All the Presidents' Bankers (84 page)

19
. From the Diary of Vance Criswell McCormick, June 11, 1919, Wilson Papers, Vol. 60.

20
. Telegram from Frank Lyon Polk to the American Mission, Washington, June 11, 1919, Wilson Papers, Vol. 60.

21
. Ibid.

22
. Enclosed copy of cable to Tumulty with treaty suggestions from Lamont, Wilson Papers, Vol. 60.

23
. Letter from Thomas William Lamont, June 13, 1919, Wilson Papers, Vol. 60.

24
. “Export Bank Bill Passed by Senate,”
New York Times,
September 10, 1919.

25
. Memorandum by Robert Lansing, Signing of the Treaty of Peace with Germany at Versailles, June 28, 1919, Wilson Papers, Vol. 61.

26
. From Herbert Clark Hoover, July 5, 1919, Wilson Papers, Vol. 61.

27
. Ibid.

28
. Ibid.

29
. Personal Letter from Thomas William Lamont, July 11, 1919, Wilson Papers, Vol. 61.

30
. Henry Cabot Lodge to James Grover McDonald, July 10, 1919, Wilson Papers, Vol. 61.

31
. Introduction, Wilson Papers, Vol. 62.

32
. News report: “Wilson Continues Firm: Tells Senators Smaller Nations Would Oppose Treaty Modification,” July 23, 1919, Wilson Papers, Vol. 61.

33
. Letter from Thomas William Lamont, July 25, 1919, Wilson Papers, Vol. 61.

34
. “Food Problems at the Fore,” Wilson Papers, Vol. 62. The memo also said, “Walter [Walker] D. Hines, Director of Railroads, F.B. [William B.] Colver of the Federal Trade Commission, and Assistant Sec Leffingwell of the Treasury Department were appointed members of the Committee” to explore the domestic problem.

35
. Letter to Thomas William Lamont, August 1, 1919, Wilson Papers, Vol. 62.

36
. Letter from Robert Lansing, with enclosure from Breckinridge Long to Robert Lansing, August 14, 1919, Wilson Papers, Vol. 62.

37
. Letter to Robert Lansing, August 14, 1919, Wilson Papers, Vol. 62.

38
. Letter from Thomas William Lamont, August 25, 1919, Wilson Papers, Vol. 62.

39
. Introduction, Wilson Papers, Vol. 63.

40
. Letter from Thomas William Lamont, September 10, 1919, Wilson Papers, Vol. 62.

41
. Arthur S. Link, “A Disabled President,”
Constitution,
Spring/Summer 1992, 8.

42
. Introduction, Wilson Papers, Vol. 66.

43
. The Treaty of Versailles, official Senate history records.

44
. “President Bids Good-bye to his Cabinet,” Wilson Papers, Vol. 67. Printed in the
New York Times,
March 2, 1921.

45
. Wilson died of a stroke on February 4, 1924.

Chapter 4. The 1920s: Political Isolationism, Financial Internationalism

1.
President Calvin Coolidge, Fourth Annual Message, December 7, 1926, at
www.presidency.ucsb.edu/ws/index.php?pid=29567
.

2
. Barry Eichengreen and Marc Flandreau, “The Rise and Fall of the Dollar, or When Did the Dollar Replace Sterling as the Leading Reserve Currency?,” draft paper prepared for the conference in honor of Peter Temin, Cambridge, May 9, 2008, 13, at
http://emlab.berkeley.edu/~eichengr/rise_fall_dollar_temin.pdf
.

3
. Letters to Harding: Box 97–99 via Lamont,
Ambassador.

4
. Lamont,
Ambassador,
171.

5
. “Is Assured No Cancellation Was Promised,”
Telegraph,
February 16, 1921.

6
. Ibid.

7
. Lamont,
Ambassador,
173.

8
. “Thomas W. Lamont to Tour Europe,”
New York Times,
April 5, 1921.

9
. Lamont,
Ambassador,
174.

10
. Ibid.

11
. “Nye Calls Oil Deal a ‘Slush Fund’ Only,”
New York Times,
May 30, 1928.

