America's Bank: The Epic Struggle to Create the Federal Reserve

Home > Other > America's Bank: The Epic Struggle to Create the Federal Reserve > Page 42
America's Bank: The Epic Struggle to Create the Federal Reserve Page 42

by Roger Lowenstein


  Lincoln, Abraham, 11, 13, 276

  Lindbergh, Charles August, 137, 141, 151, 230, 252, 259

  Link, Arthur, 157, 223, 329

  Lippitt, Henry F., 211

  liquidity, 41, 258, 263

  liquid securities, 237–38

  loan certificates, 67

  loans, 5, 24, 78, 232

  agricultural, 226

  consumer, 199

  currency and, 115

  curtailment of, 70

  discounting of, 31, 226

  short-term, 39, 57, 79n, 112, 213, 218

  local associations, in Aldrich Plan, 113, 137

  Lodge, Henry Cabot, 102–3

  Lombard Street, money scarcity and, 17

  London, 30, 49, 77, 85, 140, 199

  financiers in, 17, 22

  Louisiana, 152

  Louisville, Ky., 53

  Lynchburg, Va., 17, 22, 155, 179, 203

  Lynchburg News, 18, 20

  McAdoo, Eleanor Wilson, 265

  McAdoo, William Gibbs, 196, 316, 318, 324

  banking reform and, 201–3, 206–9, 212, 217, 220–21, 229, 243, 250

  Federal Reserve Banks and, 208, 257, 260–61, 263, 265

  as secretary of Treasury, 190–91, 206, 235–36, 241, 250

  trans-Hudson tunnels of, 190, 195, 220, 314

  McAdoo plan, 206–8

  McCombs, William F., 149

  McCormick, Cyrus, Jr., 131

  McCulley, Richard T., 57

  McKinley, William, 21, 23, 25–26, 37, 246, 277

  assassination of, 28

  MacLeod, Henry Dunning, 29

  McRae, Thomas, 231–32, 325

  MacVeagh, Franklin, 121, 136

  on Aldrich Plan, 133–34

  Andrew fired by, 161

  Madero, Francisco, 315

  Madison, James, 3

  Magnet, The (Crozier), 72

  manufacturing:

  in New England, 93, 98

  in Rhode Island, 37

  tariff and, 18, 36

  Marriner S. Eccles Federal Reserve Board Building, 259

  Massachusetts, 157, 159

  mass production, 60

  Mencken, H. L., 236

  Mercantile National Bank, 61–62

  merchants, 8, 67, 98

  Merchants’ Association of New York:

  central bank endorsed by, 101, 121n

  currency committee of, 89

  Glass-Owen endorsed by, 235

  Merchants Loan and Trust Company of Chicago, 177

  Metropolitan Club of New York, 88

  Metropolitan Museum of Art, 85

  Mexico, 85, 96–97, 195, 315

  revolution in, 223–24, 246

  middle-tier (reserve) banks, 14, 39n, 248n

  hoarding by, 69

  Midwest, 97

  Aldrich Plan in, 134, 138

  Citizens’ League and, 131

  progressives in, 134, 137

  Roosevelt’s support in, 168

  Milwaukee, Wis., 90, 98, 270

  minimum wage, 138, 165

  mining, 67, 98, 283

  Minneapolis, Minn., Federal Reserve Bank in, 260n

  Minnesota, 17, 136, 230

  Mint, U.S., 195

  Mississippi valley, 98, 103

  Missouri, 17, 165, 231

  M. M. Warburg & Co., 30

  Moehlenpah, H. A., 323, 324

  Mondell, Frank, 230

  monetarism, 226

  monetary policy, 258

  monetary reform, 5–8, 24, 48, 90, 92, 93–94, 97, 119, 128, 222, 251

  Aldrich’s focus on, 89–91, 97–98, 120

  public associations with, 123

  money:

  agricultural assets and, 221–22

  bank-issued, 3, 6, 11–13, 17, 24–25, 41, 55, 78, 128, 200, 204, 213, 221, 226–27

  concentration of, 215

  counterfeiting of, 13

  creation of, 264

  financial independence and, 6

  government-issued, 128, 185, 199–200, 204, 207, 213–14, 252, 323; see also fiat money

