Lords of Finance: 1929, the Great Depression, and the Bankers Who Broke the World (79 page)

⁵⁸⁴
"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.

⁵⁸⁵
"back to life": Harrison Papers, Letter from Talley to Harrison, July 15, 1930, quoted in Friedman and Schwartz,
A Monetary History
, 372.

⁵⁸⁶
In September 1930, Roy Young: Pusey,
Eugene Meyer
, 203.

⁵⁸⁷
"an ordinary tin-pot bucket shop operator," "Judas Iscariot": "Meyer, Eugene" in
Current Biography
, 1941, 575–78.

⁵⁸⁸
In January 1930, policy decisions: Chandler,
American Monetary Policy
, 133.

⁵⁸⁹
"panicky selling left London's city": "London Disturbed by Continued Fall,"
New York Times
, October 30, 1929.

⁵⁹⁰
"we in Great Britain": Keynes, "A British View of the Wall Street Slump,"
New York Evening Post
, October 25, 1929, in
Collected Writings
, 20: 2–3.

⁵⁹¹
like the bursting of an "abscess": Sauvy,
Histoire Economique
, 115.

⁵⁹²
To a visiting Swiss banker: Somary,
The Raven of Zurich
, 157.

⁵⁹³
Convinced that it had been the rise: Sayers,
The Bank of England
, 229, n. 3.

⁵⁹⁴
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.

⁵⁹⁵
Keynes: "Arising from": HMSO.
Report of Committee on Finance and Industry
(Cmd. 3897), Minutes of Evidence, 1931, 27–31.

⁵⁹⁶
"Reasons, Mr. Chairman": Boyle,
Montagu Norman
, 327.

⁵⁹⁷
"an artist, sitting with his cloak": Woolf,
Diary
, 208.

⁵⁹⁸
"grows more and more temperamental": Papers of Sir Charles Addis, May 7, 1930, quoted in Kynaston,
The City of London, Illusions of Gold
, 202.

⁵⁹⁹
"To what extremes": Virgil,
The Aeneid
, Book iii, l. 79–81.

⁶⁰⁰
"the shadow of one of the greatest": Keynes, "The Great Slump of 1930,"
Nation and Athenaeum
, December 20 and 27, 1930, in
Collected Writing: Essays in Persuasion
, 9: 126–34.

⁶⁰¹
"the war . . . fear of Germany": Adamthwaite,
Grandeur and Misery
, 132.

⁶⁰²
"harmonious economic structure":
L'Echo de Paris
, December 7, 1930, cited in Mouré,
Managing the Franc Poincaré
, p. 27.

⁶⁰³
"glittering new embodiment": Brendon,
The Dark Valley
, 132.

⁶⁰⁴
"the French gold hoarding policy": Einzig,
Behind the Scenes
, vii.

⁶⁰⁵
"the Banque de France": Howe,
World Diary
, 65.

⁶⁰⁶
In fact, it was clear that during 1930: Mouré,
Managing the Franc Poincaré
, 143. and Johnson.
Gold, France and The Great Depression
, pp. 152–57.

⁶⁰⁷
Bullion was so heavy: "Gold: 150 Tons,"
Time
, December 26, 1932.

⁶⁰⁸
"This depression is the stupidest": "D'Abernon on Gold,"
Time
, January 5, 1931.

⁶⁰⁹
"lean on England": General Réquin to General Weygand, February 2, 1931, quoted in Adamthwaite,
Grandeur and Misery
, 138.

⁶¹⁰
"sumptuous trimmings: "Tightwad Up and Out,"
Time
, January 14, 1935.

⁶¹¹
He was succeeded by his deputy: "Tightwad Up and Out,"
Time
, January 14, 1935.

⁶¹²
Moret thought of himself: Netter,
Histoire de la Banque de France
, 341.

⁶¹³
"ask favors from the French": Boyce,
British Capitalism
, 296.

⁶¹⁴
From his departure aboard the
Berengaria
: "Along The Highways of Finance,"
New York Times
, April 12, 1931.

⁶¹⁵
"an orchestra leader": "Norman Arrives on Banking Mission,"
New York Times
, March 28, 1931.

⁶¹⁶
When they begged him: "Norman Goes Home Silent on His Plans,"
New York Times
, April 15, 1931.

