The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance

by Ron Chernow

  42. TI, November 2, 1987.

  43. Josephson, Money Lords, p. 102.

  44. Ibid., p. 100.

  45. NYTR, November 3, 1929.

  46. TI, November 2, 1987.

  47. Galbraith, Great Crash, p. 21.

  48. Sampson, Money Lenders, p. 77.

  CHAPTER SEVENTEEN: DEPRESSION

  1. TWL, Box 131, Folder 26, notes on the stock market debacle, n.d.

  2. Davis, The Hero, p. 290.

  3. TWL, Box 103, Folder 14, letter from Russell C. Leffingwell, August 14, 1930.

  4. NYK, November 16, 1987, p. 91.

  5. JPMJ, Letter Press Book 24, Box 42, letter to Edward C. Grenfell, December 26, 1929.

  6. Sobel, ITT, p. 67.

  7. Burner, Herbert Hoover, p. 298.

  8. TWL, Box 111, Folder 23, letter to Edward C. Grenfell, October 30, 1931.

  9. Kettl, Leadership at the Fed, p. 37.

  10. U.S. Congress, Temporary National Economic Committee, Investigation of Concentration of Economic Power, p. 11552.

  11. Josephson, Money Lords, pp. 97–98.

  12. Carosso, Investment Banking in America, p. 315.

  13. Friedman and Friedman, Free to Choose, pp. 81–82.

  14. MGR, Box 264, J. P. Morgan & Co., Miscellaneous File, U.S. Financial Affairs, letters from Thomas S. Lamont to Edward C. Grenfell, December 13 and 30, 1930.

  15. RCL, Group 1030, Series I, Box 4, Folder ?, letter to Benjamin Joy, January 23, 1931.

  16. NYT, October 30, 1929.

  17. TWL, Box 98, Folder 18, memorandum to Russell C. Leffingwell, Debt Suspension Matter, June 5, 1931.

  18. MGR, Box 1087, 1931 Loan, letter from Edward C. Grenfell to J. P. Morgan, Jr., August 12, 1931.

  19. Ibid., letter from J. P. Morgan, Jr., to Edward C. Grenfell, August 12, 1931; telegram from Edward C. Grenfell to Montagu Norman, August 18, 1931.

  20. TWL, Box 111, Folder 16, letter from Edward C. Grenfell to Thomas W. Lamont, October 25, 1924.

  21. MGR, Box 1087, 1931 Loan, letter from Edward C. Grenfell to J. P. Morgan, Jr., August 14, 1931.

  22. Ibid., letter from Edward C. Grenfell to J. P. Morgan, Jr., August 12, 1931.

  23. Ibid., Cable 4929, from Edward C. Grenfell to J. P. Morgan & Co., August 23, 1931.

  24. Ibid., Cable 2383, from J. P. Morgan & Co. to Morgan Grenfell, August 23, 1931.

  25. Boyle, Montagu Norman, p. 272.

  26. MGR, Box 1087, 1931 Loan, letter from Edward C. Grenfell to Thomas W. Lamont, n.d.

  27. Boyle, Montagu Norman, p. 273.

  28. DH, August 25, 1931.

  29. MGR, Box 1087, 1931 Loan, letter from Edward C. Grenfell to Thomas W. Lamont, August 27, 1931.

  30. Ibid., Cable 2401–27, from J. P. Morgan & Co. to J. P. Morgan, Jr., August 27, 1931.

  31. Medlicott, Contemporary England, pp. 264–65.

  32. TWL, Box 108, Folder 15, letter from Charles Steele and Thomas W. Lamont to J. P. Morgan, Jr., September 25, 1931.

  33. TWL, Box 186, Folder 28, letter to Junnosuke Inouye, June 11, 1928.

  34. Storry, History of Modern Japan, p. 188.

  35. Hoover, Memoirs, vol. 2, p. 365.

  36. TWL, Box 187, Folder 11, Junnosuke Inouye’s statement on Manchuria situation, n.d.

  37. TWL, Box 187, Folder 11, letter to Kakutaro Suzuki, October 17, 1931.

  38. T, September 21, 1931.

  39. RCL, Group 1030, Series I, Box 5, Folder 108, letter to Walter Lippmann, October 23, 1931.

  40. TWL, Box 187, Folder 12, letter to Saburo Sonoda, November 23, 1931.

  41. Ibid., Box 187, Folder 14, letter to Saburo Sonoda, March 10, 1932.

  42. RCL, Group 1030, Series I, Box 3, letter to Edward C. Grenfell, February 18, 1932.

  43. TWL, Box 187, Folder 13, telegram from Saburo Sonoda, February 9, 1932.

  44. Ibid., letter to Saburo Sonoda, February 10, 1932.

  45. Ibid., Box 188, Folder 15, letter to Ino Dan, September 14, 1932.

  46. ME, Japan Folder, memorandum to Thomas W. Lamont, May 12, 1932.

  47. TWL, Box 187, Folder 20, memorandum from Vernon Munroe, February 3, 1933.

  48. Ibid., Box 184, Folder 9, internal memorandum, marked “Secret and Strictly Confidential,” either late 1932 or early 1933.