  hoarding of, 69, 285

  invented, 67

  issuance under Aldrich Plan, 114

  issued by Fed, 1, 117, 244, 245

  national currency and, 41

  paper, 11–13, 16

  private issue of, 119

  proper basis of, 225–27

  Second Bank and, 3–4

  supply of, 67, 225, 246, 258, 259, 270

  trading of, 68

  see also currency

  Money and Currency (Ravenscroft), 97

  Money Changers, The (Sinclair), 72

  money question, 199–200

  money shortages, 2, 6, 15–19, 27, 49, 53, 68–69, 185, 204, 263

  Aldrich on, 37–38

  Coxey’s march and, 21

  Panic of 1907 and, 59–60

  Money Trust, 134, 136–37, 182, 252, 259, 269, 270

  Money Trust inquiry, 141, 151–52, 155–56, 160, 172, 175, 191–93, 195, 268, 303

  monopolies, 22, 71, 167–68, 175–76, 308

  fears of, 19

  National City Bank as, 135

  Untermyer hearings and, 175

  Wilson and, 169

  Montana, 61

  Moore & Schley, 71

  Morawetz, Victor, 97, 101, 149, 174, 186, 267, 312

  Morgan, Jack, 155, 196, 308

  Morgan, J. P., 26, 30n, 42, 58, 59, 61, 78, 80, 82, 85, 95n, 99, 104, 115–16, 135, 165, 169, 190, 192, 198, 219, 299

  death of, 197

  Jekyl Island Club and, 108, 110

  in Money Trust hearings, 175–76, 197

  and Panic of 1907, 61, 62–66, 70–73, 133

  stability as goal of, 73

  Treasury bailout by, 20

  trusts sponsored by, 139, 288, 305

  on Wilson, 143

  Morgenthau, Henry, 27, 170, 174, 177, 187, 308, 310

  Morse, Charles W., 62, 283

  mortgage-backed securities, 226, 258

  mortgages, 1

  farm, 237, 329

  liquidity of, 238

  Mullins, Eustace, 117

  Napoleon I, emperor of France, 86

  Napoleonic wars, 70

  Narragansett Bay, 35, 75

  Nation, 53

  National Association of Manufacturers, 94

  National Banking Act, 13–16, 28, 39, 41, 48n, 49, 220, 251

  loans based on real estate prohibited by, 17

  mediums of exchange under, 15

  National Banking system, 30, 33, 47, 59, 60, 61–62

  National Bank Notes, 13–15, 41, 75, 79, 113, 181, 212, 249n

  National Bank of Commerce, 299

  national banks, 13–15, 30, 52, 122, 129, 134, 242

  Federal Reserve membership sought by, 253

  overseas business and, 48, 114, 183, 245, 296, 329

  real estate loans not issued by, 199

  regulations of, 136

  reserves at, 186

  National Biscuit Company, 93

  National Board of Trade, 121, 123

  National Citizens’ League, 131–33, 135, 144, 269, 305

  Laughlin at, 131–36, 139, 153, 159–61, 171, 299

  New York chapter of, 133

  in 1912 election, 159–60

  National City Bank of New York, 27, 32–33, 47–48, 108, 109, 196, 199, 233, 237–39, 253, 270

  investment affiliate of, 134–36, 299

  overseas expansion of, 118, 264–65

  in Panic of 1893, 57

  in Panic of 1907, 57, 65

/>   reserves of, 109

  in wake of San Francisco earthquake, 51, 52

  National City Co., 134–37

  National Monetary Commission, 79, 88, 94, 97, 104, 106, 120, 134, 141, 144, 287, 302, 305

  Aldrich Plan as report of, 147–48, 269

  National Reserve Association, 113–15, 118, 122–23, 140

  banking industry and, 130–31

  governor and directors of, 114, 130–31, 140, 141, 188–89, 199

  location of, 114

  notes of, 133

  political influence avoided by, 115

  public accountability of, 141

  state banks, 129

  nativism, 22, 230

  natural law, 25

  Nebraska, 22, 81, 157, 165, 170, 231, 236

  New Deal, 264, 266

  New England, 98

  textile industry in, 93

  “New Nationalism” speech (Roosevelt), 293

  New Orleans, La., 53, 131, 139–40

  Newport, R.I., 37, 78, 199

  New York, N.Y., 47, 63, 82, 85, 88, 98, 132, 144, 201, 216, 236, 299, 304

  banking dominated by, 314

  banking reform in, 60

  banks and bankers in, 5, 7, 12, 49–50, 54–56, 68, 113, 135, 141, 186, 193, 220, 229, 252

