America's Bank: The Epic Struggle to Create the Federal Reserve
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silver standard and, 22–24
on slavery, 22
Wilson and, 45
see also specific elections
deposit insurance, 81–82, 188, 249
federal, 82n, 185
state, 82n
Depression, Great, 18, 187n, 258, 264
bank runs in, 249
depression of 1907, see Panic of 1907
depressions, 2, 3, 263
and Panic of 1893, 20–21
de Tocqueville, Alexis, 3–4, 16–17
Detroit, Mich., 97–98, 304
Díaz, Porfirio, 97
Dimon, Jamie, 257
discount rates, 216, 217, 243, 257, 263
discount window, 225
dividends, Reserve Association and, 115, 131
dollar, 5, 85
government, 213–14
as international currency, 262, 281
in international trade, 48–49
Dolliver, Jonathan, 95
Dow Jones Industrials, 319
Eagle, Joe, 322
East, 5
Aldrich Plan as seen in, 134
Bryan as viewed in, 22
progressives in, 104
tariff supported in, 37
Economic Club of New York, 99, 328
economic contraction, 70
economy:
agrarian, 15
expansion of, 14
education, 44, 100
eight-hour workday, 158
elections:
of 1884, 16
of 1892, 16
of 1896, 21–24, 37, 142, 145, 204, 301
of 1900, 145
of 1904, 38
of 1908, 75, 81, 88, 102, 145
of 1910, 104, 105, 106, 153
of 1912, 138–39, 141, 147–51, 156–63, 301, 307, 308, 319
of 1913, 242
of 1916, 266
of 1972, 257
electrification, 40, 60
Eliot, Charles William, 80
Europe, 36, 52, 61, 175, 277
Aldrich in, 35, 96
Aldrich’s delegation to, 77–78, 82–91, 204, 253, 269
banking systems in, 70
central banks in, 1–2, 30, 39, 54, 56, 74, 83, 86, 111, 114, 185, 204, 269
credit in, 39, 139, 198
currency system in, 73
interest rates in, 209
Owen’s study trip to, 204
postwar insolvency of, 264
prewar, 86
reserves in, 87–88
exchange rates, 264
factories, closure of, 20
Fant, W. S., 325
farmers, farming, 6, 8, 39, 70, 71, 98, 100, 165, 232
banking reform and, 17, 133, 199, 221–22, 224–26, 227, 244, 245
depression and failure of, 21
fall harvest and need for money for, 15, 26, 50, 52–53, 58, 209
money shortage and, 18
populism and, 44, 45
silver standard and, 16, 19, 22
as small businessmen, 16–17, 98
tariff and, 36–37, 93
in United States vs. Europe, 4–5
farm mortgages, 237, 329
Farwell, John V., 131
Federal Reserve Act (1913), 8, 49, 113n, 115n, 137, 189, 203, 217n, 257, 265–66, 268, 313
Aldrich Plan and, 123, 269–70
banking system unified by, 270
as business-friendly, 251–52
signing into law of, 251–52
see also Glass-Owen bill
Federal Reserve Bank of Chicago, 257
Federal Reverse Bank of New York, 257, 258–59, 260–61, 294
Federal Reserve Banks, 67, 74, 111, 115n, 128, 181n, 216, 226, 228n, 236, 252, 321
as bankers’ banks, 188, 216
board of, see Federal Reserve Board
capital of, 242
capstone of, 182–83, 218
centralization and, 182
congressional amendments to charter of, 259
conspiracy theories surrounding, 117–18, 262–63
credit conditions and, 263
currency requests to, 225
as decentralized, 7–8
discount rates and, 217
dividends and, 232, 249
farm loans and, 245
federalist structure of, 257–58
Glass and Willis proposal for, 181–82
under Glass bill, 191
gold reserves in, 181, 213, 227, 246
Great Depression and, 187n, 258, 264
import and export trade, 218
interest rates and, 237, 263
