Lords of Finance_ The Bankers Who Broke the World Part 24

351 "not perhaps surprising": "Financial Markets: Last Week's Reaction in Stocks and the Talk of a Future 'Crash,'" New York Times, New York Times, September 9, 1929. September 9, 1929.

352 "Mr. Hatry is very clever": Kynaston, The City of London: Illusions of Gold, The City of London: Illusions of Gold, 140. 140.

353 "Stocks have reached what looks like": "Fisher Sees Stocks Permanently High," New York Times New York Times, October 16, 1929.

353 "increased prosperity": "Says Stock Slump is Only Temporary," New York Times New York Times, October 24, 1929.

354 "There is a great deal of exaggeration": "Letter from Lamont to Herbert Hoover," October 19, 1929, quoted in Lamont, The Amba.s.sador from Wall Street The Amba.s.sador from Wall Street, 266-68.

354 "This doc.u.ment is fairly amazing": Kunz, The Battle for Britain's Gold Standard, The Battle for Britain's Gold Standard, 55. 55.

354 On Wednesday, October 23: Henry, Lee. "1929: The Crash That Shook the World," American Mercury, American Mercury, November 1949. November 1949.

355 "grave," "gesturing idly": Brooks, Once in Golconda Once in Golconda, 124.

355 "susceptible of betterment": "Financiers Ease Tension," New York Times, New York Times, October 25, 1929. October 25, 1929.

355 "There is no man or group": Bell, "Crash: An Account of the Stock Market Crash of 1929."

356 "undue speculation": "Treasury Officials Blame Speculation," New York Times, New York Times, October 25, 1929. October 25, 1929.

356 "Bankers Halt Stock Debacle": Wall Street Journal, Wall Street Journal, October 27, 1929. October 27, 1929.

358 "friends and former millionaires": Manchester, The Last Lion, The Last Lion, 826. 826.

358 "partic.i.p.ating in the making of history": "Closing Rally Vigorous" and "Crowds See Market History Made," New York Times, New York Times, October 30, 1929. October 30, 1929.

358 "No one who has gazed": William Manchester, The Last Lion, The Last Lion, 827. 827.

359 "on fire," "done and can't be undone": Josephson, The Money Lords, The Money Lords, 82. 82.

359 That evening: Josephson, The Money Lords, The Money Lords, 82. 82.

360 Though the crash of October 1929: Soule, Prosperity Decade, Prosperity Decade, 309. 309.

361 "underlying conditions," "an excuse for going": "What Smashed the Bull Market? " The Literary Digest, The Literary Digest, November 9, 1929. November 9, 1929.

361 "No Iowa Farmer will tear up his mail order blank": "Wall Street's 'Prosperity Panic,'" The Literary Digest, The Literary Digest, November 9, 1929. November 9, 1929.

361 "For six years, American business": BusinessWeek, BusinessWeek, November 2, 1929. November 2, 1929.

361 Industrial production fell: Romer, "The Great Crash and the Onset of the Great Depression," and Galbraith, The Great Crash The Great Crash, 142.

362 "Rich people who have not sold": Hirst, Wall Street and Lombard Street, Wall Street and Lombard Street, 59. 59.

362 "const.i.tutionally gloomy": White, Autobiography, Autobiography, 515. 515.

363 "back to normal," "during the next sixty days," "We have pa.s.sed the worst": Mangold, W. P. "The White House Magicians: Prosperity Invocations," The Nation, The Nation, October 21, 1931, and Allen, October 21, 1931, and Allen, Washington Merry-Go-Round, Washington Merry-Go-Round, 75-76. At several points along the way: Galbraith, 75-76. At several points along the way: Galbraith, The Great Crash The Great Crash, 76, 149-51.

363 "Gentlemen, you have come": Schlesinger, The Crisis of the Old Order, The Crisis of the Old Order, 231. 231.

363 He frequently claimed in press conferences: Mangold, W. P. "The White House Magicians: Playing with Statistics," The Nation, The Nation, October 28, 1931; "Victory in Maine predicted by Fess," October 28, 1931; "Victory in Maine predicted by Fess," New York Times, New York Times, August 27, 1930; "Labor Commissioner Stewart Quits Post," August 27, 1930; "Labor Commissioner Stewart Quits Post," New York Times, New York Times, July 3, 1932. July 3, 1932.

364 "liquidate labor, liquidate stocks": Hoover, Memoirs Memoirs, 30.

364 For Mellon, it was a once-in-a-lifetime: Cannadine, Mellon, Mellon, 414-27. 414-27.

365 Between November 1929 and June 1930: Chandler, American Monetary Policy, American Monetary Policy, 144. 144.

365 "1927 experiment": Federal Reserve Board letter from John Calkins, Governor of San Francisco Fed, to George Harrison, January 7, 1930.

366 "We have been putting out credit": Federal Reserve Board, Minutes of the Open Market Policy Committee, September 25, 1930: quoted in Chandler, American Monetary Policy, American Monetary Policy, 137. 137.