12
. “Hoover Accepts Place in Cabinet; Keeps Relief Post,”
New York Times,
February 25, 1921.

13
. David Cannadine,
Mellon: An American Life,
3rd ed. (New York, NY: Knopf, 2006).

14
. “The Millionaire Yield of Pittsburgh,”
Munsey’s Magazine,
October 1911, 785.

15
. University of Virginia Miller Center, “American President: Warren Gamaliel Harding: Domestic Affairs,” at
http://millercenter.org/president/harding/essays/biography/4
.

16
. “Mellon for Budget Bill,”
New York Times,
April 9, 1921.

17
. Allen Schick and Felix LoStracco,
The Federal Budget: Politics, Policy, Process
(Washington, DC: Brookings Institution Press, 2000), 14. See also US Government Accountability Office, “GAO: Working for Good Government Since 1921,” at
www.gao.gov/about/history/articles/working-for-good-government/01-introduction.html
.

18
. The White House, “Presidents: Warren G. Harding,” at
www.whitehouse.gov/about/presidents/warrenharding
.

19
. Miller Center, “Harding: Foreign Affairs.”

20
. Herbert Hoover,
The Memoirs of Herbert Hoover: The Cabinet and the Presidency, 1920–1933
(New York, NY: Macmillan, 1952), 47.

21
. Ibid., 185.

22
. US State Department, Office of the Historian, “Milestones 1921–1936: The Dawes Plan,” at
http://history.state.gov/milestones/1921–1936/Dawes
.

23
. Lamont,
Ambassador,
186.

24
. Ibid., 188.

25
. “Germany Admits Default in Payment on Jan. 15,” Associated Press, January 6, 1923.

26
. “Italy’s Progress Lauded by Lamont,”
New York Times,
April 15, 1925.

27
. “Lamont and Kahn Defend Mussolini,”
New York Times,
January 24, 1926.

28.
“Coolidge Takes Oath of Office,”
New York Times,
August 3, 1923.

29.
David Greenberg, “Keeping It Cool with Silent Cal,”
New York Sun,
December 20, 2006.

30
. Lundberg,
America’s Sixty Families,
150.

31
. “Coolidge Tries a New Method,”
New York Times,
September 16, 1923.

32
. Lundberg,
America’s Sixty Families,
139.

33
. Harold Nicolson,
Wall Street and the Security Markets
(New York, NY: Harcourt, Brace, 1935), 125–128.

34
. Calvin Coolidge,
The Autobiography of Calvin Coolidge
(New York, NY: Cosmopolitan Book Corporation, 1929), 174.

35
. Ibid., 28.

36
. Ibid., 181.

37
. Lamont,
Ambassador,
201–203.

38
. “Bankers Blaze Way for a German Loan,”
New York Times,
July 28, 1924.

39
. “Paris Cool to German Loan,”
New York Times,
September 5, 1924.

40
. Lamont,
Ambassador,
207.

41
. Ibid.

42
. B. J. C. McKercher, ed.,
Anglo-American Relations in the 1920s
(University of Alberta Press, 1990), 156. Letter from J. P. Morgan & Company to J. P. Morgan, October 14, 1924, no. 24/2707.

43
. Miller Center, “Harding: Foreign Affairs.”

44
. Hoover,
Memoirs,
89.

45
. Andrew W. Mellon,
Taxation: The People’s Business
(New York, NY: Macmillan, 1924), 17.

46
. “Coolidge Declares Press Must Foster America’s Idealism,”
New York Times,
January 18, 1925.

47
. “Andrew W. Mellon’s Ignorance,”
The Nation,
May 28, 1924.

48
. Donald Barlett,
America: Who Really Pays the Taxes
(New York, NY: Touchstone, 1994), 65.

49
. Lundberg,
America’s Sixty Families,
167.

50
. David Cannadine,
Mellon: An American Life
(New York, NY: Random House, 2006), 318.

51
. David Greenberg,
Calvin Coolidge
(New York, NY: Times Books, 2006), 78.

52
. Earnest Elmo Calkins,
Business, the Civilizer
(Boston, MA: Little, Brown and Company, 1928), 13.

