Salem Smugglers’ Tour in Full Swing for the Season!!!

The Tour Based on Salem Secret Underground and the New Hit Book Sub Rosa…

Chris Dowgin tour guide of Salem Smugglers' Tour.

Your Guide and Author Chris Dowgin.

Salem Smugglers’ begins its Spring season for 2017 with a tour of 40 on Cinco de Mayo.  We are off to a good start as long as the rain holds out… Come on the only tour that highlights the inventions, politicians, pirates, bankers, and the tunnels that shaped American history. Tales of the murder that inspired the game Clue, 3 unaccounted presidential assassinations, the attempted creation of the third bank of the United States, George Peabody the founder of JP Morgan and his cycle of economic collapses that happen every 20 years, tales of the tunnels, the history of the biggest opium dealer in the country, and much more!

So before you come on our tour, read Salem Secret Underground: The History of the Tunnels in the City and Sub Rosa which is written by your tour guide Chris Dowgin. At the end of the tour, he would love to sign your book and give you a personalized doodle inside the front cover. Books available in many locations in Salem, Barnes & Noble, and Amazon.com.

So book your tour today at the Salem Smugglers’ Tour or at 192 Essex Street at Angelica of the Angels.

More than Witches!!!

So How Does the Federal Reserve Work

George Peabody in Salem MA

How is Your Money Made….

 Do You Know Jack ….?

  The U.S. Treasury looks for loans by selling Treasury Bonds Bills, Notes, and Securities. They sell these to primary dealers. A primary dealer is a bank or securities broker-dealer who can  trade directly with the Federal Reserve after purchasing Treasury Bonds or Securities or sell them to the public. They also make bids or offers on open market operations and provide information to the Fed’s open market trading desk. They consult with U.S. Treasury and the Fed about the budget deficit and implementing monetary policy. Primary dealers can work at the Treasury because of their expertise in the government debt markets, but the Federal Reserve avoids a similar revolving door policy.

  The trading between primary dealers, called inter-dealer trading.  Located on floors 101 to 105 of One World Trade Center was Cantor Fitzgerald, the single largest inter-dealer broker, who alone controlled 25% of the volume in securities. On 9-11 $500 billion in repos and $80 billion in securities had been traded but the settlement instructions were burned Fed regulators worked many long, over-time hours to accomplish to salvage records of these sales.

   All of the top ten dealers in the foreign exchange market are also primary dealers, and between them account for almost 73% of foreign exchange trading volume. Who are the primary dealers whose job is to distribute U.S. Debt? Daiwa Securities and Mizuho Securities distribute the debt to Japanese buyers. BNP Paribas, Barclays, Deutsche Bank, and RBS Greenwich Capital (a division of the Royal Bank of Scotland) distribute the debt to European buyers. Goldman Sachs, and Citigroup account for many American buyers. Most of these firms compete internationally and in all major financial centers. Citigroup was First City National Bank which was influential in the early formation of the Federal Reserve during the period of Stillman and Fifi’s divorce years. After the 2008 Financial Collapse the Federal Reserve set up the Primary Dealers Credit Facility (PDCF), whereby primary dealers could borrow at the Fed’s discount window using several forms of collateral including mortgage-backed loans.

  The Primary Dealers today are:

  • Bank of Nova Scotia, New York Agency
  • BMO Capital Markets Corp.
  • BNP Paribas Securities Corp.
  • Barclays Capital Inc.
  • Cantor Fitzgerald & Co.
  • Citigroup Global Markets Inc.
  • Credit Suisse Securities (USA) LLC
  • Daiwa Capital Markets America Inc.
  • Deutsche Bank Securities Inc.
  • Goldman, Sachs & Co.
  • HSBC Securities (USA) Inc.
  • Jefferies LLC
  • J.P. Morgan Securities LLC
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated
  • Mizuho Securities USA Inc.
  • Morgan Stanley & Co. LLC
  • Nomura Securities International, Inc.
  • RBC Capital Markets, LLC
  • RBS Securities Inc.
  • SG Americas Securities, LLC
  • TD Securities (USA) LLC
  • UBS Securities LLC
  • Wells Fargo Securities LLC

   J.P. Morgan and Morgan Stanley & Co. continue George Peabody’s tradition today selling state securities abroad. They also follow his steps to make a perfect panic. Both corporations were fined for orchestrating the 2008 Financial Scandal among other crimes recently. The largest fine only equaled about 13% what they could make in one year.

