Thieves of Threadneedle Street: The 19th-Century Forgery That Changed History

Fountain pen

Fountain pen; Pixabay.

You don’t need a pistol to rob a bank. A pen will do nicely, too.

As the American Civil War drew to a close, a 19th-century forgery conspiracy proved that point quite nicely. Dressed as elegant businessmen, the crooks robbed banks with pen and paper. In time, this group became the most successful forgers in the world. Its crimes almost broke the Bank of England. The case pitted the best detective in the world – Willie Pinkerton – against the so-called “Terror of Wall Street,” and led law enforcement on a wild goose chase throughout the world.

The 19th-century forgery case that made history

British author and broadcaster Nicholas Booth recently published a book about the 19th-century’s most famous fraud case, The Thieves of Threadneedle Street: The Incredible True Story of the American Forgers Who Nearly Broke the Bank of England (New York: Pegasus Books, 2016).  He tells the true story of the most spectacular forgery in history – how four Yankee rascals attempted daylight robbery from the Bank of England. Their crime has never been equaled in complexity nor scope ever since. In 1873, a boom in financial services – thanks to a rise in negotiable paper and international trade – led to a brisk market in what were known as bills of exchange. They were essentially credit notes that could be bought and sold by reputable bankers. “A bill on London” had the financial weight of the Old Lady of Threadneedle Street (the Bank of England) behind it. And, needless to say, clever criminals realized they could make a killing.

Nicholas Booth

Nicholas Booth, courtesy of Sarah Booth.

Author Nicholas Booth joins us for an interview.

How did one commit a 19th-century forgery?

Slowly and carefully – if they wanted to avoid jail! Forgers had to be a unique mixture of artists, chemists and criminals. The key to what they had to do was learning how to forge documents. That took practice and refinement. And when the gang in this story moved to London, they realized they could sub-divide all the tasks involved to innocent craftsmen– platemaking, letterings, ink and paper production, and the actual printing. All they had to do for themselves was learn how to forge signatures. For that, they teamed up with a master forger who styled himself as “The Terror of Wall Street”.

At some point, a particularly talented group of criminals started up a 19th-century forgery ring in North America. Tell us about them.

Two of them were brothers, Austin and George Bidwell. They were born in Michigan and it is hard to know who was the worse influence! They started out in long firm fraud in the 1860s – that is, obtaining goods on credit and then selling them off before the money was due. They did that all over the mid-west. They then roped in an Irish-Canadian called George Macdonnell who was a charming, slippery rogue and he knew someone called Edwin Noyes Hills, who they tended to use as the catspaw – the innocent dupe. They moved to New York in about 1867 and learned their trade over the next five years. They became ever more ambitious.

The four main conspirators in the greatest 19th-century forgery.

The four main conspirators. Clockwise, from the left: George Bidwell, Edwin Noyes Hills, Austin Bidwell, and George Macdonnell. A period newspaper illustration from the Penny Illustrated News (public domain), enhancement courtesy of Pegasus Books.

You say this group committed the first truly professional white-collar job – one that set the standards for future criminals. What did it do?

It showed that you didn’t have to use brute force to commit a 19th-century forgery. Thanks to the rise of government bonds, you didn’t have to use dynamite or violence. So long as you were clever, methodical and took things slowly, you could build up credit, bona fides and credibility. That’s what they started to do in New York – and then all over the U.S. In 1871, they planned a spectacular – where small checks would be changed to bigger ones all on the same day in different cities – but one of their helpers panicked. So they carried on in other parts of Europe, where they weren’t so well known – and the Old Lady of Threadneedle Street was an obvious target.

How did this gang move on from American forgeries to international ones?

They were put up to it by the New York Police Department. The cops regularly took a rake off after turning blind eyes to the removal of international bonds in Manhattan. The whole market wasn’t regulated. So two of them came to Europe in 1870 and because all Americans were presumed to be rich, they were believable. They used that for seed capital for a series of other jobs. Two years later, all four of them crossed the Atlantic together and spent the best part of 1872 probing and learning about the European monetary system to find any weaknesses. Incredibly, they didn’t attempt anything fraudulent for those nine or so months.

What countries did its members visit and defraud?

Great Britain, France, Austria, Germany, and Ireland. That was in 1870. They came back to London two years later and then, in the spring of 1873, they added Spain and Cuba to their list of destinations. They were literally chased all over the world.

How close did they come to breaking the Bank of England?

Very! The odd thing was that in the months when they presenting forged bills of exchange at the bank, they made silly mistakes which should have been picked up. But they weren’t. Even though the bank gave them just over £100,000 – about $5 million in today’s money! – its officials didn’t check on their bona fides, their credit or even their real identities. It was really a race against time – the ticking clock is basically the heart of the story.

How did the Bank of England catch the forgeries?

