Lords of Finance: 1929, the Great Depression, and the Bankers Who Broke the World (87 page)

and Napoleonic Wars, 84–86, 160

in 1926, 241–69

1930 economy in, 376–77

Norman’s views about, 152, 260

optimism on duration of war in, 75–76

prices in, 203–4, 251, 263, 268

reaction to Versailles Treaty in, 116

reconstruction in, 243

and reparations, 104–7, 117, 120, 129, 131, 139, 144, 151, 198, 199, 200, 202, 204, 243, 283, 328, 344, 397–98, 479, 500

riots in, 257–58

Royalists in, 486–87

in Ruhr valley, 120, 147, 152, 182, 198, 199, 204, 213, 214, 215, 261, 264

and Russia, 31, 130, 325

sources of funding in, 84

spending for World War I by, 83, 203

and stereotypes of French, 117

stock market in, 329–30, 370

taxes in, 83–84, 201, 203, 250, 264

unemployment in, 3, 219

U.S. loans to, 84, 90, 261, 263, 283

U.S. relations with, 139–40, 256–58, 259

war debts of, 90, 131, 139, 144, 151, 250, 251, 257, 259, 261, 263, 289, 315, 467, 469, 489, 500

and Young Conference/Plan, 330, 331–37, 344, 345, 397–98

Franco-Prussian War, 38, 44, 63, 70, 89, 211, 215

Franz Ferdinand (archduke of Austria), 24, 35, 45, 404

Frazier-Sinclair-Patman bill, 443–44

fulfillment policy, 124, 395

Funk, Walter, 483–84

Galbraith, J. K., 173

General Motors, 272–73, 279, 310, 312, 342, 361, 438

The General Theory of Employment, Interest, and Money
(Keynes), 489–90

Genoa Economic Conference (1922), 149

Germany

attempts to rescue economy of, 393–421

austerity program in, 399–402, 408–9, 482, 483

banking system in, 4, 40, 42–43, 44, 393–421, 423, 424

and beginnings of World War I, 31, 42, 71, 484

and blame for Great Depression, 500

and Britain, 4, 41, 108, 144, 193–97, 288, 409–10

and characteristics of Great Depression, 498

class structure in, 123

collapse in lending to, 501

colonies of, 333–34

Communists in, 3–4

confidence in, 499

corruption in, 483

and cost of World War I, 89

credit in, 192, 284, 501–2

currency in, 119–24, 185–89, 189
n
, 199, 205, 206

and customs union, 406, 416

and Dawes Committee/Plan, 198, 202, 204–7, 214–15, 216, 280, 285, 325, 401

default on debts by, 213, 497, 499

devaluation in, 157, 158, 482

domestic policy in, 119, 151

economy of, 100, 195, 215, 221, 283–84, 393, 395–99, 415, 481–82, 498

and events leading to World War I, 35, 42–43

foreign borrowing by, 4, 125, 144, 186, 215, 280–86, 288, 291–93, 297, 324–25, 328–29, 334–35, 340, 341, 393, 395–97, 399, 401, 402, 415, 419, 420–21, 481, 501

foreign exchange in, 189, 189
n
, 284, 293, 419, 477, 482

foreigners in, 122–23

French relations with, 66–67, 204–5, 325, 328, 330–37, 416–17

funding/financing of World War I in, 43, 87–90

GDP of, 105, 118, 283, 285, 325, 401, 402, 415, 498
n

gold reserves of, 44, 162, 164, 186, 293, 334, 341, 375, 377, 400, 407, 410, 413, 415

gold standard in, 75
n
, 125, 186, 191, 221, 401, 477, 482, 498

and images of Germans, 117–18

impact of Great Crash on, 370, 374, 375, 376, 377, 383, 397, 501–2

impact of Great Depression on, 3–4, 183
n

industrial production in, 479, 481–82

inflation in, 87, 88, 119–27, 121
n
, 158, 168, 182, 187–88, 201, 202, 264–65, 401, 456, 477, 482, 498

and interest rates in, 125, 325, 334, 341, 416, 419

Jews in, 3, 395, 400, 418, 480, 483

Mexico compared with, 498, 498
n

mobilization in, 31, 36, 42, 67

money supply in, 100

and moratorium on reparations and war debt, 408–14, 417

nationalization in, 416

between 1919-23, 101–4

during 1923, 179–92

during 1924, 193–216

in 1930s, 393–403

Norman’s views about, 192, 260, 488

optimism on duration of war in, 75–76

prices in, 189–90, 400, 482

proclamation of republic of, 101

public works programs in, 481

purchasing power in, 481

reaction to Versailles Treaty in, 108–9, 116, 327

rearming of, 481–82, 483

recession in, 324, 325, 334, 335, 341, 498, 503

reconstruction of, 283, 293

and reparations, 104–7, 105
n
, 109, 117–19, 124–26, 129, 144, 151, 158, 185, 186, 191, 195, 199, 201, 206–8, 215, 216, 283–85, 293, 297, 324–26, 331–37, 344, 393, 395, 401, 402, 415, 477, 479, 500

