Lords of Finance_ The Bankers Who Broke the World Part 23

297 Norman dominated the proceedings: Interview with Mrs. Ogden Mills, 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. Washington: Brookings Inst.i.tution, 1954-55.

298 "un pet.i.t coup de whisky": Banque de France, Charles Rist memorandum "Conversation du 1 au 7 Juillet, 1927 a New York et Washington;" Charles, Rist. "Notice Biographique," Review D'economie Politique. Review D'economie Politique. Nov-Dec 1955, 1006; and Sayers, Nov-Dec 1955, 1006; and Sayers, The Bank of England, The Bank of England, 340. 340.

298 "courtesy calls": Entry for July 7, 1927: Hamlin diary, Volume 14, Library of Congress.

299 "inflation of credit": Hoover, Memoirs, Memoirs, 11. 11.

299 "That man has offered me unsolicited advice": Schlesinger Jr., The Crisis of the Old Order, The Crisis of the Old Order, 88. 88.

299 Fobbing Hoover off: Hoover, Memoirs, Memoirs, 11. 11.

300 "the greatest and boldest operation": Robbins, The Great Depression The Great Depression, 53.

300 "takes great interest": "Ma.n.u.script Notes by the Governor on Benjamin Strong and on Europe, 3-9 July 1927," reproduced as Appendix 17 in Sayers, The Bank of England, The Bank of England, 2: 96-100. 2: 96-100.

301 "I had an important conversation": Moreau, The Golden Franc, The Golden Franc, 430-31. 430-31.

302 "intrigues to prevent France," "ask Norman to choose": Moreau, The Golden Franc, The Golden Franc, 443, 445. "to establish some sort of dictatorship": Letter from Strong to Walter Stewart, quoted in Clay, 443, 445. "to establish some sort of dictatorship": Letter from Strong to Walter Stewart, quoted in Clay, Lord Norman Lord Norman, 265.

303 "speculation on the stock market": Chicago Tribune, Chicago Tribune, July 14, 1928. July 14, 1928.

303 "most vehement language": "Memorandum on Bank of England-Bank of France Relations," May 24, 1928, quoted in Chandler, Benjamin Strong Benjamin Strong, 417-18.

304 At one point, several frustrated senior directors: Letter from Siepmann to Steward, July 8, 1928, cited in Boyce, British Capitalism, British Capitalism, 23, n. 69. 23, n. 69.

304 "One moment he would be sunny": Boyle, Montagu Norman Montagu Norman, 235.

304 "How hard and how cruel": Chandler, Benjamin Strong, Benjamin Strong, 472. 472.

304 "I am desolate and lonesome": Boyle, Montagu Norman, Montagu Norman, 238. 238.

16: INTO THE VORTEX.

307 At particular times At particular times: Bagehot, "Edward Gibbon," National Review, National Review, January 1856, in January 1856, in The Collected Works: Literary Essays, The Collected Works: Literary Essays, 352. 352.

307 "stocks could be beat": "The Magnet of Dancing Stock Prices," New York Times, New York Times, March 24, 1929. March 24, 1929.

308 The bubble began: Acampora, The Fourth Mega-Market, The Fourth Mega-Market, 129. 129.

309 "The old-timers": "The Magnet of Dancing Stock Prices," New York Times, New York Times, March 24, 1929. March 24, 1929.

310 "You could talk about Prohibition": c.o.c.kburn, In Time of Trouble In Time of Trouble, quoted in Brooks, Once in Golconda Once in Golconda, 82.

310 Anyone trying to throw doubt: Noyes, The Market Place, The Market Place, 322. 322.

310 As the crowd piling into the market: Charles, Merz. "Bull Market," Harpers Monthly Magazine, Harpers Monthly Magazine, April 1929, 643. April 1929, 643.

310 "bootblacks, household servants": Charles, Merz. "Bull Market." Harpers Monthly Magazine, Harpers Monthly Magazine, April 1929, 643. April 1929, 643.

