America's Bank: The Epic Struggle to Create the Federal Reserve
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African safari of, 88
Aldrich and, 38, 44, 102–3, 132, 141, 149–50, 158
Aldrich Plan and, 149–50
as increasingly progressive, 90–91, 104, 158, 167, 293
Morgan’s eventual rejection of, 305
in 1912 election, 138–39, 149–50, 156, 157–59, 161–63, 168–70, 301, 308
popularity of, 102–4
as progressive, 33, 45, 149
Taft’s break with, 91, 102–3, 139, 149–50, 157–59, 161
third-party challenge by, 163
U.S. Steel and, 72, 139
Vanderlip on, 47
Wall Street and, 305
Root, Elihu, 245, 247, 258
Rosenwald, Julius, 131
Rothschild, Lord, 85
Rothschild family, 117, 334
Royal Weaving Company, 93
Russian Revolution, 265
Ryan, Thomas Fortune, 165n
Sachs, Samuel, 121–22
St. Louis, Mo., 184, 216, 247
Federal Reserve Bank in, 260n
as reserve city, 14, 39n, 69, 232, 241
San Francisco, Calif., 241
earthquake in, 51
Federal Reserve Bank in, 260n
San Juan Hill, battle of, 26
Schiff, Jacob, 31–32, 41, 49, 55, 66, 169, 281
call for financial reform by, 46–47
on fears of centralization, 50–51
Schonberg, Mathilda, 82
Schwartz, Anna, 269
scrip, 67
Seaboard Company, 304
Sea Girt, N.J., 165–66, 168
Searles, John E., 42n–43n
Sears, Roebuck, 131
Second Bank of the United States, 3–5, 20, 84, 101, 115, 142, 187, 198, 246
securities, 65, 193
American, 19
Federal Reserve Banks and, 245
liquid, 237–38
mortgage-backed, 226
Treasury, 15n, 225, 263
Securities and Exchange Commission (SEC), 266
Seligman, Edwin, 55–56, 73–74, 94
Senate, U.S., 95
Aldrich in, 33, 36–38, 89–90, 95
Aldrich Plan submitted to, 148
Democratic gains in, 105, 171, 200, 208
direct elections to, 21, 90, 138, 156, 201, 204
Glass-Owen bill in, 231–51, 329
1908 elections, 88
tariff reform in, 210–11, 233–34
Senate Banking and Currency Committee, 200, 203, 260, 263
Glass-Owen in, 224, 231–43
Senate Finance Committee, 33, 38
Seventeenth Amendment, 156, 201
Seymour, Charles, 267
shares, bank, 134
Shaw, Leslie, 30, 46–47, 123, 282
and Panic of 1907, 58
in wake of San Francisco earthquake, 52–54
Shelton, Arthur, 129, 294, 297
at Jekyl Island, 108
Sibley, Joseph, 18
silver, intrinsic value of, 13
silver certificates, 15n, 249
silver dollars, 15n, 16
silver interests, Bryan supported by, 23–24
silver standard, 16, 19–20, 21, 22, 277
in 1896 election, 21–24, 142
Glass’s support for, 18
gold and, 16, 19–20, 230, 277
Sinclair, Upton, 72
Sixteenth Amendment, 191
Smith, Adam, 37
social activism, 6, 33, 158
Socialist Party, 168, 171
South, 19, 154
Bryan in, 88
central bank opposed in, 3, 4, 19, 154
cotton farming in, 139–40
Democratic Party in, 7, 22, 165
Glass’s compromises and, 7–8
Laughlin’s tour of, 133
in 1912 elections, 148, 168
racial segregation in, 22, 153
South Africa, 52
South America, 49
Southern Society of New York, 191
Spanish-American War, 26, 47
Sprague, Oliver, 57, 62, 80, 262
Standard Oil, 48, 53, 136
state banks, 129, 136, 202
credit from, 199
states’ rights, 3, 22, 165, 167, 180, 266, 307
steel industry, 70, 71
Steffens, Lincoln, 38
Stephenson, Nathaniel, 42n
Sternstein, Jerome L., 35, 42n
Stillman, James A., 86, 100, 106, 135, 233, 265, 299, 301
Money Trust hearings and, 192