  banks vs. trusts in, 61–62, 69

  cash shortage in, 65

  as central reserve city, 14, 39n, 69, 231

  city banks in, 26, 30, 39

  corporate headquarters in, 50

  Federal Reserve Bank of, 257, 258–59, 260–61

  financiers in, 17

  money market in, 60–61

  National Banking Act and, 14–15

  Panic of 1907 and, 99

  run on safe-deposit boxes in, 68

  subways in, 62

  suffragettes in, 156

  Warburg in, 31

  New York Chamber of Commerce, 46–51, 121n, 123, 281

  monetary committee of, 119–20

  New York Clearing House, 61, 62–63, 193–94, 283

  loan certificates from, 66–67

  New York State, 95, 166, 231, 245

  New York Stock Exchange, 65, 193, 198, 260

  New York Sun, 214

  New York Superintendant of Banking, 284

  New York Times, 42n, 56, 58, 62, 63, 66, 73, 120, 122–23, 133, 143, 156, 198, 214, 219, 222, 252–53, 266, 286, 323, 332

  New York Tribune, 36, 252, 332

  Nixon, Richard, 257, 259

  North, 17

  central bank supported in, 4

  tariff supported in, 37

  North Carolina, 229

  Northeast:

  capital in, 242

  Roosevelt’s support in, 168

  strong dollar and, 18

  Northern Pacific Railway, 28

  Norway, 93

  notes:

  Bank of England, 83, 84, 86–87

  credit and, 200

  federal government, 205

  issuing of, 83

  Reichsbank, 87

  Reserve Banks’, 205

  Noyes, Alexander D., 29

  O’Gorman, James, 231, 236, 238–39, 242, 327, 328

  Ohio, 162

  Oklahoma, 81–82, 200, 204

  Oklahoma Territory, 19, 203–4

  Omaha World-Herald, 236

  Open Market Investment Committee, 264

  Other People’s Money and How the Bankers Use It (Brandeis), 193n

  Owen, Robert Latham, 19, 200, 263, 319, 323, 328

  background of, 203–4

  banking bill and, 203, 205, 207–9, 212–13, 217–18, 227, 241

  as Bryan disciple, 200, 204, 205

  European study tour of, 204

  Glass’s feud with, 266–67, 268

  as progressive, 205

  Warburg and, 243, 248, 334

  Owen bill, 205

  Page, Walter Hines, 197

  Palmer, James E., Jr., 335

  Panama Canal, 47, 234

  Panic of 1893, 19–21, 57, 60, 204

  Panic of 1907, 57–58, 59–76, 77–79, 81, 99, 101, 133, 139, 150–51, 269, 319

  paper money, 11–13, 16, 114

  see also specific types

  Paris, 31, 49, 51, 78, 86, 140, 209, 265

  Parliament, British, 84, 166, 168, 241

  Paul, Ron, 296

  Payne-Aldrich tariff, 95, 103

  Peary, Robert, 93

  Peck, Mary Allen Hulbert, 163, 166, 214, 233, 246, 325

  Peel, Sir Robert, 85–86

  Pennsylvania, 158

  pensions, 100, 199

  Perkins, George W., 58, 60–61, 64, 73, 78, 80, 104

  in Roosevelt’s 1912 campaign, 169, 305, 308

  Perry, Marsden J., 42

  personal checks, 49

  Philadelphia, Pa., 5n, 49, 120

  Bank of the United States in, 2–4

  banks in, 12, 68

  Federal Reserve Bank in, 260n

  Philippines, 91

  Phillips, David Graham, 43–44

  “Plan for a Modified Central Bank, A” (Warburg), 75–76, 286

  populism, populists, 21, 44, 71, 128, 137, 143, 185, 205, 221, 232

  monetary, 230

  Portland, Oreg., 67, 69

  pound, British:

  as international currency, 49

  strength of, 85

  Pound, Ezra, 117

  press:

  on Aldrich, 33–34, 44, 120, 122–23, 133, 134, 140

  on Aldrich Plan, 134

  Citizens’ League and, 160

  on Federal Reserve System, 252–53

  on Glass bill, 214

  muckraking, 43–44

  progressivism and, 100

  Untermyer and, 310

  Wilson’s campaign and, 157

  prices:

