After his return from Europe in 1919, Spellacy was appointed
Assistant Attorney General of the United States and was in charge of the enemy custodianship department. He received an honorary
Doctor of Laws (LL.D.) from Georgetown University in 1920. During this period Spellacy became more active in national Democratic party politics, again serving as delegate to the 1920 national convention, where he was Chairman of the Rules Committee and manager of the presidential campaign of
Attorney General A. Mitchell Palmer. In one instance his name was associated with possible political advocacy on the part of the Department of Justice. Just two weeks before the 1920 election,
John R. Rathom, publisher of the
Providence Journal, charged that
Franklin Delano Roosevelt, the Democratic candidate for
Vice President, had acted improperly while Assistant Secretary of the Navy in releasing sailors convicted on morals charges in the
Newport sex scandal from Portsmouth Naval Prison. Spellacy, along with
Francis G. Caffey, the U.S. Attorney in New York, released information from
Justice Department files that discredited Rathom. After leaving government service in February, 1921, he became the law partner of two other officials involved in the custody and liquidation of enemy property seized during the war, forming the New York City firm of
Garvan, Corbett and Spellacy, with its office on
Wall Street. Connecticut's Democrats nominated Spellacy for the
United States Senate in 1922, but he was defeated by the incumbent, former governor
George P. McLean. He was again a delegate to the 1924 Democratic national convention, supporting Gov.
Alfred E. Smith of New York, while himself receiving a vote on each of the 41st and 42nd ballots, and was eastern regional campaign manager for the eventual compromise nominee (chosen after Smith and the other leading contender,
William Gibbs McAdoo, deadlocked),
John W. Davis. and in 1932, when Smith lost the Democratic presidential nomination to Franklin D. Roosevelt. Spellacy did not attend the Democratic convention in 1932 due to his wife's ill health; she died later that summer. He remarried in 1934; his second wife, Elisabeth B. Gill, was thirty years his junior. She was the sister of the journalist and author
Brendan Gill. They had one child, a son, Bourke Gill Spellacy (1937–), a founder of the Hartford law firm Updike, Kelly & Spellacy, P.C. == Mayor of Hartford and subsequent career ==