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

Page 106

by Ron Chernow


  1. Courtesy of the Archives of the Pierpont Morgan Library, New York. Reprinted with the permission of Joanna T. Steichen

  2, 3, 4, 5, 6, 7, 11, 28. The Pierpont Morgan Library

  8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 25, 31, 32, 37, 38, 56. Library of Congress

  20, 21. Brown Brothers

  22, 23, 40. Walter Lippmann Papers, Manuscripts and Archives, Yale University Library

  24, 41, 42, 43. Lindbergh Picture Collection, Manuscripts and Archives, Yale University Library

  26, 27. Department of Manuscripts and University Archives, Cornell University Library

  29. Courtesy of Paul G. Pennoyer, Jr., one of the grandsons of Mrs. Morgan 30, 36, 39, 44, 46, 50, 51, 53, 54, 55, 57, 58, 59, 60, 62, 63, 64, 66, 67, 68, 69, 76, 77. AP/Wide World

  33. Thomas Lamont Collection, Baker Library, Harvard Business School

  34. The Museum of the City of New York

  35. New York Stock Exchange Archives

  45. Courtesy of Edward Pulling

  47, 48, 49. Courtesy of the Hon. Laura Phillips (née Grenfell)

  52, 73, 75. Courtesy of Morgan Grenfell

  61. New York News, Inc.

  65. New York Times Pictures

  70. Larry C. Morris/New York Times Pictures

  71. Jill LeVine

  72. Rolph Gobits

  74. Financial Times

  78. Courtesy of Gerald R. Ford Library

  79, 80. Courtesy of J. P. Morgan & Co.

  81. David Anderson

  INDEX

  A

  Abu Dhabi, 613–14

  Accepting Houses Committee, 520

  Acheson, Dean, 426, 427, 605

  Adams, Charles Francis, 56, 168

  Adams, Evangeline, 51

  Adams, Henry, 30

  Aetna Fire Insurance Company, 18

  Alaska, 147–48

  Albany and Susquehanna Railroad, 30–32

  Alcoa, 523, 525

  Aldenham Village, 97, 264

  Aldrich, Nelson W., 128, 129, 130, 144, 182, 217

  Aldrich, Winthrop W., 362, 375

  Aldrich-Vreeland Currency Act, 129, 130

  Alexander, Sir Harold, 521

  Alexander, Henry Clay, 510, 511, 527–37, 541, 542, 555, 559–60

  described, 527, 528

  merger of J. P. Morgan and, 531–35

  return to overseas banking and, 544, 548

  Alexandra, Queen, 87

  Ali, Anwar, 606–607, 608

  Ali, Pasha, 607

  Alireza, Ali, 608

  Alireza, Hisham, 608

  Alireza, Khalid, 617

  Alleghany Corporation, 309–10, 314, 324–25, 369, 502, 507, 707

  preferred list of friends and, 369–72

  Wheeler hearings and, 413–16

  Allen, Frederick Lewis, 128

  Allen, Julian, 451

  America First, 461

  American Bankers Association, 383, 419, 518

  American depositary receipts (ADRs), 304, 552

  American Express, 531, 551, 588, 705–706

  American Friends of France, 247, 443

  American International Group, 702

  American Jewish Congress, 609

  American Museum of Natural History, 322

  American Smelting and Refining, 190, 561

  American Telephone and Telegraph (AT&T), 153, 180, 317, 390, 469, 595, 661–62, 695

