Lords of Finance_ The Bankers Who Broke the World Part 21

174 From Memphis, Tennessee: Interviews with Roy Young and Chester Morrill, 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.

174 From Iowa came: Interviews with George Harrison, Leslie Rounds, Roy Young, and Chester Morrill, 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.

175 "I'll see them d.a.m.ned": Letter from Strong to J. H. Case, April 21, 1923, quoted in Chandler, Benjamin Strong Benjamin Strong, 228.

176 In the process: Interview 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.

176 "worshipped": Interview with Jay Crane, 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.

10: A BRIDGE BETWEEN CHAOS AND HOPE.

179 At 10:00 p.m. on November 8 1923: Stresemann, Diaries, Letters and Papers Diaries, Letters and Papers, 199.

180 On November 5: "Berlin Food Rioters Attack and Beat Jews." New York Times New York Times, November 6, 1923; "Berlin Now Shivering in Sudden Cold Wave," New York Times New York Times, November 8, 1923; Feldman, The Great Disorder The Great Disorder, 780.

181 "Babylon of the world" "A kind of madness": Zweig, The World of Yesterday, The World of Yesterday, 238. 238.

181 "German Chicago": Large, Berlin Berlin, 48.

181 "stone-grey corpse": Quote by George Grosz in Hanser, Putsch, Putsch, 253. 253.

181 "beggars, wh.o.r.es": Sahl, Memoiren, Memoiren, 36-37 quoted in Ian Buruma, "Weimar Faces," 36-37 quoted in Ian Buruma, "Weimar Faces," New York Review of Books, New York Review of Books, November 2, 2006. November 2, 2006.

183 The previous month: Stresemann, Diaries, Letters and Papers Diaries, Letters and Papers, 145-47.

183 "living on the edge": Schacht, My First Seventy-six Years My First Seventy-six Years, 177.

184 "hindered by personal considerations": Schacht, My First Seventy-Six Years, My First Seventy-Six Years,177.

184 "narrow Prussian": Schacht, My First Seventy-six Years My First Seventy-six Years, 120.

185 "an enthusiasm suitable": Feldman, The Great Disorder The Great Disorder, 793.

185 Schacht was as skeptical: Schacht, The Stabilization of the Mark The Stabilization of the Mark, 79, and Feldman, The Great Disorder The Great Disorder, 751.

187 "He sat on his chair": Schacht, My First Seventy-six Years, My First Seventy-six Years, 187. 187.

187-188 "father of the inflation": "Stinnes Would Oust Head of Reichsbank," New York Times New York Times, November 13, 1923.

188 "preserve his honor": Feldman, The Great Disorder The Great Disorder, 715.

189 "astonishing appeas.e.m.e.nt": d'Abernon, The Diary of an Amba.s.sador, The Diary of an Amba.s.sador, 2: 283. 2: 283.

190 "he always had good luck": Feldman, The Great Disorder The Great Disorder, 822.

190 On November 20: "Herr Havenstein Dead," Times Times, November 21, 1923.

190 "an extraordinarily sympathetic personality": Max Warburg Papers, Unpublished Memoirs, 1923, 69, quoted in Feldman, The Great Disorder The Great Disorder, 795.

190 During the war: Feldman, The Great Disorder The Great Disorder, 74.

11: THE DAWES OPENING.

194 "Be extremely subtle" "Be extremely subtle": Sun Tzu quote from Bartlett's Familiar Quotations, Bartlett's Familiar Quotations, 83. 83.

194 "a tall man with a pointed grayish beard" "I want to get on": Schacht, My First Seventy-six Years, My First Seventy-six Years, 194. 194.

194 Decorated in a neocla.s.sical: "The Governor of The Bank of England," Strand Magazine, Strand Magazine, April 1939. April 1939.

196 "quiet, modest": Bank of England, letter from Norman to Strong, October 28, 1921.

196 "You know, of course": Bank of England, letter from Norman to Strong, January 7, 1924.

197 "entertainments," "sad fate": d'Abernon, The Diary of an Amba.s.sador, The Diary of an Amba.s.sador, 2: 122-23. 2: 122-23.

198 "h.e.l.l and Maria": "The Committees," Time, Time, January 7, 1924. January 7, 1924.

199 "hollow deep-set eyes": Klingaman, 1929: The Year of the Crash 1929: The Year of the Crash, 95.

201 "both the element of novelty": Dawes, The Dawes Plan in the Making The Dawes Plan in the Making, 34-35.

202 "those foul and carrion-loving," "impenetrable and colossal": "Whirlwind Diplomacy: How Dawes Plays Game," New York Times, New York Times, January 27, 1924. January 27, 1924.

