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Deadbeat Fleeced Financiers, Famous Madam: Lewis Lapham

Born into a rich English family, William Duer settled in New York in 1769. By 1780 he was worth almost $2 million and was socially well-connected: George Washington gave his bride away.

(To listen to the podcast, click here.)

In 1792, though, Duer voluntarily entered the New Gaol, a debtor’s prison in downtown New York, to escape his creditors. He had borrowed money to corner the market on U.S. bonds and couldn’t cover his losses.

In addition to his prominent associates, Duer had hit up shopkeepers, widows, orphans, butchers and even the famous bawd Mrs. Macarty. All were ruined.

For days, an angry crowd gathered outside the prison, cursing Duer, threatening vengeance, throwing stones and rioting. With his fall, a financial panic ensued, the nation’s first, with Duer the most reviled deadbeat.

I spoke with Scott Reynolds Nelson, author of “A Nation of Deadbeats: An Uncommon History of America’s Financial Disasters,” on the following topics:

1. Consumer Debt

2. Periodic Crashes

3. Unsteady Borrowers

4. Shady Operators

5. Birth of Democrats

To buy this book in North America, click here.

(Lewis Lapham is the founder of Lapham’s Quarterly and the former editor of Harper’s magazine. He hosts “The World in Time” interview series for Bloomberg News.)

To contact the writer on the story: Lewis Lapham in New York at lhl@laphamsquarterly.org.

To contact the editor responsible for this story: Manuela Hoelterhoff at mhoelterhoff@bloomberg.net.

'A Nation of Deadbeats'

"A Nation of Deadbeats: An Uncommon History of America's Financial Disasters" is written by Scott Reynolds Nelson. Source: Alfred A. Knopf via Bloomberg

Audio Download: Deadbeat Fleeced Top Financiers, Famous Madam
Enlarge image Scott Nelson

Scott Nelson

Scott Nelson

Alfred A. Knopf via Bloomberg

Scott Nelson is the author of "A Nation of Deadbeats: An Uncommon History of America's Financial Disasters."

Scott Nelson is the author of "A Nation of Deadbeats: An Uncommon History of America's Financial Disasters." Source: Alfred A. Knopf via Bloomberg

Enlarge image Lewis Lapham

Lewis Lapham

Lewis Lapham

Paul Goguen/Bloomberg

Lewis Lapham, of "Lapham's Quarterly," in New York.

Lewis Lapham, of "Lapham's Quarterly," in New York. Photographer: Paul Goguen/Bloomberg

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