  The Bank of Nova Scotia is rumored to have been robbed after September 11th when World Trade Center Building 4 was compromised. The long tunnel that was converted over from a PATH way that serves as its entrance was in the film Die Hard 3. Although in the film it was the Federal Reserve NY branch and New York City Water Tunnel #3.

  Wells Fargo is owned by Kuhn, Loeb & Co. and linked by the Schiffs  to N.M. Rothschild & Sons.

  Who prints the Federal Reserve notes? Crane & Company. Winthrop Murray Crane was an advisor to Presidents Theodore Roosevelt and William Howard Taft, and served as a political mentor to Calvin Coolidge who gave his firm the contract.

  Stephen Crane was the first in the Crane family to make paper. “The Liberty Paper Mill” opened  in 1770. They sold currency-type paper to engraver Paul Revere, who printed the American Colonies’ first paper money.  Crane embed parallel silk threads in banknote paper to denominate notes and prevent counterfeiting in 1844. In 1879, Crane grew when Winthrop M. Crane won a contract to deliver U.S. currency paper to the Bureau of Engraving and Printing in Washington, D.C. In 1922, Crane & Co. incorporated, with Frederick G. Crane elected as president. Dixon also came up with an anti counterfeiting practice.

  What is the discount window and how do banks profit?

  When the government needs money for their budget they print Treasury Bonds, Bills, and Notes. The Primary Dealers buy them and sell them to the Federal Reserve, other nations, and large corporations.  At other times the Federal Reserve sells the securities to the Primary Dealers.  The Primary Dealers buy them from Treasury Automated Auction Processing System (TAAPS).  The dealers who bid on the largest amount of the debt with the lowest yield wins the portion they bid on. They then sell these to the Federal Reserve at a higher yield.

   Then the Federal Reserve prints new money and digitally increase their accounts. They then lend this money to banks throughout the nation at a higher yield. On top of that they hold 10% of all the money they sell to the banks. Example…The Federal Reserve prints up $10 billion in new bills, and they credit an additional $90 billion in readily liquefiable accounts. So you think it stops there with $100 billion, but you would be wrong…

  Now all of that extra $100 billion enters banking reserves. So your bank borrows a million. They now have $900,000 to lend out. Ten percent of what they borrowed is held by the fed who pays them 2.5% interest. Yes the Fed pays your bank 2.5% interest for borrowing money. Now your bank makes more money that enters circulation. They can lend out $10 million. So if they issue you a loan and you make a purchase, the buyer receives the money from the bank and now it enters circulation when they make purchases. So, in a fractional reserve banking system, like the Fed, new loans actually create even more new money. With a legally reserve ratio of 10%, the new $100 billion in bank reserves could potentially result in a nominal monetary increase of $1 trillion by all the banks lending out 10 times the money they borrowed.

  Then you have inflation. It only starts with the government spending more than they receive in taxes and other funds. They are like the fleas on Norwegian Brown Mice that bite you, the Federal Reserve and the bankers are the ones who really spread the plague.

  It is a slight of hand. The government didn’t raise your taxes, it just stripped your buying power of every dollar. Every year it gives you an invisible pay cut. Crafty fingers are no longer needed to pick pocket you.

   So who owns the debt? Well there is public debt and intergovernmental holdings. On November 7, 2016, debt held by the public was $14.3 trillion or about 76% of the previous 12 months of GDP.  Of that debt 55% is held by state and local pensions and mutual funds. The remaining 24% is held by foreign government and investors. $1.5 Trillion is held by China and $1.25 Trillion is held by Japan. Third is Ireland who owns $271 million. Go figure the Cayman Islands is fourth. Brazil is Fifth and the United Kingdom is 8th.