in Panic of 1893, 57
in Panic of 1907, 57, 62, 64–66, 70–71
Vanderlip and, 47–48, 51, 116, 136, 159, 197, 237, 240n
Warburg and, 32–33, 65, 70–71
stock, copper-mining, 61
stock exchange, 66, 71
capital and, 18
stock market, 28, 30, 39, 52, 122, 198, 209, 237, 319
Fed’s influence on, 1
National Banking Act and panics in, 15
New York bankers and, 50
in Panic of 1907, 65
plunge in, 58, 70
Street, Julian, 60
Strong, Benjamin, 63–65, 70, 133, 261, 263, 294
on central banking, 298
as leader of Fed, 263
Vanderlip’s alternative bill and, 238–40, 243
Sugar Trust, 37, 42–43, 279
Sumner, William G., 14
Supreme Court, U.S., 136
Taft, Nellie, 150
Taft, William Howard, 91, 92, 97, 162n–63n, 194, 224, 296
Aldrich and, 94, 102–3, 130, 141, 158
Aldrich Plan and, 133, 150, 158, 162
baseball’s first pitch originated by, 156, 159
in election of 1912, 138–39, 141, 149–50, 151, 157–59, 161–63, 168–70, 301, 308
on labor, 305
populist dissatisfaction with, 138
as presidential nominee, 81–82
progressives and, 100, 136, 158
Roosevelt’s break with, 91, 102–3, 139, 149–50, 157–59, 161
on tariff, 93
Wall Street and, 196
Warburg and, 120
Tallman, Ellis W., 284
Tammany Hall, 166, 236
Tarbell, Ida, 43, 59, 193–94
tariff, 18, 70, 92–93, 134, 314
Aldrich and, 37, 41, 92–95, 103–4, 134, 140, 234, 291
debate on, 36–37
on importing art, 85, 95n
under McKinley, 25–26
reduction of, 21, 38, 90, 191, 210–11
Roosevelt and, 102–3
Taft and, 102
Taft’s capitulation on, 102
Wilson on, 169, 194–95, 200–201, 210–11, 224, 233–34
in World War I, 234n
taxes:
income, see income tax
progressive, 104, 138
technological change, 44
Tennessee, 17, 190
Tennessee Coal, Iron & Railroad Company, 71–72, 139
Texas, 81, 151
textile industry, 93
Third Bank of the United States, vetoing of, 3
Thomas, R. H., 193
Thornton, Mark, 296
Timberlake, Richard, 70
Titanic, RMS, 159
Tobacco Trust, 136
“Treason of the Senate” (Phillips), 43–44, 89
Treasury bonds, 225, 258
Treasury Department, U.S., 30, 46–47, 118, 136, 181n, 206, 235–36, 263
Aldrich
Plan and, 133–34
America’s growing financial strength and, 25
Andrew at, 108, 161
cash reserves in, 26–27
under Cleveland, 24–25
currency issued by, 207
Federal Reserve and, 257, 260–61
funds moved by, 46–47
Morgan’s bailout of, 20
National Banking Acts and, 13–14
New York banks and, 53–55
Panic of 1907 and, 58, 59–60, 63, 66
post-earthquake gold imports by, 52–54
Reserve Banks and, 115
secretary of, 212, 230, 241, 248, 249–50
silver and, 16, 19
tariffs and, 26, 41
2008 bailouts by, 8
Treasury notes, 261
Treasury securities, 15n, 225
short-term, 263
Treaty of Versailles, 266
Trenton, Glass plan presented at, 188–89, 313
Truman, Harry, 257
Trust Company of America, 64–65
trusts, 40, 44, 61–66, 69, 73, 146, 167, 169, 305
busting of, 38
Untermyer on, 155, 193
Tumulty, Joseph, 191, 210
Turkey, 93
Turner, Frederick Jackson, 105, 142
Tyler, John, 3
Underwood, Oscar, 148
unemployment, 20
Union Pacific Railroad, 58
Union Railway Company, 42n
United Copper Company, 283
United Kingdom, see Great Britain
United Reserve Bank, 111, 113
“United Reserve Bank” lecture (Warburg), 101–2
United States:
centralization feared by, 2–5, 50–51, 55, 89, 98, 101, 128, 253, 269–70
