World War II: Organized Crime? Great Depression and Fascism

7/30/2019 World War II: Organized Crime? Great Depression and Fascism

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WORLD WAR II

Organized Crime?Great Depression & The Rise of Fascism

By William P. Litynski


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From the Grassy Knoll in Miami, Florida:

Lone Gunman or Patsy?The Assassination of Mayor of Chicago Anton J. Cermak

& the Attempted Assassination of American President-elect

Franklin Delano Rooseelt on Fe!r"ary #$% #''

(eft photo) Anton J. Cermak *center+% Mayor of Chicago% is assisted after !eing ,o"nded in an assassination attempt onPresident-elect Franklin Delano Rooseelt !y talian mo!ster Giuseppe "an#arain Miami% Florida% ..A. on Fe!r"ary #$#''. Anton J. Cermak sered as the Mayor of Chicago from #'# "ntil his death on March /% #''. The Reichstag Fire in0erlin ,o"ld occ"r #1 days later% on Fe!r"ary 12% #''. Prominent gangsters s"ch as am 3iancana and Jack R"!y *,hoassassinated (ee 4arey 5s,ald in Dallas% Te6as+ lied in Chicago in #''. Chicago gangster and !ootlegger Al Capone ,a

imprisoned for ta6 easion in 5cto!er #'#. *Photo) 0ettmann7C5R08+

Right photo) talian mo!ster Giuseppe "an#ara% clad only in a to,el% is seen here ,ith officials "nder arrest in Miami%Florida% ..A. on Fe!r"ary #/% #''% after he had fired fie !"llets in an attempt to assassinate President-elect Franklin DelaRooseelt at 0ay Park in Miami% Florida. Fie people ,ere in9"red !y the shots% incl"ding Mayor Anton J. Cermak of Chicagtanding on the left is heriff Dan 4ardie: standing on the right is (.3. Cre,s holding the pistol ,ith ,hich the shooting ,asdone. *Photo) 0ettmann7C5R08+


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Franklin Delano Roosevelt (center), Governor of New York an !resiential caniate for t"e Democratic Party, t"rows o#t a $ase$all #rint"e last %ame of t"e &' Worl *eries $etween t"e +"ica%o +#$s an t"e New York Yankees in +"ica%o on cto$er , &'. FranklinDelano Roosevelt is flanke $y "is son -ames Roosevelt (ri%"t) an ayor of +"ica%o /nton +ermak (left). (P"oto0 Bettmann1+RB2*)

Benito #ssolini (left), t"e ictator of Fascist 2taly, ries in a motor$oat wit" 3.*. *ecretary of *tate 4enry L. *timson in 2taly in -an#ary &'#rin% t"e mile of t"e Great De!ression. 4enry L. *timson was a mem$er of *k#ll 5 Bones, a secret society at Yale 3niversity.(P"oto $y New York 6imes +o.1Getty 2ma%es)


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GR$%T D$PR$'( & (%T'(%L ')%LM

8nternational 0ankers and the Rise of ;orld ;ar 88

or%an, *tanley 5 +o. !resient 4arol *tanley (left) c"ats wit" -.P. or%an !artners Geor%e W"itney (center) an R#ssell +Leffin%well at t"e ono!oly +ommittee "earin% in Was"in%ton, D.+. on Decem$er 7, &''. /ll t"ree men were mem$ers of+o#ncil on Forei%n Relations. 4arol *tanley was a mem$er of *k#ll 5 Bones at Yale 3niversity.(P"oto0 Li$rary of +on%ress Prints an P"oto%ra!"s Division)

Front !a%e !"oto0 From Tokyo With Love:/merican Presient Franklin Delano Roosevelt meets wit" -a!anese $ankers ani!lomats at t"e W"ite 4o#se in Was"in%ton, D.+., 3.*./. on ay 8, &'. Left to ri%"t0 9isco#nt :ik#;iro 2s"ii ("ea ele%aan former -a!anese /m$assaor to t"e 3.*. (&'&i%o F#kai (Governor of t"e Bank of -a!an from &'? to &'8), an :ats#;i De$#c"i, -a!anese/m$assaor to t"e 3nite *tates of /merica. (6"e lo%o of t"e +o#ncil on Forei%n Relations is flanke $y t"e fla% of t"e:in%om of 2taly (Fascist 2taly) (left) an t"e fla% of t"e >m!ire of -a!an (ri%"t).)


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wen D. Yo#n% watc"es >mile orea# (left),Governor of t"e Bank of France, s"ake "ans wit" 4;almar *c"ac"t (ri%"t), Presient ot"e Reic"s$ank (Germany@s central $ank), in &'' after t"ey acce!te t"e terms of t"e Yo#n% Plan. 4;almar *c"ac"t was trie inN#rem$er%, Germany for war crimes an colla$oration wit" t"e NaAis after Worl War 22. wen D. Yo#n% was t"e +"airman of t"e$oar of General >lectric +om!any (&'=&'7), Deputy Chairman of the Federal Reserve Bank of New York !"#$%!"&$'(Chairman of the Federal Reserve Bank of New York !"&)%!"*+', Director of t"e +o#ncil on Forei%n Relations (&'8=&'7), an6r#stee of t"e Rockefeller Fo#nation (&'


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ach of these kept a s"!stantial deposit at the 0.8..% and periodically settled payments amongthemseles *and th"s !et,een the ma9or co"ntries of the ,orld+ !y !ookkeeping in order to aoid shipments of gold. They maagreements on all the ma9or financial pro!lems of the ,orld% as ,ell as on many of the economic and political pro!lems%especially in reference to loans% payments% and the economic f"t"re of the chief areas of the glo!e. The 0.8.. is generallyregarded as the ape6 of the str"ct"re of financial capitalism ,hose remote origins go !ack to the creation of the 0ank of >ngla

in #/? and the 0ank of France in #@'. As a matter of fact its esta!lishment in #1 ,as rather an indication that thecentrali=ed ,orld financial system of ##? ,as in decline. 8t ,as set "p rather to remedy the decline of (ondon as the ,orldBsfinancial center !y proiding a mechanism !y ,hich a ,orld ,ith three chief financial centers in (ondon% e, ork% and Parco"ld still operate as one. The 0.8.. ,as a ain effort to cope ,ith the pro!lems arising from the gro,th of a n"m!er of cente8t ,as intended to !e the ,orld cartel of eer-gro,ing national financial po,ers !y assem!ling the nominal heads of thesenational financial centers. The commander in chief of the ,orld system of !anking control ,as Montag" orman% 3oernor the 0ank of >ngland% ,ho ,as !"ilt "p !y the priate !ankers to a position ,here he ,as regarded as an oracle in all matters ogoernment and !"siness. 8n goernment the po,er of the 0ank of >ngland ,as a considera!le restriction on political action aearly as #@# !"t an effort to !reak this po,er !y a modification of the !ankEs charter in #@?? failed. 8n #@$1% 3ladstone% thenchancellor of the >6che"er and later prime minister% declared% ngland and of its goernor ,as admitted !y most "alified o!serers. n *anuary, +-., Re#inald

McKenna, /ho had !een chancellor of the $0che1uer in ++23++4, as chairman of the !oard of the Midland 5an6 tolits stoc6holders: 7 am afraid the ordinary citi8en /ill not li6e to !e told that the !an6s can, and do, create money9999 %

they /ho control the credit of the nation direct the policy of Goernments and hold in the hollo/ of their hands the

destiny of the people9; 8n that same year% ir Dr"mmond Fraser% ice-president of the 8nstit"te of 0ankers% stated% ngland m"st !e the a"tocrat ,ho dictates the terms "pon ,hich alone the 3oernment can o!tain!orro,ed money.G 5n eptem!er 1/% #1#% The Financial Times,rote% "rope.G This fact ,as admitted !y Mr. orman himself!efore the co"rt of the !ank on March 1#% #'% and !efore the Macmillan Committee fie days later. Montag" ormanEsposition may !e gathered from the fact that his predecessors in the goernorship% almost a h"ndred of them% had sered t,o-y

terms% increased rarely% in time of crisis% to three or een fo"r years. 0"t orman held the position for t,enty-fo"r years *#1#??+% d"ring ,hich he !ecame the chief architect of the li"idation of 0ritainEs glo!al preeminence.GI Tragedy and Hope!y Carroll "igley% p. '1?-'1$