  falling, 18, 246

  wholesale, 330

  primary elections, 100, 138, 143

  in 1912, 157

  Princeton, N.J., 145, 170, 181, 184, 252

  Princeton University, 23, 45, 83, 142, 143, 166, 250–51

  profits, Reserve Association and, 115

  Progressive Party, 167

  progressives, 6–7, 41, 44–45, 205, 237

  accountability to public of, 140–41

  Aldrich disliked by, 89, 140

  on banking, 71

  banking reform and, 45, 138, 147

  in Democratic Party, 99, 132, 133, 148, 156–57, 165, 191, 204

  gathering strength of, 90

  growing prominence of, 127

  income tax and, 234

  La Follette as member of, 72, 140

  in 1912 election, 156

  public control of financial institutions and, 115, 128

  rejection of central bank by, 104, 123, 238

  Republican, 92–93, 95, 96, 99–100, 103, 104, 105, 138

  Wilson and, 307

  promissory notes, 39

  Providence, R.I., 34, 35, 42n, 68

  Pujo, Arsène, 152, 155, 172, 302

  Pujo hearings, see Money Trust inquiry

  Pujo Report, 314

  Pulitzer, Joseph, 110

  Pullman strike of 1894, 21

  quantitative easing, 259

  racial segregation, 22, 153, 156, 204

  Ragsdale, James, 222

  railroads, 40, 67, 70, 81, 211

  bonds for, 15, 41, 78

  consolidation of, 73, 176

  failure of, 20

  financing of, 32, 33

  public resentment toward, 78

  rate fixing by, 288

&nbs
p; regulation of, 21, 34, 38, 74, 100

  stocks in, 58

  railways, street, 42n, 190

  Raleigh News and Observer, 157

  Ravenscroft, D. W., 97

  real bills theory, 24, 226n, 258

  real estate, 17, 140

  recession, 20–21, 258

  Recession, Great, 259

  Recession of 1907, 58–59

  rediscounting, 331

  Reed, James, 231, 236, 266, 327, 328

  reform, 73–74

  major twentieth-century financial reforms, 266

  see also banking reform; currency reform; labor reform; monetary reform

  regional reserve banks, 97, 101, 137, 149, 154, 177, 181–82, 184, 185–87, 227, 229, 242, 267, 311

  Reichsbank, 57, 85, 87, 214

  discounting by, 87

  Republican National Committee, 162

  Republican National Convention, of 1912, 159, 160

  Republican Party, 48, 72, 78, 137, 169, 191, 235, 236, 239, 245, 248, 265

  Aldrich Plan and, 137–38, 150, 160, 161–62

  central bank and, 6–7

  Democratic shift to left of, 168

  dissatisfaction with Taft in, 138

  in election of 1908, 75, 81

  Federal Reserve Act and, 268

  gold standard and, 21, 230, 277

  hegemony of, 33

  monetary reform and, 90

  National Monetary Commission and, 81

  and 1912 election, 157–60

  progressives in, 92–93, 95, 96, 99–100, 103, 105, 138

  silver opposed by, 16

  tariff reform and, 211

  tariff supported by, 37, 92–94

  Tea Party wing of, 8, 137

  reserve banks, regional, 97, 101, 137, 149, 154, 177, 181–82, 184, 185–87, 227

  see also Federal Reserve Banks

  reserves, 39n, 112, 131

  bank, 188–89

  Bank of France and, 87

  central, 173, 185, 186

  competition for, 69–70

  disaggregation of, 70

  district branches and, 114

  as legal tender, 329

  pooling of, 113, 119, 168, 202

  regional, 186

  structure of, 111–12

  vault, 216

  Revelstoke, Lord, 90

  Reynolds, George, 85, 88, 96, 129, 184, 208, 216, 219, 229, 318, 321

  Rhode Island, 5, 34, 36, 37,42, 93, 100, 105, 106, 130

  Ricardo, David, 107, 293

  Richmond, Va., 61

  Federal Reserve Bank in, 260n

  Riksbank, 93

  Rockefeller, Abby Aldrich, 43, 265

  Rockefeller, David, 265

  Rockefeller, John D., Jr., 43

  Rockefeller, Michael, 43n

  Rockefeller, Nelson A., 265

  Rockefeller, William, 48

  Rocky Mountain News, 140

  Rocky Mountains, 98

  Rome, 35

  Roosevelt, Franklin D., 82n, 83, 117

  Roosevelt, Theodore, 28, 30, 55, 58, 61, 77, 81, 93, 245–46

 

‹ Prev