202 Through a combination of charm: Schuker, End of French Predominance, End of French Predominance, 284. 284.

203 in 1922, an audit: Brogan, France Under the Republic France Under the Republic, 517.

203 $150 million of National Defense Bonds: Shirer, The Collapse of the Third Republic The Collapse of the Third Republic, 161.

204 On January 14: "La Foire aux Devises," Le Quotidien, Le Quotidien, March 12, 1924, cited in Schuker, March 12, 1924, cited in Schuker, End of French Predominance, End of French Predominance, 89. 89.

204 Prime Minister Poincare declared: Jeanneney, Francois de Wendel, Francois de Wendel, 187-88. 187-88.

204 "a.s.sist in bringing France": "The Franc Fighting for Its Life," The Literary Digest, The Literary Digest, March 22, 1924. March 22, 1924.

204 "Each time the franc loses": Keynes, Collected Writing: A Tract, Collected Writing: A Tract, 4: xvi-xvii 4: xvi-xvii 205 "stool of repentance": Schacht, My First Seventy-six Years, My First Seventy-six Years, 208. 208.

206 "His pride is equaled": Dawes, A Journal of Reparations A Journal of Reparations, 54.

206 "remarkable revelation": Dawes, A Journal of Reparations A Journal of Reparations, 54.

209 "It looks to me": Bank of England, letter from Norman to Strong, January 30, 1924.

210 "six main powers": Ziegler, The Sixth Great Power, The Sixth Great Power, 1. 1.

210 One story was that the family: Ferguson, The House of Rothschild: Money's Prophets The House of Rothschild: Money's Prophets, 95-98.

210 "undertaken by any European": Hobson, Imperialism, Imperialism, 64. 64.

211 The son of an austere Methodist: "Lamont, Thomas William," in Current Biography, Current Biography, 1940, 476. 1940, 476.

213 "until the French are out": Schuker, End of French Predominance, End of French Predominance, 215. 215.

213 "swarming, gesticulating": Saint-Aulaire, Confessions, Confessions, 718, quoted in Schuker, 718, quoted in Schuker, End of French Predominance, End of French Predominance, 299. 299.

214 "Europe shall not," "America's only purpose,"

214 "In the lean years": Edwin L. James, "French Condemn Our Role in London," New York Times, New York Times, July 26, 1924, and "The 'Money Devil' Mixes in the Reparations Row," July 26, 1924, and "The 'Money Devil' Mixes in the Reparations Row," The Literary Digest, The Literary Digest, August 9, 1924. August 9, 1924.

215 "We cannot accept": Klein, Road to Disaster, Road to Disaster, 248. 248.

216 "The United States lends money:" Keynes, "The Progress of the Dawes Scheme," in The Nation and the Athenaeum, The Nation and the Athenaeum, September 11, 1926, in September 11, 1926, in Collected Writings, Collected Writings, 18: 281. 18: 281.

12: THE GOLDEN CHANCELLOR.

217 "I never knew a man" "I never knew a man": Greene, The Quiet American The Quiet American, 72.

217 "in the full sunshine": Graves and Hodges, The Long Weekend, The Long Weekend, 102. 102.

217 Regent Street had been made over: "England Not Merry Under Labor's Rule," New York Times, New York Times, June 8, 1924. June 8, 1924.

217 There was a new freedom: Graves and Hodges, The Long Weekend, The Long Weekend, 108-110. 108-110.

219 "While England is financially sound": Sisley, Huddelston. "Personalities and Politics in France," Atlantic Monthly, Atlantic Monthly, January 1925, 117. January 1925, 117.

221 "You know how controversial": Bank of England, letter from Norman to Strong, October 16, 1924.

221 "hand over to Germany": Notes on discussion with Walter Leaf, June 13, 1924. Bank of England quoted in Kynaston, The City of London: Illusions of Gold, The City of London: Illusions of Gold, 109. 109.

221 "rather far behind": Bank of England, letter from Strong to Norman, July 9, 1924.

222 "There never was a Churchill": Quoted in Wilson, The Victorians The Victorians, 485.

222 "how anybody can put their": Letter from William Bridgeman to his wife, quoted in Manchester, The Last Lion, The Last Lion, 785. 785.

223 F. E. Smith, Lord Birkenhead: Wilson, After the Victorians, After the Victorians, 248-49 248-49 224 "his only mistress" : Moreau, The Golden Franc, 51. The Golden Franc, 51.

224 He had a Rolls-Royce: Manchester, The Last Lion The Last Lion, 778-79.

224 Norman, despite his inherited wealth: Lyttelton, Memoirs of Lord Chandos Memoirs of Lord Chandos, 137.

225 "undetected, like a shadow": "From the 'Old Lady.' " Time, Time, January 12, 1925. January 12, 1925.