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Germany@s Cc"ancellor /olf 4itler walks wit" 4;almar *c"ac"t, t"e Presient of t"e Reic"s$ank, on ay ?, &'.(P"oto0"tt!011%erman"istoryocs.%"i=c.or%1s#$Eima%e.cfmima%eEi&'H5lan%#a%e%erman)
http://germanhistorydocs.ghi-dc.org/sub_image.cfm?image_id=1964&language=germanhttp://germanhistorydocs.ghi-dc.org/sub_image.cfm?image_id=1964&language=germanhttp://germanhistorydocs.ghi-dc.org/sub_image.cfm?image_id=1964&language=german


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s money to Germany /as ery profita!le to thes

!an6ers9 sing these American loans% 3ermanyBs ind"stry ,as largely ree"ipped ,ith the most adanced technical facilitieand almost eery 3erman m"nicipality ,as proided ,ith a post office% a s,imming pool% sports facilities% or othernonprod"ctie e"ipment. ;ith these American loans 3ermany ,as a!le to re!"ild her ind"strial system to make it the secon!est in the ,orld !y a ,ide margin% to keep "p her prosperity and her standard of liing in spite of the defeat and reparations% to pay reparations ,itho"t either a !alanced !"dget or a faora!le !alance of trade. 0y these loans 3ermanyBs creditors ,ere a

to pay their ,ar de!ts to >ngland and to the nited tates ,itho"t sending goods or serices. Foreign e6change ,ent to3ermany as loans% !ack to 8taly% 0elgi"m% France% and 0ritain as reparations% and finally !ack to the nited tates as paymenton ,ar de!ts. The only things ,rong ,ith the system ,ere *a+ that it ,o"ld collapse as soon as the nited tates ceased to lenand *!+ in the meantime de!ts ,ere merely !eing shifted from one acco"nt to another and no one ,as really getting any nearesolency. 8n the period #1?-#'#% 3ermany paid #.$ !illion marks in reparations !"t !orro,ed a!road a total of #@./ !illionmarks. othing ,as settled !y all this% !"t the international !ankers sat in heaen% "nder a rain of fees and commissions.GI Tragedy and Hope!y Carroll "igley% p. '@-'


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6cept focredit of ? million marks from the 0ank for 8nternational ettlements and a Lstandstill agreementL to rene, all short-termde!ts as they came d"e% 3ermany o!tained little assistance. eeral committees of international !ankers disc"ssed the pro!lem!"t the crisis !ecame ,orse% and spread to (ondon. 0y oem!er #'# all the >"ropean Po,ers e6cept France and hers"pporters ,ere determined to end reparations. At the (a"sanne Conference of J"ne #'1 3erman reparations ,ere c"t to a toof only ' !illion marks% !"t the agreement ,as neer ratified !eca"se of the ref"sal of the nited tates Congress to c"t ,ar

de!ts e"ally drastically. Technically this meant that the o"ng Plan ,as still in force% !"t no real effort ,as made to restore and% in #''% 4itler rep"diated all reparations. 0y that date% reparations% ,hich had poisoned international relations for so manyears% ,ere !eing s,allo,ed "p in other% more terri!le% pro!lems.GI Tragedy and Hope!y Carroll "igley% p. '#-'#1


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Lor onta%# Norman, t"e Governor of t"e Bank of >n%lan, an "is assistant *ir +"arles /is atten t"e first meetin% of t"e $oar of

irectors of t"e Bank for 2nternational *ettlements in Basle IBaselJ, *witAerlan in ay &'7.(P"oto0 Finance and Empire: ir !"arles Addis# $%&$'$%()$y Ro$erta /ll$ert Dayer)

6"omas -. Watson (sittin% to 4itler@s left), t"e Presient of 2nternational B#siness ac"ines +or!. (also known as 2B), meets wit" NaAiGermany@s ictator /olf 4itler in &'8. Thomas ,- Watson was a Class B Dire.tor of the Federal Reserve Bank of New York from !"to !"*+an a mem$er of t"e +o#ncil on Forei%n Relations. 6"omas -. Watson an "is 2B !rovie /olf 4itler an t"e NaAis wit" !#nc"car mac"ines. 6"e NaAi German %overnment, military, an cor!orations #se !#nc"=car mac"ines to create an assi%n serial n#m$ers

!risoners workin% as slave la$orers in t"e concentration cam!s.


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NaAi Germany@s ictator /olf 4itler stan on a !atio wit" :#n% 4sian%="si I4.4. :#n%J, Nationalist +"ina@s inister of Finance (&'=&'an Governor of t"e +entral Bank of +"ina (&'=&'?), #rin% :#n%@s visit to Berc"tes%aen, Germany in &'8. 4.4. :#n% earne aBac"elor of /rts e%ree at $erlin +olle%e in &'7H an a aster of /rts e%ree at Yale 3niversity in &'78. 4.4. :#n% was marrie to *oon/i=lin%, t"e sister of aame +"ian% :ai=s"ek (*oon% ei=lin%). NaAi German officers traine Generalissimo +"ian% :ai=s"ek@s army #rint"e &'7sK Generalissimo +"ian% :ai=s"ek@s ao!te son +"ian% Wei=k#o serve in t"e We"rmac"t an !artici!ate in t"e /nsc"l#ss.(6ime Life !"oto)

onta%# Norman, t"e Governor of t"e Bank of >n%lan, s"akes "ans wit" 4;almar *c"ac"t, Presient of t"e Reic"s$ank, at Liver!ool *tre

*tation in Lonon in Decem$er &'


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Great De!ression (&'')0 r%aniAe +rime

/ crow %at"ers at t"e Feeral 4all in New York +ity o!!osite t"e *tock >c"an%e in cto$er &'' on t"e ay t"e New York*tock >c"an%e cras"e. (/P1Wie Worl P"otos)


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The scene on ;all treet ,hen the e, ork tock >6change crashed in 5cto!er #1. Preio"s economic crises anddepressions in America occ"rred in #@#% #@'2% #@$2% #@2'% #@@?% #@'% and #2. *0ettmann7C5R08+

Central !ankers meet in do,nto,n Manhattan% from left to right) 49almar chacht *President of the Reichs!ank+% 0en9amintrong *President of the Federal Resere 0ank of e, ork+% Montag" orman *3oernor of the 0ank of >ngland+% and Mr.Rist appear on the rooftop of the Federal Resere 0ank of e, ork head"arters in e, ork City in J"ly #12.


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wen D. Yo#n% (center), De!#ty +"airman of t"e Feeral Reserve Bank of New York (&'8=&'8), an -.P. or%an 5 +o.$anker 6"omas W. Lamont (secon from ri%"t) watc" 4;almar *c"ac"t (ri%"t), t"e Presient of t"e Reic"s$ank, si%n t"e Yo#nPlan at t"e 4otel Geor%e 9 in Paris, France on -#ne 8, &''. (P"oto0 M Bilarc"iv Pre#isc"er :#lt#r$esitA)

wen D. Yo#n%, /merican re!aration e!ert an De!#ty +"airman of t"e Feeral Reserve Bank of New York, s"akes "ans wit" Dr. 4;alm*c"ac"t, German ele%ate to t"e Re!arations +onference an Presient of t"e Reic"s$ank (Germany@s central $ank), at a train station inParis, France on -#ne &8, &'', from t"e winow of a train w"ic" carrie "im to t"e *.*. O#itania, w"ic" carrie "im to t"e 3nite *tates.(P"oto0 M Bettmann1+RB2*)


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3erman dignitaries attend the f"neral of the late 3"sta tresemann% Foreign Minister of 3ermany% in front of the Reichstag i0erlin% 3ermany on 5cto!er /% #1. *Photo) 0"ndesarchi73erman Federal Archies+

&'' $it#aries

/l0ert 1trauss(/#%#st H, &


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;illiam 4o,ard Taft *left+% Chief J"stice of the .. "preme Co"rt% administers the oath of office to incoming .. ecretarof tate 4enry (. timson in ;ashington% D.C. on March 1@% #1. ;illiam 4o,ard Taft and 4enry (. timson ,ere mem!of k"ll & 0ones% a secret society located at ale niersity in e, 4aen% Connectic"t% ..A. *Photo) (i!rary of Congres
http://www.loc.gov/pictures/item/npc2007017273/http://www.loc.gov/pictures/item/npc2007017273/


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Mem!ers of the American Reparations Commission% ,ho recently ret"rned to America after negotiating a settlement ,ith the>"ropean nations% ,ere in conference ,ith .. ecretary of tate 4enry (. timson on J"ne 1$% #1. 8n the front ro,% seateleft to right) John Pierpont Morgan Jr. *Partner of J.P. Morgan & Co. !ank+: .. ecretary of tate 4enry (. timson: and5,en D. o"ng *chairman of the Federal Resere 0ank of e, ork+% chairman. 8n the !ack ro,% left to right) Thomas ;.(amont *Partner of J.P. Morgan & Co. !ank+: Thomas elson Perkins: nder ecretary of tate Joseph P. Cotton: and Assistaecretary of tate ;illiam R. Castle. timson% o"ng% (amont% Perkins% and Cotton ,ere mem!ers of the Co"ncil on ForeignRelations. *Photo) 4arris & >,ing Collection: (i!rary of Congress+


