Lords of Finance: 1929, the Great Depression, and the Bankers Who Broke the World (80 page)

⁶⁸¹
"nervous dyspepsia": Addiss Papers, August 5, 1931, quoted in Kynaston,
The City of London: Illusions of Gold
, 234.

⁶⁸²
"Can't he be persuaded": Letter from Leffingwell to Jack Morgan, July 28. 1931, quoted in Kunz,
The Battle for Britain's Gold Standard
, 107.

⁶⁸³
"Feeling queer": Bank of England, Norman Diary, July 29, 1931.

⁶⁸⁴
"prejudice, ignorance, and panic": Taylor,
English History
, 288.

⁶⁸⁵
"It certainly is a tragically comical situation": Webb,
Diary
, 253. 10 Downing Street: Harold Callender, "A Picture of Britain in the Time of Crisis,"
New York Times
, August 30, 1931.

⁶⁸⁶
"pandemonium had broken loose": Boyle,
Montagu Norman
, 272–73.

⁶⁸⁷
"What the City did": Howe,
World Diary
, 115.

⁶⁸⁸
"It is now clearly certain": Keynes, "Letter to Ramsay MacDonald," August 5, 1931, in
Collected Writings
, 20: 591–93.

⁶⁸⁹
"the most wrong and foolish things": Keynes, "Speech to Members of Parliament," September 16, 1931, in
Collected Writings
, 20: 607–11.

⁶⁹⁰
"admit quite frankly that the way out": Moggridge,
Maynard Keynes
, 525.

⁶⁹¹
"rose to his feet, his eyes flashing": Williams,
Nothing So Strange
, 105.

⁶⁹²
"Going off the gold standard": Jones,
Diary, 32–33
, quoted in Brendon,
The Dark Valley
, 164.

⁶⁹³
"Nothing more heartening has happened": "Run,"
Time
, September 28, 1931.

⁶⁹⁴
gold "is dug up out of a hole in Africa": Manchester,
The Last Lion
, 862.

⁶⁹⁵
Charlie Chaplin, as a guest at Chartwell: Boothby,
Recollections of a Rebel
, 51.

⁶⁹⁶
"chuckling like a boy": Rolph,
Kingsley
, 164, quoted in Skidelsky,
John Maynard Keynes: The Economist as Saviour
, 397.

⁶⁹⁷
"There are few Englishmen who do not rejoice": Keynes, "The End of the Gold Standard," in the
Sunday Express
, September 27, 1931, in
Collected Writings: Essays in Persuasion
, 9:245–49.

⁶⁹⁸
"tragic act of abdication": Bonn,
Wandering Scholar
, 318–19.

⁶⁹⁹
"A pound is still a pound": "Pound, Dollar and Franc,"
Time
, October 5, 1931.

⁷⁰⁰
"France will be heavily punished": Boyle,
Montagu Norman
, 276.

⁷⁰¹
"solidarity and politeness": Letter from Moret to Harrison, October 7, 1931, quoted in Kindelberger,
The World in Depression
, 168.

⁷⁰²
"holes in the ground, privies":
Congressional Record
, 72 Congress, 1 Session, December 9, 1931, 75: 233-6, quoted in Warren,
Herbert Hoover
, 164.

⁷⁰³
"more depressed than ever": Hoover,
Memoirs
, 86.

⁷⁰⁴
"If there is one moment": J. Bradford DeLong, "The Economic Foundations of Peace" http://econ161.berkeley.edu/Econ_Articles/lal.html

⁷⁰⁵
"Yes. It was called the Dark Ages": Edwin Lefèvre, "When Is It Safe to Invest?"
Saturday Evening Post
, August 6, 1932.

⁷⁰⁶
A similar measure in late 1930: Bordo et al., "Was Expansionary Monetary Policy Feasible?"

⁷⁰⁷
"If you steal $25":
The Nation
, March 8, 1933, quoted in Kennedy,
The Banking Crisis of 1933
, 126.

⁷⁰⁸
"the so-called depression": "Radio address delivered on February 26, 1933, in Coughlin,
Driving Out the Money Changers.

⁷⁰⁹
"It's just as if I put my car": "Close to Bottom,"
Time
, March 6, 1933.

⁷¹⁰
"If the fall in the price of commodities": Schlesinger Jr.,
The Crisis of the Old Order
, 453. "England has played us": "Roosevelt's Ten,"
Time
, March 6, 1933.

⁷¹¹
At least six bills were circulating: "Inflation—Curse or Cure?"
The Literary Digest
, February 11, 1933.

