Lords of Finance_ The Bankers Who Broke the World Part 19

48 Anxious to avoid: "Bankers Here Confer on War," New York Times, New York Times, July 31, 1914. July 31, 1914.

49 "The credit of all Europe": Chernow, House of Morgan House of Morgan, 185.

51 In later years: Nicolson, Dwight Morrow Dwight Morrow, 111.

51 In May 1905: "Mrs. Strong Kills Herself," New York Times, New York Times, May 11, 1905. May 11, 1905.

53 "And to think": Strouse, Morgan Morgan, 15.

53 they were exactly the type of young men: Strouse, Morgan, Morgan, 576. 576.

54 Besides Davison himself: The only two partic.i.p.ants who wrote about the Jekyll Island meeting were Frank Vanderlip in his autobiography From Farm Boy to Financier From Farm Boy to Financier and Paul Warburg in a communication to Thomas Lamont reproduced in Thomas W. Lamont, and Paul Warburg in a communication to Thomas Lamont reproduced in Thomas W. Lamont, Henry P. Davison Henry P. Davison, 97-101. The first contemporary description, though secondhand, appeared in an article by Bertie Charles Forbes, who later founded Forbes Forbes magazine magazine, in in Current Opinion Current Opinion, December 1916, 382. An account is also given in Stephenson, Nelson Aldrich. Nelson Aldrich. Recent descriptions are in West, Recent descriptions are in West, Banking Reform and the Federal Reserve, Banking Reform and the Federal Reserve, 222-224; Chernow, 222-224; Chernow, The Warburgs The Warburgs, 133-134; and Michael A. Whitehouse, "Paul Warburg's Crusade to Establish a Central Bank in the United States" in The Region The Region, Federal Reserve Bank of Minneapolis, May 1989.

55 "the highest pitch of intellectual awareness": Vanderlip, From Farm Boy to Financier, From Farm Boy to Financier, 216 216 57 Reports were rife: "Army of Refugees Flees to London," New York Times, New York Times, August 3, 1914. August 3, 1914.

57 He immediately organized: "Exiles Meet in London," New York Times, New York Times, August 4, 1914. August 4, 1914.

58 Strong persuaded: "Gold Cruiser to Sail Today," New York Times, New York Times, August 6, 1914. August 6, 1914.

58 "Wherever he sat": Chandler, Benjamin Strong, Benjamin Strong, 48. 48.

58 "Jekyll and Hyde personality": Interviews with Leslie Rounds, Committee on the History of the Federal Reserve System Committee on the History of the Federal Reserve System, Washington: Brookings Inst.i.tution, 1954-55 58 If the Aldrich Plan of a single central bank: Interviews with William McChesney Martin Sr., Committee on the History of the Federal Reserve System Committee on the History of the Federal Reserve System, Washington: Brookings Inst.i.tution, 1954- 55.

59 The salary he would receive: "Bank Head's Pay $30,000," Chicago Daily Tribune, Chicago Daily Tribune, October 27, 1914. October 27, 1914.

59 "Ben is not going to live" : Federal Reserve Bank of New York, "Biography of Benjamin Strong by his Son, Benjamin Strong." 1978 59 Only the year before: Details of Strong's apartment at 903 Park Avenue from "The Real Estate Field," New York Times, New York Times, January 15, 1914. January 15, 1914.

5: L'INSPECTEUR DES FINANCES 61 "There isn't a bourgeois alive": Gustav Flaubert quote from Bartlett's Familiar Quotations, Bartlett's Familiar Quotations, 527 527 61 It was the latest in a long chain: Berenson, The Trial of Madame Caillaux, The Trial of Madame Caillaux, 2. 2.

63 the ecole Libre des Sciences Politiques: Zeldin, French Pa.s.sions: Intellect and Pride French Pa.s.sions: Intellect and Pride, 343.

64 His family, minor gentry: Dutron de Bornier from Pierre Lyautey, "Eloge de M. Moreau," Comptes Rendus Mensuels de L'Academie des Sciences Coloniales, Seance du 15 Octobre 1954, Comptes Rendus Mensuels de L'Academie des Sciences Coloniales, Seance du 15 Octobre 1954, Paris, 1954. Joseph Marie-Francois Moreau from "Leur Vacances," Paris, 1954. Joseph Marie-Francois Moreau from "Leur Vacances," Le Pet.i.t Parisien, Le Pet.i.t Parisien, September 4, 1927. September 4, 1927.