⁶¹⁷
"artificial" agency: Clarke,
Central Bank Cooperation
, 180.

⁶¹⁸
"visionary and inflationary": Clarke,
Central Bank Cooperation
, 180.

⁶¹⁹
"very gloomy situation": Morison,
Turmoil and Tradition
, 345.

⁶²⁰
"Russia was the very greatest": Stimson Diary, April 8, 1931, quoted in Schmitz,
Henry Stimson
, 85.

⁶²¹
"U.S. was blind": Lamont Diaries, May 8, 1931, quoted in Kunz,
The Battle for Britain's Gold Standard
, 46.

⁶²²
Rumors of the trouble: "False Rumors Lead to Trouble at Bank,"
New York Times
, December 11, 1930.

⁶²³
The bank had been founded: Werner,
Little Napoleons and Dummy Directors
, 1–12.

⁶²⁴
When, for instance, Bernard went to Europe: Ellis,
A Nation in Torment
, 109.

⁶²⁵
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."

⁶²⁶
two big projects on Central Park West: Werner,
Little Napoleons and Dummy Directors
, 125–27.

⁶²⁷
"lend freely, boldly": Bagehot,
Collected Works, Volume 9: Lombard Street
, 79.

⁶²⁸
"A panic . . . is a species": Bagehot,
Collected Works, Volume 9: Lombard Street
, 73.

⁶²⁹
"foreigners and Jews": Letters from Thomas S. Lamont to Edward C. Grenfell, December 13 and 30, 1930, quoted in Chernow,
The House of Morgan
, 326.

⁶³⁰
"with a large clientele": Letter from Russell Leffingwell to Benjamin Joy, January 23, 1931, quoted in Chernow,
The House of Morgan
, 326–27.

⁶³¹
"I told them": Werner,
Little Napoleons and Dummy Directors
, 206–07.

⁶³²
"I warned them": Friedman and Schwartz,
A Monetary History of the United States
, 309n.

⁶³³
shaken by such: Friedman and Schwartz,
A Monetary History
, Appendix A.

⁶³⁴
By the middle of 1931: Federal Reserve System,
Banking and Monetary Statistics
, Washington, D.C., 1943, 18. See Bernanke, "Nonmonetary Effects of The Financial Crisis," in
Essays on the Great Depression
, 41–69. in May 1931, the bank runs resumed: "More Bank Trouble,"
Time
, August 24, 1931.

⁶³⁵
The real issue for the governors: Gary Richardson, "Bank Distress During the Great Depression: The Illiquidity-Insolvency Debate Revisited" (December 2006),
NBER Working Paper.

⁶³⁶
"the capitalist system": "Ein' Feste Burg,"
Time
, July 27, 1931, and Howe,
World Diary
, 111.

⁶³⁷
"three generations," "Jewish machination," "a product of the Jewish spirit": Chernow,
The Warburgs
, 323.

⁶³⁸
On December 5, he dropped his bombshell on Berlin: "Schacht Protests Demands on Reich,"
New York Times
, December 6, 1929.

⁶³⁹
"he was about to be crucified": Letter from de Sanchez to Lamont, April 28, 1934, quoted in James,
The German Slump
, 59.

⁶⁴⁰
Schacht had gone "crazy": Kopper,
Hjalmar Schacht
, 171.

⁶⁴¹
"on the highest moral grounds": "Success at The Hague,"
Time
, January 27, 1930.

⁶⁴²
"flamboyant political moves": The
Times
, January 14, 1930, quoted in Simpson,
Hjalmar Schacht in Perspective
, 52.

⁶⁴³
"immoral agreement": "Schacht to a Piggery,"
Time
, March 17, 1930.

⁶⁴⁴
"What is the actual reason": Quoted in Mühlen,
Schacht: Hitler's Magician
, 28.

⁶⁴⁵
Historians have debated: Balderston,
Economics and Politics
, 92.

⁶⁴⁶
unintended consequences of the Young Plan: Ritschl. "Reparations transfers, the Borchardt hypothesis and the Great Depression."

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

⁶⁴⁸
"If the German people are going to starve": "Schacht, Here, Sees Warning in Fascism,"
New York Times
, October 3, 1930.

⁶⁴⁹
"I would stop making payments": Schacht,
My First Seventy-six Years
, 277.