  pre-crash 1920s and, 304–305, 308

  American Tobacco, 549, 570–73, 595, 671, 687

  American Tobacco Trust, 130

  American Viscose Company, 462–63

  America’s Cup, 80

  Amherst College, 287, 290, 559

  Amory, D. Heathcoat, 525

  Anaconda, 534, 598

  Anderson, Arthur, 372

  Anderson, Harold, 605–606, 607

  Anglo-American alliance, 98–105, 139, 256, 430–31, 529, 530

  Anglo-French loan and, 198–202

  Austrian loan repayment and, 432–35

  Export Department and, 187–92

  German loan repayment and, 396–99, 432

  Lippmann on, 430

  Morgan Grenfell and, 270–71, 273–74, 331–34, 385, 396–99, 431–35, 520, 653–54

  sale of American Viscose and, 462–63

  tensions in, 99, 133, 190–91, 198–202, 396–99, 432–35, 439, 464–65

  World War II and, 459–68

  Anglo-American Corporation, 350

  Anti-Catholicism, 214–15, 259, 379

  Anti-Semitism, 76, 177, 245, 258, 379, 414, 461, 489, 552

  Bank of the United States and, 326–27

  of Ford, 216, 615

  German, 393, 394, 432, 433, 439, 453

  of Jack, 150, 196–99, 214–17, 394

  at Morgan Grenfell, 615

  of Pierpont, 47–48, 74, 89–90, 103–104

  in Russia, 195, 196

  Antitrust sentiment, 105–12, 130–31, 133, 147–56

  exploitation of Alaska and, 147–48

  New Haven Railroad and, 174–81

  Pujo Committee and, 137, 149–56

  Tennessee Coal and Iron and, 127–28

  Anti-Zionism, 489, 617

  Antoniu, Adrian, 632, 691, 713

  Apple Computer, 627

  Arab Bank, 615

  Arabian-American Oil Company (Aramco), 533, 605, 606

  Arab League, 615

  Arabs, 604–18, 637

  boycott of Israel, 609–10, 615, 617, 618, 706

  Morgan Grenfell and, 612–18

  Morgan Guaranty and, 604–10, 614

  Morgan Stanley and, 610–12, 622

  Argentina, 71, 225, 487, 637, 638, 641–42, 646, 647, 649

  Argyll, 680–81, 682, 683

  Arizona-Colorado Land and Cattle, 610–11

  Arkin, Stanley, 651

  Armstrong, William, 110

  Asquith, Herbert H., 187, 197, 206

  Assay Office, U.S., 212, 214

  Associated Electric Industries, 519, 526

  Associated Press, 334, 336

  Astor, Brooke, 655

  Astor, John Jacob, 41

  Astor, Lady Nancy, 207, 261, 361, 407, 419, 427, 438, 443, 459, 479

  described, 435–37

  Astor, Lord Waldorf, 261, 436

  Astor Trust Company, 143

  Ataka and Company, 557–58

  Atlantic Monthly, 444, 622

  Attlee, Clement, 476

  Australia, 517, 518, 552, 593, 613, 625, 669, 673

  Austria, 246–7, 308, 328, 396, 489, 568, 638

  debt repayment by, 432–35, 486

  Austrian Anschluss, 399, 432, 437

  Austrian National Bank, 328, 432–33

  Axten, john, 473

  Azzolini, Vincenzo, 403, 455

  B

  Babcock and Wilcox, 629

  Bache, 510, 623, 643

  Bacon, Robert, 74–75, 83, 91, 95, 135, 142, 422

  described, 87–88, 94

  Roosevelt and, 105–106, 107

  Bacot, J. Carter, 703

  Baird, Chuck, 598, 600, 601

  Baird, David, 298

  Baker, George F., 124, 126, 129, 143, 151, 178, 371, 530

  Baker, Newton, 188

  Baker, Ray Stannard, 85, 187

  Baker Plan, 647

  Bakhmeteff, Boris, 189

  Balance of payments, 544, 545, 690

  Baldwin, Robert H. B., 512, 582–88, 597, 598, 599, 602, 626, 668

  changes at Morgan Stanley instigated by, 583, 585, 588, 592–93, 594, 622–23, 663

  described, 582–83, 663

  on ethical standards of Morgan Stanley, 628, 630, 631, 634

  Rule 415 and, 661, 663

  Baldwin, Stanley, 228, 265, 276, 277, 330, 333, 402

  appeasement of Germany, 437, 438–39, 444

  Ballets Russes, 271–72

  Ballin, Albert, 101–102

  Ballinger, Richard, 148

  Banca d’Italia, 277, 280, 282, 402, 403, 549

&nb
sp; Banker-government collaboration, 24–28, 131–38, 153, 205–206, 210, 216–17, 225–29, 461–68