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8nd"strial men meet ,ith President 4er!ert 4ooer at the ;hite 4o"se in ;ashington% D.C. on oem!er 1#% #1. 8n thegro"p% fifth from the right is the ecretary of the Treas"ry Andre, Mellon: ninth from the right% ecretary of Commerce Ro!eP. (amont: and seenth from the right is 4enry Ford. 5thers in the gro"p are% J"li"s Rosen,ald% Clarence M. ;oolley% ;alteTeagle% 5,en D. o"ng% Matthe, . loan% >"gene 3. 3race% Myron C. Taylor% Alfred P. loan% Jr.% Pierre D"pont% ;alter3ifford% am"el ;. Rey!"rn% Jesse 8. tra"s% ;illiam 0"tter,orth% >.J. Q"las% 3eorge (a"ghlin% A.;. Ro!ertson% RedfieldProctor% Philip 4. 3adsen% >rnest T. Trigg% 4enry M. Ro!inson and J"li"s 0arnes. ooer, Mellon, Rosen/ald, @oolley,Aoun#, Grace, Taylor, loan, Gifford, Rey!urn, traus, 5utter/orth, Ro!ertson, Ro!inson, and 5arnes /ere mem!er

of the )ouncil on Forei#n Relations9 *Photo)4arris and >,ing Collection: (i!rary of Congress+
http://www.loc.gov/pictures/collection/hec/item/hec2013005629/http://www.loc.gov/pictures/collection/hec/item/hec2013005629/http://www.loc.gov/pictures/collection/hec/item/hec2013005629/


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Adolf 4itler% leader of the ational ocialist 3erman ;orkersE Party% sal"tes to his s"pporters d"ring a isit to M"nich% 3ermany in#1. *Photo !y 4"lton Archie73etty 8mages+

6"e War$#r% Brot"ers (from left to ri%"t) Pa#l War$#r%, Feli War$#r%, a War$#r%, FritA War$#r%, an /$y War$#r% !ose for a formal!ortrait on /#%#st &, &''. Pa#l War$#r% was t"e 9ice +"airman of t"e Feeral Reserve from &'&H to &'&


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Panicke stock traers crow o#tsie t"e New York *tock >c"an%e in New York +ity on t"e ay of t"e market cras" on cto$er , &''.(Bettmann1+RB2*)

+row at New YorkQs /merican 3nion Bank #rin% a $ank r#n early in t"e Great De!ression. 6"e Bank o!ene in &'&8 an went o#t of$#siness on -#ne 7, &'&. +on%ress !asse t"e Bankin% /ct of &', also known as t"e Glass=*tea%all /ct, w"ic" calle for t"e se!aratof commercial an investment $ankin%K re#ire t"e #se of %overnment sec#rities as collateral for Feeral Reserve notesK an esta$lis"e tFeeral De!osit 2ns#rance +or!oration (FD2+). +on%ress re!eale t"e Glass=*tea%all /ct in &'''. (P"oto0*ocial *ec#rity /ministration)
http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530167http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530167http://en.wikipedia.org/wiki/File:American_union_bank.gifhttp://en.wikipedia.org/wiki/File:American_union_bank.gifhttp://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530167http://en.wikipedia.org/wiki/File:American_union_bank.gif


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cto$er &''0 6"e front !a%e of t"e Brooklyn Daily >a%le, !#$lis"e on t"e ay of t"e initial Wall *treet +ras", known as Black 6"#rsa(4#lton1Getty 2ma%es)

/ s!ec#lator tries to sell "is car after losin% all "is money in t"e market. (Bettmann1+or$is)
http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530155http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530155http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530155


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Re!arations e!erts meet to isc#ss German war e$t in Paris, France on Fe$r#ary 7, &''. From left to ri%"t, seate0 wen D. Yo#n% o

/merica, -.P. or%an of /merica, *ir -osia" *tam! of >n%lan. *tanin% in t"e rear is 6"omas W. Lamont of /merica. Lor Revelstoke o>n%lan was in attenance #rin% t"e o!enin% of t"e German Re!arations +ommittee. 5wen D- Youn4 .hairman of 2eneral 6le.tri. Cand ,-7- 8or4an 9 Co- partner Thomas W- Lamont were mem0ers of the Coun.il on Forei4n Relations- (P"oto0 M Bettmann1+RB2

*ecretary of t"e 6reas#ry /nrew W. ellon, co#nter c"airman of t"e Boar of 6r#stees, isc#sses t"e Re +ross enorsement f#n !ro%rwit" t"e mem$ers of t"e Boar #rin% t"eir ann#al conference recently in Was"in%ton, D.+., 3.*./. on Decem$er &, &''. Left to ri%"t0Walter rr Woos, 6reas#rer of t"e 3nite *tatesK %en L. ills, 3ner *ecretary of t"e 6reas#ryK Feli . War$#r%, New YorkK *ecretary/nrew W. ellonK -o"n B. iller, L/, -ames Parmelee, Was"in%tonK -o"n B. Larner, Was"in%ton (stanin%)K -o"n B. +remer -r.K /ssistan


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secretary of t"e BoarK 4owar -. *imons, secretary an W.4. Boen, 6reas#rer. /ndrew W- 8ellon( 54den L- 8ills( and Feli 8- War0were mem0ers of the Coun.il on Forei4n Relations- (M Bettmann1+RB2*)

Notorio#s %an%ster /l +a!one attem!ts to "el! #nem!loye men wit" "is so#! kitc"en, Bi% /lQs :itc"en for t"e Neey, in+"ica%o on Novem$er &H, &'7. (Bettmann1+RB2*)

3nem!loye /merican men eatin% in a so#! kitc"en circa &'7. (Bettmann1+RB2*)
http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530185http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530170http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530170http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530185http://www.guardian.co.uk/business/gallery/2008/apr/14/economics.photography?picture=333530170


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A L0on"s ArmyL encampment in ;ashington% D.C. in #'1. *Photo) P87Cor!is-0ettmann+


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ome of the #$% mem!ers of the L0on"s ArmyL I ;orld ;ar 8 eterans re"esting their !on"s money that ,as promised tthem d"ring ;orld ;ar 8 I rest in front of the Capitol in ;ashington% D.C. in #'1 as they o, not to leae "ntil the !on"spromised them for serice d"ring the ;ar ,as paid. *Photo) Cor!is70ettmann I nder,ood+


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.. Army 3eneral Do"glas MacArth"r *right+ and .. Army Ma9or D,ight >isenho,er *left+ in "niform prior to the forci!dispersing of the 0on"s Army in #'1. *Photo) ational Archies+


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L0on"s MarchersL and police !attle in ;ashington% D.C. in J"ly #'1. *ote) This photograph ,as taken !y an "nkno,nAssociated Press photographer. *Photo) ational Archies+

Federal troops tear-gas mem!ers of the 0on"s Army in J"ly #'1 *Photo) ational Archies+


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An estimated 1/? Chicago police officers attacking a Memorial Day picnic of appro6imately # "narmed strikers and familmem!ers at the Rep"!lic teel plant in Chicago on May '-'#% #'2. # ,ere shot dead% another ' ,ere ,o"nded% and nearthe same n"m!er s"ffered serio"s head in9"ries from police !eatings. *AP Photo+

/t a steel !lant in /li#i!!a, Pennsylvania, 3.*./. on ay &, &'8, t"e Reveren 4.L. O#een, storekee!er at t"e -ones anLa#%"lin +or!oration steel !lant, c"ose to work, alt"o#%" 8,777 men were ile w"en t"e +ommittee of 2n#strial r%aniAatiocalle a strike at t"e !lant. 6"is is w"at "a!!ene w"en Rev. O#een trie to !ass t"ro#%" !icket lines. /lt"o#%" $eset $ynf#riate !ickets, "e fo#%"t $ack valiantly, $itin% t"e "ans of one. 4e s#ffere only a $lack eye in t"e fi%"tin%.(M Bettmann1+RB2*)


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A !loody !attle !et,een strikers and sca!s in a strike at Rep"!lic teel in Cleeland% 5hio in #'2. At least eighteen ,orkerslost their lies that day. *;ide ;orld Photo+

Cleeland cop attempt to !reak "p an effort !y strikers to oert"rn a foremanBs car d"ring a strike in the #'s. *8nterphoto+


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Ford Motor Company to"ghs hired !y 4arry 0ennett of FordEs


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A mother and her t,o children lie in a tent in r"ral America d"ring the 3reat Depression.