as lenders of last resort, 252
liquidity and, 218, 263
loans issued by, 245
locations of, 248, 257, 260n
McAdoo and, 208, 257
market intervention by, 334
member bank borrowing from, 225
money issued by, 1, 117, 244, 245, 257, 259
National Reserve Bank, as previous name of, 201
New York’s dominance of, 257, 258–59, 260–61
notes issued by, 181, 213, 227, 247, 249
number of, 202, 207, 218, 228n, 231, 237, 241, 242, 243, 247, 248, 257, 260, 328
open market interventions by, 263
origins of, 116–17, 201
overseas trade and, 230
reserves in, 219–20, 237, 244–45, 248, 249n
securities and, 245
Treasury securities bought and sold by, 225
see also reserve banks, regional
Federal Reserve Board, 181n, 205, 209, 210, 212, 216–18, 221–22, 229–30, 237, 239, 241, 246, 249–50, 263–64, 266, 331
near-zero percent interest rates by, 8
proactivity by, 262
2008 bailouts by, 8, 53
in Vanderlip’s plan, 239
Warburg on, 247, 250, 260–63
Federal Reserve notes, 213, 221, 226–27, 237, 249, 251
Federal Reserve System, 252, 256, 335
enactment of, 257
Wall Street threats against, 220–21
Federal Reserve System, The (Warburg), 268–70
Federal Trade Commission, 266
Ferguson, James E., 69
fiat money, 128, 185, 214, 251
see also money, government-issued
financial crisis of 2008, 1, 8, 53, 62, 221, 225, 238, 259
financial panics, 2, 46, 48, 49, 204
San Francisco earthquake and, 51–54
first Bank of the United States, see Bank of the United States, first
First National Bank of Chicago, 25, 55, 216
First National Bank of Little Falls, Minn., 137
First National Bank of Muskogee, 19, 204
First National Bank of New York, 62–63, 80, 176
First National Bank of Tombstone, Ariz., 97
First National Bank of Weatherford, Tex., 325
Forbes, 116
Forbes, B. C., 116, 295
Ford, Henry, 198
Forgan, James, 55, 121, 129, 184, 187, 216, 297, 323, 324
Aldrich’s negotiations with, 130–31
Glass-Owen opposed by, 219, 228–29, 231
Fowler, Charles, 33, 78
France, 35, 85, 86, 87, 93, 265
America’s financing of, 262
England’s war with, 83
free trade, 37
French Revolution, 84
Frick, Henry Clay, 196
Friedman, Milton, 25n, 269
Gage, Lyman, 25–28, 47
Georgia, 106, 190
Germany, 29, 55, 84–85, 86, 112, 264
financial system of, 30
Gilded Age, 42, 197
bankers in, 6
economics in, 83
Gladstone, William, 166
Glass, Carter, 11, 19, 34, 118, 179, 196, 199, 255–56, 259, 304, 311, 312, 314, 315, 317, 318, 319, 321, 327, 331
ABA bankers and, 184–85, 216–17, 219–22, 228–29
background of, 17, 153, 204
banking bill framed by, 171–73, 188–89, 191, 192, 195, 196, 201–3, 205–9, 212–14
bank reform and, 128
centralization resisted by, 177, 187–88, 252
as chair of Banking Committee legislative panel, 151–56, 160, 164–65, 199, 224, 310
and congressional debates on Glass-Owen, 228–30, 233, 240n, 241–42, 245–49, 251–53
at Democratic convention of 1896, 21–22
Federal Reserve Banks and, 181n
money systems in early life of, 11, 13, 15
as newspaper proprietor, 18, 20, 22, 153
Owen’s feud with, 266–67, 268
SEC legislation by, 266
as Senate authority on finance, 266
subcommittee hearings by, 184–86
Trenton plan of, 188–89, 313
Untermyer and, 155–56, 204–5, 268
Warburg and, 247, 261
Wilson’s meeting with, 178, 179–84
