Lords of Finance: 1929, the Great Depression, and the Bankers Who Broke the World (74 page)

⁹¹
The next day, a Sunday: Clarke,
Paris Waits
, 65–67, and "Un Avion Allemand Sur Paris,"
Le Figaro
, August 31, 1914.

⁹²
Few people: Lucien Klotz, "Mes Souvenirs du Temps de Guerre,"
Le Journal
, December 14, 1922, and Gaston-Breton,
Sauvez L'Or
, 28.

⁹³
"Endless money": Cicero quote from
Bartlett's Familiar Quotations
, 91.

⁹⁴
"the amounts of coin": Quoted in Blainey,
The Causes of War
, 215.

⁹⁵
"unlimited issue of paper": Charles A. Conant, "How Financial Europe Prepared for the Great War,"
New York Times
, August 30, 1914.

⁹⁶
Sir Felix Schuster: Stone,
World War One
, 30.

⁹⁷
"he was quite certain": Ferguson,
The Pity of War
, 319, and Bell,
Old Friends
, 45.

⁹⁸
That same month: Strachan,
First World War
, 816.

⁹⁹
The Hungarian finance minister: Stone,
World War One
, 30.

¹⁰⁰
By then the five major powers: "Fifty Billions Cost of War Up To Date."
New York Times
, July 30, 1916.

¹⁰¹
"quiet serious men": Bagehot,
Lombard Street
, 156.

¹⁰²
"a shifting executive": Bagehot,
Lombard Street
, 157.

¹⁰³
An economist of the 1920s: Hawtrey,
Art of Central Banking
, 246–47.

¹⁰⁴
"very, very considerable": Cyril Asquith quoting Keynes in Jackson,
The Oxford Book of Money
, 46.

¹⁰⁵
"take over the Bank": Sayers,
The Bank of England
, 105.

¹⁰⁶
"to accept my unreserved apology": Sayers,
The Bank of England
, 107.

¹⁰⁷
"There goes that queer-looking fish": Boyle,
Montagu Norman
, 105.

¹⁰⁸
"into the most holy recesses": Brogan,
France Under the Republic
, 115.

¹⁰⁹
The Banque opened its doors: Stephane Lausanne. "The Bank of France,"
Banker
, August 1926, 93.

¹¹⁰
"The Banque does not belong": Valance,
La Legende du Franc
, 167.

¹¹¹
Indeed, Caillaux made things: Gunther,
Inside Europe
, 145.

¹¹²
"Obedience and subordination": Feldman,
The Great Disorder
, 795.

¹¹³
Convinced like everyone else: Hjalmar, Schacht. "Bemerkungen über die Art und Weise der vorassichtlichen Kriegsentschädgung Frankreichs an Deutschland," August 26, 1914, in Bundesarchiv Koblenz, Nachlass Schacht, Nr. 1.

¹¹⁴
"insincere replies to the questions": Mühlen,
Schacht: Hitler's Magician
, 9.

¹¹⁵
But even Schacht: Testimony of Wilhelm Volcke on May 3, 1946, in
Trial of Major War Criminals Before the International Military Tribunal
.

¹¹⁶
Rumors circulated that he had embezzled: For example, the entry for "Schacht, Hjalmar Horace Greeley" in
Current Biography 1944
, 594–97, includes the following passage: "With the endorsement of the military government he issued several millions of counterfeited banknotes to pay for supplies bought from the Belgians but Berlin authorities became suspicious when he never accounted for the bulk of this money. Also accused of having seen to it that his banking connections profited from his knowledge of Government secrets. . . ."

¹¹⁷
On one occasion: "Vote for Trenches in Central Park over Protests,"
New York Times
, March 23, 1918.

¹¹⁸
To kick off another campaign: "Wilson to Make War Speech Here in Drive for Loan,"
New York Times
, September 26, 1918.

¹¹⁹
"Lenis was certainly right": Keynes,
Collected Writings: The Economic Consequences
, 2: 148. In four years: Hardach,
The First World War
, 153.

¹²⁰
By the end of the war: Ferguson,
The Pity of War
, 322–31.

¹²¹
"fate of Germany": Schacht,
My First Seventy-six Years
, 158.

¹²²
"hard . . . callous . . . and buttoned down": Schacht,
My First Seventy-six Years
, 17.