53
. “Mitchell Expects Loan’s Success,”
New York Times,
September 12, 1924.

54
. “The Week Reviewed,”
Barron’s,
September 28, 1925, 4.

55
. Ibid.

56
. Greenberg,
Calvin Coolidge,
90.

57
. “Mitchell Expresses Confidence in Cuba,”
New York Times,
January 27, 1922.

58
. “Sees Remarkable Recovery in Cuba,”
New York Times,
January 31, 1922.

59
. “1924 a Banner Year for New York Banks,”
New York Times,
January 31, 1925.

60
. “Optimism in Trade Justified, He Says,”
New York Times,
July 24, 1925.

61
. Donald L. Barlett and James B. Steele,
America: Who Really Pays the Taxes?
(New York, NY: Touchstone, 1994), 66.

62
. President Calvin Coolidge, Fourth Annual Message, December 7, 1926, at
www.presidency.ucsb.edu/ws/index.php?pid=29567
.

63
. Hoover,
Memoirs,
89.

64
. “Predicts Prosperity Brought by New Ford,”
New York Times,
December 10, 1927.

65
. Ibid.

66
. Benjamin M. Anderson Jr., “Cheap Money, Gold, and Federal Reserve Bank Policy,”
Chase Economic Bulletin,
4, no. 3 (August 4, 1924).

67
. “Hungry Reporter Complains About Money Wizards Delaying Dinner,” Associated Press/United Press International, January 13, 1925.

68
. C. W., “The National City Fiasco,”
The Nation,
January 1, 1930.

69
. “Washington Sees 1928 Field Open; Some Talk of Drafting Coolidge,”
New York Times,
August 2, 1927.

70
. Leo Grebler, David M. Blank, and Louis Winnick,
Capital Formation in Residential Real Estate: Trends and Prospects
(Princeton, NJ: NBER and Princeton University Press, 1956), 350. See also
www.library.hbs.edu/hc/crises/forgotten.html#fn23
.

71
. The White House website, “Herbert Hoover 1929–1933,” at
www.whitehouse.gov/about/presidents/herberthoover
.

72
. Laurence Todd, “Government by Millionaires,”
The Nation,
March 27, 1929.

73
. Ibid.

74
. Lamont,
Ambassador,
248.

75
. Anna J. Schwartz, “The Misuse of the Fed’s Discount Window,” Review, St. Louis Fed, September/October 1992, 58.

76
.
Federal Reserve Bulletin,
vol. 15 (November 1929), at
http://fraser.stlouisfed.org/docs/publications/FRB/1920s/frb_111929.pdf
.

77
. “Stocks on the Bargain Counter!”
Forbes,
November 15, 1929.

78
. “Governor,”
Time,
March 31, 1930.

79
. “Wiggin Now Head of Chase National,”
New York Times,
January 12, 1911.

80
. “Nothing Resounding,”
Time,
August 2, 1931.

81
. Ibid.

82
. Ibid.

83
. “Billion Dollar Bank Formed by Merger with Chase National,”
New York Times,
February 12, 1926.

84
. “Banker Upholds Debt Reduction,”
New York Times,
January 10, 1927.

85
. Ibid.

86
. Advertisement for the National City Bank,
The American Magazine,
July–December 1921.

87
. “Troubles of Mitchell,”
Time,
November 18, 1929.

88
. Ibid.

89
. Drexel Burnham Lambert’s Ivan Boesky and Michael Milken shared that late 1980s distinction of selling bonds for far more than they were really worth. They later went to jail, and landed Drexel the largest fine in banking history as of that date.

90
. Stock Exchange Practices: Hearings Before a Subcommittee of the Committee on Banking and Currency, US Senate, Seventy-second Congress, Second Session, on S. Res. 84 and S. Res. 239, Resolutions to Thoroughly Investigate Practices of Stock Exchanges with Respect to the Buying and Selling and the Borrowing and Lending of Listed Securities, the Values of Such Securities and the Effects of Such Practices, February 21, 1933. (National City: Continuation of Richard Whitney Testimony). At
http://fraser.stlouisfed.org/publications/sensep/issue/3912/download/64693/19330221_sensep_pt06.pdf
.