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A d"st storm enelopes >lkhart% Qansas on May 1#% #'2. Prolonged dro"ght thro"gho"t the #'s red"ced the Qansas ,heafields to d"st. *Photo) (i!rary of Congress+

A d"st storm in Te6as in #'$


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An a!andoned farm in e, Me6ico hit hard !y the d"st storms *Photo) Dorthea (ange 7 FA+


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nemployed Americans lie in shanty home d"ring the 3reat Depression.

A shantyto,n% also kno,n as 4ooerille% in eattle d"ring the 3reat Depression*niersity of ;ashington (i!raries pecial Collections+


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(eft) A ;PA pro9ect) 3old depository% Fort Qno6% Qent"ckyRight) A ;PA pro9ect) (incoln T"nnel% e, Jersey to e, ork City

(eft) A ;PA pro9ect) The Mall% ;ashington% D.C.Right) A ;PA pro9ect) Soo% ;ashington% D.C.


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;ealthy Americans cele!rate the end of Prohi!ition at a local saloon in #''. *Photo) 0ro,n 0rothers+

A ery ,earied President 4er!ert 4ooer at a gridiron dinner in March #'1.*Photo) Pre"ssischer Q"lt"r!esit=% 0erlin+


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Franklin Rooseelt deliers his ina"g"ral address in front of the Capitol in ;ashington% D.C. on March ?% #''.*Photo) Franklin D. Rooseelt (i!rary+

A city police officer is seen maintaining order as a gro"p of merchants distri!"te !o6es of apples to "nemployed men so that t"nemployed men can sell apples on street corners. *Photo) 0ro,n 0rothers+


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>6cerpts from The Memoirs of Herbert Hoover: The Great Depression, 192919!1!yer!ert ooer*p"!lished in #$1+% Chapt'/ *Collectiism Comes to the C"rrency I and 8ts Conse"ences+% p. '-?2

s clin#in# to its conerti!le #old standard9

A prime re"isite of ,orld recoery ,as the maintenance and strengthening of this fortress of financial integrity. 0"t% !eyondthat% it ,as the protection of the citi=enBs primary freedom from money peonage and the disg"ised sei="re of his assets ,ithcompensation !y his goernment.

8 hae already recorded o"r charges in this matter in the campaign of #'1 and enator 3lassBs attack on me for s"ggesting tRooseelt intended to manip"late the c"rrency.

8 may ,ell recall here that in this attack 3lass e6hi!ited a sadly failing memory of the circ"mstances of o"r s"ccessf"l !aagainst !eing p"shed off the gold standard in the ,inter of #'1. ;e easily proed that 3lass himself had taken part in o"r preentmeas"res !y the doc"mentation and legislation in that !attle.

Despite 3lass and his oratory% ,e droe Rooseelt to his LCoenantL speech of oem!er ?% #'1% ,hich can ,ell !e repehere)

8t is ,orthy of note that no ade"ate ans,er has !een made to the magnificent philippic of enator 3lass the other night% in ,hhe sho,ed ho, "nso"nd this assertion RooseeltBs intention to a!andon the gold standardU . . . ,as. And 8 might add% "enator Gmade a devastating challenge that no responsible government #o$ld have sold to the co$ntry sec$rities payable in gold if it %ne# t

the promise&yes, the covenant&embodied in these sec$rities ,as as d"!io"s as the President of the nited tates claims it ,as.This speech is omitted from the ol"mes of RooseeltBs speeches a"thori=ed and edited !y him. 8t can !e fo"nd in the 'e# (

Times of oem!er $% #'1.After this speech% prior to the a!andonment of the gold standard% Rooseelt approed an iss"e of N@%% in sec"rities of

nited tates goernment paya!le in Lnited tates coin of present al"e.L 4o, he reconciled this action ,ith his intent to destroyper cent of their al"e has neer !een disclosed.

ABANDONMENT OF THE GOLD STANDARD

The march to,ard Lmanaged c"rrencyL came "ickly in legislation follo,ing RooseeltBs ina"g"ration. 8t is desira!le herereie, !riefly these acts.The >mergency 0anking Act of March% #''% not only reaffirmed the do"!tf"l ;orld ;ar 8 act of 5cto!er /% ##2% in the "se

,hich Rooseelt had ref"sed to s"pport me. 8t gae the President in a national emergencyas to the e6istence of ,hich he ,as msole 9"dgea"thority to ass"me complete control oer all Ltransactions in foreign e6changeL and Ltransfers of credit !et,eenpayments !y% !anking instit"tions.L

5n April $% #''% the President iss"ed an >6ec"tie 5rder re"iring all persons to delier all gold coin% gold certificates% !"llion to the !anks in e6change for c"rrency% the !anks to delier the gold to the Federal Resere. 4e set "p fines of "p to N#%and imprisonment as a penalty. 4e claimed as a"thority !oth the Trading ,ith the >nemy Act of ##2 and the >mergency 0ankAct. 8t can !e said at once that the Congress did not kno, they ,ere giing a,ay any s"ch a"thority. >en a d"mmy Congress ,oat least hae raised some protest had it kno,n it in time. 4o,eer% the thing haing !een done% the r"!!er-stamp Congress specificcondoned the action ten months later !y ection #' of the 3old Resere Act of Jan"ary '% #'?. The amo"nt of gold in the !anks


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the Treas"ry at that time ,as oer N?%%%. The act"al amo"nt of gold scraped "p from personal holdings proed to !e "nN?%%a triial ret"rn for s"ch a gross goernmental iolation of pledged ,ord and personal li!erty.

5ne of the poignant episodes in the co"rse of these c"rrency actions ,as the scathing den"nciation of them !y enator 3lass a!etrayal of the promises he had !een gien in ret"rn for his agreement to attack my administration d"ring the #'1 campaign. ;Rooseelt a!andoned the gold standard enator 3lass% on April 12% #''% attacked the President in one of his most !itter statementthe floor of the enate) 8 reproached the then President of the nited tates 4ooerU and the ecretary of the Treas"ry for saying this co"ntry ,as ,ithin t,o ,eeks of going off the gold standard. . . . Franklin D. Rooseelt% no, President of the nited tates said the speech ,as to him an inspiration. . . . 4e te6t"ally commended the speech ,hich so !itterly critici=ed his political adersary.

>ngland ,ent off the gold standard !eca"se she ,as compelled to do so% not !y choice...

;hy are ,e going off the gold standard ;ith nearly ? per cent of the entire gold s"pplies of the ,orld% ,hy are ,e going offgold standard ;ith all the earmarked gold% ,ith all the sec"rities of o"rs that they hold% foreign goernments co"ld ,ithdra, in tless than N2%% of o"r gold% ,hich ,o"ld leae "s an ample f"nd of gold% in the e6tremist case to maintain gold payments !a!road and at home.

To me% the s"ggestion that ,e may deal"e the gold dollar $ per cent means national rep"diation. To me it means dishonor: inconception of it% it is immoral.

All the legalistic arg"ments ,hich the la,yers of the enate% men of eminent a!ility and refinement% may make here% or hae mhere% hae not dislodged from my mind the irreoca!le coniction that it is immoral% and that it means not only a contraention ofpartyBs platform in that respect% !"t of the promises of party spokesmen d"ring the campaign. . . .

. . . there ,as neer any necessity for a gold em!argo. There is no necessity for making stat"tory criminals of citi=ens of nited tates ,ho may please to take property in the shape of gold or c"rrency o"t of !anks and "se it for their o,n p"rposes as tmay please. . . .

8f there ,ere need to go off the gold standard% ery ,ell% 8 ,o"ld say let "s go off the gold standard: !"t there has !een no need

that.(ater on enator 3lass sent me% thro"gh 5gden Mills% a er!al apology for his address d"ring the campaign and ,ord that he

made it at RooseeltBs re"est and "pon a solemn ass"rance that there ,o"ld !e no tinkering ,ith the gold standard. Mr. Ms"ggested he ,rite me a note% !"t he neer did. 4o,eer% he did sho, me good ,ill !y ,arning me of a harmf"l and ,icked actdirected against me.

>rnest Q. (indley% a col"mnist s"pporter of the Rooseelt administrations% proides an interesting description of Rooseintellect"al processes)

Mr. Rooseelt at no time said that !y so$nd money he meant the e)isting gold content of the dollar* * * * The conseratnat"rally ass"med he meant a dollar of the e6isting gold content% and Mr. Rooseelt "ndo"!tedly ,as glad to hae them think,itho"t completely "ashing the hopes of the inflationists of ario"s schools.