366 "marathon dance": Federal Reserve Board of Governors, letter from Talley, Governor of Dallas Fed to J. Herbert Case, Chairman of New York Federal Reserve Bank, March 13, 1930.

366 "back to life": Harrison Papers, Letter from Talley to Harrison, July 15, 1930, quoted in Friedman and Schwartz, A Monetary History A Monetary History, 372.

367 In September 1930, Roy Young: Pusey, Eugene Meyer, Eugene Meyer, 203. 203.

368 "an ordinary tin-pot bucket shop operator," "Judas Iscariot": "Meyer, Eugene" in Current Biography, Current Biography, 1941, 575-78. 1941, 575-78.

368 In January 1930, policy decisions: Chandler, American Monetary Policy, American Monetary Policy, 133. 133.

369 "panicky selling left London's city": "London Disturbed by Continued Fall," New York Times, New York Times, October 30, 1929. October 30, 1929.

369 "we in Great Britain": 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.

369 like the bursting of an "abscess": Sauvy, Histoire Economique, Histoire Economique, 115. 115.

370 To a visiting Swiss banker: Somary, The Raven of Zurich, The Raven of Zurich, 157. 157.

370 Convinced that it had been the rise: Sayers, The Bank of England, The Bank of England, 229, n. 3. 229, n. 3.

370 During the last week of October: Bank of England, Notes on telephone calls between Harrison and Norman, October 25, October 31, and November 15, 1929.

372 Keynes: "Arising from": HMSO. Report of Committee on Finance and Industry Report of Committee on Finance and Industry (Cmd. 3897), Minutes of Evidence, 1931, 27-31. (Cmd. 3897), Minutes of Evidence, 1931, 27-31.

372 "Reasons, Mr. Chairman": Boyle, Montagu Norman, Montagu Norman, 327. 327.

373 "an artist, sitting with his cloak": Woolf, Diary, Diary, 208. 208.

373 "grows more and more temperamental": Papers of Sir Charles Addis, May 7, 1930, quoted in Kynaston, The City of London, Illusions of Gold, The City of London, Illusions of Gold, 202. 202.

18: MAGNETO TROUBLE.

374 "To what extremes": Virgil, The Aeneid, The Aeneid, Book iii, l. 79-81. Book iii, l. 79-81.

374 "the shadow of one of the greatest": Keynes, "The Great Slump of 1930," Nation and Athenaeum Nation and Athenaeum, December 20 and 27, 1930, in Collected Writing: Essays in Persuasion Collected Writing: Essays in Persuasion, 9: 126-34.

376-77 "the war . . . fear of Germany": Adamthwaite, Grandeur and Misery Grandeur and Misery, 132.

377 "harmonious economic structure": L'Echo de Paris, L'Echo de Paris, December 7, 1930, cited in Moure, December 7, 1930, cited in Moure, Managing the Franc Poincare Managing the Franc Poincare, p. 27.

377 "glittering new embodiment": Brendon, The Dark Valley, The Dark Valley, 132. 132.

378 "the French gold h.o.a.rding policy": Einzig, Behind the Scenes, Behind the Scenes, vii. vii.

378 "the Banque de France": Howe, World Diary, World Diary, 65. 65.

379 In fact, it was clear that during 1930: Moure, Managing the Franc Poincare Managing the Franc Poincare, 143. and Johnson. Gold, France and The Great Depression Gold, France and The Great Depression, pp. 152-57.

379 Bullion was so heavy: "Gold: 150 Tons," Time, Time, December 26, 1932. December 26, 1932.

379 "This depression is the stupidest": "D'Abernon on Gold," Time, Time, January 5, 1931. January 5, 1931.

380 "lean on England": General Requin to General Weygand, February 2, 1931, quoted in Adamthwaite, Grandeur and Misery Grandeur and Misery, 138.

381 "sumptuous tr.i.m.m.i.n.gs: "Tightwad Up and Out," Time, Time, January 14, 1935. January 14, 1935.

381 He was succeeded by his deputy: "Tightwad Up and Out," Time, Time, January 14, 1935. January 14, 1935.

381 Moret thought of himself: Netter, Histoire de la Banque de France, Histoire de la Banque de France, 341. 341.

381 "ask favors from the French": Boyce, British Capitalism, British Capitalism, 296. 296.

382 From his departure aboard the Berengaria Berengaria: "Along The Highways of Finance," New York Times, New York Times, April 12, 1931. April 12, 1931.

382 "an orchestra leader": "Norman Arrives on Banking Mission," New York Times, New York Times, March 28, 1931. March 28, 1931.

382 When they begged him: "Norman Goes Home Silent on His Plans," New York Times, New York Times, April 15, 1931. April 15, 1931.

383 "artificial" agency: Clarke, Central Bank Cooperation Central Bank Cooperation, 180.

383 "visionary and inflationary": Clarke, Central Bank Cooperation Central Bank Cooperation, 180.