  The Bank of England’s plan escaped them? The nation they fought during the Opium War usurp them in holdings of our national bank.  Well Americans sold a lot of Opium to them too, but in truth it probably was the old New England shipping families and bankers who continued their trade of shipping goods over manufacturing that have did us in.

  The yield on 10 year Treasury Notes set the Federal Fund Rate that sets the PRI or Primary Rate Interest for banks. Also there is overnight and 9 month lending through the Discount Window. Depending on a bank’s liquidity and trust they can borrow at the primary or secondary credit rate. The Primary Rate is 1% higher than the Federal Fund Rate. A bank borrows from the Federal Reserve overnight to remain liquid during internal or external disturbances like transferring money between their internal accounts and external accounts with other banks. So say a bank borrows $10 million overnight the Federal Reserve can create $100 million more until the debt is paid.  Also banks can borrow at a seasonal rate which is closer to the Federal Fund Rate for a week or 30 days. Plus the Discount Window can act as lender of last resort during emergencies to prevent bank runs.

   Repos? The Federal Reserve buys $1 billion repo to inject reserves today from a bank to pay back tomorrow. Under such arrangement the bank promises to buy it back. So imagine they borrow $1 Billion, another one tomorrow and an additional one the next day, $3 billion will have been injected, but $2 billion will have expired by the third day.  Bank reserves are only $1 billion above previous levels, since the first repurchase agreement expired on the second day, the second one expired on the third day and so on.

  So in short that is how money is created out of thin air.

To find out more and other fabulous stories about how Salem, MA shaped American History read Sub Rosa by Christopher Jon Luke Dowgin published by Salem House Press.

Limited Collector’s Preview Edition

Sub Rosa The Sequel to Salem Secret Underground: The History of the Tunnels in the City

 

Don’t miss your opportunity to get these rare copies. Be the first to find a typo, a smudge, or a section of type that might not make it to the final copy of the book. Strange as it sounds, people love the books in which they can find a flaw.

Do know any copies bought on Amazon.com within the next two weeks will be the Advance Readers Editions which would have these limited errors. Then after the next two weeks, everyone gets the same book. The next million copies will be the same. Yes I did say Advance Reader’s Editions!  In the next two weeks, I might upload three or four revisions. So you might get lucky and purchase the one and only printing of that revision…

It is the luck of the draw and you only have two weeks from the date this post was…posted. Read the latest posts in our blog to get a taste of the stories in the book. So Good Luck and enjoy the book!

Click Here to Get Your Copy Now!

Cover to the book Sub Rosa which is about Tunnels in Salem and those who built them.

How the Federal Reserve Work? I Bet You Don’t Know…

Federal Reserve

So how does the Federal Reserve work?

The U.S. Treasury looks for loans by selling Treasury Bonds Bills, Notes, and Securities. They sell these to primary dealers. A primary dealer is a bank or securities broker-dealer who can trade directly with the Federal Reserve after purchasing Treasury Bonds or Securities or sell them to the public. They also make bids or offers on open market operations and provide information to the Fed’s open market trading desk. They consult with U.S. Treasury and the Fed about the budget deficit and implementing monetary policy. Primary dealers can work at the Treasury because of their expertise in the government debt markets, but the Federal Reserve avoids a similar revolving door policy.

The trading between primary dealers, called inter-dealer trading. Located on floors 101 to 105 of One World Trade Center was Cantor Fitzgerald, the single largest inter-dealer broker, who alone controlled 25% of the volume in securities. On 9-11 $500 billion in repos and $80 billion in securities had been traded but the settlement instructions were burned Fed regulators worked many long, over-time hours to accomplish to salvage records of these sales.