as creditor nation, 262
decentralized banking in, 40–41
economy of, 48, 56–57
Federal Reserve System and modernization of banking in, 253–54
as financial also-ran, 5–6
foreign investors’ abandonment of, 19
frontier traditions of, 4, 101–2
gold standard in, 16
improved financial standing of, 262
individualism in, 31, 32
industrialization of, 5, 11, 18, 34, 60, 198
manufacturing economy of, 36–37
population increase in, 60
primitive nature of finance in, 11, 31–32, 46–47, 56, 198, 253–54
as rural, 4–5
as sole industrialized nation without a central bank, 1, 2, 39
United Traction and Electric Company, 42n–43n
Untermyer, Samuel, 169, 171, 255, 303, 304, 310, 314, 317, 318
attempt to usurp Glass’s legislation by, 155–56, 171–72, 177, 195–96
Glass’s feud with, 155–56, 204–5, 268
Money Trust hearings and, 155–56, 175, 191–93, 195
U.S. Money vs. Corporation Currency (Crozier), 150–51
U.S. Steel Corporation, 71–72, 93, 139, 196, 288, 305, 308
utilities, 211
Vanderbilt, William, 110, 190
Vanderlip, Frank A., 47–51, 73, 90, 91, 159, 170, 175, 196, 197, 209, 234, 244, 258, 293, 299, 301, 321
Aldrich Plan and, 122
alternative plan by, 237–43, 251
central bank supported by, 220–21
as corporate director, 314
European recovery schemes, 265
on Glass-Owen bill, 220–21, 233, 257
at Jekyl Island conference, 108–10, 112, 114, 116, 118, 294, 296
on Money Trust hearings, 175, 176, 192
at National City Bank, 134–35, 253
on 1912 election, 139, 160
O’Gorman and Reed and, 327
outreach to bankers by, 128–29
on overseas expansion of National City, 118, 264–65
and Panic of 1907, 57, 60, 66, 69
on Republican progressives, 99–100
on Roosevelt, 103–4
Untermyer and, 155, 205
Versailles peace negotiations, 265–66
Virginia, 7, 17
Volcker, Paul, 226, 258
Wade, Festus J., 179, 184, 187, 216–17, 219, 231, 241, 247, 312, 324
Walbert, M. W., 27
Wallace, George, 117
Wall Street, 8, 23, 57, 61, 80, 97, 121, 166, 184, 191, 193, 196, 205, 206, 214
Aldrich Plan and, 113, 115–16, 134, 140, 141, 160
banking reform and, 70, 131, 175
Bank of England and recessions on, 5–6
central bank supported by, 46, 50–51, 54, 112, 206
collusive tendencies of, 133, 175–76, 192–93, 299
country banks and, 102
and dollar’s international limitations, 49
and election of 1912, 169
Federal Reserve Banks and, 257, 258–59, 260–61
and founding of Fed, 7
on Glass-Owen, 232, 245
Jekyl Island retreat and, 107–23
laissez-faire and, 128
McAdoo and, 190, 220
McKinley supported by, 23
market busts on, 29–30, 31, 150
Money Trust hearings and, 175–78
panics on, 57–58, 60–61, 150–51, 209
progressive skepticism toward, 45
public distrust of, 50–51, 55, 71, 72, 98, 111, 132, 134, 137, 150, 151, 257
Roosevelt and, 158, 305
short-term interest rates and, 47
silver standard opposed by, 16, 20
threats by, 220–21
Treasury and, 27, 53
Wilson and, 73, 143, 145, 157, 174, 183n, 196
Wall Street Journal, 50, 97, 192, 210, 253
Walters, Henry, 288
war bonds, 47
Warburg, Aby, 30
Warburg, Felix, 30
Warburg, Fritz, 30
Warburg, James, 294
Warburg, Max, 30
Warburg, Nina Loeb, 31
Warburg, Paul, 38, 46, 50, 85, 147, 159, 168, 169, 195, 196, 199, 225, 238, 256, 258, 259, 267–68, 295, 303, 304, 313, 320, 335