⁷¹²
Hoover composed a ten-page handwritten letter: Schlesinger Jr.,
The Crisis of the Old Order
, 477.

⁷¹³
he "did not want his last official act": Josephson,
The Money Lords
, 120.

⁷¹⁴
the New York Fed lost: Wigmore, "Was the Bank Holiday of 1933 Caused by a Run on the Dollar?" Tape 1, 745.

⁷¹⁵
"Like hell, I will!": Dorothy Roe Lewis, "What FDR told Hoover, March 3, 1933,"
New York Times
, March 13, 1981.

⁷¹⁶
"Urban populations cannot do without": "Letter from Lamont to Franklin D. Roosevelt," February 27, 1933, quoted in Lamont,
The Ambassador from Wall Street
, 330.

⁷¹⁷
At 9.15 p.m. on March 3: Pusey,
Eugene Meyer
, 235–36.

⁷¹⁸
"a beleaguered capital": Arthur, Krock. "100,000 at Inauguration,"
New York Times
, March 5, 1933.

⁷¹⁹
"In order to arrive"
: Eliot,
Collected Poems
, 187.

⁷²⁰
To the surprise of many: See William Manchester, "The Great Bank Holiday,"
Holiday
, February 1960; "City Awaits Scrip as Cash Dwindles," "Harvard Students Aided," "Divorce Holiday in Reno," and "Scrip at Princeton,"
New York Times
, March 7, 1933; "Envoys Lack Cash; Complain to Hull,"
New York Times
, March 9, 1933; "Michigan," and "Money and People,"
Time
, March 13, 1933. The legislation was supplemented: William L., Silber, "Why Did FDR's Bank Holiday Succeed?"

⁷²¹
"all kinds of junk": Josephson,
The Money Lords
, 120.

⁷²²
the first of his fireside chats: "The President's Speech,"
New York Times
, March 13, 1933.

⁷²³
"Our President took such a dry subject": "Will Rogers Claps Hands for the President's Speech,"
New York Times
, March 14, 1933.

⁷²⁴
"We had closed in the midst": Josephson,
The Money Lords
, 120.

⁷²⁵
"Capitalism was saved in eight days": Moley,
After Seven Years
, 155.

⁷²⁶
"the white sheep of Wall Street": Warburg,
The Long Road Home
, 107.

⁷²⁷
"Poppycock!": Schlesinger Jr.,
The Coming of the New Deal
, 195.

⁷²⁸
His simplistic view was: Wicker, "Roosevelt's 1933 Monetary Experiment."

⁷²⁹
"You paint a barn roof ": "Teachers and Pupils,"
Time
, November 27, 1933; Brooks,
Once in Golconda
, 160–63.

⁷³⁰
"As long as nobody asks me": Schlesinger Jr.,
The Coming of the New Deal
, 195.

⁷³¹
"Well, this is the end of western civilization": Accounts of that meeting are variously provided by Moley,
After Seven Years
, 159–61; Feis,
1933: Characters in Crisis
, 126–30; Warburg,
The Long Road Home
, 119–20; James Warburg, Oral History Project, 492–99, quoted in Schwarz,
1933: Roosevelt's Decision
; and Schlesinger,
The Coming of the New Deal
, 200–201.

⁷³²
"can't be defended except as mob rule": Schlesinger Jr.,
The Coming of the New Deal
, 202.

⁷³³
"Your action in going off gold": Letter from Leffingwell to Roosevelt, October 2, 1933, quoted in Schlesinger,
The Coming of the New Deal
, p. 202.

⁷³⁴
dramatic change in sentiment: Temin and Wigmore, "The end of one big deflation,"

⁷³⁵
"The difficulties are so great": Gunther,
Inside Europe, 287.

⁷³⁶
"a handsome, fox-bearded gentleman": "Professor Skinner,"
Time
, August 29, 1932.

⁷³⁷
"his affectation of the role": "Along the Highways of Finance,"
New York Times
, September 4, 1932.

⁷³⁸
"Deport the Blighter": from
Press Time: A Book of Post Classics
, 310–11.

⁷³⁹
"whims" "completely in the dark": Bank of England telephone conversations between Harrison and Norman, April 27, 1933, and May 26, 1933.

⁷⁴⁰
He practiced it in his personal life: "Tightwad Up and Out,"
Time
, January 14, 1935.

⁷⁴¹
"King, I'm glad to meet you.": Brooks,
Once in Golconda
, 158; Galbraith,
Money
, 202–203; Warburg,
The Long Road Home
, 128–29.

