Lords of Finance: 1929, the Great Depression, and the Bankers Who Broke the World (77 page)

³⁹³
"stupid, obstinate": H. A. Siepman, "Central Bank Cooperation," quoted in Mouré,
The Gold Standard Illusion
, 156.

³⁹⁴
"a commodity," "only ready to sell": Moreau,
The Golden Franc
, 182.

³⁹⁵
"slave to the books he has written": Moreau,
The Golden Franc
, 124.

³⁹⁶
"You are not going to remain": See the Introduction by Jean-Noël Jeanneney to Rist,
Une Saison Gatée
, 11.

³⁹⁷
"The level of the franc": Keynes,
Collected Writing: A Tract
, 4: 60.

³⁹⁸
"the sacrifices demanded": Boyle,
Montagu Norman
, 226.

³⁹⁹
"The past clung to everything": Ferguson,
The House of Rothschild
, 458.

⁴⁰⁰
A familiar figure: Obituary in
Le Monde
, July 2, 1949.

⁴⁰¹
"No cabinet was formed": Lottman,
The French Rothschilds
, 136.

⁴⁰²
an enraged mob had howled: Chapman,
The Dreyfus Trials
, 52.

⁴⁰³
"Maître de Forges": "'The Iron Master,'"
Time
, January 24, 1949, and "Francs and Frenchman,"
Time
, May 18, 1936.

⁴⁰⁴
Moreau had had his first taste: Moreau,
The Golden Franc
, 73.

⁴⁰⁵
Rothschild and Wendel employed every: Moreau,
The Golden Franc
, 261, 264, 279; Netter,
Histoire de la Banque de France
, 153.

⁴⁰⁶
"Circumstances rule men"
: Herodotus quote from
Bartlett's Familiar Quotations
, 71.

⁴⁰⁷
"to make a fortune": Fraser,
Every Man a Speculator
, 45.

⁴⁰⁸
"The English, however speculative": Sobel,
Panic on Wall Street
, 223.

⁴⁰⁹
In 1913, the total value: Rajan, "The great reversals," Table 3, 15.

⁴¹⁰
The "merger" bull market: Leonard P. Ayres, "The Great Bull Market of 1925,"
American Review of Reviews
, January 1926.

⁴¹¹
No company better exemplified: Sobel,
The Great Bull Market
, 100–105.

⁴¹²
The buoyant stock market was accompanied: Allen,
Only Yesterday
, chap. XI.

⁴¹³
"Before the butler could move": Wueschner,
Charting Twentieth-Century Monetary Policy
, 91.

⁴¹⁴
"the only man who emerged": Keynes,
Collected Writings: The Economic Consequences
, 2: 174, n.1.

⁴¹⁵
"Secretary of Commerce": Schlesinger Jr.
The Crisis of the Old Order
, 84.

⁴¹⁶
"a mental annex": Hoover,
Memoirs
, 9.

⁴¹⁷
"May it not be the case": Strong memorandum to Carl Snyder, May 21, 1925, quoted in Chandler,
Benjamin Strong
, 428.

⁴¹⁸
"Must we accept parenthood": Strong memorandum to Carl Snyder, May 21, 1925, quoted in Chandler,
Benjamin Strong
, 428.

⁴¹⁹
"affairs of gamblers": Letter from Strong to Governor George Norris, August 18, 1927, quoted in Chandler,
Benjamin Strong
, 444.

⁴²⁰
"It seems a shame": Letter from Strong to Norman, November 7, 1925, quoted in Chandler,
Benjamin Strong
, 329.

⁴²¹
"tactic of consulting everyone": James,
The Reichsbank
, 26.

⁴²²
"He looked upon the world": Bonn,
Wandering Scholar
, 303.

⁴²³
"infatuated by Dr. Schacht": Bennett,
Germany and the Diplomacy of the Financial Crisis
, 127, and Vansittart,
The Mist Procession
, 301.

⁴²⁴
"He is undoubtedly": Letter from Strong to Peter Jay, July 20, 1926, quoted in Chandler,
Benjamin Strong
, 333.

⁴²⁵
his salary was the equivalent: Kopper,
Hjalmar Schacht
, 86.

⁴²⁶
"ugly clown mask," "vigilant watch": Dodd,
Through Embassy Eyes
, 234.

⁴²⁷
"he dresses with the taste": Johannes, Steel. "The Ambitious Dr. Schacht,"
Current History
, June 1934, 285–90.

