The Hellhound of Wall Street
Page 39
20 SBCC Minutes, July 28, 1932; James E. Stewart to Peter Norbeck, October 3, 1932, Norbeck Papers, Box 2, Folder 1.
21 Unsigned memorandum, December 5, 1932, Norbeck Papers, Box 2, Folder 2; Drew Pearson and Robert S. Allen, The Washington Merry-Go-Round, United Feature Syndicate, December 30, 1932; “Editor’s Note,” The Washington Merry-Go-Round, United Feature Syndicate, December 30, 1932; Hartford Courant, March 28, 1933; Washington Post, March 28, 1933; NYT, June 16, 1933.
22 Gilbert C. Fite, Peter Norbeck: Prairie Statesman (Pierre, SD: South Dakota Historical Society Press, 2005), 181; NYT, February 10, 1933; Hartford Courant, February 10, 1933.
23 Although Olson’s specific charges did not pan out, he was not the only one to raise suspicions about Mellon’s taxes. In the coming years, the Roosevelt administration pursued a series of tax cases against the former Treasury secretary. David Cannadine, Mellon: An American Life (New York: Vintage Books, 2008), 505-515, 523-35, 583-585; Washington Post, July 18, 1933.
24 NYT, February 10, 1933; Washington Post, February 10, 1933; Hartford Courant, February 10, 1933; CSM, February 11, 1933.
25 Ralph Blumenthal, The Stork Club: America’s Most Famous Nightspot and the Lost World of Café Society (Boston: Little, Brown, 2000), 65-79, 127-129.
26 Raymond Moley, First New Deal at 310; Henry F. Pringle, Big Frogs (New York: Macy-Masius, 1928), 141; Samuel Untermyer to Peter Norbeck, February 23, 1933, Norbeck Papers, Box 2, Folder 2.
27 NYT, February 10, 1933; Fite, Peter Norbeck: Prairie Statesman, 180.
28 F. A. Loitch to Peter Norbeck, February 9, 1933, Norbeck Papers, Box 2, Folder 10; James B. Nue to Peter Norbeck, February 9, 1933, Norbeck Papers, Box 2, Folder 10.
29 NYWT, February 2, 1933; Fite, Peter Norbeck: Prairie Statesman, 181; Boston Post, January 21, 1933.
30 CSM, February 11, 1933; Frederic Walcott to Herbert Hoover, August 5, 1932, Walcott Papers.
31 CSM, February 11, 1933; Paul Mallon, The National Whirligig, McClure News Syndicate, February 23, 1933; Hartford Courant, February 11, 1933; Norfolk Way, February 11, 1933.
32 Peter Norbeck to H. C. Barton, February 13, 1933, Norbeck Papers, Box 2, Folder 10; George Norbeck to Peter Norbeck, February 15, 1933, Norbeck Papers, Box 65, Folder 3; Peter Norbeck to F. A. Loitch, February 13, 1933, Norbeck Papers, Box 2, Folder 10; Peter Norbeck to C. W. Robertson, February 11, 1933, Norbeck Papers, Box 129, Folder 9; Peter Norbeck to J. J. Linehan, February 14, 1933, Norbeck Papers, Box 65, Folder 2.
33 NYT, February 12, 1933; John Marrinan to Peter Norbeck, February 11, 1933, SEIF, Box 82, Norbeck Correspondence File.
34 Aurora Monitor, February 25, 1933.
Chapter 7. Junior
1 NYT, February 15, 1933; Washington Post, February 15, 1933; Peter Norbeck to Col. J. W. McIntosh, February 4, 1933, Norbeck Papers, Box 115, Folder 3; Drew Pearson and Robert S. Allen, The Washington Merry-Go-Round, United Feature Syndicate, February 23, 1933.
2 POH, 688-690; Frederick Lewis Allen, The Lords of Creation (New York: Harper & Brothers, 1935), 272-278.
3 Darwyn H. Lumley, Breaking the Banks in Motor City: The Auto Industry, the 1933 Detroit Banking Crisis and the Start of the New Deal (Jefferson, NC: McFarland & Co., 2009), 11.