311 "Taxi drivers told you what to buy": Baruch, The Public Year, The Public Year, 220. 220.

311 "When the time comes that a shoeshine boy": Goodwin, The Fitzgeralds and the Kennedys The Fitzgeralds and the Kennedys, 488.

311 "hard losers and naggers": Patterson, The Great Boom and Panic, The Great Boom and Panic, 18. 18.

311 Even the New York Times New York Times: "The Army of Women Who Watch the Ticker," New York Times, New York Times, March 31, 1929. March 31, 1929.

312 Biggest of them was Billy Durant: Sparling, Mystery Men of Wall Street, Mystery Men of Wall Street, 3-42. 3-42.

312 "History, which has a painful way": "Warburg a.s.sails Federal Reserve," New York Times, New York Times, March 8, 1929. March 8, 1929.

312 "sandbagging American prosperity": Galbraith, The Great Crash, The Great Crash, 77. 77.

313 "Monty and Ben sowed the wind": Chernow, The House of Morgan The House of Morgan, 313.

313 "speculative orgy," "There are many underlying reasons," "stock speculation," "The prevailing bull market": "The Stock-Speculating Mania," The Literary Digest, The Literary Digest, December 8, 1928. December 8, 1928.

314 It was from Washington: Ellis, A Nation in Torment A Nation in Torment, 40.

315 "displayed some life": Moreau, The Golden Franc The Golden Franc, 89.

315 "When the American people": Interview with Roy Young, 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. Washington: Brookings Inst.i.tution, 1954-55.

316 The following exchange: Hearings of Senate Committee on Banking and Currency on Brokers' Loans Hearings of Senate Committee on Banking and Currency on Brokers' Loans. Washington: United States Government Printing Office, 1928, quoted in Lawrence, Wall Street and Washington Wall Street and Washington.

317 "oratory, ethics and provincialism": "Federal Reserve versus Speculation," Time, Time, February 25, 1929. February 25, 1929.

317-18 "Wall Street has become the most notorious": "Senate Votes to Ask Reserve Board How to Bar Speculation," New York Times, New York Times, February 12, 1929. February 12, 1929.

318 Nevertheless, in the last weeks: Letter from Strong to Walter Stewart, August 3, 1928, quoted in Chandler, Benjamin Strong, Benjamin Strong, 460-61. 460-61.

318 Strong's successor: Matthew, Josephson. "Money Men are Different Now," Sat.u.r.day Evening Post, Sat.u.r.day Evening Post, February 26, 1949. February 26, 1949.

319 "being young and new," "had inherited all antagonisms": Letter from Leffingwell to Edward Grenfell, May 29, 1919, quoted in Kunz, The Battle for Britain's Gold Standard, The Battle for Britain's Gold Standard, 19. 19.

319 With Strong dead: 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. Washington: Brookings Inst.i.tution, 1954-55.

320 "raise the prestige": "Memorandum on conversation with Governor Young: March 6, 1929," Goldenweiser Papers, Library of Congress, quoted in Clarke, Central Bank Cooperation Central Bank Cooperation, 156.

321 "any longer intend to be": Bierman, The Great Myths of 1929, The Great Myths of 1929, 78. 78.

321 Harrison urged Norman: Hamlin Diary, February 11, 1929, quoted in Bierman, The Great Myths of 1929, The Great Myths of 1929, 105, n. 11. 105, n. 11.

321 "to have the stock market fall": Josephson, Infidel in the Temple, Infidel in the Temple, 22. 22.

321 Once the speculative fever: Harrison Memorandum, "Conversations with Federal Reserve Board: February 5, 1929," quoted in Clarke, Central Bank Cooperation Central Bank Cooperation, 152.

321 "lived and breathed": Hamlin Diary, March 5, 1929, Library of Congress; "Memorandum on conversation with Governor Young: March 6, 1929," Goldenweiser Papers, Library of Congress, quoted in Clarke, Central Bank Cooperation Central Bank Cooperation, 157.