  49. Ibid., Box 122, Folder 6, letter to Edward C. Grenfell, October 11, 1934.

  CHAPTER EIGHTEEN: MIDGET

  1. Leuchtenburg, Franklin D. Roosevelt and the New Deal, p. 11.

  2. Schlesinger, Crisis of the Old Order, p. 242.

  3. TWL, Box 112, Folder 13, letter to Vivian Hugh Smith, December 14, 1943.

  4. JPMJ, Letter Press Book 25, Box 43, letter to the marquess of Linlithgow (Victor Hope), January 4, 1932.

  5. RCL, Group 1030, Series I, Box 1, Folder 17, letter to Bernard S. Carter, January 30, 1932.

  6. Borkin, Robert R. Young, p. 31.

  7. Ibid., p. 32.

  8. JPMJ, Letter Press Book 25, Box 43, letter to the Lord Archbishop of Canterbury (Dr. Cosmo Lang), March 16, 1932.

  9. Larnont, ed., Thomas Lamonts, p. 98.

  10. Hinton, Meyer, and Rodd, Comments about the Morgan Bank, p. 35.

  11. TWL, Box 108, Folder 15, letter to J. P. Morgan, Jr., July 28, 1931.

  12. MGR, Anglo-American File 1, cable from J. P. Morgan & Co., October 18, 1919.

  13. Ibid., Anglo-American File 2, letter from Thomas W. Lamont to Vivian Hugh Smith, November 7, 1922.

  14. TWL, Box 98, Folder 22, memorandum from Martin Egan, July 14, 1932.

  15. Whalen, Founding Father, p. 106.

  16. TWL, Box 98, Folder 17, memorandum, October 10, 1930.

  17. Ibid., Box 98, Folder 21, Memorandum for Partners Alone, April 15, 1932.

  18. Ibid., Box 116, Folder 7, letter to Herbert Hoover, April 8, 1932.

  19. MGR, Box 264, J. P. Morgan & Co. Miscellaneous File, U.S. Financial Affairs, letter from J. P. Morgan & Co. to Morgan & Cie., April 6, 1932.

  20. RCL, Group 1030, Series I, Box 5, Folder 109, letter to Walter Lippmann, October 25, 1932.

  21. Leffingwell, Selected Letters, p. 93.

  22. RCL, Group 1030, Series I, Box 7, Folder 155, letter to Vivian Hugh Smith, November 11, 1932.

  23. Leffingwell, Selected Letters, p. 78.

  24. Ibid., p. 81.

  25. Ibid., pp. 80–81.

  26. TWL, Box 122, Folder 1, letter from Montagu Norman, February 26, 1933.

  27. BW, June 7, 1933.

  28. Brooks, Once in Golconda, p. 156.

  29. Pecora, Wall Street under Oath, p. 85.

  30. Leuchtenburg, Franklin D. Roosevelt and the New Deal, p. 22.

  31. Ibid., p. 41.

  32. MGR, Box 264, J. P. Morgan & Co. Miscellaneous File, U.S. Financial Affairs, cable from J. P. Morgan & Co., March 2, 1933.

  33. Forbes, J. P. Morgan, Jr., p. 175.

  34. MGR, Box 264, J. P. Morgan & Co. Miscellaneous File, U.S. Financial Affairs, cable to J. P. Morgan & Co., March 15, 1933.

  35. Steel, Walter Lippmann and the American Century, pp. 302–3.

  36. Morgenthau, From the Morgenthau Diaries, p. 236.

  37. Tugwell, Roosevelt’s Revolution, p. 22.

  38. Kindleberger, World in Depression, p. 202.

  39. Schlesinger, Coming of the New Deal, p. 202.

  40. RCL, Group 1030, Series I, Box 1, Folder 17, letter from Bernard S. Carter, April 26, 1933.

  41. Kindleberger, World in Depression, p. 219.

  42. Ibid., p. 231.

  43. FO, August, 1933.

  44. TWL, Box 82, Folder 3, letter to Lady Nancy Astor, June 5, 1933.

  45. Carosso, Investment Banking in America, pp. 336–37.

  46. Forbes, J. P. Morgan, Jr., p. 155; JPMI, Letter Press Book 25, Box 44, letters to the marquess of Linlithgow (Victor Hope), April 24, 1933, and Morris Whitridge, May 16, 1933.