4 Charles R. Geisst, Wall Street: A History (New York: Oxford University Press, 1997), 202-203.
5 Susan Estabrook Kennedy, The Banking Crisis of 1933 (Lexington, KY: University Press of Kentucky, 1973), 1-5.
6 Federal Reserve Bulletin, September 1937, 907-908; Dixon Wecter, The Age of the Great Depression, 1929-1941 (New York: Macmillan Co., 1948), 62; Gerald D. Nash, “Herbert Hoover and the Origins of the Reconstruction Finance Corporation,” Mississippi Valley Historical Review 46 (1959): 455-468; Literary Digest, January 21, 1933, 7; Kennedy, The Banking Crisis of 1933, 74; Charles Calomiris and Joseph Mason, “Contagion and Bank Failures During the Depression: The June 1932 Chicago Banking Panic,” American Economic Review 87 (1997): 863-883; Lawrence Sullivan, Prelude to Panic: The Story of the Bank Holiday (Washington, D.C.: Statesman Press, 1936), 71; Calvin W. Coquillette, Hoover, the Banks, the Depression: The Iowa Experience, 1930-1933 (Ph.D. diss., University of Iowa, 1997), 306-307; NYT, October 5, 1932.
7 Marcus Nadler and Jules I. Bogen, The Banking Crisis: The End of an Epoch (New York: Dodd, Mead & Company, 1933), 134; William E. Leuchtenburg, Franklin D. Roosevelt and the New Deal (New York: Harper & Row, 1963), 23.
8 Kennedy, The Banking Crisis of 1933, 75-76; James L. Butkiewicz, “The Reconstruction Finance Corporation, the Gold Standard and the Banking Panic of 1933,” Southern Economic Journal 66 (1999): 271-293; Federal Reserve Bank of Boston, Closed for the Holiday: The Bank Holiday of 1933 (Boston: Federal Reserve Bank of Boston, 1996), 13.
9 Elmus Wicker, The Banking Panics of the Great Depression (New York: Cambridge University Press, 1996), 121; Arthur A. Ballantine, “When All the Banks Closed,” Harvard Business Review 26 (1948): 129-143; Barrie A. Wigmore, The Crash and Its Aftermath: A History of Securities Markets in the United States, 1929-1933 (Westport, CT: Greenwood Press, 1985), 429-431; Nadler and Bogen, The Banking Crisis: The End of an Epoch, 1.
10 Timothy Walch and Dwight M. Miller, Herbert Hoover and Franklin D. Roosevelt: A Documentary History (Westport, CT: Greenwood Press, 1998), 130, 135.
11 Jonathan Alter, The Defining Moment: FDR’s Hundred Days and the Triumph of Hope (New York: Simon & Schuster, 2006), 168-177; Raymond Moley with Elliot A. Rosen, The First New Deal (New York: Harcourt, Brace & World, 1966), 65-69.
12 Time, February 27, 1933.
13 POH, 695; Hearing Tr., 1397-1398; Time, February 27, 1933; Forrest McDonald, Insull (Chicago: University of Chicago Press, 1962), 276.
14 Hearing Tr., 1515-1516, 1519; Josephine Young Case and Everett Needham Case, Owen D. Young and American Enterprise (Boston: David R. Godine, 1982), 595-616.
15 Hearing Tr., 1430-1431; NYT, February 16, 1933.
16 Hearing Tr., 1521, 1523.
17 Edward A. Goedeken, “Dawes, Charles Gates,” American National Biography Online, http://www.anb.org/articles/06/06-00144.html.
18 Conrad Black, Franklin Delano Roosevelt: Champion of Freedom (New York: Public Affairs, 2003), 232.
19 McDonald, Insull, 278.
20 Peter Norbeck to W. L. Dyce, February 3, 1932, Norbeck Papers, Box 140, Folder 1; Clyde B. Stovall to John Marrinan, February 16, 1933, SEIF, Box 149, Mitchell, Charles E. (Elizabeth R.), Income Tax Folder; Hearing Tr., 1529-1544; NYT, February 17, 1933; Time, February 27, 1933.
21 Forrest McDonald, Insull, 204-205, 315; Vincent P. Carosso, Investment Banking in America: A History (Cambridge, MA: Harvard University Press, 1970), 95-96, 102, 259.
22 Hearing Tr., 1626-1627, 1644; Washington Post, February 18, 1933.
23 Julian M. Pleasants, “Reynolds, Robert Rice,” American National Biography Online, http://www.anb.org/articles/06/06-00552.html; Pearson and Allen, The Washington Merry-Go-Round, United Feature Syndicate, February 23, 1933.
