Lords of Finance: 1929, the Great Depression, and the Bankers Who Broke the World (89 page)

National Reserve Association, 56

Nationalbank (Germany), 90, 127–28

Nazis

and conspiracies against Hitler, 484

and German economic recovery, 481

rise of, 3, 6, 183
n
, 184, 282, 395, 400, 402, 409, 420, 479–80

and Schacht, 2, 403, 420–21, 480–81, 482–83

Netherlands Bank, 191–92, 435

Neuflize, Jean de, 245, 246

New Deal program, 444, 462, 474

New York Life Insurance Company, 475, 476

New York Stock Exchange, 49, 308, 342, 343, 358, 360, 456

Niemeyer, Otto, 233, 234

Norddeutsche Handelsbank, 43

Norddeutsche Wolkkammerei “Der Nordwolle,” 414

Norman, George Warde, 81–82

Norman, Montagu Collet

appearance and personality of,
xii
, 2, 7, 25–26, 27, 145, 146, 151,
242
, 259, 260,
290
,
394
, 463

and appeasement, 487–88

Asquith letter to, 433

awards and honors for, 1, 27, 405, 488–89

and Baldwin, 141–42, 233

as Bank of England board member, 24, 32–33

Bank of England as “mistress” of, 224, 260

and blame for Great Depression, 501, 502

in Boer War, 26–27

as Brown Shipley partner, 23, 24, 26, 27, 32

Canadian trip of, 1, 5, 6, 425, 430–31

and Churchill, 6, 147–48, 223–24, 232, 235, 236, 239

concerns about Great Depression of, 5

and Credit Anstalt problem, 404, 405, 406

criticisms of, 6, 313, 487

and currency stabilization, 469–70

and Dawes Plan, 209, 212–13

death of, 489

and deflation, 161, 301

and devaluation, 159, 463–64, 465–66

and early years of British Depression, 422, 424–25

and events leading to World War I, 23–24, 31–33

and exchange rates, 465

and Federal Reserve Board, 321, 339–40

financial affairs of, 25

first joins Bank of England, 83

and French economy/relations, 260, 286–88, 304, 381

and German economy, 192, 193–97, 260, 280, 285–86, 326, 335, 415–16, 418, 488

and gold reserves, 320

and gold standard, 155, 163, 169, 220, 221, 225, 231, 232–33, 236, 237, 239, 288–89, 292, 297, 345, 383, 425, 430–31, 432, 434, 465, 487, 502

as governor of Bank of England, 83, 139, 145–46

and Harrison, 319, 320–21, 344, 370, 413, 434, 465, 473

and Hatry case, 352

health of, 1–2, 24, 27, 28, 33, 148, 212, 304, 371, 425, 488

image of, 145–46, 148

and impact of Great Crash, 370

“imperialist dreams” of, 287

and interest rates, 320–21, 424, 465

international bank proposal of, 381–82, 383

and Keynes, 6, 168–69, 373, 491

and Lamont, 212–13, 383

and London Economic Conference, 469

and Long Island meeting, 297

and Macmillan Committee, 371–73

and media, 1, 147–48, 382, 463–64

as member of Court of Bank of England, 81

and moratorium on reparations and war debt, 409, 410, 412, 413

and Moreau, 259–61, 269, 287, 288, 291, 292, 301–2, 380

personal background of, 26, 81–82

personal/social life of, 25, 27, 28, 29, 146, 224, 464–65

personality of, 146, 148, 149, 224, 233, 304, 373

pessimism about world economy of, 339–40, 344, 392, 425

philosophy/worldview of, 151–52, 169

and prices, 465–66

professional background of, 26, 83

and proposed league of central bankers, 149–50

pseudonyms of, 146–48

as reflection of national psyche, 8

and reparations, 6, 297–98, 487

reputation/power of, 2, 5–6, 7, 8, 29, 145, 148, 237, 301, 373, 392, 487

and Romania funding, 301, 302

and Schacht, 192, 193–97, 254, 260, 281, 282, 285–86, 404, 488

self-image of, 149, 489

and Snowden, 223

and speculation, 289
n

and stock market, 313, 339–40

and Strong, 92, 132, 136, 139, 141, 149–51, 153, 168–69, 170, 172, 196, 209, 221, 225–29, 240, 254–56, 260, 276, 277, 287, 288, 294–95, 297, 300, 302, 303, 304, 321, 322

and Strong-French relationship, 300

Time
cover story on, 345

and U.S. buying of gold, 473

U.S. visits of, 141–43, 146–47, 150, 225–29, 240, 320–22, 344, 382–83, 411, 463–64