Glass bill, 188–89, 191, 193, 195, 196, 206–9, 214, 216
Warburg’s analysis of, 202–3
Glass-Owen bill, 217–22, 224–37, 240–53, 265, 329
Aldrich Plan and, 225
Democratic caucus and, 322
in House Banking Committee, 209, 214, 219, 221–22, 224–25
in House of Representatives, 221, 229–31, 241, 329
O’Gorman and Reed’s shift on, 328
in Senate, 231–51, 329
Glass-Steagall Act (1933), 249, 266
gold, 11–12, 15n, 209, 237, 270
Bank of England and, 56–57, 83, 85
decentralization of reserves of, 31–32
Federal Reserve System and, 334
international movements of, 264
intrinsic value of, 13
in Klondike, 26
money backed by, 128
Panic of 1907 and, 59
in Reserve Banks, 181, 213, 227, 246
reserves of, 113, 189
San Francisco earthquake and movement of, 51–54
in United States, 85
World War I and, 260, 262
gold certificates, 15n
gold coins, 15n, 249
Goldman Sachs, 121–22
gold standard, 16, 20, 41, 230, 244, 258, 277
abandonment of, 259
Bryan’s opposition to, 23–24
Glass’s opposition to, 18
McKinley’s support of, 37
Republican Party and, 21
silver and, 16, 19–20, 230, 277
González, Henry, 258
Goodwin, Doris Kearns, 163n
government:
Aldrich Plan and safeguards against, 113, 140
progressives and, 44
small, 2
government bonds, 14, 24, 217, 220
government securities, 79n, 261–62
Grant, James, 80
Gray, Andrew L., 291
Great Britain, 36, 48, 70, 84, 93, 197, 328
America’s financing of, 262
commercial banking in, 85
gold standard in, 16, 22
interest rates in, 48
Lombard Street financiers in, 17
greenbacks, 15–16, 19, 249
Gresham’s Law, 19
Greystone, 203, 205
Griffin, G. Edward, 117
Hamburg, 30, 31, 262
Hamilton, Alexander, 2, 28, 53, 107, 117, 142
influence of, 261, 269
Hardwick, Theodore W., 223
Harper’s Weekly, 142, 144, 193
Harriman, Edward H., 32
Harrison, Benjamin, 91
Harvard University, 43, 53, 57, 67, 80, 83, 139, 262
Harvey, George, 142–43
Harvey, William H., 21
Havemeyer, Theodore, 37
Hearst, William Randolph, 43
Hearst newspaper chain, 148
Heinze, Frederick Augustus, 283
Henry, Robert L., 151–52, 221–22, 224–26, 228, 323
Hepburn, A. Barton, 20, 38, 73, 184–85, 187, 205, 209, 318, 323
History of Crises Under the National Banking System (Sprague), 80
History of the American People, A (Wilson), 142
Hitchcock, Gilbert, 231–32, 235n, 236, 238, 242–44, 247–48
Hitchcock bill, 243–44, 247–48, 329
Hone, Philip, 98
House, Edward M., 301, 309, 313–14, 318
on banking bill, 196, 203, 205–7, 219, 229, 250
on central bank, 174, 183n
Seymour’s edition of papers of, 267
Untermyer and, 195–96
Warburg and, 174, 183, 219, 233, 243, 253
as Wilson’s ally, 144–46, 157, 190, 250–51
Wilson’s falling-out with, 265–66
House Banking and Currency Committee, 33, 212, 214, 219, 310, 315
agrarian revolt on, 221–22, 224–25
amendments in, 322
Glass-Owen bill in, 209, 214, 219, 221–22, 224–25
legislative panel of, 152–53, 177n
Money Trust inquiry under, 152, 155–56, 172
reconstituted, Glass appointed chairman of, 208–9
House Democratic caucus, Glass-Owen and, 224–25
House of Representatives, U.S., 35, 38
Aldrich Plan submitted to, 147–48
Democratic control over, 105, 171, 200, 208
Glass-Owen bill in, 221, 229–31, 241, 329
in 1908 elections, 88
progressives in, 132