64 Although the examination system had made: Zeldin, French Pa.s.sions: Ambition and Love French Pa.s.sions: Ambition and Love, 118.

65 To be chef de cabinet chef de cabinet: For role of cabinets ministeriel, cabinets ministeriel, see Keiger, see Keiger, Raymond Poincare Raymond Poincare, 34.

66 "increased abnormally": Brogan, France Under the Republic France Under the Republic, 128.

66 "moral collapse": Moreau, The Golden Franc: Memoirs, The Golden Franc: Memoirs, 17-18. 17-18.

67 Over the next eight years: Moreau's career at Banque d'Algerie from Pierre Lyautey, "Eloge de M. Moreau," Comptes Rendus Mensuels des L'Academie des Sciences Coloniales, Seance du 15 Octobre 1954, Comptes Rendus Mensuels des L'Academie des Sciences Coloniales, Seance du 15 Octobre 1954, Paris, 1954. Paris, 1954.

68 When he thought back: Moreau, The Golden Franc: Memoirs, The Golden Franc: Memoirs,12.

68 It was there: Jacques Rueff. "Preface to the French Edition," in Moreau, The Golden Franc: Memoirs The Golden Franc: Memoirs, 2.

68 In any other year: Adam, Paris Sees It Through, Paris Sees It Through, 15. 15.

68 "to keep it exciting": "Leur Vacances," Le Pet.i.t Parisien, Le Pet.i.t Parisien, September 4, 1927, and Giscard D'Estaing, Edmond, "Notice sue Emile Moreau," September 4, 1927, and Giscard D'Estaing, Edmond, "Notice sue Emile Moreau," Comptes Rendus Mensuels de L'Academie des Sciences Coloniales: Seance du 1 Decembre 1950, Comptes Rendus Mensuels de L'Academie des Sciences Coloniales: Seance du 1 Decembre 1950, Paris, 1950. Paris, 1950.

69 "Brawls were now breaking": Adam, Paris Sees It Through, Paris Sees It Through, 12-13. 12-13.

69 At the first sign: "French Gold Famine," Times, Times, July 30, 1914. July 30, 1914.

69 That afternoon: Le Figaro, Le Figaro, July 31, 1914 July 31, 1914 70 "All cla.s.ses of society": "Vanished Gold," Times, Times, August 1, 1914. August 1, 1914.

70 "immense and perilous duties," "formidable test," "calmness, vigilance, initiative," and "all [his] authority": "Circulaire Bleu" from the Banque de France, Le Patrimonie, Le Patrimonie, 423. 423.

71 An hour later: "Paris Has Given Up All Hope of Peace, " New York Times, New York Times, August 2, 1914. August 2, 1914.

71 Within days of the outbreak: Cronin, Paris on the Eve, Paris on the Eve, 441-42, and Adam, 441-42, and Adam, Paris Sees It Through, Paris Sees It Through, 21. 21.

71 The next day, a Sunday: Clarke, Paris Waits Paris Waits, 65-67, and "Un Avion Allemand Sur Paris," Le Figaro Le Figaro, August 31, 1914.

71 Few people: Lucien Klotz, "Mes Souvenirs du Temps de Guerre," Le Journal, Le Journal, December 14, 1922, and Gaston-Breton, December 14, 1922, and Gaston-Breton, Sauvez L'Or, Sauvez L'Or, 28. 28.

6: MONEY GENERALS.

73 "Endless money": Cicero quote from Bartlett's Familiar Quotations, Bartlett's Familiar Quotations, 91. 91.

73 "the amounts of coin": Quoted in Blainey, The Causes of War The Causes of War, 215.

74 "unlimited issue of paper": Charles A. Conant, "How Financial Europe Prepared for the Great War," New York Times, New York Times, August 30, 1914. August 30, 1914.

74 Sir Felix Schuster: Stone, World War One, World War One, 30. 30.

74 "he was quite certain": Ferguson, The Pity of War The Pity of War, 319, and Bell, Old Friends, Old Friends, 45. 45.