322 "If buying and selling stocks": "The War Against Wall Street Speculation," The Literary Digest, The Literary Digest, April 13, 1929. April 13, 1929.

322 "the hardest time in America": Letter from Peac.o.c.k to Revelstoke, February 18, 1929, quoted in Kynaston, The City of London: Illusions of Gold, The City of London: Illusions of Gold, 157. 157.

322 "an even deeper feeling": Letter from Norman to European Central Bankers, February 21, 1929, quoted in Clay, Lord Norman Lord Norman, 249.

322 Over the next three months: Friedman and Schwartz, A Monetary History, A Monetary History, 259. 259.

324 Even Adolph Miller: Hamlin Diary, January 3, 1929, quoted in Wueschner, Charting Twentieth-Century Monetary Policy, Charting Twentieth-Century Monetary Policy, 153. 153.

325 "The French have always had": McNeil, American Money and the Weimar Republic American Money and the Weimar Republic, 228.

325 Under the Dawes Plan schedule: Under the Dawes Plan, reparations were supposed to increase according to a "prosperity index," calculated based on trends in foreign trade, the budget, coal production, railway traffic, consumption of sugar, tobacco, and beer and spirit. While the increase in payments was potentially indefinite, most people worked on the calculation that the annual tribute would settle somewhere around $700 million.

326 "with a mixture of awkwardness": McNeil, American Money and the Weimar Republic American Money and the Weimar Republic, 228.

327 "nothing but work ": McNeil, American Money and the Weimar Republic American Money and the Weimar Republic, 228 327 Government officials: Bennett, Germany and the Diplomacy of the Financial Crisis, Germany and the Diplomacy of the Financial Crisis, 5. 5.

327 "the new German Kaiser": "69," Time, Time, February 6, 1929. February 6, 1929.

327 "without the normal incentive": Annual Report of Agent General for Reparations, 1927, quoted in Eyck, A History of the Weimar Republic, A History of the Weimar Republic, 2: 174. 2: 174.

329 "was dancing on a volcano": Stresemann Note on Meeting with Parker Gilbert, November 13, 1928, in Stresemann, Diaries, Letters and Papers Diaries, Letters and Papers, 2: 406.

329 It came as an ill omen: "Europe's Cold Snap Worst in Centuries," New York Times, New York Times, February 12, 1929; "100 Die in Europe as Cold Holds Grip," February 12, 1929; "100 Die in Europe as Cold Holds Grip," New York Times, New York Times, February 13, 1929; "Freezing Europe Faces Cold Famine," February 13, 1929; "Freezing Europe Faces Cold Famine," New York Times, New York Times, February 14, 1929. February 14, 1929.

330 Marthe Hanau was a forty-two-year-old: Janet Flanner, "Annals of Finance: The Swindling Presidente," the New Yorker, New Yorker, August 26 and September 2, 1939. August 26 and September 2, 1939.

332 "lengthy, tiresome": Ziegler, The Sixth Great Power, The Sixth Great Power, 357. 357.

332 "a vehement, intolerant man": Huddleston, In My Time, In My Time, 256. 256.

332 "tantrums and exhibitionism": Leith-Ross, Money Talks Money Talks, 119.

332 "hatchet, Teuton face," "like a steel trap": Ziegler, The Sixth Great Power The Sixth Great Power, 356-57.

332 "If h.e.l.l is anything like Paris": Klingaman, 1929: The Year of the Crash 1929: The Year of the Crash, 163.

332 The German delegates: Kopper, Hjalmar Schacht, Hjalmar Schacht, 146. 146.

334 Schacht's proposal was initially received: Stuart Crocker Memoirs, quoted in Jacobson, Locarno Diplomacy, Locarno Diplomacy, 257. 257.

334 Pierre Quesnay: Stuart Crocker Memoirs, quoted in Jacobson, Locarno Diplomacy, Locarno Diplomacy, 265. 265.

337 "You ought never to have signed": Schacht, My First Seventy-six Years My First Seventy-six Years, 247.