24 Carosso, Investment Banking in America, 51-78, 255-270; United States v. Morgan, 118 F. Supp. 621 (S.D.N.Y. 1953); Hearing Tr., 1662-1673.
25 NYT, February 19, 1933.
26 James McMullin, The National Whirligig, McClure News Syndicate, February 23, 1933.
Chapter 8. Day One: Unimpeachable Integrity
1 Russell Senate Office Building, 1909-2009, http://www.senate.gov/RSOB/.
2 Ferdinand Pecora, Wall Street under Oath: The Story of Our Modern Money Changers (New York: Simon & Schuster, 1939), 71; POH, 686-687, 852-853; Baltimore Sun, February 26, 1933; Julian Sherrod, Scapegoats (New York: Brewer, Warren & Putnam, 1931), 14; Newsweek, June 3, 1933.
3 Time, March 6, 1933.
4 POH, 714-716.
5 Vincent Carosso, “Washington and Wall Street: The New Deal and Investment Bankers, 1933- 1940, The Business History Review 44 (Winter 1970): 425-445; Lawrence Sullivan, Prelude to Panic: The Story of the Bank Holiday (Washington, D.C.: Statesman Press, 1936), 94-96; NYT, Fe
bruary 22, 1933.
6 James Grant, Money of the Mind: Borrowing and Lending in America from the Civil War to Michael Milken (New York: Farrar, Straus and Giroux, 1992), 222; Pecora, Wall Street under Oath, 71; Sherrod, Scapegoats, 12-13.
7 POH, 858-859; Drew Pearson and Robert S. Allen, More Merry-Go-Round (New York: Liveright Inc., 1932), 357.
8 E. W. Morriss to Ferdinand Pecora, February 8, 1933, SEIF, Box 152, Remedies NCB and NCC File; Thomas Stovall to Ferdinand Pecora, February 11, 1933, SEIF, Box 152, Remedies NCB and NCC File.
9 Helen Kirst to Peter Norbeck, SEIF, Box 152, Remedies NCB and NCC File.
10 A. H. Nicander to Senate Banking Committee, February 20, 1933, SEIF, Box 152, Remedies NCB and NCC File.
11 Christopher Lane to Ferdinand Pecora, February 18, 1933, SEIF, Box 152, National City Bank Remedies Folder.
12 William E. Leuchtenburg, Franklin D. Roosevelt and the New Deal, (New York: Harper & Row, 1963), 19; Frances Murphy to Ferdinand Pecora, February 2, 1933, SEIF, Box 152, National City Bank Remedies Folder.
13 Hearing Tr., 1762-1767.
14 WSJ, February 22, 1933.
15 Hearing Tr., 1762-1767, 1774; Memorandum prepared by David Saperstein, February 16, 1933, SEIF, Box 149, National City, Check List Preliminary to Final Examination File; POH, 682.
16 Thomas L. Stokes, Chip off My Shoulder (Princeton, NJ: Princeton University Press, 1940), 348.
17 Harry Barnard, Independent Man: The Life of Senator James Couzens (New York: Scribner, 1958); Drew Pearson and Robert S. Allen, The Washington Merry-Go-Round, United Feature Syndicate, May 29, 1933; ibid., May 19, 1936.
18 Barnard, Independent Man, 88-93, 168, 192.
19 David Cannadine, Mellon: An American Life (New York: Vintage Books, 2008), 343-347; Barnard, Independent Man, 158-167; WSJ, February 2, 1927, WSJ, February 22, 1933; NYT, March 29, 1925.
20 Susan Estabrook Kennedy, The Banking Crisis of 1933 (Lexington, KY: University Press of Kentucky, 1973), 86-88; James L. Butkiewicz, “The Reconstruction Finance Corporation, the Gold Standard and the Banking Panic of 1933,” Southern Economic Journal 66 (1999): 271-293; NYT, February 15, 1933; Reminiscences of James Paul Warburg (1952), in Oral History Collection of Columbia University, 855.
21 Sherrod, Scapegoats, 13.
22 This figure, as well as the other comparisons between dollar figures from the hearings and today’s equivalents, are based on the relative share that those figures represent of the total gross domestic product (GDP) of the United States economy. Samuel H. Williamson, “Six Ways to Compute the Relative Value of a U.S. Dollar Amount, 1774 to Present,” MeasuringWorth, 2009, http://www.measuringworth.com/uscompare/.