  47. JPMJ, Letter Press Book 25, Box 44, letter to the marquess of Linlithgow (Victor Hope), April 24, 1933.

  48. TWL, Box 82,
Folder 3, letter to Lady Nancy Astor, June 5, 1933.

  49. Schlesinger, Politics of Upheaval, pp. 54–55.

  50. Schlesinger, Coming of the New Deal, p. 443.

  51. Harbaugh, Lawyer’s Lawyer, p. 324.

  52. JPMJ, Letter Press Book 25, Box 44, letter to Morris Whitridge, June 23, 1933.

  53. U.S. Congress, Senate Committee on Banking and Currency, Stock Exchange Practices, J. P. Morgan, Jr., opening statement, May 23, 1933.

  54. Leuchtenburg, Franklin D. Roosevelt and the New Deal, p. 59.

  55. Harbaugh, Lawyer’s Lawyer, p. 325.

  56. U.S. Congress, Senate Committee on Banking and Currency, Stock Exchange Practices, p. 60.

  57. Ibid., J. P. Morgan, Jr., opening statement, May 23, 1933.

  58. Ibid.

  59. U.S. Congress, Senate Committee on Banking and Currency, Stock Exchange Practices, p. 105.

  60. Pecora, Wall Street under Oath, p. 36.

  61. Ibid., p. 199.

  62. Harbaugh, Lawyer’s Lawyer, p. 326.

  63. Forbes, J. P. Morgan, Jr., p. 177.

  64. BE, March 13, 1943.

  65. JPMJ, Letter Press Book 25, Box 44, letter to William Duane, July 5, 1933.

  66. Brooks, Once in Golconda, p. 180.

  67. N, February 9, 1935.

  68. Leuchtenburg, Franklin D. Roosevelt and the New Deal, p. 59.

  69. Brooks, Once in Golconda, p. 180.

  70. Frank W. Colby, interview with author.

  71. CUOH-WJS, p. 62.

  72. Carosso, Investment Banking in America, p. 340.

  73. White, Puritan in Babylon, p. 428.

  74. Lamont, Henry P. Davison, p. xviii.

  75. Pecora, Wall Street under Oath, p. 32.

  76. Schlesinger, Coming of the New Deal, p. 437.

  77. U.S. Congress, Senate Committee on Banking and Currency, Stock Exchange Practices, p. 143.

  78. Ibid., p. 216.

  79. Ibid., p. 173.

  80. TWL, Box 190, Folder 28, letter to the partners of J. P. Morgan & Co., with PS. for Arthur M. Anderson, February 13, 1929.