All of the top ten dealers in the foreign exchange market are also primary dealers, and between them account for almost 73% of foreign exchange trading volume. Who are the primary dealers whose job is to distribute U.S. Debt? Daiwa Securities and Mizuho Securities distribute the debt to Japanese buyers. BNP Paribas, Barclays, Deutsche Bank, and RBS Greenwich Capital (a division of the Royal Bank of Scotland) distribute the debt to European buyers. Goldman Sachs, and Citigroup account for many American buyers. Most of these firms compete internationally and in all major financial centers. Citigroup was First City National Bank which was influential in the early formation of the Federal Reserve during the period of Stillman and Fifi’s divorce years. After the 2008 Financial Collapse the Federal Reserve set up the Primary Dealers Credit Facility (PDCF), whereby primary dealers could borrow at the Fed’s discount window using several forms of collateral including mortgage-backed loans.

The Primary Dealers today are:

  • Bank of Nova Scotia, New York Agency
  • BMO Capital Markets Corp.
  • BNP Paribas Securities Corp.
  • Barclays Capital Inc.
  • Cantor Fitzgerald & Co.
  • Citigroup Global Markets Inc.
  • Credit Suisse Securities (USA) LLC
  • Daiwa Capital Markets America Inc.
  • Deutsche Bank Securities Inc.
  • Goldman, Sachs & Co.
  • HSBC Securities (USA) Inc.
  • Jefferies LLC
  • J.P. Morgan Securities LLC
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated
  • Mizuho Securities USA Inc.
  • Morgan Stanley & Co. LLC
  • Nomura Securities International, Inc.
  • RBC Capital Markets, LLC
  • RBS Securities Inc.
  • SG Americas Securities, LLC
  • TD Securities (USA) LLC
  • UBS Securities LLC.
  • Wells Fargo Securities LLC.

J.P. Morgan and Morgan Stanley & Co. continue George Peabody’s tradition today selling state securities abroad. They also follow his steps to make a perfect panic. Both corporations were fined for orchestrating the 2008 Financial Scandal among other crimes recently. The largest fine only equalled about 12% what they could make in one year.

The Bank of Nova Scotia is rumored to have been robbed after September 11th when World Trade Center Building 4 was compromised. The long tunnel that was converted over from a PATH way that serves as its entrance was in the film Die Hard 3. Although in the film it was the Federal Reserve NY branch and New York City Water Tunnel #3.

Wells Fargo is owned by Kuhn, Loeb & Co. and linked by the Schiffs to N.M. Rothschild & Sons.
Who prints the Federal Reserve notes? Crane & Co. Winthrop Murray Crane was an advisor to Presidents Theodore Roosevelt and William Howard Taft, and served as a political mentor to Calvin Coolidge received the contract to print them.

Stephen Crane was the first in the Crane family to make paper. “The Liberty Paper Mill” opened in 1770. They sold currency-type paper to engraver Paul Revere, who printed the American Colonies’ first paper money. Crane embed parallel silk threads in banknote paper to denominate notes and prevent counterfeiting in 1844. In 1879, Crane grew when Winthrop M. Crane won a contract to deliver U.S. currency paper to the Bureau of Engraving and Printing in Washington, D.C. In 1922, Crane & Co. incorporated, with Frederick G. Crane elected as president. Dixon also came up with an anti counterfeiting practice.

What is the discount window and how do banks profit?

When the government needs money for their budget they print Treasury Bonds, Bills, and Notes. The Primary Dealers buy them and sell them to the Federal Reserve, other nations, and large corporations. At other times the Federal Reserve sells the securities to the Primary Dealers. The Primary Dealers buy them from Treasury Automated Auction Processing System (TAAPS). The dealers who bid on the largest amount of the debt with the lowest yield wins the portion they bid on. They then sell these to the Federal Reserve at a higher yield.

Then the Federal Reserve prints new money and digitally increase their accounts. They then lend this money to banks throughout the nation at a higher yield. On top of that they hold 10% of all the money they sell to the banks. Example…The initial expansion of deposits and reserves will lead to an expansion of 10 times $10 million because each dollar of reserves will support roughly 10 times that amount in deposits. So now there is $100 million more in circulation.
When your bank receives the other 90% of the money ($90 million) they borrowed they lend it to you at a higher yield. They credit your account and when you make a purchase the money is circulated. So in this example the Federal Reserve has made magical money that grows on trees. They start with $10 million they owe interest on and turn it into more than $100 million. Impressive…

Well now your bank can lend 90% of what they borrowed to other banks and those banks can lend 90% of that amount, and so on….

