Lords of Finance_ The Bankers Who Broke the World Part 25

403 "not above using the swastika": Fromm, Blood and Banquets, Blood and Banquets, 29. 29.

403 "economic situation," "pleasant, urbane" man: Schacht, My First Seventy-six Years, My First Seventy-six Years, 279. 279.

403 On January 5, Goring invited Schacht: Schacht, My First Seventy-six Years, My First Seventy-six Years, 279-280, and Schacht, 279-280, and Schacht, Account Settled, Account Settled, 29-30. 29-30.

405 It had grown over the last decade: Schubert, The Credit Anstalt Crisis, The Credit Anstalt Crisis, 31-44. 31-44.

405 to compensate Credit Anstalt: Aguado, "The Creditanstalt Crisis of 1931."

406 The French government: Aguado, "The Creditanstalt Crisis of 1931," and Lewis, Economic Survey, Economic Survey, 63. 63.

407 "more than likely throw out of the window": Lamont Memorandum to Leffingwell," Debt Suspension Matters," June 5, 1931, quoted in Lamont, The Amba.s.sador from Wall Street The Amba.s.sador from Wall Street, 295-96.

408 "gentlemen do not read each other's mail": Stimson and Bundy, On Active Service, On Active Service, 188. 188.

409 "conducting a post-mortem": Leith Ross, Money Talks Money Talks, 135.

410 "came crying down . . .": Interview with Herbert Feis, November 4, 1955, quoted in Morrison, Turmoil and Tradition, Turmoil and Tradition, 349. 349.

410 "a sickly, overworked and overwhelmed man": Wells, Experiment in Autobiography, Experiment in Autobiography, 679, quoted in Schlesinger Jr. 679, quoted in Schlesinger Jr. The Crisis of the Old Order, The Crisis of the Old Order, 244. 244.

410 "like sitting in a bath of ink": Stimson diary, June 18, 1931, quoted in Schlesinger, The Crisis of the Old Order, The Crisis of the Old Order, 243. 243.

411 "we [the Americans] and the British": Edge, Jerseyman's Journal, Jerseyman's Journal, 156. 156.

411 "the killing of the fatted calf": Edge, Jerseyman's Journal, Jerseyman's Journal, 192. 192.

412 "the more one reflects": Howe, World Diary, World Diary, 105. 105.

412 Norman got hold of young Mellon: Anon, High Low Washington, High Low Washington, 99. 99.

412 "Are you glad to be in Paris": "Secretary Acts Quickly," New York Times, New York Times, June 26, 1931. Hoover vented against the French: Ferrell, June 26, 1931. Hoover vented against the French: Ferrell, American Diplomacy American Diplomacy, 114.

413 Berlin was being "bled to death": Federal Reserve Bank of New York, Memorandum on telephone call between Harrison and Norman, July 1, 1931.

413 "France has been playing": Macdonald Diary, July 5, 1931, quoted in Boyce, British Capitalism, British Capitalism, 336. 336.

414 "Now, Monsieur Mellon": Cannadine, Mellon, Mellon, 438. 438.

415 "round face deep lined": "Beggar No Chooser," Time, Time, July 20, 1931. July 20, 1931.

416 "Not since those days of July 1914": "Beggar No Chooser," Time, Time, July 20, 1931. July 20, 1931.

417 "they had come to a decisive point": Bennett, Germany and the Diplomacy of the Financial Crisis, Germany and the Diplomacy of the Financial Crisis, 236. 236.

417 "On the ruins of the wealth": Einzig, Behind the Scenes of International Finance, Behind the Scenes of International Finance, vii. vii.

417 "Never has the incapacity of the economic leaders": "Schacht Arraigns Capitalist Greed," New York Times, New York Times, July 11, 1931. July 11, 1931.

418 the Danatbank had failed to open: "German Banks Curb Runs by Depositors," New York Times, New York Times, July 14, 1931. July 14, 1931.

419 "resigned pa.s.sivity": Guido Enderis, "Berliners Calm in Money Crisis," New York Times, New York Times, July 17, 1931. July 17, 1931.