That hardly corresponds ,ith the promises to enator 3lass or the LCoenantL speech of oem!er ?% #'1.

D>HA(AT85The second great shift into managed c"rrency ,as the Thomas amendment to the Agric"lt"ral Ad9"stment Act of May #1% #

,hich a"thori=ed the President *a+ to direct the ecretary of the Treas"ry to enter agreements ,ith the Federal Resere 0anks for thto cond"ct Lopen market operationsL in p"rchase of goernment !onds to the additional holding of N'%%%: *!+ to isN'%%% of "nsec"red c"rrency ,hich sho"ld !e legal tender: *c+ to fi6 the ,eight of gold in the dollar at not less than $cent or more than / per cent !elo, present rate: *d+ to fi6 the ,eight of siler in the dollar: *e+ to determine the ratio of gold siler: *f+ to adopt "nlimited coinage of siler: *g+ to adopt "nlimited iss"ance of siler certificates: *h+ to set different pricesdomestic and foreign siler.

Congress th"s gae to the President legal a"thority oer money as a!sol"te as that of Ti!eri"s Caesar or 4enry H888% talin4itler. 8t cons"mmated the dreams and promises of eery American tinkerer ,ith the c"rrency since the fo"ndation of the Rep"!lic

As to the LThomas amendment%L Raymond Moley records for April #@% #'')That night there ,as sched"led a conference at the ;hite 4o"se for disc"ssion of the coming meetings ,ith MacDonald and the o0ritish representaties ,ho ,ere on the Atlantic en ro"te .to ;ashington. ;e 9oined the President promptly after dinnerecret

4"ll% ecretary ;oodin% enator Pittman% 4er!ert Feis% James ;ar!"rg% 0"dget Director Do"glas% 0ill 0"llitt% and myself. 0"tneer did get do,n to the !"siness for ,hich ,eBd gathered !eca"se% as ,e filed into the room% Rooseelt handed me the copy ofamendment Thomas had gien him. . . .

At that moment hell !roke loose in the room. Do"glas% ;ar!"rg% and Feis ,ere so horrified that they !egan to scold Mr. Rooseas tho"gh he ,ere a pererse and partic"larly !ack,ard school!oy. $

The sinister character of this action so m"ch inspired and ,elcomed !y the President has no !etter ill"stration than enator >lmThomasB o,n e6position of the amendment in the enate on April 1?th% ,hen he said% among other things)

Mr. President% it ,ill !e my task to sho, that if the Amendment shall preail it has potentialities as follo,s) 8t may transfer frone class to another class in these nited tates al"e to the e6tent of almost N1%%%. This al"e ,ill !e transferred ffrom those ,ho o,n the !ank deposits: secondly% this al"e ,ill !e transferred from those ,ho o,n !onds and fi6ed inestmentsthe Amendment carries and the po,ers are e6ercised in a reasona!le degree% it m"st transfer that N1%%% in the handpersons ,ho no, hae it% ,ho did not !"y it% ,ho did not earn it% ,ho do not desere it% ,ho m"st not retain it% !ack to the other sthe de!tor class of the Rep"!lic% the people ,ho o,e the mass de!ts of the nation.


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This ,o"ld hae !een a transfer of the saings !y self-denial of the thrifty to the hae-nots ,ith engeance attached.All of ,hich ,as reminiscent of ;illiam Jennings 0ryanBs LCross of 3oldL speech% ,hich had ,on for him the nomination of

Democratic party for President thirty-seen years !efore% in #@/.enator Thomas ,as o!io"sly ignorant of the fact that a large part of the de!ts ,hich he ,ished to transfer from the LhaesL to Lhae-notsL ,ere o,ed !y goernments *national% state% and local+ to #%-% holders of ins"rance policies% $%% sain!ank depositors% and other small creditors. The latter incl"ded tens of millions of pr"dent persons ,ith ordinary !ank deposits% toge,ith #1%% mem!ers of !"ilding and loan associations. F"rthermore% more than N#%%% of s"ch de!ts ,ere o,eded"cational% hospital% and other p"!lic-endo,ed instit"tions. Another effect ,as to lessen the de!ts of large corporations% to the !enof their stockholders. These de!ts also lay !ehind the saings of millions of people. This ,as ro!!ing the LCommon ManL forpriileged Lhaes.L

Moley f"rther records that after the passage of the Thomas amendment (e,is Do"glas% Director of the 0"dget% said% L;ell% thithe end of ;estern ciili=ation.L The disaster ,as not "ite that !ad% !"t its reperc"ssions hae !een !ad eno"gh.A f"rther step in managed c"rrency ,as the Congressional P"!lic Resol"tion o. #% of J"ne $% #''% !y ,hich any of the acti

of the President altering the o!ligations ofprivate andp$blic contracts ,ere gien force of la,% no matter ,hether those contracts ,entered into !efore or after the actions of the President. 8t resem!led an e) post facto la,. 8t proided for a!rogation of the gold clain all goernment and priate contracts and s"!stit"ted inflated paper money for their discharge./

The President% haing a!andoned the gold standard and o!tained the a"thority of the Thomas amendment% ,ent into action. 8nfall of #''% farm prices had !een dropping rapidly and "nemployment ,as increasing. ince eptem!er the price of ,heat dropped !y 1$ per cent and "nemployment% according to the American Federation of (a!or fig"res% ,as greater than ,hen Roose,as elected.

5n 5cto!er 11nd the President made an optimistic LfiresideL chat entitled% L;e Are on 5"r ;ay.L 4e anno"nced the deal"atof the dollar as the remedy% and affirmed his intention to see that this ,as carried o"t. 4is important sentences ,ere)

8t !ecomes increasingly important to deelop and apply the f"rther meas"res . . . to control the gold al"e of o"r o,n dollar. . .

8 am a"thori=ing the Reconstr"ction Finance Corporation to !"y gold ne,ly mined in the nited tates at prices to !e determifrom time to time. . . .

;heneer necessary to the end in ie,% ,e shall also !"y or sell gold in the ,orld market. . . .This is a policy and not an e6pedient.

8t is not to !e "sed merely to offset a temporary fall in prices. ;e are th"s contin$ing to move to#ard a managed c$rrency*The a"thority of the RFC to !"y gold can !e "estioned% !"t ,e ,ill let that pass. ;e may gie the inside story in ecretary of

Treas"ry Morgentha"Bs o,n ,ords)0"t a more !asic program to meet the commodity price sit"ation ,as the attempt to raise the price of gold !y goernment p"rch

of gold at high prices. This program ,as !ased on the theory of Professor 3eorge ;arren of Cornell that if the price of gold ,erincrease% commodity prices ,o"ld rise again. . . .

. . . 8 had a telephone installed in the Ca!inet room to keep track of the p"rchases. F. D. R. ,as in a grand h"mor.L8 hae had shackles on my hands for months no,%L he said% Land 8 feel for the first time as tho"gh 8 had thro,n them off.L>ery morning Jesse Jones and 8 ,o"ld meet ,ith 3eorge ;arren in the PresidentBs !edroom to set the price of gold for the d

Franklin Rooseelt ,o"ld lie comforta!ly on his old-fashioned three-"arter mahogany !ed. . . .The act"al price of goldU on any gien day made little difference. +$r o!9ect ,as simply to keep the trend grad"ally "p,

hoping that commodity prices ,o"ld follo,. 5ne day% ,hen 8 m"st hae come in more than "s"ally ,orried a!o"t the state of ,orld% ,e ,ere planning an increase from # to 11 cents. Rooseelt took one look at me and s"ggested a rise of 1# cents.