⁴²⁸
"cutting and devastating humor": Dodd,
Through Embassy Eyes
, 234.

⁴²⁹
"a whole table enthralled": Aga Khan,
Memoirs
, 337.

⁴³⁰
"Life seemed more free": Shirer,
The Rise and Fall of the Third Reich
, 118.

⁴³¹
"jewel-like sparkle": Large,
Berlin
, 211.

⁴³²
"You feel all the time": Boyle,
Montagu Norman
, 167.

⁴³³
The recovery was reflected in the stock market: Voth, "With a Bang, Not a Whimper." one small town in Bavaria: Frieden,
Global Capitalism
, 141.

⁴³⁴
He had hoped that: James,
Europe Reborn
, 112. a "chimera": Voth, "With a Bang, Not a Whimper," 72.

⁴³⁵
"not wish to have things seem too good": Letter from Pierre Jay to Strong, June 22, 1927, quoted in McNeil,
American Money and the Weimar Republic
, 152.

⁴³⁶
"changeable and moody": Letter from Parker Gilbert to Strong, September 8, 1927, quoted in McNeil,
American Money and the Weimar Republic
, 174.

⁴³⁷
"irresponsibility and unpredictability," "extreme and erratic": James,
The Reichsbank
, 61, and McNeil,
American Money and the Weimar Republic
, 180.

⁴³⁸
At a cabinet meeting: Stresemann diary entry, June 22, 1927, in Stresemann,
Diaries, Letters and Papers
, 2.

⁴³⁹
made him "smile": Bank of England, letter from Norman to Strong, November 23, 1925.

⁴⁴⁰
"seem to be afraid of him": Letter from Strong to Pierre Jay, September 15, 1926, quoted in Chandler,
Benjamin Strong
, 348.

⁴⁴¹
"imperialist dreams": Moreau,
The Golden Franc
, 220.

⁴⁴²
"capricious," "menace the gold standard": Norman cables to Strong, May 24 and 25, 1927, quoted in Clarke,
Central Bank Cooperation
, 117, n. 25.

⁴⁴³
"he could not do so": Moreau,
The Golden Franc
, 295.

⁴⁴⁴
"I do not want to trample": Moreau,
The Golden Franc
, 298.

⁴⁴⁵
She had just landed a part: "Actress a Suicide by Poison in Hotel,"
New York Times
, December 10, 1926, and "Illness Drives 2 Women to Suicide in Hotels,"
Washington Post
, December 10, 1926.

⁴⁴⁶
In 1926, while Strong was in France: Wueschner,
Charting Twentieth-Century Monetary Policy
, 125.

⁴⁴⁷
"thoroughly enjoy getting into a fight": Interview with Leslie Rounds,
Committee on the History of the Federal Reserve System
, Washington: Brookings Institution, 1954–55.

⁴⁴⁸
the constant sniping: Wueschner,
Charting Twentieth-Century Monetary Policy
, 123.

⁴⁴⁹
Over the years, each of the central banks: John, Brooks. "Annals of Finance: In Defense of Sterling,"
New Yorker
, May 23, 1968, 44.

⁴⁵⁰
"closeted together": Sayers,
The Bank of England
, 339.

⁴⁵¹
Norman dominated the proceedings: Interview with Mrs. Ogden Mills,
Committee on the History of the Federal Reserve System
, Washington: Brookings Institution, 1954–55.

⁴⁵²
"
un petit coup de whisky
": Banque de France, Charles Rist memorandum "Conversation du 1 au 7 Juillet, 1927 a New York et Washington;" Charles, Rist. "Notice Biographique,"
Review D'Économie Politique.
Nov-Dec 1955, 1006; and Sayers,
The Bank of England
, 340.

⁴⁵³
"courtesy calls": Entry for July 7, 1927: Hamlin diary, Volume 14, Library of Congress.

⁴⁵⁴
"inflation of credit": Hoover,
Memoirs
, 11.

⁴⁵⁵
"That man has offered me unsolicited advice": Schlesinger Jr.,
The Crisis of the Old Order
, 88.

⁴⁵⁶
Fobbing Hoover off: Hoover,
Memoirs
, 11.

⁴⁵⁷
"the greatest and boldest operation": Robbins,
The Great Depression
, 53.

⁴⁵⁸
"takes great interest": "Manuscript Notes by the Governor on Benjamin Strong and on Europe, 3–9 July 1927," reproduced as Appendix 17 in Sayers,
The Bank of England
, 2: 96–100.