and U.S.-British relations, 240

and war debts, 136, 141, 169, 501

and Young conference, 339

Noyes, Alexander Dana, 313, 347, 351

open market operations, 175, 368–69, 436, 439, 458, 475

d’Orléans, Henri, 486–87

d’Orléans, Jean, 486

The Other Club, 237–38

Page, Arthur, 133

Painlevé, Paul, 248, 248
n

Panic of 1907, 51–54, 59, 211, 244, 271, 307
n
, 351

Papen, Franz von, 479, 485

Paris, France

Americans in, 256–57, 258

Dawes Committee meetings in, 201–6

and German invasion of, 71

Norman’s visits to, 147

riots in, 257–58

Strong’s visits to, 92, 137–38, 256

as world financial center, 287–89

Paris Peace Conference

Allied-German relations at, 117–18

and blame for Great Depression, 500

British delegation to, 201

economic consequences of, 116

and Keynes-Wilson relations, 170

negotiations of, 137

reparations negotiations at, 104–7, 114, 131

and war debts, 131

Pinchot, Gifford, 447–48

Pittman, Key, 467, 468

Plesch, Janos, 490, 494

Poincaré, Raymond, 117, 197–98, 204, 206, 261, 262
n
, 263, 265, 267, 268, 286, 301, 456