225 "unremarked": "Plan to Pay Gold Calls Norman Here" New York Times, New York Times, January 1, 1925. carved out of the solid bedrock: "Federal Bank Vault Carved in Solid Rock." January 1, 1925. carved out of the solid bedrock: "Federal Bank Vault Carved in Solid Rock." New York Times, New York Times, October 18, 1924. October 18, 1924.

225 Most noticeable was the number of cars: "One Auto in the City to Each 16 Persons," New York Times, New York Times, May 18, 1924, and "Automobile Census Shows World Has 21,360,779 Cars," May 18, 1924, and "Automobile Census Shows World Has 21,360,779 Cars," New York Times, New York Times, March 8, 1925. For relative wages between the United States and Europe, see "Premium on Dollar Keeps Wages Up," March 8, 1925. For relative wages between the United States and Europe, see "Premium on Dollar Keeps Wages Up," New York Times, New York Times, December 31, 1924. December 31, 1924.

226 "The great problem is sterling": Strong memorandum to Carl Snyder, April 3, 1922, quoted in Chandler, Benjamin Strong, Benjamin Strong, 291. 291.

227 "a long period of unsettled conditions": Strong memorandum, January 11, 1925, quoted in Chandler, Benjamin Strong Benjamin Strong, 309.

228 "My dear Ben": Bank of England, letter from Norman to Strong, January 18, 1925.

229 "the Louis XVI of the monetary revolution": Keynes, "Letter to Sir Charles Addis," July 25, 1924, in Collected Writings Collected Writings, 19: 371-72.

229 "We should run the risk": Keynes, "The Problem of the Gold Standard," in The Nation and Athenaeum The Nation and Athenaeum, May 2, 1925, in Collected Writings Collected Writings, 19: 337-44.

230 "faults in her economic structure": Keynes, "The Return Towards Gold," in The Nation and Athenaeum The Nation and Athenaeum, February 21, 1925, in Collected Writings: Essays in Persuasion, Collected Writings: Essays in Persuasion, 7: 192-200. 7: 192-200.

230 "pressing the return to the gold standard": Taylor, Beaverbrook Beaverbrook, 227.

230 "It is an absurd and silly notion": Taylor, Beaverbrook Beaverbrook, 319.

231 "he never could make out": Churchill, Lord Randolph Churchill Lord Randolph Churchill, 2: 184.

231 "If they were soldiers": James, Churchill: A Study in Failure, Churchill: A Study in Failure, 204. 204.

231 "survival of a rudimentary": "Mr. Churchill Exercise," February 29, 1925, U.K. Treasury Papers, quoted in Moggridge, British Monetary Policy, British Monetary Policy, 76. 76.

232 "We, and especially Norman, feel": Letter from Edward Grenfell to Jack Morgan, March 23, 1925, quoted in Chernow, The House of Morgan The House of Morgan, 275-76.

232 "The Gold Standard is the best 'Governor' ": Moggridge, British Monetary Policy, British Monetary Policy, Appendix 5, 270-72. Appendix 5, 270-72.

232 "The Governor of the Bank": Winston Churchill to Otto Niemeyer, February 22, 1925, U.K. Treasury Papers in Moggridge, British Monetary Policy British Monetary Policy, Appendix 5.

233 "Norman elaborates his own schemes": Letter from Edward Grenfell to Jack Morgan, March 23, 1925, quoted in Chernow, The House of Morgan The House of Morgan, 274.

233 "None of the witch doctors": Leith-Ross, Money Talks, Money Talks, 91. 91.

233 Norman often stopped by: Templewood, Nine Troubled Years Nine Troubled Years, 78.

234 "knave-proof," "living in a fool's paradise": Grigg, Prejudice and Judgment Prejudice and Judgment, 183.

235 "You have been a politician": Grigg, Prejudice and Judgment Prejudice and Judgment, 184.

235 "I will make you the golden Chancellor": Boyle, Montagu Norman, Montagu Norman, 189. 189.

236 "It is imperative that": Text of Churchill's speech, including remark about fortifying himself, from Hansard, Hansard, House of Commons Debates, 5 Series, vol. 183, cols 49-114. House of Commons Debates, 5 Series, vol. 183, cols 49-114.

236 "an amber-coloured liquid": Howe, A World History, A World History, 290. 290.

236 "If the English pound is not": Churchill, Complete Speeches, Complete Speeches, 4: 3587. 4: 3587.

236 "greatest achievement . . .": Winston, Churchill. "Montagu Norman," Sunday Pictorial Sunday Pictorial, September 20, 1931.

237 "a signal triumph": Times, Times, April 29, 1925. April 29, 1925.

237 "the crowning achievement": Economist, Economist, May 2, 1925. May 2, 1925.