⁴⁵⁹
"I had an important conversation": Moreau,
The Golden Franc
, 430–31.

⁴⁶⁰
"intrigues to prevent France," "ask Norman to choose": Moreau,
The Golden Franc
, 443, 445. "to establish some sort of dictatorship": Letter from Strong to Walter Stewart, quoted in Clay,
Lord Norman
, 265.

⁴⁶¹
"speculation on the stock market":
Chicago Tribune
, July 14, 1928.

⁴⁶²
"most vehement language": "Memorandum on Bank of England—Bank of France Relations," May 24, 1928, quoted in Chandler,
Benjamin Strong
, 417–18.

⁴⁶³
At one point, several frustrated senior directors: Letter from Siepmann to Steward, July 8, 1928, cited in Boyce,
British Capitalism
, 23, n. 69.

⁴⁶⁴
"One moment he would be sunny": Boyle,
Montagu Norman
, 235.

⁴⁶⁵
"How hard and how cruel": Chandler,
Benjamin Strong
, 472.

⁴⁶⁶
"I am desolate and lonesome": Boyle,
Montagu Norman
, 238.

⁴⁶⁷
At particular times
: Bagehot, "Edward Gibbon,"
National Review
, January 1856, in
The Collected Works: Literary Essays
, 352.

⁴⁶⁸
"stocks could be beat": "The Magnet of Dancing Stock Prices,"
New York Times
, March 24, 1929.

⁴⁶⁹
The bubble began: Acampora,
The Fourth Mega-Market
, 129.

⁴⁷⁰
"The old-timers": "The Magnet of Dancing Stock Prices,"
New York Times
, March 24, 1929.

⁴⁷¹
"You could talk about Prohibition": Cockburn,
In Time of Trouble
, quoted in Brooks,
Once in Golconda
, 82.

⁴⁷²
Anyone trying to throw doubt: Noyes,
The Market Place
, 322.

⁴⁷³
As the crowd piling into the market: Charles, Merz. "Bull Market,"
Harpers Monthly Magazine
, April 1929, 643.

⁴⁷⁴
"bootblacks, household servants": Charles, Merz. "Bull Market."
Harpers Monthly Magazine
, April 1929, 643.

⁴⁷⁵
"Taxi drivers told you what to buy": Baruch,
The Public Year
, 220.

⁴⁷⁶
"When the time comes that a shoeshine boy": Goodwin,
The Fitzgeralds and the Kennedys
, 488.

⁴⁷⁷
"hard losers and naggers": Patterson,
The Great Boom and Panic
, 18.

⁴⁷⁸
Even the
New York Times
: "The Army of Women Who Watch the Ticker,"
New York Times
, March 31, 1929.

⁴⁷⁹
Biggest of them was Billy Durant: Sparling,
Mystery Men of Wall Street
, 3–42.

⁴⁸⁰
"History, which has a painful way": "Warburg Assails Federal Reserve,"
New York Times
, March 8, 1929.

⁴⁸¹
"sandbagging American prosperity": Galbraith,
The Great Crash
, 77.

⁴⁸²
"Monty and Ben sowed the wind": Chernow,
The House of Morgan
, 313.

⁴⁸³
"speculative orgy," "There are many underlying reasons," "stock speculation," "The prevailing bull market": "The Stock-Speculating Mania,"
The Literary Digest
, December 8, 1928.

⁴⁸⁴
It was from Washington: Ellis,
A Nation in Torment
, 40.

⁴⁸⁵
"displayed some life": Moreau,
The Golden Franc
, 89.

⁴⁸⁶
"When the American people": Interview with Roy Young,
Committee on the History of the Federal Reserve System
, Washington: Brookings Institution, 1954–55.

⁴⁸⁷
The following exchange:
Hearings of Senate Committee on Banking and Currency on Brokers' Loans
. Washington: United States Government Printing Office, 1928, quoted in Lawrence,
Wall Street and Washington
.

⁴⁸⁸
"oratory, ethics and provincialism": "Federal Reserve versus Speculation,"
Time
, February 25, 1929.

⁴⁸⁹
"Wall Street has become the most notorious": "Senate Votes to Ask Reserve Board How to Bar Speculation,"
New York Times
, February 12, 1929.

⁴⁹⁰
Nevertheless, in the last weeks: Letter from Strong to Walter Stewart, August 3, 1928, quoted in Chandler,
Benjamin Strong
, 460–61.