New York’s Historical Fires: The Story of Haim Salomon

New York faced devastation once more.

On a warm August night in 1778, strong winds swept inland from the harbor, fueling a significant fire in lower Manhattan, particularly near Kruger’s Pier. Approximately 50 homes were engulfed in flames, leaving a city already marred by war and suspicion in greater distress. Historical accounts suggest that the chaos was worsened by British officers trying to take control of the local firefighting efforts, which only multiplied the feeling that the British were losing their grip on the city.

The British grew convinced that the fires plaguing occupied New York were the handiwork of American agents. This belief developed following the Great Fire of 1776, which had wreaked havoc just days after the British took control. In August 1778, another significant fire broke out, prompting British General Henry Clinton to detain a man suspected of receiving orders from General Washington to sabotage the British fleet. The British claimed they were acting on intelligence that they interpreted as a direct threat to their resources.

The man in question was Haim Salomon.

It’s difficult to determine whether Salomon was involved in the Kruger’s Wharf fire. The timing raises eyebrows, certainly. The fire erupted on August 3rd, while Salomon left New York just a week later, on August 11. His supposed crimes included instigating fires targeting British ships and warehouses. Records from the time leave us without a resolution, but they allowed British officials to brand him not just as a merchant or broker, but as a dangerous patriot operating in hostile territory.

Salomon wasn’t a stranger to trouble with the British. Two years prior, during the tumultuous September of 1776, he faced arrest as a spy and found himself locked up in the infamous Provost Prison. That month saw numerous fires devastating New York. The Great Fire of 1776 broke out shortly after British troops entered the city, obliterating hundreds of structures while the military blamed Patriot saboteurs.

He was arrested on two occasions and both incidents coincided with particularly destructive wartime fires. The latter arrest was notable for the accusation involving a plot hinting at the desire to ignite the British fleet and decimate British supplies.

Imprisoned and harshly treated, Salomon received a death sentence but managed to escape, reportedly through substantial bribes, as he later communicated to his brother-in-law, Major Franks. He fled to Philadelphia and, along the way, significantly influenced the course of the American Revolution with his financial dealings.

Born around 1740 in Leszno, within the Polish-Lithuanian Commonwealth, Haim Salomon came from a prosperous Jewish family. He arrived in the American colonies in the early 1770s and first appeared in records in 1776, when he served as an interpreter for the New York State Assembly. Soon after, he joined the Sons of Liberty, launched a business, and contributed to the Patriot cause, alarming the British enough to warrant his second arrest.

After escaping the death penalty in August 1778, Salomon had his property confiscated, causing him to relocate to Philadelphia, leaving behind his family.

Remarkably, he rebuilt his life quickly. By 1781, when the Continental Congress appointed Robert Morris as the financial director charged with ensuring the revolutionary government didn’t falter under debt, Salomon became one of his most crucial intermediaries. By July 1782, he advertised himself as a “Treasury Broker.” He played a pivotal role in transforming French subsidies, Dutch loans, and public credit into the funds necessary to sustain the army and supply the revolution.

The mechanics of this were less glamorous than legend suggests but still impressive. Salomon engaged in trading bills of exchange and provided advances against government notes while keeping his proceeds in the Bank of North America. At Morris’s urging, he conducted trades with minimal commissions—half a percent, which was remarkable for the time—understanding that he was not just a trader but a lifeline for a beleaguered government.

He also reached into his own pockets. James Madison, in a letter from Philadelphia in 1782, admitted he was “for some time a pensioner, courtesy of Haim Salomon.” Madison later noted that Salomon generously refused any compensation, believing that the cost of money shouldn’t be exploited by anyone but those looking for profitable gains. He helped delegates in need, often selflessly.

Other Congress members echoed Madison’s sentiments. An inquiry revealed that Salomon had privately supported key figures like Thomas Jefferson and James Monroe, who said they couldn’t have held their positions without his help. He enabled the revolutionary government’s connections to Spain, ensuring ongoing covert support for the American cause.

While myths sometimes exaggerate his contributions, the truth remains that he wasn’t the sole treasury figure; Robert Morris played a vital role, too. Various financial means—including foreign aid and military contributions—were essential. Yet Salomon held a significant position in sustaining the revolution’s financial health, functioning as a reliable intermediary in a time of uncertainty.

Salomon passed away in Philadelphia on January 6, 1785, around the age of 45, after a prolonged illness. His family believed his health deteriorated due to the hardships he faced in England. Local newspapers remembered him as a skilled and generous mediator. He was buried the next day in the cemetery of Congregation Mikveh Israel.

He left behind a wife who spoke little English, four young children, and a legacy that showcased his commitment to a nation still forming. An inventory filed in court detailed official securities, totaling significant sums, yet these funds were never actually redeemed or accounted for under the previous or the newly established governments.

His descendants petitioned Congress for years, asserting the validity of their claims, but unfortunately, the debt owed to the Salomon family was never repaid.

Calvin Coolidge, speaking in Washington in 1925, ultimately recognized Salomon’s contributions, stating, “There is romance in the story of Haim Salomon, the Polish Jew who financed the revolution.” Coolidge highlighted Salomon’s loans to key leaders and emphasized that without his assistance, the American cause may not have endured.

As a Polish-born Jewish immigrant, Salomon endured great peril, twice imprisoned by the British, yet he managed to keep the spirit of American freedom alive during trying times.

As we celebrate America’s 250th anniversary, let us honor Salomon’s sacrifices for our young nation.