resistance movement in, 484

riots/violence in, 102, 180, 182, 418, 419

Russian relations with, 36, 42

and stereotypes of Germans, 9

and stock market, 36, 284–85, 320, 325, 370, 410

Strong’s views about, 138

taxes in, 87, 125, 182–83, 201

threats of bankruptcy in, 180, 199

trade with, 479, 482

traditional values in, 123–24

and Treaty of Versailles, 333–34, 488

unemployment in, 3, 283, 328, 334, 335, 374, 376, 393, 396, 399, 400, 403, 419, 420, 481

U.S. concerns about economy, 407–14

U.S. loans to, 215, 216, 335, 481

U.S. relations with, 191–92, 197–208, 324

and Young Conference/Plan, 329–37, 341, 395, 396–98, 401, 408–9

Gilbert, Seymour Parker, 262, 275, 285, 298, 326–29, 335, 336, 397, 417

Gladstone, William, 222, 236
n

Glass, Carter, 56–57, 317

Glass Plan, 56, 57

Glass-Steagall Act, 457

gold

and Agadir crisis, 43

and American tourists in Europe, 58

and amount of currency, 13

and Bank of England-commercial banks relationship, 31

and blame for Great Depression, 502–3

British exports of, 75
n

and British funding of war, 80–81

and commodities, 460–61

and covering of U.S. debt, 48

distribution of, 292–93, 301, 501

and events leading to World War I, 30, 31

and German invasion of Belgium, 42

hoarding of, 451

and “hunt for gold cars,” 42

and interest rates, 341

Keynes’s views about, 339, 375

as means for funding war, 73–74

obsession with, 73

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

purchasing power of, 162

and “real bills” theory of credit, 80

and stock market bubble, 320

supply of, 6, 13, 14, 162, 163, 167, 297, 339, 474, 501

U.S. buying of, 471–73

gold coins, 155, 164, 452–53

gold standard

benefits of, 7, 19–20

and blame for Great Depression, 501, 502, 503

and central banks, 155, 171, 291, 292–93, 295, 302

and credit system, 156, 167, 170, 171, 375

criticisms of, 13–14

and currency, 11–12, 13–14, 20

and deflation, 156, 297

and devaluation of dollar, 462–66, 473

as dollar standard, 295, 297
n

and Federal Reserve System, 170, 338, 444

impact of Great Crash on, 374

and inflation, 13, 14, 156, 165, 170

and interest rate, 156

as key to economic revival, 477

Keynes’s views about, 112, 164–68, 170, 172, 176, 229–30, 233, 234, 235, 237, 239–40, 288, 338, 371, 375, 383–84, 429, 432, 473, 489, 491–92

and Macmillan Committee, 371

and money supply, 167

and Moreau-Norman disagreements, 292

Norman’s views about, 345, 381–83

obstacles to return to, 164

and paper currency, 155, 167

and pound/sterling, 292, 293, 297, 300, 302, 345, 470

and prices, 460, 462, 465, 474

and reconstruction of financial system, 7

and Roosevelt bank rescue package, 454–55

rules concerning, 12, 170, 288–89, 295, 387, 491–92, 498

and stock market, 469

suspension of, 75, 75
n

Goldschmidt, Jacob, 127–28, 129, 183, 183
n
, 185, 414, 418

Great Britain

anti-Americanism in, 144, 229, 230

and Austrian-Serbian relations, 23–24

banking system in, 32, 422–34

and blame for Great Depression, 500

Canada as custodian of gold reserves of, 81

change of governments in, 140–41, 221, 344, 428

credit in, 228, 289

currency in, 77, 84, 155–56, 218

deflation in, 157, 159–61, 218, 227, 465

devaluation in, 159–61, 293, 430–34, 479, 489

early years of Depression in, 422–34

economy in, 100, 217–40, 465

and events leading to World War I, 23–24, 29–30

and exchange rate, 238, 292–93

financing/funding for World war I in, 76–77, 80–82, 94
n
, 112

foreign borrowing by, 426

France compared with, 219

French image in, 253

French relations with, 67, 77, 250, 259–61, 287, 292, 293, 301–3, 344–45, 380, 411, 433, 435, 501