tariff reduction in, 200–201, 210–22
Wilson’s appearance in, 200–201
House Rules Committee, 221
House-Senate conference, 331
Housman, Arthur, 26
Houston, David F., 234, 252, 255, 260
Hudson River, 48, 71, 108
tunnels under, 190, 195, 314
Huerta, Victoriano, 223–24
Hulbert, E. D., 177, 318
Hunter, John, 294
Illinois, 47, 157, 158
immigration, 44, 105
income tax, 21, 22, 90, 94, 158, 191, 204, 234
Indiana, 12, 69
Indianapolis Monetary Convention, 24–25, 33, 74, 81, 131, 200
Indian Chieftain, 203–4
individualism, 167
and American banking, 31, 32
Industrial Revolution, 34
industry, 44
regulation of, 34
inflation, 3, 8, 111–12, 226, 244, 245–46, 247, 257, 258, 263, 329, 330
banks and, 6, 185
Second Bank and, 3
insurers, foreign, 51
Intercontinental Rubber Company, 103
interest-bearing deposits, 39n
interest rates, 30, 83, 258, 263
Bank of England’s, 57
Fed and, 216, 218, 261
near-zero percent, 8
in Panic of 1907, 65
short-term, 1, 47, 48, 257
at trusts, 61
interlocking directorates, 222, 225, 228
international finance, America’s limits in, 48
International
Harvester, 131, 288
Interstate Commerce Commissions, 330
Intimate Papers of Colonel House, The (Seymour), 267
investment banks, investment bankers, 122, 237–38, 260
Iowa, 17, 85
Italy, 85, 265
Jackson, Andrew, 7, 23, 50, 72, 84, 92, 97
influence of, 98–99, 102, 140, 153, 157, 179, 210, 225, 236, 240, 252, 253–54, 270
Second Bank opposed by, 3–5, 20, 33, 101, 115, 187
Jackson, William, 211
Jefferson, Thomas, 23, 142, 201
central bank opposed by, 2, 5
influence of, 166, 167, 204, 210, 261, 307
as small-government advocate, 2, 213, 307
Jekyl Island:
Aldrich’s return to, 122, 129–30
bankers’ conference on, 106, 107–23, 130–31, 154, 188, 238, 249n, 261, 264–65, 294
conspiracy theories surrounding, 117–18
Jekyl Island Club, 110
Jews, 31, 108, 169, 172, 304, 308, 314, 334
John Birch Society, 117
Journal of Commerce, 134, 153, 172, 304
J.P. Morgan & Co., 48n, 58, 60, 80, 96, 108, 158, 169, 305, 308
Justice Department, U.S., 136, 139
Kansas, 17, 81, 103
Kansas City, Mo., 53, 236
Federal Reserve Bank in, 260n
Kansas City Star, 98, 157
Kitchener, Lord, 197
Knickerbocker Trust Company, 62, 63, 70
Kuhn, Loeb & Company, 31, 41, 70, 75, 108, 195, 260, 314, 334
labor, 6
Taft on, 305
Wilson’s support for, 169
Labor Department, U.S., 158
labor reform, 22, 34, 38, 158
child, 104
progressives and, 44
labor regulation, 34, 90
labor unions, 40, 105, 221
La Follette, Robert M., 72, 95, 172–73, 211
in 1912 election, 138, 140, 156, 157, 162
laissez-faire, 3, 8, 25, 44, 128, 209
and Aldrich Plan drafters, 115, 119
Bryan and, 23
in Democratic Party, 21, 93
Glass proposal and, 182, 205
Wilson and, 141, 166, 213
Lamont, Thomas, 158, 308
La Salle Street, 54–55, 78, 216
Laughlin, James L., 25, 81, 121, 255, 303, 304, 309, 310
at Citizens’ League, 131–36, 139, 153, 159–61, 171, 299
Glass’s distancing from, 177–78, 188
on National City Co., 135–36
at 1912 Democratic convention, 163, 164
reform proposals by, 176–77
Warburg’s disagreements with, 132–33, 159–61
Willis and, 153–54, 178, 267
Lawrence (Mass.) Journal-World, 332
League of Nations, 266
legal tender, 244, 249
Leslie’s Weekly, 116
Lexington (Ky.) Herald, 160