419 "much struck by the emptiness," "In such circ.u.mstances": E. L. Woodward and R. Butler, eds., Doc.u.ments on British Foreign Policy, Doc.u.ments on British Foreign Policy, 2: 225-26. 2: 225-26.

420 "the program to be executed": "Hitler Unites Ranks of the Old Germany to War on Bruning," New York Times, New York Times, October 12, 1931. October 12, 1931.

20: GOLD FETTERS.

422 "Lo! thy dread empire Chaos!": Alexander Pope quote from Bartlett's Familiar Quotations, Bartlett's Familiar Quotations, 313. 313.

424 Macmillan Report: Williams, "London and the 1931 Financial Crisis."

425 "nervous dyspepsia": Addiss Papers, August 5, 1931, quoted in Kynaston, The City of London: Illusions of Gold, The City of London: Illusions of Gold, 234. 234.

425 "Can't he be persuaded": Letter from Leffingwell to Jack Morgan, July 28. 1931, quoted in Kunz, The Battle for Britain's Gold Standard, The Battle for Britain's Gold Standard, 107. 107.

425 "Feeling queer": Bank of England, Norman Diary, July 29, 1931.

425 "prejudice, ignorance, and panic": Taylor, English History, English History, 288. 288.

427 "It certainly is a tragically comical situation": Webb, Diary, Diary, 253. 10 Downing Street: Harold Callender, "A Picture of Britain in the Time of Crisis," 253. 10 Downing Street: Harold Callender, "A Picture of Britain in the Time of Crisis," New York Times, New York Times, August 30, 1931. August 30, 1931.

427 "pandemonium had broken loose": Boyle, Montagu Norman Montagu Norman, 272-73.

428 "What the City did": Howe, World Diary, World Diary, 115. 115.

429 "It is now clearly certain": Keynes, "Letter to Ramsay MacDonald," August 5, 1931, in Collected Writings, Collected Writings, 20: 591-93. 20: 591-93.

429 "the most wrong and foolish things": Keynes, "Speech to Members of Parliament," September 16, 1931, in Collected Writings, Collected Writings, 20: 607-11. 20: 607-11.

429 "admit quite frankly that the way out": Moggridge, Maynard Keynes, Maynard Keynes, 525. 525.

430 "rose to his feet, his eyes flashing": Williams, Nothing So Strange Nothing So Strange, 105.

431 "Going off the gold standard": Jones, Diary, 32- Diary, 32-33, quoted in Brendon, The Dark Valley The Dark Valley, 164.

431 "Nothing more heartening has happened": "Run," Time, Time, September 28, 1931. September 28, 1931.

432 gold "is dug up out of a hole in Africa": Manchester, The Last Lion The Last Lion, 862.

432 Charlie Chaplin, as a guest at Chartwell: Boothby, Recollections of a Rebel, Recollections of a Rebel, 51. 51.

432 "chuckling like a boy": Rolph, Kingsley, Kingsley, 164, quoted in Skidelsky, 164, quoted in Skidelsky, John Maynard Keynes: The Economist as Saviour, John Maynard Keynes: The Economist as Saviour, 397. 397.

432 "There are few Englishmen who do not rejoice": Keynes, "The End of the Gold Standard," in the Sunday Express Sunday Express, September 27, 1931, in Collected Writings: Essays in Persuasion Collected Writings: Essays in Persuasion, 9:245-49.

432 "tragic act of abdication": Bonn, Wandering Scholar Wandering Scholar, 318-19.

433 "A pound is still a pound": "Pound, Dollar and Franc," Time, Time, October 5, 1931. October 5, 1931.

433 "France will be heavily punished": Boyle, Montagu Norman Montagu Norman, 276.

435 "solidarity and politeness": Letter from Moret to Harrison, October 7, 1931, quoted in Kindelberger, The World in Depression, The World in Depression, 168. 168.

435 "holes in the ground, privies": Congressional Record, Congressional Record, 72 Congress, 1 Session, December 9, 1931, 75: 233-6, quoted in Warren, 72 Congress, 1 Session, December 9, 1931, 75: 233-6, quoted in Warren, Herbert Hoover, Herbert Hoover, 164. 164.