  Bankers, fall from grace of, 352, 355–57, 366, 369–84, 412–29

  Bankers Trust, 123, 143, 152–53, 182, 364, 387, 527, 568, 644, 659, 696, 715, 716

  Bank failures, 66, 326–27, 353, 357, 604, 656–60

  European, 327–29

  Glass-Steagall Act and, 375–76

  Bank for International Settlements (BIS), 311–12, 325, 434, 521

  Bankhaus Herstatt, 604

  Bank holidays, 353, 357

  Banking Act of 1933, see Glass-Steagall Act

  Banking Act of 1935, 383, 384

  Banking reform, 129–30; see also Glass-Steagall Act

  Bank Leu, 683, 684

  Bank mergers, 152–54, 275, 496, 530, 532–36, 675, 703

  Bank of America, 534, 551, 604, 609, 659

  Bank of England, 11, 12, 71, 72, 104, 182, 385, 397, 476, 485, 489, 521, 525, 567, 569, 589, 613, 653–54, 671, 672, 675, 689

  Catto as Governor of, 476–77, 519, 520

  debt repayment and, 433–35

  Euromarkets and, 548

  gold standard and, 273–77, 329–34

  Guinness scandal and, 676, 683, 686–87, 688

  Norman and, 244–52, 273–77, 476

  Takeover Panel and, 571, 572

  World War I and, 196, 197, 200, 202

  Bank of Japan, 233, 337, 437

  Bank of Manhattan, 496, 530

  Bank of New York, 701, 703

  Bank of Tokyo, 552, 644

  Bank of the United States, 326–27

  Banque Commerciale pour l’Europe du Nord, 545

  Banque de France, 274, 310, 329, 450, 451

  Banque de l’lndochine, 615

  Barclays Bank, 674, 695

  Baring, House of, 3, 5, 6, 11, 19, 36, 57, 81, 99, 210, 304, 521, 607, 637

  government financing and, 25, 26, 71, 225, 236, 238

  merger talks with Pierpont, 103–104

  Barkley, Alben W., 366

  Barnes, Harry Elmer, 448–49

  Barney, Charles T., 123

  Barnum, P. T., 143

  Baronial Age, 3, 23–28, 43, 55, 85, 108, 131, 160, 180, 303, 698

  Barrie, Sir James, 97, 265

  Barrington, Ken, 570–71

  Barron, Clarence W., 66, 142, 248

  Barron’s, 587, 696

  Bartow, Frank D., 331, 426

  Baruch, Bernard, 65, 149, 202, 207, 305, 320, 351, 358, 371

  Bates, Joshua, 6

  Beame, Abraham, 619, 620

  Beard, Anson, 662

  Bear raiders, 351–53, 354

  Bear Stearns, 702

  Beaverbrook Lord, 290

  Beebe, Morgan and Company, J. M., 9, 19

  Bechtel, Stephen, Sr., 543, 544

  Bechtel Company, 606, 610

  Beecher, Henry Ward, 18

  Behn, Sosthenes, 308, 371

  Belgium, 705

  Bell and Sons, Arthur, 680

  Belmont, August, Jr., 74, 75, 149

  Belmont, August, Sr., 5, 39, 40

  Belridge Oil, 631, 632

  Bendall, David, 589–90, 592, 613

  Bendix Corporation, 500

  Benét, Stephen Vincent, 278

  Bennett, John, 626

  Berenson, Bernard, 117, 141, 173, 280

  Berkovitch, Boris S., 656

  Berle, Adolf A., 419, 420

  Bernard, Lewis W., 581, 595, 596, 624, 634, 663, 695

  Bethlehem Steel, 417, 534

  World War I and, 189, 190, 200

  Bicester, Lord, see Smith, Vivian Hugh

  Big Bang deregulation, 673–76, 684, 685, 688, 714, 715