⁷⁴²
"With Washington committed": "Disgust,"
Time
, June 26, 1933.

⁷⁴³
"he felt as if he had been kicked": Josephson,
The Money Lords
, 130.

⁷⁴⁴
"President Roosevelt is Magnificently Right": Keynes, "President Roosevelt is Magnificently Right,"
Daily Mail
, July 4, 1933, in
Collected Writings
, 21: 273–77.

⁷⁴⁵
"We are entering upon waters": Warburg,
The Long Road Home
, 135–36.

⁷⁴⁶
"crack-brained" economist: "Teachers and Pupils,"
Time
, November 27, 1933; Brooks,
Once in Golconda
, 160–63.

⁷⁴⁷
"like asking a sworn teetotaler": Josephson,
The Money Lords
, 131.

⁷⁴⁸
"hit the ceiling": Harrison Diary, October 28, 1933, quoted in Brooks,
Once in Golconda
, 168.

⁷⁴⁹
"This is the most terrible thing": Henry Morgenthau, Jr., "The Morgenthau Diaries: Part V: The Paradox of Poverty and Plenty,"
Colliers
, October 25, 1947.

⁷⁵⁰
"the gold standard on the booze": Maynard Keynes, "Keynes to Roosevelt: Our Recovery Plan Assailed—An Open Letter,"
New York Times
, December 31, 1933, in
Collected Writings
, 21: 289–97.

⁷⁵¹
In the four years after 1933, the value of gold: Romer, "What Ended the Great Depression?" and Meltzer,
A History of the Federal Reserve
, 573.

⁷⁵²
"Operated on this morning": Rhodes,
The Making of the Atomic Bomb
, 685–86.

⁷⁵³
If a man will begin
: Francis Bacon quote from
Bartlett's Familiar Quotations
, 166.

⁷⁵⁴
Breaking with the dead hand of the gold standard: Eichengreen and Sachs, "Exchange Rates and Economic Recovery," and Choudhri and Kochin, "The Exchange Rate and the International Transmission of Business Cycle."

⁷⁵⁵
"If Hitler comes to power": Gunther,
Inside Europe
, 99; Mühlen,
Schacht: Hitler's Magician
, viii.

⁷⁵⁶
"Your movement is carried internally": Letter from Schacht to Hitler, August 29, 1932, in Office of the Counsel for Prosecution of Axis Criminality,
Nazi Conspiracy and Aggression
, Vol VII, Washington D.C.: Government Printing Office, 1946, 512–14.

⁷⁵⁷
"the only man fit": "Hitler Holds Back Decision on Cabinet as Aides Disagree,"
New York Times
, November 23, 1932.

⁷⁵⁸
"a man of quite astonishing ability": Hitler,
Hitler's Secret Conversations
, 350.

⁷⁵⁹
The recovery was not quite the miracle: This section draws heavily on Tooze,
The Wages of Destruction
, 37–43, and Evans,
The Third Reich in Power
, 322–77.

⁷⁶⁰
"The whole modern world is crazy": Dodd and Dodd,
Ambassador Dodd's Diary
, 175.

⁷⁶¹
"Don't forget what desperate straits": Gilbert,
Nuremburg Diary
, 153–54.

⁷⁶²
In the lead-up to the trial: Overy,
Interrogations
, 73.

⁷⁶³
"like an angry walrus": Dos Passos,
Tour of Duty
, 301.

⁷⁶⁴
"twisted in his seat": West,
A Train of Powder
, 5.

⁷⁶⁵
"They were wrong about reparations": Kynaston,
The City of London: Illusions of Gold
, 373–74.

⁷⁶⁶
"old gentlemen complaining": Williams,
A Pattern of Rulers
, 221.

⁷⁶⁷
"Hitler and Schacht": Memo from Leffingwell to Lamont, July 25, 1934, quoted in Chernow,
The House of Morgan
, 398.

⁷⁶⁸
"If this struggle goes on": Goodwin,
The Fitzgeralds and the Kennedys
, 687.

⁷⁶⁹
"As I look back": Boyle,
Montagu Norman
, 327–28.

⁷⁷⁰
During the 1930s, Keynes's speculative activities: Skousen, "Keynes as a Speculator," 162, and Moggridge,
Maynard Keynes
, 585.

⁷⁷¹
"I do enjoy these lunches": Sayers,
The Bank of England
, 602.

⁷⁷²
"the unpleasantest man in Washington": Skidelsky,
John Maynard Keynes: Fighting for Britain
, p. 260.