437 "more depressed than ever": Hoover, Memoirs, Memoirs, 86. 86.

438 "If there is one moment": J. Bradford DeLong, "The Economic Foundations of Peace" http://econ161.berkeley.edu/Econ_Articles/lal.html 439 "Yes. It was called the Dark Ages": Edwin Lefevre, "When Is It Safe to Invest?" Sat.u.r.day Evening Post, Sat.u.r.day Evening Post, August 6, 1932. August 6, 1932.

439 A similar measure in late 1930: Bordo et al., "Was Expansionary Monetary Policy Feasible?"

441 "If you steal $25": The Nation, The Nation, March 8, 1933, quoted in Kennedy, March 8, 1933, quoted in Kennedy, The Banking Crisis of 1933, The Banking Crisis of 1933, 126. 126.

441 "the so-called depression": "Radio address delivered on February 26, 1933, in Coughlin, Driving Out the Money Changers. Driving Out the Money Changers.

442 "It's just as if I put my car": "Close to Bottom," Time, Time, March 6, 1933. March 6, 1933.

443 "If the fall in the price of commodities": Schlesinger Jr., The Crisis of the Old Order, The Crisis of the Old Order, 453. "England has played us": "Roosevelt's Ten," 453. "England has played us": "Roosevelt's Ten," Time, Time, March 6, 1933. March 6, 1933.

443 At least six bills were circulating: "Inflation-Curse or Cure?" The Literary Digest, The Literary Digest, February 11, 1933. February 11, 1933.

444 Hoover composed a ten-page handwritten letter: Schlesinger Jr., The Crisis of the Old Order, The Crisis of the Old Order, 477. 477.

445 he "did not want his last official act": Josephson, The Money Lords, The Money Lords, 120. 120.

445 the New York Fed lost: Wigmore, "Was the Bank Holiday of 1933 Caused by a Run on the Dollar?" Tape 1, 745.

446 "Like h.e.l.l, I will!": Dorothy Roe Lewis, "What FDR told Hoover, March 3, 1933," New York Times, New York Times, March 13, 1981. March 13, 1981.

446 "Urban populations cannot do without": "Letter from Lamont to Franklin D. Roosevelt," February 27, 1933, quoted in Lamont, The Amba.s.sador from Wall Street The Amba.s.sador from Wall Street, 330.

447 At 9.15 p.m. on March 3: Pusey, Eugene Meyer, Eugene Meyer, 235-36. 235-36.

448 "a beleaguered capital": Arthur, Krock. "100,000 at Inauguration," New York Times, New York Times, March 5, 1933. March 5, 1933.

21. GOLD STANDARD ON THE BOOZE.

451 "In order to arrive" "In order to arrive": Eliot, Collected Poems, Collected Poems, 187. 187.

451 To the surprise of many: See William Manchester, "The Great Bank Holiday," Holiday, Holiday, February 1960; "City Awaits Scrip as Cash Dwindles," "Harvard Students Aided," "Divorce Holiday in Reno," and "Scrip at Princeton," February 1960; "City Awaits Scrip as Cash Dwindles," "Harvard Students Aided," "Divorce Holiday in Reno," and "Scrip at Princeton," New York Times, New York Times, March 7, 1933; "Envoys Lack Cash; Complain to Hull," March 7, 1933; "Envoys Lack Cash; Complain to Hull," New York Times, New York Times, March 9, 1933; "Michigan," and "Money and People," March 9, 1933; "Michigan," and "Money and People," Time, Time, March 13, 1933. The legislation was supplemented: William L., Silber, "Why Did FDR's Bank Holiday Succeed?" March 13, 1933. The legislation was supplemented: William L., Silber, "Why Did FDR's Bank Holiday Succeed?"

455 "all kinds of junk": Josephson, The Money Lords, The Money Lords, 120. 120.

455 the first of his fireside chats: "The President's Speech," New York Times, New York Times, March 13, 1933. March 13, 1933.