L8tBs a l"cky n"m!er%L the President said ,ith a la"gh% L!eca"se itBs three times seen.L 8 noted in my diary at the time) L8f any!eer kne, ho, ,e really set the gold price thro"gh a com!ination of l"cky n"m!ers% etc.% 8 think they ,o"ld really !e frightened.L

0"t he rather en9oyed the shock his policy gae to the international !ankers. Montag" orman of the 0ank of >ngland% ,homD. R. called Lold pink ,hiskers%L ,ailed across the ocean) LThis is the most terri!le thing that has happened. The ,hole ,orld ,ilp"t into !ankr"ptcy.L . . . The President and 8 looked at each other% pict"ring foreign !ankers ,ith eery one of their hairs standingend ,ith horror. 8 !egan to la"gh. F. D. R. roared.2

This method of deal"ing the c"rrency of the American people !y steadily increasing the !"ying price of gold contin"ed from 5cto#''% thro"gh Jan"ary% #'?. The general philosophy seemed to !e that if the n"m!er of inches in the yardstick ,ere lessened th

there ,o"ld !e more cloth in the !olt. 8nstead of confidence and sta!ility% it prod"ced ,ide fl"ct"ations and chaos. Concerningmonth of Decem!er% James P. ;ar!"rg% one of Mr. RooseeltBs assistants at the time% states)

J. Maynard Qeynes% ,ho had earlier prono"nced Rooseelt Lmagnificently right%L came o"t ,ith a stinging criticism.Qeynes% "pon ,hom Fisher and ;arren leaned heaily for s"pport% descri!ed the Lgyrations of the dollarL "nder the 3oernme

manip"lation as Lmore like a gold standard on the !oo=eL than an ideally managed c"rrency.And% horror of horrors for ;arren% he characteri=ed as LfoolishL the idea Lthat there is a mathematical relation !et,een the pric

gold and the price of other things.L @

5n Jan"ary '% #'?% the r"!!er-stamp Congress passed the L3old Resere ActL already referred to. The ne6t day an >6ec"5rder fi6ed the gold dollar at #$ $71# grains of gold% nine-tenths fine: that is% a price of N'$ per o"nce of fine gold. The Treas"ry ,to p"rchase all gold offered at this price% !oth domestic and foreign% and to sell at this price to foreigners only. The LprofitL from deal"ation !y the increase in paper money al"e of gold in goernment hands ,as a!o"t N1%%%. 5f this% N#%@%%!ecame a f"nd for the sta!ili=ation of foreign e6change% and N1%% ,as "sed to retire some o"tstanding Treas"ry c"rrenRooseelt a!olished gold coins !"t maintained siler coins.


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A passage in enator 3lassBs a"thori=ed !iography thro,s light on this transaction)5ne night% on s"mmons% 3lass ,ent to the ;hite 4o"se. The President disclosed he ,as planning to capt"re the gold stocks o,nedthe Federal Resere 0anks. 4e e6plained !y !"ying these gold stocks at the then price of N1.$ an o"nce for gold% and immediatelreal"ing the gold at N'$ an o"nce% the Treas"ry ,o"ld hae a LprofitL of N1%@%%: or% as he said% Lnearly N'%%%.L3lass ,as shocked. For a moment he said nothing% scarce !elieing his ears% then protested)

LThat isnBt a Bprofit%B as yo" call itit is nothing !"t a !ookkeeping mark-"p. F"rthermore% that gold yo" are proposing toconfiscate !elongs to the Federal Resere 0anks% and the Treas"ry of the nited tates has neer inested a penny in it. o" areproposing to appropriate something that does not !elong to the 3oernment% and something that has neer !elonged to the3oernment.L

LThe Treas"ry ,ill pay the Federal Resere 0oard for the gold at its present market al"e%L ret"rned Rooseelt.

LAnd confiscate the difference% setting "p a fictitio"s BprofitB on a fictitio"s priceL. . . Rooseelt . . . in"ired)L;hat do yo" think of itLL8 think it is ,orse than anything Ali 0a!aBs forty thiees eer perpetrated%L angrily snapped the Hirginian.

As a res"lt of RooseeltBs manip"lations% ,hat the stat"s of gold is to o"r American c"rrency and goernmental o!ligations is nclear% een to this day. The so-called gold resere for the c"rrency consists of gold certificates iss"ed !y the ecretary of the Treas"to the Federal Resere 0anks. These are not certificates of specific dollars in terms of gold or s"!9ect to demand !y the Resere 0anThey cannot sec"re possession of the gold. James ;ar!"rg descri!es all this)

8t is 9"st as if 8 said)Lo" p"t fo"r do=en eggs in my ,areho"se and 8 ,ill gie yo" a receipt for eggs. ot fo"r do=en eggs. J"st eggs.LThat is not all. nder the terms of this Lgold certificateL the ecretary of the Treas"ry% in his sole discretion% determines ,hethe

the Federal Resere 0anks may get any gold at all for their certificates.o it is not een a receipt for 9"st eggs. 8t is for eggsmay!e.#

5n Fe!r"ary #@% #'$% the "preme Co"rt "pheld the gold legislation in respect to priate contracts !"t declared it "nconstit"tionato goernment o!ligations. The Co"rt% ho,eer% o!sered that no damages co"ld !e recoered% on the gro"nd that holders of so!ligations ,ere not damaged. This ,as an e6traordinary assertion for if the p"rchasing po,er of the citi=ensB money ,ere todiminished !y ? per cent% they certainly had lost something on their holdings of goernment gold-conerti!le o!ligations.

8(H>R R>A(8S> 0RAB DR>AMAD M5R>5n J"ne #$% #'?% Rooseelt sent a long message to Congress asking for a f"rther e6tension of the po,ers to deal"e the g

dollar. 5ne of the incongr"o"s conflicts of intellect"al "nderstanding ,as his e6pressed determination to make the c"rreinconerti!le into gold% !"t at the same time make it conerti!le into siler.

Congress passed a f"rther act promoting siler on J"ne #% #'?. The act proided for enlarging the siler !ase to 1$ per centhe al"e of the metallic reseres. The ecretary of the Treas"ry ,as a"thori=ed to p"rchase siler "ntil the ratio of gold al"e to silal"e in the reseres reached ' to #.

i6 ,eeks !efore this act% May '% #'?% Rooseelt gae an address at a memorial to ;illiam Jennings 0ryan. 4e did not mentthe #/ siler to # gold ratio ,hich ,as the impassioned demand in 0ryanBs LCross of 3oldL speech. 4o,eer% one of the e, Do!9ects of gold deal"ation and moneti=ation of siler ,as apparently to reach for the 0ryan form"la of a topia that ,o"ld tran,ealth from the LhaesL to the Lhae-nots%L increase ,ages% and generally do good.

D"ring the thirty-seen years after 0ryan anno"nced the LCross of 3oldL the American people had re9ected this idea !y holdina conerti!le gold c"rrency. 8n this period ,e had made more progress in the standard of liing and increased comfort than in ,hole of the preio"s h"ndred years.0"t the administration certainly failed to find salation on the rene,ed 0ryan ro"te. At the time of his agitation in #@/% the price rof gold to siler ,as a!o"t ' to #. 8nstead of red"cing gold to a ratio of #/ to #% RooseeltBs deal"ation increased the ratio from $# to Va ratio of @ to #. 3old ,as N1./2 per o"nce and foreign siler a!o"t ? cents per o"nce prior to these acts% and gold ,as N'$o"nce and siler ? cents an o"nce after them. 8t certainly did not prod"ce 0ryanBs millenni"m.G

5ne p"rpose of all this h"!!"! a!o"t siler ,as to satisfy the eighteen siler senators% ,ho o!tained a higher price for domesiler on the specio"s arg"ment that they ,ere increasing employment in siler mines.

As a matter of fact% most domestic siler then and since has come as a !y-prod"ct% and prod"ction increases or decreases ,ithm"ch regard to the price of siler. The total n"m!er of ,orkmen in predominantly siler mines that might hae !een affected ,as than 1%. The domestic premi"m cost the goernment more than N#1%% a year% and N/% per man per ann"m ,as a hprice for proiding these 1% 9o!s. Moreoer% some of them ,o"ld hae kept their 9o!s at the foreign price of siler.

D"ring RooseeltBs first eight years% ,e spent more than N#%%% !"ying foreign siler and !"rying it at ;est Point.5ne tragic effect of this policy of "nlimited siler p"rchases ,as to drain China and 8ndia and Me6ico of siler and th"s fo

them to a!andon their siler standard% to the demorali=ation of their economies.Director of the 0"dget (e,is Do"glas resigned in A"g"st% #'?% and later ,rote)The 3oernment% !y its fiscal policies% has deli!erately laid the !ase for another inflation on a scale so gigantic that the !"!!l

the #1Bs may finally seem small !y comparison. ;e are no, eidently going to hae !igger and more painf"l inflation "n3oernment sponsorship and ind"ced !y direct 3oernment action. The e, Deal is only the former Le, >raL dressed "pdifferent clothes. ;hen the ne6t !"!!le !"rsts% let it not !e forgotten that the responsi!ility lies directly at the door of the presAdministration.##


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5M> 0>>T >C55M8C 48T5R 5F D>HA(AT85The s"!se"ent economic history of RooseeltBs rep"diation of the LcoenantL has some interest. 4is !elief that prices and ,a

,o"ld rise ,ith deal"ation ,as% as 8 hae said% the same ill"sion that !y red"cing the yard to 1#.1 inches from '/ inches% there ,o!e more cloth in the !olt. 8t did not hae this effect.Dr. Rufus S. Tucker, after examining te !ata fr"m man# s"urces,

concl"des#1 that there ,as no apprecia!le relation !et,een c"rrency deal"ation and recoery.An in"iry !y a competent gro"p of economists "nder Dr. >d,in ;. Qemmerer demonstrated that prices and ,ages did not

apprecia!ly in the nited tates from deal"ation.4o,eer% there ,ere fo"r other immediate conse"ences of great importance arising from managed c"rrency and deal"ation.