23 Pecora, Wall Street under Oath, 72; Sherrod, Scapegoats, 19.
24 Barnard, Independent Man, 50-51; Joel Seligman, The Transformation of Wall Street: A History of the Securities and Exchange Commission and Modern Corporate Finance (New York: Aspen Publishers, 3rd edition, 2003), 26; Pecora, Wall Street under Oath, 114.
25 Hearing Tr., 1774-1775.
26 Hearing Tr., 1775-1776; Pecora, Wall Street under Oath, 73.
27 Sherrod, Scapegoats, 13.
28 Hearing Tr., 1787-1788; Sherrod, Scapegoats, 92.
29 Pecora, Wall Street under Oath, 116.
30 Robert A. Caro, The Power Broker: Robert Moses and the Fall of New York (New York: Vintage Books, 1974), 323; T. H. Watkins, The Great Depression: America in the 1930s (Boston: Little, Brown, 1993), 70; Donald A. Ritchie, Reporting from Washington: The History of the Washington Press Corps (New York: Oxford University Press, 2005), 3; Edmund Wilson, The American Earthquake: A Documentary of the Twenties and Thirties (New York: Farrar, Straus and Giroux, 1958), 226; NYT, February 22, 1933.
31 Hearing Tr., 1778.
32 Hearing Tr., 1779.
33 POH, 672; Harold van B. Cleveland and Thomas F. Huertas, Citibank, 1812-1970 (Cambridge, MA: Harvard University Press, 1985), 184.
34 Hearing Tr., 1785-1786; Pecora, Wall Street under Oath, 119.
35 Louis D. Brandeis, Other People’s Money: And How the Bankers Use It (New York: Frederick A. Stokes, 1914), 92; Leonard Baker, Brandeis and Frankfurter: A Dual Biography (New York: Harper & Row, 1984), 283.
36 Hearing Tr., 1801-1802, 1806; Thomas K. McCraw, Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred E. Kahn (Cambridge, MA: Belknap Press of Harvard University Press, 1984); 166.
37 Hearing Tr., 1808.
38 Pearson and Allen, The Washington Merry-Go-Round, January 9, 1934; ibid., April 15, 1934; Gilbert C. Fite, Peter Norbeck: Prairie Statesman (Pierre, SD: South Dakota Historical Society Press, 2005), 173; Ray Tucker and Frederick R. Barkley, Sons of the Wild Jackass (Boston: L.C. Page & Co., 1932), 346; NYT, November 16, 1944; Reminiscences of Eugene Meyer (1953), in Oral History Collection of Columbia University, 455; Seligman, The Transformation of Wall Street, 9.
39 Hearing Tr., 1807; 1811-1813; NYT, February 22, 1933; Pearson and Allen, The Daily Washington Merry-Go-Round, January 23, 1933.
40 Hearing Tr., 1811-1814.
41 Pecora, Wall Street under Oath, 113.
42 NYT, February 22, 1933; Washington Post, February 22, 1933; WSJ, February 22, 1933; Philadelphia Record, February 24, 1933.
43 Memorandum on “Michigan Banking Events,” undated, Couzens Papers, Box 141; John Kenneth Galbraith, The Great Crash, 1929 (Boston: Houghton Mifflin Company, 1955), 157; NYT, February 23, 1933; Pearson and Allen, The Washington Merry-Go-Round, March 10, 1933.
44 Reminiscences of Eugene Meyer (1953), in Oral History Collection of Columbia University, A39, A79.
Chapter 9. Day Two: Morale
1 NYT, February 23, 1933.
2 Letter to Committee from S. J. Smelts, February 22, 1933, SEIF, Box 81, Criticisms, General File.
3 Harry Barnard, Independent Man: The Life of Senator James Couzens (New York: Charles Scribner’s Sons, 1958), 242; Theodore G. Joslin, Hoover Off the Record (Freeport, NY: Books for Libraries Press, 1971), 360; Liaquat Ahamed, Lords of Finance: The Bankers Who Broke the World (New York: Penguin Press, 2009), 422-448; Memorandum: Meeting of Federal Reserve of New York Board of Directors, February 23, 1933, Harrison Papers, Box 23
4 Harold van B. Cleveland and Thomas F. Huertas, Citibank, 1812-1970 (Cambridge, MA: Harvard University Press, 1985), 106-109; National City Bank 1923 Condensed Statement of Condition.