383 "very gloomy situation": Morison, Turmoil and Tradition, Turmoil and Tradition, 345. 345.

383 "Russia was the very greatest": Stimson Diary, April 8, 1931, quoted in Schmitz, Henry Stimson, Henry Stimson, 85. 85.

383 "U.S. was blind": Lamont Diaries, May 8, 1931, quoted in Kunz, The Battle for Britain's Gold Standard, The Battle for Britain's Gold Standard, 46. 46.

385 Rumors of the trouble: "False Rumors Lead to Trouble at Bank," New York Times, New York Times, December 11, 1930. December 11, 1930.

385 The bank had been founded: Werner, Little Napoleons and Dummy Directors, Little Napoleons and Dummy Directors, 1-12. 1-12.

385 When, for instance, Bernard went to Europe: Ellis, A Nation in Torment, A Nation in Torment, 109. 109.

386 The Bank lent some $16 million: Lucia, "The Failure of the Bank of United States" and Trescott, "The Failure of the Bank of United States, 1930."

386 two big projects on Central Park West: Werner, Little Napoleons and Dummy Directors, Little Napoleons and Dummy Directors, 125-27. 125-27.

387 "lend freely, boldly": Bagehot, Collected Works, Volume 9: Lombard Street, Collected Works, Volume 9: Lombard Street, 79. 79.

387 "A panic . . . is a species": Bagehot, Collected Works, Volume 9: Lombard Street Collected Works, Volume 9: Lombard Street, 73.

388 "foreigners and Jews": Letters from Thomas S. Lamont to Edward C. Grenfell, December 13 and 30, 1930, quoted in Chernow, The House of Morgan The House of Morgan, 326.

388 "with a large clientele": Letter from Russell Leffingwell to Benjamin Joy, January 23, 1931, quoted in Chernow, The House of Morgan The House of Morgan, 326-27.

388 "I told them": Werner, Little Napoleons and Dummy Directors, Little Napoleons and Dummy Directors, 206-07. 206-07.

388 "I warned them": Friedman and Schwartz, A Monetary History of the United States, A Monetary History of the United States, 309n. 309n.

389 shaken by such: Friedman and Schwartz, A Monetary History, A Monetary History, Appendix A. Appendix A.

390 By the middle of 1931: Federal Reserve System, Banking and Monetary Statistics, Banking and Monetary Statistics, Washington, D.C., 1943, 18. See Bernanke, "Nonmonetary Effects of The Financial Crisis," in Washington, D.C., 1943, 18. See Bernanke, "Nonmonetary Effects of The Financial Crisis," in Essays on the Great Depression Essays on the Great Depression, 41-69. in May 1931, the bank runs resumed: "More Bank Trouble," Time, Time, August 24, 1931. August 24, 1931.

391 The real issue for the governors: Gary Richardson, "Bank Distress During the Great Depression: The Illiquidity-Insolvency Debate Revisited" (December 2006), NBER Working Paper. NBER Working Paper.

392 "the capitalist system": "Ein' Feste Burg," Time, Time, July 27, 1931, and Howe, July 27, 1931, and Howe, World Diary, World Diary, 111. 111.

19: A LOOSE CANNON ON THE DECK OF THE WORLD.

395 "three generations," "Jewish machination," "a product of the Jewish spirit": Chernow, The Warburgs The Warburgs , 323. , 323.

396 On December 5, he dropped his bombsh.e.l.l on Berlin: "Schacht Protests Demands on Reich," New York Times, New York Times, December 6, 1929. December 6, 1929.

397 "he was about to be crucified": Letter from de Sanchez to Lamont, April 28, 1934, quoted in James, The German Slump The German Slump, 59.

397 Schacht had gone "crazy": Kopper, Hjalmar Schacht, Hjalmar Schacht, 171. 171.

398 "on the highest moral grounds": "Success at The Hague," Time, Time, January 27, 1930 January 27, 1930.

398 "flamboyant political moves": The Times Times, January 14, 1930, quoted in Simpson, Hjalmar Schacht in Perspective Hjalmar Schacht in Perspective, 52.

398 "immoral agreement": "Schacht to a Piggery," Time, Time, March 17, 1930. March 17, 1930.

399 "What is the actual reason": Quoted in Muhlen, Schacht: Hitler's Magician, Schacht: Hitler's Magician, 28. 28.

401 Historians have debated: Balderston, Economics and Politics, Economics and Politics, 92. 92.

401 unintended consequences of the Young Plan: Ritschl. "Reparations transfers, the Borchardt hypothesis and the Great Depression."

402 "You must not think": "Schacht Blames Reparations for World Slump: Holds Moratorium for Germany Inevitable," New York Times, New York Times, November 22, 1930. November 22, 1930.

402 "If the German people are going to starve": "Schacht, Here, Sees Warning in Fascism," New York Times, New York Times, October 3, 1930. October 3, 1930.

402 "I would stop making payments": Schacht, My First Seventy-six Years, My First Seventy-six Years, 277. 277.