Aldrich and, 74, 75, 88–89, 96, 98, 99, 100–101, 111–12, 116, 127, 131
on Aldrich Plan, 114, 121–22, 123, 138, 139, 188
on Aldrich-Vreeland Act, 79
call for central bank by, 6–7, 31–33, 47, 56, 71, 75–76, 77, 88–89, 99, 109, 120, 128, 184, 185, 217–18, 242, 253, 262, 269–70, 295
Citizens’ League and, 131–33, 135, 299
Colonel House and, 174, 183, 219, 233, 243, 253
critique of American banking by, 1–2, 29–30, 31–33, 38–41, 45, 49, 51, 55, 70, 73–74
death of, 264
departure from Federal Reserve by, 334
on Federal Reserve Board, 247, 250, 260–63, 267
German origins of, 29, 74, 262–63
Glass and, 173–74, 187–88, 247, 261, 268–69
Glass bill analyzed by, 202–3
Glass hearings and, 185–87, 312
on Glass-Owen bill, 219, 232–33, 242–43, 244–45, 247–48, 251, 253, 325
on House legislative committee, 154
at Jekyl Island, 108–9, 111–14, 116–17, 119, 294
Laughlin’s disagreements with, 132–34, 159–61
modified central bank plan of, 75–76, 286
on monetary reform, 93–94
as naturalized U.S. citizen, 78, 185, 247
on New York Chamber of Commerce monetary committee, 19–20
outreach to bankers by, 128–29
Owen and, 243, 248, 334
Owen and McAdoo plans analyzed by, 207–8
proposals by, 177, 182–83, 187–88, 248, 310
remedial proposals by, 253, 333–34
on reserves, 215, 249
Roosevelt and, 149
Seligman’s encouragement to, 55–56
speeches of, 101–2
Stillman and, 32–33, 65, 70–71
Taft and, 120
Untermyer and, 155, 205
Willis and, 267–69, 313
War of 1812, 3, 84
War of Independence, American, 2
Warwick, 75, 85, 86, 97, 106
Washington, D.C., 27, 34, 37, 78, 114, 121, 173, 180, 182, 201, 239, 242–43, 252, 259, 270
Coxey’s march on, 21
Washington, George, 2
Washington and Lee University, 153, 203
Washington Post, 63, 235, 332
wealth, 44
predatory, 149
redistribution of, 158
West, 7, 71
Aldrich’s tour of, 134
banks and bankers in, 12, 85, 119
central bank opposed in, 19
Glass-Owen’s popularity in, 229
in 1912 election, 168
progressives in, 104
railroads unpopular in, 78
West, Robert Craig, 173, 226n
Wexler, Sol, 216, 321
White, Stanford, 63
White House, 81, 121, 122, 128
white supremacy, 22, 153
Wickersham, George, 136–37
Wilhelm II, Kaiser of Germany, 55
Williams, John Skelton, 207
Willis, H. Parker, 132, 178, 196n, 210n, 213, 230–31, 256, 261, 267, 304, 310, 311, 313, 314, 316, 323
ABA bankers and, 184–85, 229
on Aldrich Plan, 154–55
in Glass-Willis meeting, 179–85
Laughlin and, 153–54, 178, 267
legislation drafted by, 188, 195, 201–3, 216
as legislative aide to Glass, 153–55, 160, 171, 173, 176–77, 187, 195, 219
at 1912 Democratic convention, 163
subcommittee hearings of, 184–86
Trenton plan of, 188–89, 313
Warburg and, 267–69, 335
Wilson, Ellen, 145, 166, 196, 215, 221, 224, 231, 233, 234, 250, 266, 325
Wilson, Woodrow, 83, 90, 147, 149, 178, 259, 267, 318–19, 325, 326, 327
Aldrich Plan and, 141–46, 148–49, 164, 170
antitrust reform as priority of, 235
bankers and, 211–22
banking reform and, 73, 128, 143–44, 148–49, 167–68, 177, 195, 198, 201–2, 205–18, 221–22, 223, 227–28, 310
Bryan and, 145–46, 148–49, 157, 170, 189–90, 230–31, 301
cabinet appointments of, 189–90
on central bank, 7, 141–44, 149, 157, 170, 174n, 183–84, 312
on central government, 141–42, 157
conservative side of, 166–67