GDP in, 400, 425

and German invasion of Belgium, 42

and Germany, 41, 108, 193–97, 409–10

Glorious Revolution in, 77

gold reserves of, 81, 156, 162–64, 237, 289, 301, 335, 344, 345, 375, 377, 379, 427

gold standard in, 75, 75
n
, 82, 112, 160–61, 163, 219–21, 225, 227–40, 287, 292–94, 315, 335, 371, 378, 425, 429–34, 443, 465, 477, 487, 499

Hoover administration as source of help for, 430–31

impact of Great Crash on, 370, 371, 375, 377, 378, 379, 381–83

impact of World War I on, 7, 136–37

industry/manufacturing in, 218, 239, 479

inflation in, 137

and interest rates, 31, 161, 219, 237, 238, 239, 289, 302–3, 353, 370, 424, 426, 465

loans to France from, 76, 84, 136, 144, 151, 250, 261, 263, 289

loans to Germany from, 4, 144, 288, 334–35, 401, 481

loans to Russia from, 76, 136

and London Economic Conference, 466–67, 470

Macmillan Committee in, 423–24

manufacturing/industry in, 352, 423–24

money supply in, 100

and moratorium on reparations and war debt, 409–10

Morgan loans to, 228, 237, 426–27, 434

in 1925, 217–40

optimism on duration of war in, 75–76

prices in, 218, 225, 227, 234–35, 239, 302–3, 426, 465

and reparations, 104–7, 116–19, 131, 139–40, 199, 283, 326, 328, 344, 479, 500

restoration of pound to prewar pedestal in, 219–20, 221, 226–29

Schacht’s views about, 41

societal transformation in, 136–37

speculation in, 430

stock market in, 30, 49, 270, 370

strikes in, 238

taxes in, 201, 264, 426

unemployment in, 3, 218, 219, 220, 237, 341, 344, 374, 376, 426, 427

U.S. loans to, 90, 228–29, 237, 283, 428

U.S. relations with, 132, 135–36, 139–44, 225–30, 235, 240

war debts of, 90, 130, 131, 135–36, 139–44, 227, 315, 466–67, 489, 500

and Young conference/Plan, 330–31, 344–45

Great Crash

and blame for Great Depression, 501–2

and characteristics of Great Depression, 498–99

congressional hearings about, 440–41

early impact of, 360–68

impact on Europe of, 369–73, 397, 501–2

Great Depression

blame for, 500–503

causes of, 465–66, 500–502, 503–4

early years of, 374–92

Long Island meeting as turning point that lead to, 300

modern events compared with, 497–500

price stability as central to recovery from, 459–61

role of central bankers during, 11–15

as sequence of crisis, 497–500

The Great Illusion
(Angell), 20–22

“The Great Slump of 1930” (Keynes), 374–75

Greenspan, Alan, 171

Grenfell, Teddy, 232, 233

Grey, Edward, 21, 24, 30

Guaranty Trust Company, 48, 355, 404, 437

Guardian Trust Company, 442–43

Guggenheim, Daniel, 296

Gulbenkian, Calouste, 340–41

The Hague

German-Allied negotiations in, 109

Young Plan conference at, 344–45, 397–99

Hambros, 29, 30

Hamilton, Alexander, 50, 52, 212, 314, 317, 439

Hamlin, George, 174, 320, 368

Hanau (Marthe) affair, 330, 330–31
n

Harding, Warren, 141, 173, 174, 275

Harrison, George L., 322, 405, 470, 474

and atomic bomb, 475–76

and banking consortium to rescue stock market, 357–60

and banking crisis, 445, 447, 453–55, 458–59, 503

and blame for Great Depression, 502, 503

and British banking problems, 428

and BUS rescue, 387

buying of gold by, 472–73

and Central European crisis, 434

criticisms of, 359

and currency stabilization, 469–70

death of, 476

and devaluation of dollar, 463, 465

and divisiveness within Fed, 321, 357–60, 365, 369

and German economy, 335, 415, 417, 418

and gold standard, 454–55

and impact of Great Crash, 365, 366

and initiatives to revive economy, 436–37

and interest rates, 436

as intermediary between bankers and Roosevelt, 458, 472–73

internationalism of, 319

and London Economic Conference, 469

and moratorium on reparations and war debt, 408

named New York Fed governor, 318

in 1940s, 475–76

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

personal life of, 319, 476

personal/professional background of, 318–19

personality of, 319, 472–73, 502

and reform of Federal Reserve Board, 475

and Roosevelt, 453–55, 473

Strong as protégé of, 454

views about Congress of, 473

Harvey, Ernest, 304, 371–72, 427, 431

Hatry, Clarence, 351–53

Havenstein, Rudolph von, 43, 87–88, 124–27, 186, 187–88, 190, 196, 197, 280

Hearst, William Randolph, 443

Helfferich, Karl, 87, 191

Hepburn, A. Barton, 48, 49

Herriot, Edouard, 208, 213–14, 243, 248