48FT 8 PR5P>RT 5;>R48PAltho"gh it has not !een inestigated statistically% enator >lmer Thomas et al* did% 8 !eliee% make some shift from the Lhaesthe Lhae-notsL !y a shift in relatie al"e of prior-lien sec"rity holders *,ho ,ere the de!tors+ oer to the e"ity holders. 8 ,tr"stee of a n"m!er of charita!le tr"sts. 8 ,o"ld not preio"sly hae dreamed of approing spec"lation !y s"ch instit"tions throinesting in common stocks. A month after the Thomas amendment and RooseeltBs declaration% 8 felt compelled to adise thinstit"tions that their only possi!le protection lay in conerting !onds into common stocks. The financial position of those instit"ti,hich follo,ed this adice ,as greatly improed. ince then most charita!le tr"sts hae steadily conerted their !onds into commstock. The ,hole of these transactions is a commentary "pon confidence in !onds after #''.

R>(AT8H> HA(> 5F 5R CRR>C T5 F5R>83 CRR>C8>An"ter effect "f !e$a%uati"n &as te cange in te '"siti"n "f "ur m"ne# re%ati$e t" tat "f f"reign c"untries. Tat &as imme!iate'"siti$e, an! !isastr"us. Te f"reigners c"u%! 'a# teir !e(ts t" te )nite! States &it *+ 'er cent %ess g"%! tan (ef"re. Like&ise tc"u%! (u# te same am"unt "f g""!s fr"m te )nite! States &it *+ 'er cent %ess g"%! tan (ef"re. A%s", te# c"u%! (u# Americansecurities an! "ter 'r"'ert# f"r *+ 'er cent %ess g"%! tan (ef"rean! te# !i!. -"ntrari&ise, American (u#ers "f f"reign g""!s

t" 'a# m"re g"%! f"r tem tan (ef"rean! teref"re ("ugt %ess "f tem. Te imme!iate effect &as a $ast increase in te m"$eme"f g"%! int" te )nite! States.

35(D M5H>M>T T5 T4> 8T>D TAT>Rooseelt al,ays seemed to !e in a general fog a!o"t gold moements. 8n the campaign of #'1% he said)De!tor nations% no longer s"stained !y o"r improident loans and no longer a!le to e6port goods% ,ere drained of gold for de

and% one !y one% ,ere forced to a!andon specie payments.#'

This ,as an a!sol"te prearication% as 8 pointed o"t in a campaign address)The gold of >"rope ,as not drained: it has increased in total eery year . . . and is right no, N#%$%% greater. . . .#?

The act"al gold holdings in the nited tates ,ere N'%@$?%% on Jan"ary #% #1% and N?%11/%% on Jan"ary #% #'an increase of only N'21%%.

0"t RooseeltBs deal"ation did ca"se a flood of gold from the ,orld into the nited tates. D"ring the first eight years ofadministration ,e ,ere flooded ,ith more than N#$%%% of foreign gold% for reasons 8 hae stated a!oe. 8t represenforeignersB p"rchases of o"r goods or assets at a ? per cent disco"nt. ;e p"t the gold in the gro"nd at Fort Qno6 ,here it !ro"ghinterest or ret"rnsand ,e paid interest or diidends on the foreignersB inestment.

08D8S83 P>C(AT5R

There ,as still another !y-prod"ct of deal"ation. hre,d American spec"lators either ded"ced from the attit"des of Rooseand his associates that it ,as coming or had inside information. They !o"ght h"ge amo"nts of foreign c"rrencies !efore deal"atand sold them after,ards at h"ge profits and little risk. ome of the men close to RooseeltBs campaign did !ea"tif"lly in this past"rHug "ns"n, "ne "f R""se$e%t/s greatest su''"rters in te cam'aign "f 0+12 an! a su(se3uent ig "fficia% in te Ne& Dea%,u%timate%# recante!. On te !e$a%uati"n, e sai!4

ome siren had slipped in and sold the Administration the age-old fallacy that if it ,o"ld tinker ,ith the c"rrency L9"st-a-leetleco"ld !lo, al"e !ack into deflated assets% and !y LcontrolledL monetary inflation reliee the !"rden of all de!t.

. . . 8t did not ,ork as planned% Lto restore prices to the #1/ leel.L That fail"re ,as important !"t not fatal. The fatal thing ,that a pledge had !een dishonored: that the priceless ingredient of the ,hole e, Deal form"laintegrity, ,hich makes confidenchad !een ad"lterated.#$

There can neer !e 9"stification of a deal"ation of c"rrency e6cept in national !ankr"ptcy or national de!t too great forco"ntry to !ear. o s"ch sit"ation e6isted in #''.

D>HA(AT85 8CR>A>D T4> TAR8FF8n the #'1 campaign% the Democrats had made a great iss"e o"t of the disasters they predicted ,o"ld flo, from the mod

increases in the moot-4a,ley Tariff *mostly agric"lt"ral prod"cts+. The fact ,as that /$ per cent of imported goods "nder that ta,ere free of d"ty% and that legislation increased the tariffs on the '$ per cent d"tia!le goods !y some,here a!o"t # per cent. 0"tgreatest tariff !oost in all o"r history came from RooseeltBs deal"ation.

The res"lt of deal"ation ,as e"ialent to increasing the American tariffs !y ? per cent. And this applied to goods hitherto of d"ty */$ per cent+ as ,ell as to d"tia!le goods. The ca"se of this ,as that the deal"ation did not raise prices in the nited ta!"t raised the price of foreign c"rrencies to American !"yers. For instance% one D"tch g"ilder co"ld !e !o"ght for ? cents prio


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deal"ation. A fe, months after,ards% it cost /2 cents. The prices of foreign goods ,ere not sensi!ly affected. Therefore% an Amerimerchant importing foreign goods had to pay a!o"t $ per cent more for them. The effect ,as the same as if a "niersal tariff of $ cent had !een imposed. This increased charge applied also to p"rchases of foreign serices s"ch as shipping and ins"rance.

The ,hole operation made a mockery of all the Rooseelt red"ction-of-tariff promises.On Marc 22, 0+1*, te 5resi!ent rec"mmen!e! aut"rit# t" c"nsummate

Reciprocal Trade agreements. This ,as his s"pposed compliance ,ith campaign promises to red"ce tariffs. The act ,as passed on J#1th% a"thori=ing agreements to red"ce American tariffs "p to $ per cent. Agreements ,ere concl"ded ,ith seeral co"ntries fr,hich it ,as claimed ,e receied reciprocal adantages. The oerriding fact ,as that haing effectiely increased the tariffs !y a!$ per cent thro"gh deal"ation of the dollar% the end res"lt kept the tariffs a!o"t the same as the moot-4a,ley leel% and

reciprocal tariffs did not affect the ne, ,all of $ per cent aro"nd the /$ per cent of o"r d"ty-free imports.Aside from these indirect increases in tariffs% Rooseelt in his ario"s actiities imposed special tariffs on s"ch e6tensie impas cr"de oil% gasoline% l"!ricating oils% coal% coke% l"m!er% copper% and ,hale oil ,hich had preio"sly !een on the free list.

The act"al res"lt of these special increases ,as later sho,n !y the Department of Commerce to hae lifted the aerage portionimports s"!9ect to tariff to ?#.? per cent from ''.1 per cent d"ring the 4ooer Administration.

This does not take into acco"nt the indirect tariffs thro"gh deal"ation either on d"tia!le or on free imports. ;e can also e6amfrom act"al e6perience the effect of the Rooseelt policies of deal"ation and s"pposed lo,ering of the tariffs. 8f ,e compare the fyears from #12 thro"gh #'a period prior to depression infl"ences and prior to all the tariff action,ith the fo"r years from #thro"gh #'@% after all Mr. RooseeltBs and Mr. 4"llBs tariff tinkering% ,e find that !oth o"r imports and o"r e6ports decreased instof increased.

)ports -mports

.er /apita .er /apita#12-#' . . . . . N'@.1' N'1.$#'$-#'@ . . . . . 1. #2.?