⁶⁵⁰
"not above using the swastika": Fromm,
Blood and Banquets
, 29.

⁶⁵¹
"economic situation," "pleasant, urbane" man: Schacht,
My First Seventy-six Years
, 279.

⁶⁵²
On January 5, Göring invited Schacht: Schacht,
My First Seventy-six Years
, 279–280, and Schacht,
Account Settled
, 29–30.

⁶⁵³
It had grown over the last decade: Schubert,
The Credit Anstalt Crisis
, 31–44.

⁶⁵⁴
to compensate Credit Anstalt: Aguado, "The Creditanstalt Crisis of 1931."

⁶⁵⁵
The French government: Aguado, "The Creditanstalt Crisis of 1931," and Lewis,
Economic Survey
, 63.

⁶⁵⁶
"more than likely throw out of the window": Lamont Memorandum to Leffingwell," Debt Suspension Matters," June 5, 1931, quoted in Lamont,
The Ambassador from Wall Street
, 295–96.

⁶⁵⁷
"gentlemen do not read each other's mail": Stimson and Bundy,
On Active Service
, 188.

⁶⁵⁸
"conducting a post-mortem": Leith Ross,
Money Talks
, 135.

⁶⁵⁹
"came crying down . . .": Interview with Herbert Feis, November 4, 1955, quoted in Morrison,
Turmoil and Tradition
, 349.

⁶⁶⁰
"a sickly, overworked and overwhelmed man": Wells,
Experiment in Autobiography
, 679, quoted in Schlesinger Jr.
The Crisis of the Old Order
, 244.

⁶⁶¹
"like sitting in a bath of ink": Stimson diary, June 18, 1931, quoted in Schlesinger,
The Crisis of the Old Order
, 243.

⁶⁶²
"we [the Americans] and the British": Edge,
Jerseyman's Journal
, 156.

⁶⁶³
"the killing of the fatted calf ": Edge,
Jerseyman's Journal
, 192.

⁶⁶⁴
"the more one reflects": Howe,
World Diary
, 105.

⁶⁶⁵
Norman got hold of young Mellon: Anon,
High Low Washington
, 99.

⁶⁶⁶
"Are you glad to be in Paris": "Secretary Acts Quickly,"
New York Times
, June 26, 1931. Hoover vented against the French: Ferrell,
American Diplomacy
, 114.

⁶⁶⁷
Berlin was being "bled to death": Federal Reserve Bank of New York, Memorandum on telephone call between Harrison and Norman, July 1, 1931.

⁶⁶⁸
"France has been playing": Macdonald Diary, July 5, 1931, quoted in Boyce,
British Capitalism
, 336.

⁶⁶⁹
"Now, Monsieur Mellon": Cannadine,
Mellon
, 438.

⁶⁷⁰
"round face deep lined": "Beggar No Chooser,"
Time
, July 20, 1931.

⁶⁷¹
"Not since those days of July 1914": "Beggar No Chooser,"
Time
, July 20, 1931.

⁶⁷²
"they had come to a decisive point": Bennett,
Germany and the Diplomacy of the Financial Crisis
, 236.

⁶⁷³
"On the ruins of the wealth": Einzig,
Behind the Scenes of International Finance
, vii.

⁶⁷⁴
"Never has the incapacity of the economic leaders": "Schacht Arraigns Capitalist Greed,"
New York Times
, July 11, 1931.

⁶⁷⁵
the Danatbank had failed to open: "German Banks Curb Runs by Depositors,"
New York Times
, July 14, 1931.

⁶⁷⁶
"resigned passivity": Guido Enderis, "Berliners Calm in Money Crisis,"
New York Times
, July 17, 1931.

⁶⁷⁷
"much struck by the emptiness," "In such circumstances": E. L. Woodward and R. Butler, eds.,
Documents on British Foreign Policy
, 2: 225–26.

⁶⁷⁸
"the program to be executed": "Hitler Unites Ranks of the Old Germany to War on Brüning,"
New York Times
, October 12, 1931.

⁶⁷⁹
"Lo! thy dread empire Chaos!": Alexander Pope quote from
Bartlett's Familiar Quotations
, 313.

⁶⁸⁰
Macmillan Report: Williams, "London and the 1931 Financial Crisis."