  Biggs, Barton, 587, 700

  Bishop, Jerry E., 564, 565

  Bismarck, Otto von, 26, 27

  Black, Eugene, 518, 552–53

  Black, William, 512, 518, 623

  Blackett, Basil, 187, 198, 246

  Black Monday, 664, 699, 700–702, 717

  Black Thursday, 303, 313, 315–17, 355–56

  Block Community Organization, 347

  Blood Brotherhood, 342–43

  Blough, Roger M., 536–37

  Blum, Léon, 478

  Blumenthal, Charles, 215, 216, 248

  Blunden, George, 687

  Blyth, Charles, 390–91

  Boer War, 98, 99, 195

  Boesky, Ivan, 683, 684, 685, 686, 712–13

  Bolivia, 354

  Bolshevism, 210, 211, 225, 292, 338

  Bonsal, Dudley J., 565–66

  Boocock, Howard and Adele, 218

  Booth, Willis, 282–83

  Borglum, Gutzon, 347

  Boston and Maine Railroad, 175–76

  Brackenridge, A. Bruce, 533, 637, 641

  Brady, Diamond Jim, 115

  Brain trust, 358, 418–19

  Brandeis, Louis D., III, 149, 258, 503, 663, 698

  New Deal and, 378–79, 418, 420

  New Haven Railroad and, 137–38, 176–81, 412

  Brazil, 459, 637–51, 716

  Brazilian-American Chamber of Commerce, 641, 642

  Brennan, Donald P., 669

  Bretton Woods, New Hampshire, 486, 489

  Brewster, Kingman, 461

  Britain, 327, 504, 529–30, 592, 640, 701

  aid to, after World War II, 487, 519, 551, 638

  Bank of, see Bank of England

  Battle of, 459–61

  denationalization of steel industry in, 519

  Falkland Islands war, 641

  gold standard in, 273–77, 313, 315, 329–36, 475

  Lend-Lease and, 461–64

  loss of world banker status, 518–19

  as second-class power, 489

  Special Operations Executive, 589; see also Anglo-American alliance

  British Aluminium, 523–25

  British-American Tobacco, 705

  British General Electric, 519

  British Petroleum, 595, 622, 701

  Broderick, Joseph A., 326, 327

  Brooks, Harvey and Company, 589

  Browder, Earl, 467

  Brown Brothers, 57, 245

  Brown Brothers Harriman, 385, 536, 537, 691

  Brugger, James, 491, 494, 527

  Brunei, sultan of, 673

  Brüning, Heinrich, 328, 329

  Bryan, William Jennings, 78, 82, 129, 149, 181, 255, 381

  gold standard and 72, 76, 77, 191, 358

  isolationism of, 137, 186, 230, 401

  Buchanan, James, 7, 12

  Burleigh, Harry T., 160, 472

  Burlington Industries, 695–98, 699

  Burlington Northern Railroad, 67–68

  Burnham, I. W. “Tubby,” 470

  Burns, Arthur, 539, 544, 555, 609

  Burns, Walter Hayes, 26, 40, 95

  Burns, Walter Spencer Morgan, 95

  Burr, Donald C., 666, 667

  Bush, George, 647

  C

  Cadbury Schweppes, 685

  Caesar, Herr, 452–53

  Caetani, Prince Gelasio, 280

  Caiola, Dr. Nicola, 546

  Calles, Plutarco Elías, 292–96

  Campbell, Sir Gerald, 431

  Camp Uncas, 79–80, 194, 408, 475

  Canada, 517, 552, 640

  Canterbury Cathedral, 479

  Cantor, Eddie, 319–20, 352

  Carey, Hugh, 620

  Carey, Sir Peter, 688, 689

  Carli, Guido, 549

  Carlisle, John G., 74, 75