Then you have inflation. It only starts with the government spending more than they receive in taxes and other funds. They are like the fleas on Norwegian Brown Mice that bite you, the Federal Reserve and the bankers are the ones who really spread the plague.
It is a slight of hand. The government didn’t raise your taxes, it just stripped your buying power of every dollar. Every year it gives you an invisible pay cut. Crafty fingers are no longer needed to pick pocket you.

So who owns the debt? Well there is public debt and intergovernmental holdings. On November 7, 2016, debt held by the public was $14.3 trillion or about 76% of the previous 12 months of GDP. Of that debt 55% is held by state and local pensions and mutual funds. The remaining 24% is held by foreign government and investors. $1.5 Trillion is held by China and $1.25 Trillion is held by Japan. Third is Ireland who owns $271 million. Go figure the Cayman Islands is fourth. Brazil is Fifth and the United Kingdom is 8th.

To find out more and other great stories from Salem and how that little city shaped America read Sub Rosa which is available at Barnes & Noble, Amazon.com, and your local bookseller!

Salem Secret Underground and The Salem Smugglers’ Tour

Chocolate and Peanut Butter

Chris Dowgin Leading the Salem Smugglers' Tour

So what is down there? Within the pages of the book Salem Secret Underground: The History of the Tunnels in the City I tell you. The book is filled with pictures of the tunnels in the city. On the Salem Smugglers’ Tour I take you where the photos were taken and show you them on my tablet while going over the history of the people who built them.

So are any of these smugglers important today, or even then? Well lets take a look…

Joseph Story Smuggler in Salem MA

Man who shaped the Constitution, Associate Supreme Court Justice Joseph Story.

George Peabody in Salem MA

George Peabody orchestrated several economic panics with Rothschild in England. His bank is now called JP Morgan which orchestrated the 2008 Financial Collapse.

 

Timothy Pickering in Salem MA

Timothy Pickering was Secretary of State for Washington and Adams. He wrote the Alien & Sedition Acts which are now very similar to Homeland Security and the Patriot Act.

So these men were the politicians who shaped our country. Pickering was Washington’s general and Secretary of State who helped ratify the Constitution. Joseph Story shaped the Constitution with Daniel Webster. Both were in Stephen White’s pocket defending the Second Bank of the United States and their attempts to create what we call the Federal Reserve today. George Peabody founded the Rockefeller Foundation, sold the majority of shares in our national bank to foreign investors, collapsed our economy several times, founded what became JP Morgan bank, and bailed out the local museum which was renamed after him. He owned the Eastern Railroad that built the Gothic railroad station in town.

Elias Hasket Derby Jr.

Elias Hasket Derby Jr. spent the 10th Largest fortune in American history and extended 3 miles of tunnels in town.

 

Elias Hasket Derby

Elias Hasket Derby America’s first millionaire and tenth richest man in American history.

Who else? Elias Hasket Derby was America’s first millionaire and the tenth richest man in American history to this day. Beyond Gates and Buffet put together. He built a tunnel from his wharf, to his home, and to his cousin’s Hodges house who founded the Peabody Essex Museum. His son Eias Hasket Derby Jr. who extended the tunnels so 159 politicians and businessmen could avoid paying Jefferson’s duties. Thomas Perkins who’s opium empire spurred on the wealth of the Forbes, Russells, and Sturgis families. In fact the Russells purchase his land in New Haven and erect the Skull & Bones crypt on it. Russell will create the fraternity with Alphonso Taft who is President Taft’s grandfather.

How do I know these tunnels exist? Because I have been in them!

Chris Dowgin in Tunnel in Salem MA

Chris Dowgin in Tunnel in Salem MA

Chris Dowgin in Tunnel in Salem MA

Chris Dowgin in Tunnel in Salem MA

Chris Dowgin in Tunnel in Salem MA

Can I get you in…no! One day though so keep checking back, but for now there is so much more about this tour than witches. Stuff that still effects you today! Plus the tour is filled with vintage photos of town from the 1800’s, old car crashes, comedy, ghost stories and a famous murder!!!

