankruptcy -- in 1785 at age 45, the government owed him more than $700,000 in unpaid loans."

Rest Of Story

From other sources we learn details.

Salomon joined the Sons of Liberty shortly after the Battle of Lexington on April 19, 1776. He married Miss Rachel Franks in July 1777, and she bore him a son. She was a member of a distinguished Jewish, patriot family also closely involved in the Independence movement.  

In Sept. 1777, about a quarter of New York City buildings burned. Salomon was suspected of being involved and was sent to the Old Sugar House prison, a dilapidated warehouse. It had been abandoned because its roof leaked too badly for repair.

Autumn rains kept prisoners constantly wet and cold. Many died of exposure. Salomon contracted a bad chest cold, perhaps tuberculosis, and was sent to the Provost Prison, a maximum-security jail.

Inmates were crammed tightly into cells and tortured at the whim of the head jailer, one William Cunningham later hanged in Britain after being convicted of forgery. Salomon was finally released for lack of evidence.

 Salomon was again arrested in July 1778, charged with "espionage and encouraging desertions" among the Hessians. He was sentenced to hang and sent again to Provost Prison.

On the night before his execution, Salomon apparently bribed a guard with a few gold coins concealed in his clothing for such an emergency. He was allowed to "escape" via a bed sheet from a second floor window.

Under cover of darkness, Salomon passed through the British lines and made his way to Philadelphia. He arrived nearly penniless and without his wife and child. He later succeeded in bringing them to Philadelphia by "pay offs" to British authorities in New York.

The British seized his personal property and accounts receivable equal to $150,000 in today's money. He applied to Congress for a position but was refused - doubtless because the Congress had not even enough money to pay its own members or soldiers.

Salomon resumed work as a broker for French government officials in America providing supplies.

Crucial Contribution

Salomon's greatest contribution to the Revolution was not his covert work in New York. Rather, he helped rescue the Continental government from a self-inflicted financial disaster.

Because the central government could not levy taxes, and lacked a central bank to control the issuance of money, it printed paper money with abandon.

 From 1775 to 1779, Congress ordered the printing of $160 million in fiat money. As it neared bankruptcy, Congress in 1780 declared that 40 paper dollars would equal one silver dollar - giving rise to a description of worthless: "Not worth a Continental."  

Gold, tobacco, diamonds and other commodities - or foreign currencies -- became the medium of exchange. Robert Morris, the Continental government's Superintendent of Finance persuaded leading merchants to set up a bank and lend money to finance the war. It exhausted its capital quickly.

Morris then appointed Salomon to be "Broker to the Office of Finance." It was just in time. The victory at Yorktown Oct. 19, 1781, required immediate financial resources to pay ongoing expenses and pay off the most pressing war debts.  

The British still occupied New York, and a peace agreement was not signed until a year later.

Morris was criticized for placing a private financier in so sensitive position of government money management. Nevertheless, Morris defended the appointment saying, "I can not see any disadvantage ... but the reverse."

He wrote in his diary of July 26, 1782: "Haym Salomon respecting exchange: My anxiety to provide for the regular discharge of the Paymaster General's notes -- which fall due the first of August  -- occasions very frequent consultations on this subject because I wish to preserve the Exchange, and I am in great want of the money."

In other words, Morris needed to sell bonds to raise cash for immediate bills.

In another entry, Morris wrote: "Sent for Mr. Haym Salomon several times this day to assist me in raising money."

Salomon advertised in Philadelphia newspapers that he would personally make good any check he had guaranteed, that had not been honored by the French government.

He also loaned money to several important officials to tide them over until bond money came in. James Madison wrote a friend:

"I have for some time been a pensioner on the favor of Haym Salomon, a Jew broker."

On another occasion, Madison wrote: "The price of money is so usurious that he (Salomon) thinks it ought to be extorted from none but those that aim at a profitable speculation. To a necessitous delegate, he gratuitously spares a supply from his own stock."

Post Script

According to Jews For Preservation of Firearms Ownership, Inc., Haym Salomon's commitment to freedom did not end with the conclusion of the Peace of Paris.

In 1784 he enrolled in the Pennsylvania militia, Capt. Joseph Greenaway's Company, Philadelphia County.

Haym Salomon at age 45 died of tuberculosis Jan. 5, 1785, leaving a widow Rachel and four infant children.

Contrary to myth, he was only technically bankrupt - his assets being slightly less than his debts. Had he lived, some of his investments probably would have increased in value.

Author: Lindsey Williams

Cutlines

1 - sketch portrait- looking right

Engraving courtesy CIA

[ Haym Salomon, Jewish patriot of War For Independence, and a commodity broker who spied for the newly formed United States of America, devoted his own resources to the struggle for freedom before he died nearly bankrupt. ]

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2 -  burning buildings

Engraving courtesy mrsedivy.com

[ The Great Fire of 1777 burned a quarter of New York City occupied by British and Hessian soldiers. The British blamed Haym Salomon and other extremists. Gen. George Washington thought "some honest fellow" might be responsible. It likely was accidental.]

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3. portrait, looking forward

Portrait courtesy Smithsonian Institution  

[ Robert Morris, a prominent Philadelphia banker, signed the Declaration of Independence and was elected Superintendent of Finance for the Continental Congress. As bankruptcy loomed, he appointed Haym "Broker to the Office of Finance."

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4. Assorted views of Philadelphia during Revolutionary War.

Use as needed.

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