  Carnegie, Andrew, 15, 39–40, 56, 114, 158–59, 200

  U.S. Steel trust and, 82–84, 222

  Carnegie Corporation, 559

  Carr, Sir William, 573–78

  Carr family, 573, 574, 577

  Carranza, Venustiano, 239, 240

  Carrington, Peter A. R., 614

  Carrington, Rupert F. J., 614

  Carson, Ralph M., 505, 507

  Carter, Bernard S., 359, 451

  Carter, Jimmy, 617

  Carter, Ledya
rd, and Milburn, 354

  Case, J. I., 581–82

  Casino Age, 466, 475, 486, 495, 496, 506, 523, 536, 541, 542, 567, 577, 581, 589, 626, 636, 638, 656, 661, 698

  Cassel, Sir Ernest, 131

  Castro, Fidel, 542, 592

  Catledge, Turner, 565

  Catto, Stephen, 477, 526, 569, 575, 594, 653, 654, 688

  Murdoch and, 573–78

  Catto, Lord Thomas S., 431, 455

  as Governor of the Bank of England, 476–77, 519, 520

  World War II and, 460–65

  Cazenove and Company, 571, 572, 573, 671, 684

  Celler, Emmanuel, 496–97

  Central banks, 128–30, 181, 243–45, 383

  central bank for, 312

  Japan, 233–34

  U.S., see Federal Reserve System

  Central Intelligence Agency (CIA), 542

  Century Club, 420

  Certificates of deposit (CDs), 545, 592, 654, 657, 658

  negotiable, 538, 539, 541

  Chamberlain, Sir Austen, 404

  Chamberlain, Joseph, 103

  Chamberlain, Neville, 381, 397, 404, 407, 440, 459, 464

  appeasement of Germany, 434, 437–39

  Chase Harris Forbes, 362

  Chase Manhattan, 531, 532, 534, 604, 609, 619, 659

  merger forming, 496, 530

  Chase Manhattan Plaza, 531

  Chase National Bank, 153, 225, 304, 356, 362, 480, 488, 496, 508, 518, 527, 530

  overseas branches of, 451, 551

  proposed merger with J. P. Morgan, 496

  Chemical Bank, 530, 609, 610, 659

  Chesapeake and Ohio Railroad, 502, 506, 507

  Chevrolet, Louis, 223

  Chiang Kai-shek, 338

  Chicago, Burlington, and Quincy (CB&Q) Railroad, 91, 94

  China, 132–37, 230–32, 466, 490, 518, 638

  Japanese invasion of, 337–45, 437

  Chrysler, Walter, 223

  Chrysler Corporation, 657

  Church, Frank, 609, 638

  Churchill, Winston, 190, 315, 436, 476, 480, 487, 672

  British gold standard and, 275–77, 331

  World War II and, 437, 438, 459, 461–63, 467

  Churchill Falls Corporation, 582

  Ciano, Galeazzo, 456

  CIGNA Insurance, 669, 694, 699

  Citibank, 90, 604, 609, 637, 638–39, 669

  Brazil’s debt crisis and, 642–45

  Continental Illinois rescue and, 658, 659, 660

  Citicorp, 654, 655, 685

  City Smiths, 104–105, 272, 460; see also Smith, Vivian Hugh (Lord Bicester)

  Civil War: financing of, 13, 35, 40

  profiteering during, 21–22

  stand-ins during, 22

  Clarke, Sir Purdon, 119

  Clay, General Lucius, 478, 543, 554

  Clayton Antitrust Act, 181

  Cleveland, Grover, 22, 34

  gold standard and, 73–78, 331

  Cleveland, J. Luther, 532–34, 539

 

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