40731 10202387671025682 East_India_Marine_Hall_3 Essex_Street_Mud_Puddle_Toys Original Almy's next to Pamplemousse 10202387802188961

Also you will learn how Stephen White who had the East India Marine Hall in the Peabody Essex built got away with murdering his uncle with the involvement of Supreme Court Justice Joseph Story and Secretary of State Daniel Webster. A murder that empowered them to murder presidents Harrison and Taylor to secure the Third Bank of the United States so George Peabody could sell more of our country away to the Rothschilds.

President Taylor. Second to president to be murdered because of the Third Bank of the United States.

President Taylor. Second president to be murdered because of the Third Bank of the United States.

 

President Harrison. Murdered by people in Salem.

President Harrison. The first president murdered by people in Salem.

Daniel Webster Murdered Two Presidents.

Daniel Webster who murdered two presidents in a failed attempt to create the Third Bank of the United States.

Here are some of the cool tunnels in Salem you will see in the book and on the tablet on the tour.

Crypts

Green-House-Tunnel-Stairs2

DSCN0255

From_Street

Registry_Tunnel

20140801_181704

Downing_Block_Me_Jail_Cell_Door2

Door that led to compartments runaway slaves could sleep in on the tunnel route in Salem, MA.

13.Downing_Block_Jail_Cell_Door2

Joshua_Ward_House_Far_Left_Tunnel_edited

Tunnel_Between_Buildings_Front

So book a tour today at http://www.salemtunneltour.com and head over to Barnes & Noble to buy Salem Secret Underground: The History of the Tunnels in the City. If you buy the book on the tour you will save $5 and will have it signed and doodled in by the author for no extra cost! What a deal!!

East India Marine Hall and the Man Who Killed a President

Mysteries of the Museum

East India Marine Hall and the Peabody Essex Museum Salem MA

 

East India Marine Hall

161 Essex Street

Built in 1825. Stephen White was the current president of the Salem East India Marine Society Incorporated them as a LLC and had his mason William Roberts build it. The Salem East India Marine Society was founded in 1799 by supercargoes and ship captains who have rounded the Cape of Good Hope and Cape Horn. The hall would be built across from Stephen White’s boyhood home and counting house. Benjamin Hodges was the society’s first president as well as master of the Essex Lodge. The museum was incorporated in 1801 to house objects gathered by their members from their sea voyages to create a museum of curiosities. Upon the East India Marine Hall’s opening John Quincy Adams presided over banquet. On the first floor was Stephen White’s Asiatic Bank, the post office, and Stephen White’s the Oriental Insurance Company. In 1867 the hall was refitted by donations from George Peabody who was the London banker in business with J.P. Morgan’s father.

George Peabody

Stephen White would murder his uncle under his blessings and blame the murder on the sons of two business partners that insulted his uncle. Stephen would then go on to see the murder of President Harrison after he denied to create the Third Bank of the United States. Only to die 3 days later himself. In 1867 the museum was bailed out by another gentleman who wanted to see the Third Bank of the United States created, George Peabody. He had previously sold several shares to the Rothschilds, Brown Brothers, and the Bank of England in the Second Bank of the United States that Jackson destroyed. In response to Jackson not renewing the charter Peabody worked with Rothschild to create the 1837 Panic.

10202461514351719

The Essex Historical Institute, The Essex Natural History Museum, East India Marine Museum, and the Peabody Academy of Science have been combined to make the Peabody Essex Museum. The hall has been added onto from 1885 to 2000 on various sides. In 2013 it saw another retrofit. The museum now holds collections of Chinese, Korean, Japanese, Oceanic, Indian, and Native American art along with collections of portraits, furniture, and maritime history from Essex County. For over 300 years this society has been collecting things from around the world. They have vaults in basements and subbasements under the East India Marine Hall and the Armory. I do not believe we will ever see the true extant of their collections. What fabulous items have they smuggled through the tunnels from the sea? There is rumors they have the Romanov crown jewels, Blackbeard’s skull, religious artifacts, and magical items from around the world are stored in their vaults. Soon they will be opening a tunnel from the Essex Institute to the Armory once more to move items through.