455 "Our President took such a dry subject": "Will Rogers Claps Hands for the President's Speech," New York Times New York Times, March 14, 1933.

455 "We had closed in the midst": Josephson, The Money Lords, The Money Lords, 120. 120.

456 "Capitalism was saved in eight days": Moley, After Seven Years, After Seven Years, 155. 155.

458 "the white sheep of Wall Street": Warburg, The Long Road Home The Long Road Home, 107.

459 "Poppyc.o.c.k!": Schlesinger Jr., The Coming of the New Deal, The Coming of the New Deal, 195. 195.

459 His simplistic view was: Wicker, "Roosevelt's 1933 Monetary Experiment."

460 "You paint a barn roof": "Teachers and Pupils," Time, Time, November 27, 1933; Brooks, November 27, 1933; Brooks, Once in Golconda Once in Golconda , 160-63. , 160-63.

461 "As long as n.o.body asks me": Schlesinger Jr., The Coming of the New Deal, The Coming of the New Deal, 195. 195.

462 "Well, this is the end of western civilization": Accounts of that meeting are variously provided by Moley, After Seven Years, After Seven Years, 159-61; Feis, 159-61; Feis, 1933: Characters in Crisis 1933: Characters in Crisis, 126-30; Warburg, The Long Road Home, The Long Road Home, 119-20; James Warburg, Oral History Project, 492-99, quoted in Schwarz, 119-20; James Warburg, Oral History Project, 492-99, quoted in Schwarz, 1933: Roosevelt's Decision 1933: Roosevelt's Decision; and Schlesinger, The Coming of the New Deal, The Coming of the New Deal, 200-201. 200-201.

462 "can't be defended except as mob rule": Schlesinger Jr., The Coming of the New Deal, The Coming of the New Deal, 202. 202.

462 "Your action in going off gold": Letter from Leffingwell to Roosevelt, October 2, 1933, quoted in Schlesinger, The Coming of the New Deal, The Coming of the New Deal, p. 202. p. 202.

462 dramatic change in sentiment: Temin and Wigmore, "The end of one big deflation,"

463 "The difficulties are so great": Gunther, Inside Europe, 287. Inside Europe, 287.

463 "a handsome, fox-bearded gentleman": "Professor Skinner," Time, Time, August 29, 1932. August 29, 1932.

463 "his affectation of the role": "Along the Highways of Finance," New York Times, New York Times, September 4, 1932. September 4, 1932.

464 "Deport the Blighter": from Press Time: A Book of Post Cla.s.sics, Press Time: A Book of Post Cla.s.sics, 310-11. 310-11.

465 "whims" "completely in the dark": Bank of England telephone conversations between Harrison and Norman, April 27, 1933, and May 26, 1933.

466 He practiced it in his personal life: "Tightwad Up and Out," Time, Time, January 14, 1935. January 14, 1935.

468 "King, I'm glad to meet you.": Brooks, Once in Golconda Once in Golconda, 158; Galbraith, Money, Money, 202-203; Warburg, 202-203; Warburg, The Long Road Home, The Long Road Home, 128-29. 128-29.

468 "With Washington committed": "Disgust," Time, Time, June 26, 1933. June 26, 1933.

470 "he felt as if he had been kicked": Josephson, The Money Lords, The Money Lords, 130. 130.

471 "President Roosevelt is Magnificently Right": Keynes, "President Roosevelt is Magnificently Right," Daily Mail, Daily Mail, July 4, 1933, in July 4, 1933, in Collected Writings Collected Writings, 21: 273-77.

471 "We are entering upon waters": Warburg, The Long Road Home, The Long Road Home, 135-36. 135-36.

472 "crack-brained" economist: "Teachers and Pupils," Time, Time, November 27, 1933; Brooks, November 27, 1933; Brooks, Once in Golconda Once in Golconda, 160-63.

472 "like asking a sworn teetotaler": Josephson, The Money Lords, The Money Lords, 131. 131.

473 "hit the ceiling": Harrison Diary, October 28, 1933, quoted in Brooks, Once in Golconda Once in Golconda, 168.