337 "The crisis may have been": Kopper, Hjalmar Schacht, Hjalmar Schacht, 154. 154.

337 "My prophecy would be": Keynes, "Letter to Andrew Mcfadyean," January 5, 1930, in Collected Writings, Collected Writings, 18: 346-47. 18: 346-47.

338 In addition, he continued to manage: Hession, John Maynard Keynes John Maynard Keynes, 175.

338 Despite his reputation: Skousen, "Keynes as a Speculator," 161-69.

338 "triumph": Keynes, Collected Writing: A Tract, Collected Writing: A Tract, 4: 231. 4: 231.

339 "nothing which can be called inflation": Keynes, "Is There Inflation in the United States?" September 1, 1928, in Collected Writing, Collected Writing, 13: 52-59 13: 52-59 339 "on the side of business depression": Keynes, "Letter to Charles Bullock," October 4, 1928, in Collected Writings Collected Writings 13: 70-73. 13: 70-73.

339 "I was forgetting that gold": Keynes, "Is There Enough Gold? The League of Nations Inquiry," The Nation and Athenaeum The Nation and Athenaeum, January 19, 1929, in Collected Writing, Collected Writing, 19: 775-80. 19: 775-80.

339 "Picture to yourself": Kynaston, The City of London, Illusions of Gold, The City of London, Illusions of Gold, 157. 157.

340 "Almost all the great powers": Somary, The Raven of Zurich, The Raven of Zurich, 155. 155.

341 "even in countries thousands of miles": Keynes, "A British View of the Wall Street Slump," New York Evening Post New York Evening Post, October 25, 1929, in Collected Writings, Collected Writings, 20: 2-3. 20: 2-3.

341 The character of the market: White, "The Stock Market Boom and Crash of 1929 Revisited," 77.

342 Indeed, on September 3, 1929: Paul, Desmond. "An Exploration of the Nature of Bull Market Tops," Lowry Reports, Lowry Reports, 2006. 2006.

342 In February, Owen Young: Klingaman, 1929: The Year of the Crash, 1929: The Year of the Crash, 159, 211. 159, 211.

342 Joe Kennedy: Goodwin, The Fitzgeralds and the Kennedys The Fitzgeralds and the Kennedys, 488.

342 Bernard Baruch claims: Baruch, The Public Years, The Public Years, 224-25. 224-25.

342 Even Thomas Lamont: Lamont, The Amba.s.sador from Wall Street The Amba.s.sador from Wall Street, 260.

342 In April 1929, he had some friends: Durant's secret visit to the White House from Sparling, Mystery Men of Wall Street, Mystery Men of Wall Street, 3-6. 3-6.

343 "panic which keeps people": Seldes, The Years of the Locust, The Years of the Locust, 40. 40.

343 "Scores of thousands: "Europe's 'Wall Street Panic,'" The Literary Digest, The Literary Digest, August 24, 1929. August 24, 1929.

345 "fat excitable man": Snowden, Autobiography, Autobiography, 2: 827. 2: 827.

345 "invisibly the battle of gold": "Palladin of Gold," Time, Time, August 19, 1929. August 19, 1929.

345 In late August, as Britain's reserves. .h.i.t: Clay, Lord Norman Lord Norman, 252.

17: PURGING THE ROTTENNESS.

347 "For five years at least": BusinessWeek, BusinessWeek, September 7, 1929 September 7, 1929 348 "I repeat what I said": "Babson Predicts 'Crash' in Stocks," New York Times, New York Times, September 6, 1929. September 6, 1929.

349 He was a strict Prohibitionist: Fridson, It Was a Very Good Year, It Was a Very Good Year, 87-88. 87-88.

350 "none of us are infallible": "Fisher Denies Crash Is Due," New York Times, New York Times, September 6, 1929. September 6, 1929.

350 Simple commonsense techniques: White, "The Stock Market Boom and Crash of 1929 Revisited," 72-73.