Poland, 108, 221, 287, 329, 333, 341, 396, 410, 419, 423, 484

post-World War II world, Keynes’s planning for, 491–92

Potter, William, 355, 437

prices

as cause of Great Depression, 465–66, 497, 501

of commodities, 469, 471, 490, 497

and Fed role in European problems, 293

and goals of central banks, 171

and gold, 379, 460, 462, 465, 471–74, 501

in 1930, 374, 376

Strong’s views about, 171

and unemployment, 475

protectionism, 375, 375–76
n

Public National Bank, 386–87

Pujo Committee, 47

Quesnay, Pierre, 263–64, 264
n
, 334, 345

Raskob, John J., 311, 342

Rathenau, Walter, 118, 120

RCA (Radio Corporation of America), 199, 310, 342, 354, 438

“real bills” theory of credit, 80

real estate boom, U.S., 273–74, 275, 278

Reconstruction Finance Corporation (RFC), 439, 442, 472

Reichsbank

and Agadir crisis, 43

and attempts to rescue German economy, 418, 419

and Autonomy Law, 188

and Bank of England, 195

and blame for Great Depression, 502

board of, 88, 208

creation of, 88

and credit, 415

and Danatbank bail out, 414, 415, 418

and Dawes Committee, 207, 208

and debasement of German currency, 120–22

directors of, 125

divisiveness within, 191

and financing of war, 43

foreign borrowing by, 208, 415

foreign deposits in, 44

and foreign exchange, 419

General Council for, 280

and German domestic policy, 119, 120–21

and German economy, 415–16

gold reserves of, 43, 44, 70, 124, 186, 191, 208, 415, 435, 502

government’s relationship with, 88, 124, 188, 286, 401

Harrison’s support for, 335

Havenstein as president of, 87, 88, 124–25, 187–88

headquarters of, 295

importance of, 7, 280

and interest rates, 334, 341, 371, 400

Luther named head of, 414

New York Fed holding of gold from, 379
n

Norman’s support for, 335

and Polish loan, 287

and politics, 286

printing of money by, 119, 121, 122, 124, 125–27, 188

reaction to Great Crash by, 371

recapitalization of, 208

and reparations, 208

Schacht named president of, 191, 192

Schacht removed from, 484

Schacht return to, 481

and stock market, 284

U.S./Federal Reserve loan to, 434

withdrawals from, 43

and Young Plan, 398

Reichstag

DDP in, 103

dissolution of, 400

members of, 102

Nazis in, 3, 395, 400, 480

reaction to Schacht speech by, 420

Rentenmark, German, introduction of, 185–89, 189
n
, 191, 195, 206

reparations

and attempts to rescue German economy, 417–18

and blame for Great Depression, 501

cancellation of, 489

“capacity to pay” concept for, 200

and disillusionment in Europe, 151

forgiveness of, 479

and French-German relations, 331–37

German default on payment of, 195, 213, 215, 327–28, 334, 335, 397–98, 401

and German domestic economic policy, 119

German obsession about, 109

in Germany, 120–28

Hague conference (1930) about, 397–99

as heart of Dawes Plan, 209

and impact of Great Crash, 370

international conferences concerning, 116–19

Keynes’s views about, 109–10, 114–15, 118, 131–32, 143–44, 337

and Long Island meeting, 297–98

Mellon’s views about, 315

moratorium on, 4, 407–14

need for restructuring of, 326

opposition to, 6

and Paris Peace Conference, 104–7, 114, 131

as political issue, 129

reduction in amount of, 284

size/total figure for, 108, 200, 207, 215, 216

suspension of payments on, 395

and transfer protection clause, 327–28, 334, 336

and Treaty of Versailles, 108, 396, 398

and war debts, 131, 132, 139, 144, 328, 333, 336, 407–14

See also
Dawes Committee; Young Conference; Young Plan;
specific nation

Reparations Commission.
See
Dawes Committee

Réveil National movement, 69

Revelstoke, Edward Baring, Lord, 331, 332, 335

Rhineland, 328, 396

Rist, Charles, 254, 263,
290
, 294–95, 297, 298, 299, 300

Robineau, Georges, 241, 243, 250, 254

Rockefeller, John D. Jr., 56

Rockefeller, John D. Sr., 53, 142

Rogers, Will, 347, 455, 463

Romania, 301, 302, 410

Roosevelt, Franklin

bank closings by, 451–53

bank rescue package of, 453–56, 457

and banking crisis, 445, 446–47

devaluation of dollar by, 460–62, 466–71, 473–74

and elections of 1932, 441–42

and Federal Reserve Board, 475

fireside chats of, 455, 471

“first hundred days” for, 456–57

and gold price, 471–72, 473–74

and gold standard, 443, 458, 461–62

and Harrison, 473

and Hoover, 444, 446–47

image of, 473

inauguration in, 448

Keynes’s views about, 490–91

knowledge of economic policies of, 458–59

and London Economic Conference, 467, 469–71

and prices, 459–51, 462, 465–66, 469–70, 471, 475

Roosevelt, Theodore, 40, 132, 133

Rothermere, Harold Harmsworth, Viscount, 343

Rothschild, Alfred de, 78; Alphonse de, 246; Edouard de, 245, 246, 265–66, 266
n
, 267, 268, 416; Guy, 265; Louis de, 404; Maurice, 266
n
; Mayer Amschel, 179

Rothschild family, 4, 10, 29, 30, 179, 209, 210, 246, 265, 266, 404

Rouvier, Maurice, 65–67

Royal Commission on Indian Currency and Finance, 111

Royal Institute of International Affairs, 5, 404

Rubin, Robert, 498

Ruhr valley

coal production in, 238

French invasion/occupation of, 120, 147, 152, 182, 198, 199, 204, 261, 264

French withdrawal from, 213, 214, 215

Russia

British loans to, 76, 136

civil war in, 137–38

danger from, 383

default in (1998), 499, 500

French relations with, 31, 130, 325

German declaration of war against, 31

German relations with, 36, 42

mobilization in, 29, 31, 42, 48

optimism on duration of war in, 75–76

sale of art works by, 364

Schacht views about, 107

war debts of, 131, 136

Sabin, Charles, 48, 49–50

Schacht, Horace Greeley Hjalmar

ambitions of, 37, 38

appearance of,
34
, 103–4, 104
n
, 281–82,
290, 394, 478

arrest and imprisonment of, 484–85

attempts to induce return of, 419–20

and attempts to rescue German economy, 417–18

on Banking Commission, 89–90

and Belgium affair, 191

between 1919–23, 101, 107, 127–29

and blame for Great Depression, 501, 502

and British loans to Germany, 193–97, 288

and Brüning austerity plan, 401–2

and conspiracies against Hitler, 484

and credit, 284

and Credit Anstalt problem, 404

as currency commissioner, 183, 185–87, 188–89, 206

at Danatbank, 179, 185, 281

and Dawes Committee/Plan, 205–6, 207, 208, 214–15, 280, 284, 285

death of, 486

and Dresdner Bank, 36, 40, 89–90

and events leading up to World War I, 36, 41, 42, 44

and exchange rate, 293

financial affairs of, 127–28, 183, 281

and foreign borrowing, 284, 286, 292, 297, 324, 328–29, 395, 396, 397

and French economy, 255

German cabinet disavowal of position of, 335–36

and German economic recovery, 283–84

and German national psyche, 8

on Germany, 128

and Gilbert, 327, 335

on global financial system, 482

and gold reserves, 420

and gold standard, 186, 502

government relations with, 396–99

on Great Britain, 41

and Havenstein, 188