No problem can be solved unti l i t is reduced to some simple form. The

changing of a vague diffi culty into a specifi c, concrete form is a very

essential element in thinking.

- John Pierpont Morgan

JOHN PIERPONT MORGAN(1837-1913) Stephen Good

Born in Hartford Connecticut in 1837Born into a well to do family- His father was a wealthy

banker For this reason, JP did not ever experience poverty,

(Bowen) Attended several academies in New EnglandThroughout Morgan’s childhood, his father taught him

how to act and talk like a proper banker, a skill he exhibited from an early age

Into adulthood, JP maintained a close relationship with his father because they worked in the same fi eld of business, (Bowen)

CHILDHOOD AND EARLY LIFE

JP Morgan had an imposing fi gure and a very serious personality He was also quite reserved and was

not socially graceful, (Steichen) As the quote on the title

suggests, Pierpont was a man grounded in reality

JP considered himself to be Episcopalian and was generally politically conservative

He married twice and had four children in his second marriage His second marriage was not

successful although it did not end in divorce

THE LIFE OF MR. MORGAN

Educated at the University of Gottingen in France The university focused on practical sciences and was a prestigious

university in 19 th century Europe Pierpont did not graduate in order to begin a career in business,

(Telegraph) Pierpont moved to New York and became a stock broker at

Duncan, Sherman and Company During his time with Duncan, Sherman and Company he traveled

to Florida for business While there, he decided to buy a shipment of coffee beans in hopes of

making a profi t JP was successful in the venture but his managers felt he had overstepped

his boundaries, (Telegraph) The coff ee bean incident explains JP Morgan very well and is one

of the defi ning moments in the young man’s career He was autonomous in every aspect of his life He was able to know very easily if the business venture would be profitable He also claimed the ability detect dishonesty based on ones appearance

EARLY BUSINESS

From 1864-1871, Morgan partnered with his father at Dabany Morgan and Co. (Bowen) Made early profits by selling equipment to the US military for the civil war His time at D.M. & Co. earned him his fi rst significant profits

Pierpont founded an investment fi rm in 1871 that later became JP Morgan & Co. Anthony Drexel was a partner until his death in 1893, (Bowen)

Within a year after opening, the fi rm moved to Wall Street 23, Wall St. was the most expensive piece of real estate in New York

As the end of the century neared, Morgan began to use his wealth to consolidate businesses into corporations He consolidated almost every railroad company into six corporations, Morgan

owned one of these corporations In 1889 and 1992, JP merged electrical companies which allowed him to

monopolize the industry In 1901, the steel industry was consolidated when United States Steel was

founded The consolidation of businesses made it essentially impossible for a

small company to prosper without Morgan’s assistance

BIG BUSINESS

Corruption in terms of breaking the law did not occur often with JP Morgan but some consider the tactics he used to be corrupt.

Consolidation of businesses forced them to depend on Morgan’s fi nancial resources, (Bowen) The bankers began to control the appointment of managers, marketing and even

the value of the corporation's stock

The Philanthropy is associated with his name but he is typically remembered for assisting the government fi nancially In the financial Crisis of 1907, Morgan was able to give $25,000,000 to

keep the stock market from closing, (Bowen) If the stock market would have closed, Morgan's corporations would

have suffered

Grants have been given to schools, churches and Hospitals, (Steichen)

JP Morgan donated a lot of his art and other culturally signifi cant items to the city of New York

BIG BUSINESS CONT.

The boat represents the economy of America

As apposed to the government (uncle Sam), guiding the economy, JP Morgan is doing most of the work This is a reference to when the government

asked Morgan to resolve the fi nancial crisis of 1907

Because the oar is a lever and JP Morgan is further from the fulcrum than Uncle Sam, Morgan is able to exert more leverage/ power on the boat During the panic of 1907, Pierpont gave a

large sum of money in order to stabilize the national banking system

This also showed how he was able to control the fi nances of America which also gave him considerable control over the government

I t can also be noted that the sai l on the boat is not being used and is ly ing in the hul l of the boat. This is showing how laissez-faire was not fol lowed str ict ly in this t ime period.

POLITICAL CARTOON

Bowen, Liz. “J.P. Morgan: A biography by Liz Bowen”. fordam.edu. Web. 3 February 2012.

“J. P. Morgan Quotes”. Brainyquote.com. Web. 3 February 2012.

“Morgan, J.P.”. Jrank.org. Web. 3 February 2012. Puck Magazine, The Helping Hand . 1911. Library of

Congress, Washington. Wikipedia.org. Web. 2 February 2012.

Steichen, Edward. “J. P. Morgan as Cutthroat Capitalist”. smithsonianmag.com. Web.3 February 2012.

“The original Fat Cat and robber baron of his time”. telegraph.co.uk . Web. 2 February 2012.

WORKS CITED