74 That same month: Strachan, First World War First World War, 816.

74 The Hungarian finance minister: Stone, World War One, World War One, 30. 30.

75 By then the five major powers: "Fifty Billions Cost of War Up To Date." New York Times, New York Times, July 30, 1916. July 30, 1916.

79 "quiet serious men": Bagehot, Lombard Street Lombard Street, 156.

79 "a shifting executive": Bagehot, Lombard Street Lombard Street, 157.

80 An economist of the 1920s: Hawtrey, Art of Central Banking Art of Central Banking, 246-47.

81 "very, very considerable": Cyril Asquith quoting Keynes in Jackson, The Oxford Book of Money The Oxford Book of Money, 46.

81 "take over the Bank": Sayers, The Bank of England, The Bank of England, 105. 105.

81-82 "to accept my unreserved apology": Sayers, The Bank of England, The Bank of England, 107. 107.

83 "There goes that queer-looking fish": Boyle, Montagu Norman Montagu Norman, 105.

84 "into the most holy recesses": Brogan, France Under the Republic France Under the Republic, 115.

85 The Banque opened its doors: Stephane Lausanne. "The Bank of France," Banker Banker, August 1926, 93.

86 "The Banque does not belong": Valance, La Legende du Franc La Legende du Franc, 167.

86 Indeed, Caillaux made things: Gunther, Inside Europe Inside Europe, 145.

88 "Obedience and subordination": Feldman, The Great Disorder The Great Disorder, 795.

88 Convinced like everyone else: Hjalmar, Schacht. "Bemerkungen uber die Art und Weise der vora.s.sichtlichen Kriegsentschadgung Frankreichs an Deutschland," August 26, 1914, in Bundesarchiv Koblenz, Nachla.s.s Schacht, Nr. 1.

90 "insincere replies to the questions": Muhlen, Schacht: Hitler's Magician Schacht: Hitler's Magician, 9.

90 But even Schacht: Testimony of Wilhelm Volcke on May 3, 1946, in Trial of Major War Criminals Before the International Military Tribunal Trial of Major War Criminals Before the International Military Tribunal.

90 Rumors circulated that he had embezzled: For example, the entry for "Schacht, Hjalmar Horace Greeley" in Current Biography 1944, Current Biography 1944, 594-97, includes the following pa.s.sage: "With the endors.e.m.e.nt of the military government he issued several millions of counterfeited banknotes to pay for supplies bought from the Belgians but Berlin authorities became suspicious when he never accounted for the bulk of this money. Also accused of having seen to it that his banking connections profited from his knowledge of Government secrets. . . ." 594-97, includes the following pa.s.sage: "With the endors.e.m.e.nt of the military government he issued several millions of counterfeited banknotes to pay for supplies bought from the Belgians but Berlin authorities became suspicious when he never accounted for the bulk of this money. Also accused of having seen to it that his banking connections profited from his knowledge of Government secrets. . . ."

94 On one occasion: "Vote for Trenches in Central Park over Protests," New York Times, New York Times, March 23, 1918. March 23, 1918.

94 To kick off another campaign: "Wilson to Make War Speech Here in Drive for Loan," New York Times, New York Times, September 26, 1918. September 26, 1918.

7: DEMENTED INSPIRATIONS.

99 "Lenis was certainly right": Keynes, Collected Writings: The Economic Consequences, Collected Writings: The Economic Consequences, 2: 148. In four years: Hardach, 2: 148. In four years: Hardach, The First World War, The First World War, 153. 153.

100 By the end of the war: Ferguson, The Pity of War The Pity of War, 322-31.

102 "fate of Germany": Schacht, My First Seventy-six Years My First Seventy-six Years, 158.

103 "hard . . . callous . . . and b.u.t.toned down": Schacht, My First Seventy-six Years My First Seventy-six Years, 17.

103 "He managed to look": Bonn, Wandering Scholar Wandering Scholar, 303.

104 "Nothing seems sacred": Roberts, The House That Hitler Built The House That Hitler Built, 182.

104 "He was a man": Rauschning, Men of Chaos Men of Chaos, 117.

104 "caused more trouble": Macmillan, Peacemaker, Peacemaker, 191. 191.