  81. Ickes, Secret Diary: First Thousand Days, p. 45.

  82. Steel, Walter Lippmann and the American Century, p. 250.

  83. NYT, May 27, 1933.

  84. TWL, Box 112, Folder 3, letter to Adolph Ochs, May 27, 1933.

  85. BW, May 24, 1933.

  86. RCL, Group 1030, Series I, Box 3, Folder 67, letter from Carter Glass, July 12, 1933.

  87. Pecora, Wall Street under Oath, p. 89.

  88. RCL, Group 1030, Series I, Box 4, Folder 83, letter to Dean Jay, February 17, 1934.

  89. CUOH-GW, p. 44.

  CHAPTER NINETEEN: CRACK-UP

  1. Carosso, Investment Banking in America, p. 353.

  2. RCL, Group 1030, Series I, Box 5, memorandum to Thomas W. Lamont, January 2, 1934.

  3. Beschloss, Kennedy & Roosevelt, p. 84.

  4. Josephson, Money Lords, p. 172.

  5. JPMJ, Letter Press Book 25, Box 44, letter to F. W. Muth, April 2, 1935.

  6. Schlesinger, Coming of the New Deal, p. 567.

  7. Forbes, J. P. Morgan, Jr., p. 179.

  8. JPMJ, Letter Press Book 25, Box 44, letter to Rt. Rev. William T. Manning, May 3, 1935.

  9. Ibid., letter to Morris Whitridge, March 12, 1935.

  10. Schlesinger, Coming of the New Deal, p. 498.

  11. TWL, Box 182, Folder 4, interview with Neville Chamberlain, June 29, 1934.

  12. Charles E. Coughlin, “Thus Goeth the Battle!” radio address delivered November 19, 1933.

  13. Josephson, Money Lords, p. 164.

  14. U.S. Congress, Temporary National Economic Committee, Investigation of Concentration of Economic Power, p. 83.

  15. Tim Collins, interview with author.

  16. T, June 18, 1934.

  17. RCL, Group 1030, Series I, Box 4, memorandum to Thomas W. Lamont, January 2, 1934.

  18. Ibid., Group 1030, Series I, Box 7, Folder 146, letter to Franklin D. Roosevelt, January 4, 1934.

  19. Hinton, Meyer, and Rodd, Comments about the Morgan Bank, p. 29.

  20. TWL, Box 131, Folder 21, letter to Charles Steele, November 15, 1934.

  21. MGR, Bundle 187, File 6, Change of Firm, cable from J. P. Morgan & Co. to Henry S. Morgan, September 7, 1935.

  22. 77, September 16, 1935.

  23. FT. September 6, 1935.

  24. Ellmore C. Patterson, interview with author.

  25. Morgan Stanley, Fiftieth Anniversary Review, p. 13.

  26. NYT, September 17, 1935.

  27. Alexander C. Tomlinson, interview with author.

  28. N, September 14, 1935.

  29. Morgan Stanley, Fiftieth Anniversary Review, p. 111.

  30. Perry E. Hall, interview with author.

  31. Medina, Corrected Opinion, p. 250.

  32. FB, May 1, 1936.

  33. U.S. Congress, Temporary National Economic Committee, Investigation of Concentration of Economic Power, p. 83.

  34. Ibid., p. 92.

  35. Ickes, Secret Diary: Inside Struggle, p. 384.

  CHAPTER TWENTY: WIZARD

  1. Shirer, Rise and Fall of the Third Reich, p. 260.

  2. Taylor, Sword and Swastika, p. 124.

  3. Boyle, Montagu Norman, p. 304.

  4. Schacht, Confessions of the Old Wizard, pp. 301–2.

  5. Speer, Inside the Third Reich, p. 197.

  6. JPMJ, Letter Press Book 25, Box 44, March 23, 1933.

  7. Schacht, Confessions of the Old Wizard, p. 283.

  8. Ibid.

  9. TWL, Box 182, Folder 2, letter to Dr. Hjalmar Schacht, April 7, 1934.

  10. Ibid., Box 182, Folder 3, letter from Dr. Hjalmar Schacht, April 20, 1934.

  11. Ibid., draft of letter to J. Ramsay MacDonald, June 15, 1934.

  12. Ibid., Box 182, Folder 4, interview with Neville Chamberlain, June 29, 1934.

  13. RCL, Group 1030, Series I, Box 4, memorandum to Thomas W. Lamont, July 25, 1934.

  14. TWL, Box 182, Folder 9, letter to Edward C. Grenfell, May 23, 1935.

  15. RCL, Group 1030, Series I, Box 4, Folder 96, memorandum to Thomas W. Lamont, July 25, 1934.

  16. Speer, Inside the Third Reich, p. 97.

  17. N, January 19, 1935.

  18. TWL, Box 182, Folder 16, letter to Dr. Hjalmar Schacht, September 25, 1936.

  19. TI, January 20, 1936.

  20. Ibid.

  21. Ibid.

  22. U.S. Congress, Senate Special Committee Investigating the Munitions Industry, World War Financing, p. 7485.

  23. 77, January 20, 1936.

  24. Wecter, Saga of American Society, p. 458.

  25. Thomson, Prime Ministers, p. 203.

  26. Diggins, Mussolini and Fascism, pp. 166–67.

  27. TWL, Box 83, Folder 15, letter from J. P. Morgan, Jr., July 30, 1935.

  28. Ibid., Box 83, Folder 25, memorandum to T. H. Beck, April 2, 1937.

  29. Ibid., Box 191, Folder 13, memo of interview with il Duce (Benito Mussolini), April 16, 1937, p. 1.

  30. Ibid.

  31. Ibid., p. 3.

  32. Ibid., p. 5.

  33. Ibid., p. 4.

  34. Ibid., p. 6.

  35. Ibid., letter to Giovanni Fummi, April 19, 1937.

  36. Ibid., memorandum to Giovanni Fummi, April 19, 1937.