5 Hearing Tr., 1838.
6 Hearing Tr., 1788-1790, 1793-1794; Ferdinand Pecora, Wall Street under Oath: The Story of Our Modern Money Changers (New York: Simon & Schuster, 1939), 121.
7 Hearing Tr., 1795-1796.
8 Washington Daily News, March 1, 1933.
9 Hearing Tr., 1796-1799; Pecora, Wall Street under Oath, 123.
10 Hearing Tr., 1831-1833.
11 Hearing Tr., 1830.
12 Hearing Tr., 1833-1835, 1837.
13 Hearing Tr., 1840-1846.
14 Hearing Tr., 1862-1863; NYT, February 23, 1933.
15 Cleveland and Huertas, Citibank, 108-109; Newsweek, March 4, 1933; NYT, March 5, 1948.
16 Newsweek, March 31, 1934; Hearing Tr., 1868-1871.
17 Hearing Tr., 1871; Hartford Courant, February 23, 1933.
18 Hearing Tr., 1872-1875; E. H. Adams to Peter Norbeck, February 19, 1933, SEIF, Box 152, Remedies National City Bank and National City Company File; Pecora, Wall Street under Oath, 129.
19 Hearing Tr., 1877; Pecora, Wall Street under Oath, 129.
20 Hearing Tr. (73rd), 111-112; Senate Committee on Banking and Currency, Stock Exchange Practices, 73rd Cong., 2nd Sess., 1934, S. Rept. 1455, 60; Ron Chernow, The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance (New York: Grove Press, 1990), 356.
21 John Kenneth Galbraith, The Great Crash, 1929 (Boston: Houghton Mifflin, 1955), 151-152; Julian Sherrod, Scapegoats (New York: Brewer, Warren & Putnam, 1931), 78-79, 82; NYT, November 8, 1929; Anonymous to Peter Norbeck, February 22, 1933, SEIF, Box 146, Cuban Sugar Bonds General Correspondence
File; Hearing Tr., 1875.
22 Drew Pearson and Robert S. Allen, More Merry-Go-Round (New York: Liveright, 1932), 114- 154; Peter Norbeck to Ogden Mills, February 2, 1933, Norbeck Papers, Box 2, Folder 10; SBCC Minutes, February 21, 1933, March 13, 1933.
23 POH, 832-833; Reminiscences of James Paul Warburg (1952), in Oral History Collection of Columbia University, 187; Reminiscences of Eugene Meyer (1953), in Oral History Collection of Columbia University, 691; Pearson and Allen, More Merry-Go-Round, 138.
24 Reminiscences of Morris Strauss (1951), in Oral History Collection of Columbia University, 317-318; Reminiscences of Reuben A. Lazarus (1951), in Oral History Collection of Columbia University, 399-402.
25 NYT, November 20, 1950.
26 Ferdinand Pecora to Franklin Roosevelt, June 24, 1935, PPF 2818, Pecora, Ferdinand, Folder, FDRPL; Ferdinand Pecora to Franklin Roosevelt, November 22, 1937, PPF 2818, Pecora, Ferdinand, Folder, FDRPL.
27 POH, 846-847.
28 POH, 723-725.
Chapter 10. Day Three: Manipulation
1 NYT, September 25, 1929; NYT, December 20, 1939; NYT, December 16, 1964; WSJ, April 4, 1929.
2 Washington Post, February 24, 1933; Washington Herald, February 24, 1933; Hearing Tr., 1893.
3 POH, 682; Hearing Tr., 1917.
4 Hearing Tr., 1881-1882, 1940.
5 Hearing Tr., 1879, 1884-1886; Julian Sherrod, Scapegoats (New York: Brewer, Warren & Putnam, 1931), 50.
6 Hearing Tr., 1881-1882.
7 NYWT, February 23, 1933; NYT, February 24, 1933.
8 Hearing Tr., 1920.
9 A. E. Budell to Peter Norbeck, February 25, 1933, SEIF, Box 149, National City Bank Press Clippings File.
10 Hearing Tr., 1925-1926.
11 Hearing Tr., 1939, 1942-1943.
12 Hearing Tr., 1953-1954.
13 Hearing Tr. (73rd), 114; NYT, February 24, 1933; Time, April 3, 1933.