Blackbeard's skull-Cup at the Peabody Essex Museum Salem MA
10202387701186436

East_India_Marine_Hall_and_general_view,_by_H._P._Ives

Essex_Institute_Gallery

Essex-institute-historical-museum-and-picture-gallery-salem-mass

Get the book everyone digs before its sequel comes out!
Salem Secret Underground:The History of the Tunnels in the City!
Available at Barnes & Noble, Remember Salem, and Wicked Good Books in Salem on Essex Street. Also on Amazon.com!

Armory in Salem MA

Burning Religion

Salem Armory

Armory of the Salem Cadets

136 Essex Street

This was the residence of Col. Francis Peabody built in 1818 on portion of Governor Simon Bradstreet’s estate. Originally this home was built by Captain Joseph Peabody for his son Joseph Augustus. The Peabody’s house was the front section of the armory which has since been demolished and a park has been erected in its place. In 1890 the Stephen Abbot Associates of Cadets purchased the house and added the drill shed which is 86 feet long by 9 feet wide. The Second Corps of Cadets first commander was Stephen Abbott in 1786. This corps would train several officers for the military. The portion of the armory in Peabody’s house had a fine banquet hall which entertained Prince Arthur of England upon the death of London banker George Peabody in 1870. George Peabody formed the banking firm of George Peabody and Company which would later merge with Junius Spencer Morgan (J.P. Morgan’s father) to form Peabody, Morgan, and Company. Morgan Greenfell (now part of Deutsche Bank), J.P. Morgan and Chase, and Morgan Stanley. J.P. Morgan and Chase and Morgan Stanley would be part of the 2008 bailout along with Alexander Hamilton’s Bank of New York. During Peabody’s life he engineered 3 Great Panics with Nathaniel Rothschild. In 2014 J.P. Morgan and Morgan Stanley where fined for engineering the 2008 financial crisis. Peabody would create several museums and institutes including the Peabody Academy of Science which is now the Peabody Essex Museum. The Armory of the Salem Light Infantry was in the Franklin Building (site of the Hawthorne Hotel). The Peabody house was razed in 1908. Some of the original woodwork survives in the Mason Lodge on Washington Street.

Salem Masonic Lodge Fire

Firemen combat at fire at the Masonic Temple in Salem, Mass. on Feb. 22, 1982.

In 1908 the Company H, Eight Regiment, Massachusetts Volunteer Militia would build a new castle like armory to share with the Second Corps of Cadets. Company H was the Salem Light Infantry which was housed in the Franklin Building. The Salem Light Infantry was founded in 1805. FDR stopped here during a campaign tour to attend a ball. After WWII the armory was headquarters for the First Battalion, 102d Field Artillery. They remained here up till 1982 when a series of fires on Halloween burnt down the Cadet House on the front of the Armory. The arsonist burned the top floors of Mason Lodge on Washington Street, Saint Anne’s Church on Jefferson Ave. an one of the out buildings at the Lasalette monastery(Turner Hill) in Ipswich.He was trying to burn religion to the ground, for in the armory was where the Witch Balls were held. He was an equal opportunity atheist. The Battalion moved to Lynn.

Steve Dibble was once the city engineer. He had mentioned that there was marked off a tunnel to the armory on an old sewer map that was used to move black powder from the sea by the seawall by the old Burial Point. When I got to the engineer’s office to confirm this, that map was the only one missing. Who knows if they just ripped it out of the book or it was missing for years. You still can peer into this tunnel at the end of the oriental walkway across the street. Inside you will find the crossroads in the tunnel that head to the armory and the tunnels under the 3D Time Machine in the old Sacon jewelry building.

armory-after-fire-19921 Armory armoryold

Get the book everyone digs before its sequel comes out!
Salem Secret Underground:The History of the Tunnels in the City!
Available at Barnes & Noble, Remember Salem, and Wicked Good Books in Salem on Essex Street. Also on Amazon.com!