By accident. Three months into the fraud, they had sent in a bill of exchange that had a signature missing. When one of the clerks in Threadneedle Street came to investigate, he realized something wasn’t quite right. He checked all the files and, to his horror, saw that all these particular ones were forgeries. So there was a hue and cry and one of the forgers was caught red-handed in another bank that same day.

Pinkerton logo

Pinkerton Detective Agency; original company logo. Public domain.

What role did the Pinkerton National Detective Agency play in catching the forgers?

A crucial one. Willie Pinkerton, who ran the Chicago office, knew all of them of old. He actually bumped into them on The Strand in London the winter before so knew that they were up to something. He’d heard a “spectacular” was being planned. So he warned the Bank of England but wasn’t listened to. When the forgeries were discovered, he had a pretty shrewd idea who was behind it all. And so the chase began!

Were all of them caught?

Yes, in the sense that the four main characters were. There were chases, escapes and double crosses. Yet when they were all run down, many in law enforcement felt that there might have been others involved; and I end the book with a death bed confession which adds credence to that. I’ll let the reader decide!

Mark Twain

Mark Twain, Library of Congress Prints and Photographs Division, public domain

Mark Twain and Harriet Beecher Stowe petitioned for a more lenient sentence for one of the forgers. Why?

All four had the book thrown at them. They were given life sentences, but one by one, they were let out – apart from the youngest, Austin Bidwell. For some reason, the British authorities thought he was the mastermind even though he was only 27 years of age when he had been sent down. When they were sentenced, there was shock. Nobody lost their lives or livelihoods and, ultimately, the bank was insured. So the wise and famous got involved in petitions on Austin’s behalf – and even when he saved a drowning man in a prison, the authorities still wouldn’t let him out for another decade.

Thieves of Threadneedle Street book cover.

Thieves of Threadneedle Street, courtesy of Nicholas Booth.

Thank you, Nicholas Booth!

Literature on point:

Nicholas Booth , The Thieves of Threadneedle Street: The Incredible True Story of the American Forgers Who Nearly Broke the Bank of England (New York: Pegasus Books, 2016).

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History of Burglar Alarms and the Nation’s First Kidnapping for Ransom

The Van Brunt burglarly was an important case in the history of burglar alarms.

Art and Picture Collection, The New York Public Library. “The Cellar-Door Of Judge Van Brunt’s House, Where The Burglars Were First Fired Upon,” 1874 New York Public Library Digital Collections. Accessed March 2, 2017

Watergate burglary of the 19th century

It was 2:00 a.m. on December 14, 1874 when the burglar alarm went off. None of the residents in Holmes van Brunt’s house on Long Island could have known that the clanging alarm would earn its place in the history of burglar alarms. For its connection to a nationally publicized crime and its role in unraveling it, the break-in that night was the Watergate burglary of the 19th century.

Holmes van Brunt heard the alarm in his bedroom and sent his son Albert out to the house next door, where the alarm had been set. He thought maybe the wind had blown open a shutter and triggered the alarm. Albert grabbed a lantern and pistol and walked over. But he stopped dead in his tracks when he saw a light on in the house and shadows passing behind the window. That house belonged to his uncle, the judge, and no one was supposed to be there right now.

If anyone understood the importance of protecting his home, Judge Van Brunt did. His caseload in New York City had included plenty of thefts and burglaries. Now he sat in the New York Supreme Court and heard appeals on such cases. He knew the importance of protecting his vacation house on Long Island against burglary.

So he installed a burglar alarm designed to ring at his brother Holmes’s house next door.

History of burglar alarms

Patent for the first burglar alarm.

A. Pope’s patent for the first electromagnetic burglar alarm, 1853. Public domain.

If it surprises you that people used electromagnetic home security systems as early as 1874, you should crack a volume on the history of burglar alarms.

Animals offered the most popular home security before 1700. Watchdogs, geese, and even pigs sounded an alarm if strangers approached a house. In the early 18th century, that started to change. Homes and businesses saw a move to mechanical systems. Tildesley, an English inventor, mechanically linked door locks to sets of chimes. A skeleton key in the lock set the chimes a-ringing and offered a new kind of home security.

The idea spread to the American colonies. In the early 1700s, a bank in Plymouth, Massachusetts earned a place in the history of burglar alarms by installing what was perhaps the world’s first mechanical bank alarm. It used a tripwire that ran from the safe’s door handle to the cashier’s house next door.

By 1852, someone figured out how to harness electricity to fend off burglars. Albert Augustus Pope, a Massachusetts minister, fitted magnetic contacts and metal foil to windows and doors. If someone tried to move them, the system sounded a bell. Edwin Holmes bought Pope’s patent in 1857 and began marketing the electromagnetic burglar alarm in New York City. At first, customers were skeptical about the device, but by 1866, Holmes had already outfitted 1200 homes with an alarm.

Then along came a burglary that showcased the alarm and gave it national publicity.