¹²³
"He managed to look": Bonn,
Wandering Scholar
, 303.

¹²⁴
"Nothing seems sacred": Roberts,
The House That Hitler Built
, 182.

¹²⁵
"He was a man": Rauschning,
Men of Chaos
, 117.

¹²⁶
"caused more trouble": Macmillan,
Peacemaker
, 191.

¹²⁷
"little more than a shot": Lentin,
Guilt at Versailles
, 21.

¹²⁸
"twenty million too many: Holborn,
A History of Modern Germany
, 566.

¹²⁹
"the only Jew": Macmillan,
Peacemaker
, 201.

¹³⁰
"costly frontal attacks": Taylor,
English History
, 74.

¹³¹
The great natural resources: Wolff,
Through Two Decades
, 261.

¹³²
"unbearable, unrealizable, and unacceptable": Eyck,
A History of the Weimar Republic
, 1: 98.

¹³³
"You seem to forget": Schacht,
My First Seventy-six Years
, 161–162.

¹³⁴
"If Germany is to be": Keynes, "Memorandum by the Treasury on the Indemnity Payable by the Enemy Powers for Reparations and Other Claims," in
Collected Writings
, 16: 375.

¹³⁵
"the sharpest and clearest": Russell,
Autobiography
, 1: 69.

¹³⁶
"I evidently knew more": Harrod,
The Life of John Maynard Keynes
, 121.

¹³⁷
"an illustrated appendix": Skidelsky,
John Maynard Keynes: Hopes Betrayed 1883–1920
, 177.

¹³⁸
"I tried to get hold": Keynes, "Letter from Basil Blackett," in
Collected Writings
, 16: 3.

¹³⁹
"greedy for work": Skidelsky,
John Maynard Keynes: Hopes Betrayed
, 304.

¹⁴⁰
His Bloomsbury friends: Bell,
Old Friends: Personal Recollections
, 48.

¹⁴¹
"With the utmost respect": Harrod,
The Life of John Maynard Keynes
, 201.

¹⁴²
But to the many other: Skidelsky et al.,
Three Great Economists
, 232, and Harrod,
The Life of John Maynard Keynes
, 31.

¹⁴³
He looked so very ordinary: Skidelsky et al.,
Three Great Economists
, 231.

¹⁴⁴
"I have always suffered": Skidelsky,
John Maynard Keynes: Hopes Betrayed
, 67, 169.

¹⁴⁵
"gay and whimsical," "that gift of amusing": Bell,
Old Friends: Personal Recollections
, 52, 60.

¹⁴⁶
"probably means the disappearance": Skidelsky,
John Maynard Keynes: Hopes Betrayed
, 346.

¹⁴⁷
"a sense of impending": Keynes,
Collected Writings: The Economic Consequences
, 2: 2–3.

¹⁴⁸
"The battle is lost": Keynes, "Letter to David Lloyd George," June 5, 1919, in
Collected Writings
, 16: 469.

¹⁴⁹
"dry in soul": Keynes,
Collected Writings: The Economic Consequences
, 2: 20.

¹⁵⁰
"his thought and his temperament": Keynes,
Collected Writings: The Economic Consequences
, 2: 26.

¹⁵¹
"his mind . . . slow": Keynes,
Collected Writings: The Economic Consequences
, 2: 27.

¹⁵²
"with six or seven senses": Keynes,
Collected Writings: The Economic Consequences
, 2: 26.

¹⁵³
"rooted in nothing": Keynes, "Lloyd George," in
Collected Writings
, 10: 23–24.

¹⁵⁴
"civilization under threat," "men driven by": Keynes,
Collected Writings: The Economic Consequences
, 2: 144.

¹⁵⁵
"ought to have been": Trachtenberg,
Reparation in World Politics
, 94.

¹⁵⁶
"is to us the most important": Schuker,
End of French Predominance in Europe
, 17.

¹⁵⁷
"la politique des casinos"
: Steiner,
The Lights That Failed
, 183.

¹⁵⁸
"As far as I am concerned": Howe,
A World History
, 152.

¹⁵⁹
"France could not decide": Garratt,
What Has Happened
, 161.

