In 1871, the banking house of Drexel, Morgan & Co. was established by John Pierpont Morgan. "Twenty four years later it was renamed J.P. Morgan & Co., which it was to remain until the firm's purchase by Chase Manhattan in 2000. (Hughes 23) At this point, Chase Manhattan was the largest banking company in the United States. This was a far cry from the 1980's when Morgan "boasted the largest market capitalization of any American bank and was more expensive to buy than Citicorp. (Hughes 11)" While J.P. Morgan could not imagine the path banking would take in the U.S. with his passing in 1913; his banking house would have a strong hold on American banking for much of the 20th century. The introduction of bank holding companies and certain laws placing restrictions on American banking such as the Glass Steagall Act of 1934 brought about many changes in American banking and allowed for the emergence of international banks to supplant the "House of Morgan" in the new era. It is no question though, that "John Pierpont Morgan was one of the most influential figures in the rise of U.S.
banking,"(Hughes 23) and the early survival of the U.S. economy.
J.P. Morgan was born in 1837, and similar to many of his peer contemporaries, he was born into a family rich in legacy. Both the Pierpont and the Morgan family had notable ancestry dating back to early British colonization in North America. Importantly, Pierpont's father, Junius Spencer, commonly referred to as the senior Morgan until his death late in 1890, was well established on both sides of the Atlantic. Spending much of his elder years abroad, Junius was the primary figure throughout Pierpont's life. For every matter, business, political, or private, Junius counseled Pierpont wit...
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...West, 2001
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Remini, Robert. Andrew Jackson and the bank war; a study in the growth of presidential power. New York: Norton, 1967
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Cashman, Sean. America in the Gilded Age : from the death of Lincoln to the rise of Theodore Roosevelt. New York : New York University Press, 1984.
Eccles, George. The Politics of Banking. Salt Lake City : University of Utah Press, 1982
Livingston, James. Origins of the Federal Reserve System : money, class, and corporate capitalism. Ithaca, N.Y: Cornell University Press, 1986
With differing economies and the growth of specie and paper money, Brands argues that the basis of knowledge about the money system of this time lays a foundation for how Carnegie, Rockefeller, and others were able to manipulate the market and gain wealth. Leading into price manipulation by those in corporate
One of the Jacksonian Democrats’ attempts to reduce the influence of the rich was by vetoing the charter to the Bank of the United States. Jackson stated his reasons in Document B mainly as a precaution of...
In the summer of 1832 and Congress renewed the Bank’s charter even though it wasn’t due until 1836. Jackson hesitated to approve of the charter, so Henry Clay and Nicholas Biddle went on the offensive to attempt to persuade Jackson to pass the bill. Jackson, having had his opinion on the banks cemented by Clay’s presence in the organization, then committed to de-establishing the Second National Bank. He waged war against Biddle in particular to make sure Biddle lost power. He vetoed the bank bill, and after winning the race to be reelected, he closed Biddle’s bank. He ordered his Secretary of the Treasury to move money from the Second National Bank to smaller, state banks. When Congress returned from its summer recess, it censured him for his actions. In 1836, Bank of US was dead, and the new democratic-congressmen expunged Jackson’s censure. Because Jackson had no formal plan for managing the nation’s funds after the Second National Bank closed, it caused problems in Van Buren’s administration. He destroyed the Bank of the United States, in the main, for personal reasons. Jackson hated the bank before his presidency because as a wealthy land and slave owner he had lost money due to its fiscal policies. He believed that Congress had no right under the constitution to charter a
2) Davis, Gareth. The Destruction of the Second Bank of the United States Rationale and
The issue of whether or not America should have a National Bank is one that is debated throughout the whole beginning stages of the modern United States governmental system. In the 1830-1840’s two major differences in opinion over the National Bank can be seen by the Jacksonian Democrats and the Whig parties. The Jacksonian Democrats did not want a National Bank for many reasons. One main reason was the distrust in banks instilled in Andrew Jackson because his land was taken away. Another reason is that the creation of a National Bank would make it more powerful than...
Shortly after the American Revolution, the United States entered an era of profound economic and social change that was dominated first by the Market Revolution and subsequently by Andrew Jackson’s skillful use of the power of the presidency to crack down on capitalist exploitation. Jackson’s first biographer, James Parton, however, describes the legacy of the seventh President’s administration as one fraught with controversy, “Andrew Jackson was a patriot, and a traitor. He was the greatest of generals, and wholly ignorant of the art of war. He was the most candid of men, and capable of the profoundest dissimulation. He was a democratic autocrat, an urbane savage, an atrocious saint.” Many people argue that Jackson, having turned the federal
In 1832, a Renewal Bill for the United States Bank came up to the President, Andrew Jackson. He vetoed this bill for the Bank, and in the address that he included with the veto stated that he knew that this would be an issue, and that people would not like it. He told in this address all of the clear and obvious reasons why he vetoed against the bank.
5. Perry, Elisabeth Israels, and Karen Manners Smith. The Gilded Age and Progressive Era: a student companion. Oxford: Oxford University Press, 2006. Print.
J.P. Morgan born and raised in a well know city Hartford which is one of the biggest cities in Connecticut, on April 1837. He had a mother who cared for her family while a farther who was being placed up as an associate at major company in Boston, MA. Growing up, J.P. Morgan struggled with physical health problems that caused to him to become an outcast to his friends and society. Therefore, because of his health problems, his numerous of spasms, and the pain, it was difficult for him to continue to seek medical help at that time. However as J.P. Morgan got older, he began to heal quicker while he was continuing to master his educational goals.
Mooney, Richard. "Banker of America." The Boston Globe 4 Apr. 1999: L1 "Powerful house of Morgan Changes with the Times." The San Diego Union-Tribune 24 Feb. 1986: 18 Sinclair, Andrew. Corsair: The Life of J. Pierpont Morgan. Toronto: Little, Brown and Company, 1981.
Traxel, David. 1898: The Birth of the American Century. New York: A.A. Knopf, 1998. Print.
Metzler, Allan H. A History of the Federal Reserve, Vol I and II. University Press Books, 2002
Parsons, L. H. (2009). The Birth of Modern Politics: Andrew Jackson, John Quincy Adams, and the Election of 1828. Oxford: Oxford University Press.
John Pierpont Morgan was born in Hartford, Connecticut on April 17, 1837 to his father Junius Spencer Morgan, a successful business man himself, and his mother. Juliet Pierpont. J.P. was an extremely large man with massive shoulders and a purple nose due to rosacea; he was very intimidating and smoked several cigars a day. He came with a gift of immediately meeting people and being able to judge their character and integrity. His idol was Napoleon Bonaparte. Junius expected his son to follow in his footsteps and succeed in the business world and shaped him to do so. In 1854, Morgan’s father became a partner of George Peabody firm and just ten years later to...
J.P. Morgan may not have seemed like a very religious man but he was actually a devout Christian and donated large sums of money to the church. He even set aside three weeks every third year to attend talks given by theologians and debates in the Episcopal Church. At St. George’s Episcopal church he was treasurer and senior warden.