The Van Brunts confront two burglars

Albert raced back home to tell his father there really was a break-in in the judge’s vacation home next door. Holmes and Albert Van Brunt, together with a neighboring gardener and a second hired man, armed themselves with guns and took positions at the front and back doors. Holmes and the hired man entered the judge’s house from the rear. Holmes then opened the trapdoor to the pantry and discovered two men there. Testimony at the coroner’s inquest indicates the burglars fired first. Team Van Brunt returned the fire and shot two men. One, William Mosher, died at the top of the pantry stairs; the other, Joseph Douglas, made it out to the front lawn before he collapsed. Douglas died three hours later, but not before he made a confession. “It’s no use lying now. I helped steal Charlie Ross…. Mosher knows all about it.”

Testimony at the coroner’s inquest indicates the burglars fired first. Team Van Brunt returned the fire and shot two men. One, William Mosher, died at the top of the pantry stairs; the other, Joseph Douglas, made it out to the front lawn before he collapsed. Douglas died three hours later, but not before he made a confession. “It’s no use lying now. I helped steal Charlie Ross…. Mosher knows all about it.”

“It’s no use lying now. I helped steal Charlie Ross…. Mosher knows all about it.”

Douglas had just confessed to one of the worst crimes of the century: the kidnapping of four-year-old Charlie Ross. In fact, the judge who presided over the trial of one of the burglars’ co-conspirators said it was widely regarded “as the worst crime of the century.” Those words were particularly astonishing in August 1875, when the horror of the Lincoln assassination still held the American public in its grip. Why was the kidnapping of a boy worse than the assassination of the president?

Charlie Ross: snatched from the street

Charlie Ross, the first child kidnapped for ransom.

The Miriam and Ira D. Wallach Division of Art, Prints and Photographs: Print Collection, The New York Public Library. “Little, Charlie Ross, the stolen child” New York Public Library Digital Collections. Accessed March 6, 2017

Charlie Ross and his five-year-old brother Walter had been playing in front of their home in Philadelphia on July 1, 1874. They accepted an offer of candy from two men in a horse-drawn carriage and climbed in with them. (The parental admonition not to take candy from strangers is a legacy of the Charlie Ross kidnapping.) The men drove the boys out of town and then to the Philadelphia neighborhood of Kensington, where they let Walter out. Then they rode off with Charlie. Two days later his parents received a ransom note. “we is got him,” it said in broken English, “and no powers on earth can deliver out of our hand. you will have to pay us before you git him.” The note demanded $20,000.

Two days later his parents received a ransom note. “we is got him,” it said in broken English, “and no powers on earth can deliver out of our hand. you will have to pay us before you git him.” The note demanded $20,000.

That was a first.

America’s first kidnapping for ransom

No criminal had ever demanded ransom in an American kidnapping before. The novelty struck terror in the nation’s heart because it highlighted the vulnerability of its children. Parents feared losing their children more than losing their president. Following Charlie’s kidnapping, Pennsylvania became the first state to make child-snatching a felony. It had only been a misdemeanor when Charlie was snatched.

The legal change came too late to help Charlie. Although the police made some inroads in investigating the case, they never found the boy. You can read more about Charlie’s kidnapping in Carrie Hagen’s fascinating book, “we is got him: The Kidnapping That Changed America (New York: Overlook Press, 2011).

Charlie’s case had one unforeseen effect in the history of burglar alarms. Because the Van Brunt burglary was inextricably entwined with both the novel burglar alarm and a nationally publicized kidnapping, Edwin Holmes received a wave of free publicity for his new product. As newspapers all over the country reported the burglary and confession, readers devoured the story of the burglar alarm and its effectiveness. This was the first case to give the burglar alarm major publicity.

A twist of fate linked the first kidnapping for ransom with the history of burglar alarms. Burglar alarms are still with us. But except for the parental admonition not to take candy from strangers, Charlie Ross has been largely forgotten.

Literature on point:

Back to Basics: Where Did the Burglar Alarm Come From?” Vintech (2011).

Fass, Paula. Kidnapped: Child Abduction in America (Oxford Univ. Press, 1997).

Hagen, Carrie. “The Story Behind the First Ransom Note in American History,” Smithsonian.com (Dec. 9, 2013).

Hagen, Carrie. we is got him: The Kidnapping That Changed America (New York: Overlook Press, 2011).

Lee, Seungmug, “The Impact of Home Burglar Alarm Systems on Residential Burglaries.” Ph.D. diss., Rutgers University, 2008, ProQuest 3326964.

International Foundation for Protection Officers. The Professional Protection Officer: Practical Security Strategies and Emerging Trends (Elsevier, 2010).

Ross, Nick. Crime: How to Solve It – And Why So Much of What We’ve Been Told is Wrong (Biteback Publishing, 2013)

The Mystery Solved. The Abductors of Charlie Ross,” Indiana State Sentinel, 22 December 1874.

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