105 "little more than a shot": Lentin, Guilt at Versailles, Guilt at Versailles, 21. 21.

106 "twenty million too many: Holborn, A History of Modern Germany A History of Modern Germany, 566.

106 "the only Jew": Macmillan, Peacemaker, Peacemaker, 201. 201.

107 "costly frontal attacks": Taylor, English History, English History, 74. 74.

107 The great natural resources: Wolff, Through Two Decades Through Two Decades, 261.

108 "unbearable, unrealizable, and unacceptable": Eyck, A History of the Weimar Republic, A History of the Weimar Republic, 1: 98. 1: 98.

109 "You seem to forget": Schacht, My First Seventy-six Years My First Seventy-six Years, 161-162.

110 "If Germany is to be": Keynes, "Memorandum by the Treasury on the Indemnity Payable by the Enemy Powers for Reparations and Other Claims," in Collected Writings, Collected Writings, 16: 375. 16: 375.

110 "the sharpest and clearest": Russell, Autobiography Autobiography, 1: 69.

110 "I evidently knew more": Harrod, The Life of John Maynard Keynes The Life of John Maynard Keynes, 121.

111 "an ill.u.s.trated appendix": Skidelsky, John Maynard Keynes: Hopes Betrayed 1883-1920 John Maynard Keynes: Hopes Betrayed 1883-1920, 177.

112 "I tried to get hold": Keynes, "Letter from Basil Blackett," in Collected Writings, Collected Writings, 16: 3. 16: 3.

113 "greedy for work": Skidelsky, John Maynard Keynes: Hopes Betrayed, John Maynard Keynes: Hopes Betrayed, 304. 304.

113 His Bloomsbury friends: Bell, Old Friends: Personal Recollections Old Friends: Personal Recollections, 48.

113 "With the utmost respect": Harrod, The Life of John Maynard Keynes The Life of John Maynard Keynes, 201.

113 But to the many other: Skidelsky et al., Three Great Economists, Three Great Economists, 232, and Harrod, 232, and Harrod, The Life of John Maynard Keynes The Life of John Maynard Keynes, 31.

113 He looked so very ordinary: Skidelsky et al., Three Great Economists, Three Great Economists, 231. 231.

113 "I have always suffered": Skidelsky, John Maynard Keynes: Hopes Betrayed, John Maynard Keynes: Hopes Betrayed, 67, 169. 67, 169.

113 "gay and whimsical," "that gift of amusing": Bell, Old Friends: Personal Recollections Old Friends: Personal Recollections, 52, 60.

114 "probably means the disappearance": Skidelsky, John Maynard Keynes: Hopes Betrayed, John Maynard Keynes: Hopes Betrayed, 346. 346.

114 "a sense of impending": Keynes, Collected Writings: The Economic Consequences, Collected Writings: The Economic Consequences, 2: 2-3. 2: 2-3.

114 "The battle is lost": Keynes, "Letter to David Lloyd George," June 5, 1919, in Collected Writings, Collected Writings, 16: 469. 16: 469.

115 "dry in soul": Keynes, Collected Writings: The Economic Consequences, Collected Writings: The Economic Consequences, 2: 20. 2: 20.

115 "his thought and his temperament": Keynes, Collected Writings: The Economic Consequences, Collected Writings: The Economic Consequences, 2: 26. 2: 26.

115 "his mind . . . slow": Keynes, Collected Writings: The Economic Consequences, Collected Writings: The Economic Consequences, 2: 27. 2: 27.

115 "with six or seven senses": Keynes, Collected Writings: The Economic Consequences, Collected Writings: The Economic Consequences, 2: 26. 2: 26.

115 "rooted in nothing": Keynes, "Lloyd George," in Collected Writings, Collected Writings, 10: 23-24. 10: 23-24.

115 "civilization under threat," "men driven by": Keynes, Collected Writings: The Economic Consequences, Collected Writings: The Economic Consequences, 2: 144. 2: 144.

116 "ought to have been": Trachtenberg, Reparation in World Politics, Reparation in World Politics, 94. 94.

116 "is to us the most important": Schuker, End of French Predominance in Europe End of French Predominance in Europe, 17.