¹⁶⁰
"vainglorious, quarrelsome": Carlyle, 1870 letter to the
Times
quoted in Wilson, the
Victorians
, 345.

¹⁶¹
"the gratification of private": Schuker,
End of French Predominance in Europe
, 17.

¹⁶²
"I can't bear him": Adamthwaite,
Grandeur and Misery
, 75.

¹⁶³
"uneasy vanity": Collier,
Germany and the Germans
, 470.

¹⁶⁴
The Germans responded: Martin,
France and the Après Guerre
, 75.

¹⁶⁵
"Nothing like this": Keynes, "Speculation in the Mark and Germany's Balances Abroad," in
Manchester Guardian Commercial
, September 28, 1922, in
Collected Writings
, 18: 49–50.

¹⁶⁶
A visitor in the late 1920s: Kindleberger,
A Financial History
, 310–11.

¹⁶⁷
"In the whole course": d'Abernon,
The Diary of an Ambassador
, 2: 124.

¹⁶⁸
"133 printing works": Schacht,
The Stabilization of the Mark
, 105.

¹⁶⁹
Basic necessities: "Berlin Now Shivering in Sudden Cold Wave,"
New York Times
, November 8, 1923.

¹⁷⁰
German physicians: "Cipher Stroke a New Disease for Germans Figuring Marks."
New York Times
, December 7, 1923.

¹⁷¹
"For a salary": Cowley,
Exile's Return
, 142.

¹⁷²
"How wild anarchic": Zweig,
The World of Yesterday
, 301.

¹⁷³
During those days of violence: Habedank,
Die Reichsbank
, 34.

¹⁷⁴
"whether one wished": Warburg Archives,
Jahresbericht 1923
, 43, quoted in Ferguson,
Paper and Iron
, 9.

¹⁷⁵
"The Reichsbank today": Ferguson,
When Money Dies
, 169.

¹⁷⁶
"No-one could anticipate": D'Abernon communication to Foreign Office, quoted in Ferguson,
When Money Dies
, 169.

¹⁷⁷
"It appears almost impossible": d'Abernon,
The Diary of an Ambassador
, 2: 240.

¹⁷⁸
"old style Prussian," "permanent order": Schacht,
My First Seventy-six Years
, 161.

¹⁷⁹
"hell's kitchen": Schacht.
My First Seventy-six Years
, 177.

¹⁸⁰
"The principal danger": Bank of England, letter from Strong to Norman, November 22, 1918.

¹⁸¹
"help to rebuild": "Wilson Stirs Audience,"
New York Times
, September 28, 1918.

¹⁸²
"The Family": Bacevich, "Family Matters" and "Bachelor as Guest Is Sole Occupant of Exclusive Club,"
Washington Post
, August 22. 1926.

¹⁸³
"pallid career": Phillips,
Ventures in Diplomacy
, 6, quoted in Bacevich, "Family Matters," 406.

¹⁸⁴
"constructive policy": Letter from Strong to Leffingwell, July 31, 1919, quoted in Chandler,
Benjamin Strong
, 144.

¹⁸⁵
"in which [Sir Edward]": Strong to James Brown, September 14, 1916, quoted in Roberts, "Benjamin Strong, the Federal Reserve."

¹⁸⁶
"that the Allies," "been slight": Letter from Strong to Leffingwell, July 25, 1919, quoted in Chandler,
Benjamin Strong
, 142.

¹⁸⁷
"their hearts to rule": Letter from Strong to Leffingwell, July 31, 1919, quoted in Chandler,
Benjamin Strong
, 143.

¹⁸⁸
"In the useless slaughter": Masterton,
England After the War
, 32–33.

¹⁸⁹
"The consequences": Steffens,
Autobiography
, 803.

¹⁹⁰
"lack of leadership," "people in authority": Letter from Strong to Leffingwell, August 30, 1919, quoted in Chandler,
Benjamin Strong
, 145–46.

¹⁹¹
"desert Europe," "prolonged disorder": Letter from Strong to Leffingwell, August 30, 1919, quoted in Chandler,
Benjamin Strong
, 145–46.

¹⁹²
"the most wonderful," "the most gorgeous": Bank of England, letter from Strong to Norman, March 1, 1920.

¹⁹³
"Whenever you do come": Bank of England, letter from Norman to Strong, December 3, 1920.