Th"s the heated promises in the campaign of #'1 to increase foreign trade !y reciprocal trade and red"ced tariffs ,ere f"lfilled. 8n fact% RooseeltBs actions greatly destroyed o"r foreign trade.6t migt (e a!!e!, Secretar# Hu%%/s great teme tat is reci'r"ca% tariffs &"u%! 'r"!uce 'eace in te &"r%! a%s" !i! n"t &"rk.

8ndeed !y this c"rrency tinkering the nited tates goernment rep"diated its pledged ,ord% the Democratic party rep"diaplatform pledges% the President of the nited tates rep"diated his p"!lic ass"rances.S"u%! Mr. R""se$e%t meet Senat"r Sm""t in te next &"r%!, is first act s"u%! (e an a'"%"g#.7


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Benito #ssolini (left), t"e ictator of Fascist 2taly, ries in a motor$oat wit" 3.*. *ecretary of *tate 4enry L. *timson in 2taly in -an#ary &'#rin% t"e mile of t"e Great De!ression. 4enry L. *timson was a mem$er of *k#ll 5 Bones, a secret society at Yale 3niversity.(P"oto $y New York 6imes +o.1Getty 2ma%es)

3.*. Presient 4er$ert 4oover (left) a!!ears wit" 3ner *ecretary of t"e 6reas#ry %en L. ills (center), an *ecretary of *tate 4enry L.*timson on Novem$er


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Franklin D. Roosevelt (left), t"e Governor of New York, meets wit" C+olonel >war . 4o#se in &'. (6"e Bettmann /rc"ive)

+o#ncil on Forei%n Relations irectors /llen D#lles (far left) an Norman 4. Davis (center) arrives in Berlin, Germany in /!ril &' to meet Germany@s new c"ancellor /olf 4itler. /llen D#lles was t"e Director of t"e +entral 2ntelli%ence /%ency from &'? to &'H&.(*o#rce0 ,entleman py: T"e Life of Allen Dulles$y Peter Grose)


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4;almar *c"ac"t, t"e Presient of t"e Reic"s$ank (Germany@s central $ank), visits Presient Franklin Delano Roosevelt at t"e W"ite 4o#seWas"in%ton, D.+. on ay H, &'. From left to ri%"t0 +olonel -ames /. 3li#, ilitary /ie to t"e W"ite 4o#seK 4ans L#t"er, /m$assaor frGermanyK 4;almar *c"ac"tK Presient RooseveltK an +a!tain Walter 9ernon, W"ite 4o#se Naval /ie. Franklin Delano Roosevelt was mem0er of the Demo.rati. 7arty- 4;almar *c"ac"t was trie for war crimes at N#rem$er% after Worl War 22. (Bettmann1+RB2*)

3.*. Presient Franklin D. Roosevelt si%ns t"e Gol Bill in Was"in%ton, D.+. on -an#ary 7, &'. Witnesses stanin% in t"e rear incl#e6reas#ry *ecretary 4enry or%ent"a# -r. (secon from left) an Geor%e L. 4arrison (secon from ri%"t), t"e Presient of t"e Feeral ReseBank of New York. Geor%e L. 4arrison was a mem$er of t"e +o#ncil on Forei%n Relations, an internationalist or%aniAation in New York +itan a mem$er of *k#ll 5 Bones, a secret society at Yale 3niversity. (M Bettmann1+RB2*)


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Presient Franklin D. Roosevelt si%ns "is Bankin% >mer%ency Bill, in t"e W"ite 4o#se in Was"in%ton, D. +. on arc" ', &' w"ile *ecretaof t"e 6reas#ry William 4. Wooin looks on, after t"e meas#re "a $een !asse t"ro#%" t"e 4o#se an *enate at #n!receente s!ee, inorer to relieve t"e !resent financial strain. Wooin was a mem$er of t"e +o#ncil on Forei%n Relations. (P"oto0 M Bettmann1+RB2*)

Left to ri%"t0 -ames 4. Do#%las (/ssistant *ecretary of t"e 6reas#ry), William 4. Wooin (*ecretary of t"e 6reas#ry), an /lvin W. 4all(Director of 3.*. B#rea# of >n%ravin% an Printin%) smile for t"e camera on /!ril &8, &' #rin% t"e !ro#ction of t"e new c#rrency, w"ent"ey ins!ecte t"e first o#t!#t of $ills w"ic" "as ke!t t"e $#rea# $#sy for several ays. 6"e $#rea# t#rne o#t S,777,777,777 in c#rrency tos#!!lement t"e $ills in circ#lation !rior to t"e $ank "oliay. William ;- Woodin was a Class B Dire.tor of the Federal Reserve Bank ofNew York from /pril !( !"#$ to 8ar.h &( !"&&- (P"oto0 M 6"e Bettmann /rc"ive1+RB2*)


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3.*. Presient Franklin Delano Roosevelt si%ne t"e T4ome wners Loan /ct of &'T at t"e W"ite 4o#se on -#ne &, &', w"ic" "e saiwas anot"er ste! towars enin% t"e eflation w"ic" is ra!ily e!rivin% millions of farm an "ome owners from t"e title an e#ity of t"eir!ro!erty. Pict#re (L=R) stanin% are0 /.>. 4#tc"isonK Walter NewtonK William F. *tevensonK William F. Br#nnerK -ose!" 6. Ro$insonK +arroerriamK 6. Dwi%"t We$$K 4orace R#ssellK an R#ssell 4awkins. (M Bettmann1+RB2*)

3.*. Presient Franklin Delano Roosevelt affies "is si%nat#re to t"e Glass=*tea%all $ank reform $ill on -#ne &H, &'. Be"in t"e Presienare (left to ri%"t)0 *en. /llen Barkley, *en. 6"omas Gore, *en. +arter Glass, +om!troller of +#rrency -.F.6. +onnors, *en. William G. c/(former *ecretary of t"e 6reas#ry), Re!. 4enry *. *tea%all, *enator D#ncan 3. Fletc"er, Re!. /lan Gols$oro#%", an Re!. Ro$ert L#ce.

(M Bettmann1+RB2*)


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Presient Franklin D. Roosevelt si%ns t"e 1o.ial 1e.urity Billin Was"in%ton, D.+. on /#%#st &, &'?. From left are0 Re!. Ro$ert LeeDo#%"ton (D=Nort" +arolina), +"airman of t"e 4o#se Ways an eans +ommitteeK *en. Ro$ert F. Wa%ner ($orn in Germany, D=New Yorkco=a#t"or of t"e $ill, *ecretary of La$or Frances Perkins, *en. Byron Pat 4arrison (D=ississi!!i), +"airman of t"e *enate Finance+ommittee, Re!. Davi -. Lewis (D=arylan), co=a#t"or of t"e meas#re. (/ssociate Press)

Left to ri%"t0 Reic"s$ank Presient an NaAi German >conomics inister 4;almar *c"ac"t, former 3.*. Presient 4er$ert 4oover, an/merican /m$assaor to NaAi Germany 4#%" R. Wilson ress for t"e occasion at a rece!tion "el in Berlin on arc"


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Plans to gie !"siness and ind"stry and important oice in the c"rrent e, Deal monopoly inestigation ,ere form"lated at ameeting of the PresidentEs adisory co"ncil at the Department of Commerce in ;ashington% D.C. on 5cto!er /% #'@. 8n thepict"re% left to right) ;. Aerell 4arriman% Chairman of the adisory co"ncil and Chairman of the !oard of nion PacificRailroad Co.: ecretary of Commerce Daniel A. Roper: ;illard (. Thorp% Adisor to the Department of Commerce on>conomic t"dies and a mem!er of the Monopoly Committee: and Assistant ecretary of Commerce Richard C. Patterson% ala mem!er of the committee. Aerell 4arriman% ;illard (. Thorp% and Richard C. Patterson ,ere mem!ers of the Co"ncil onForeign Relations: Aerell 4arriman ,as a mem!er of k"ll & 0ones.*Photo) 4arris & >,ing Collection7(i!rary of Congress+http)77,,,.loc.go7pict"res7item7hec1##@?7sidW@ae2f?!'cff?f$!a#2/@e/a11ae$
http://www.loc.gov/pictures/item/hec2009011840/?sid=8a9e7f4b3cff4f5ba017968e6a229ae5http://www.loc.gov/pictures/item/hec2009011840/?sid=8a9e7f4b3cff4f5ba017968e6a229ae5


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.. enator John 3. To,nsend *left% Rep"!lican-Dela,are+% 5,en D. o"ng of 3eneral >lectric Company *center+% and .enator Carter 3lass *right% Democrat-Hirginia+ attend a !ank !ill hearing on May '#% #'$. 5,en D. o"ng ,as a mem!erthe Co"ncil on Foreign Relations. *Photo) 4arris & >,ing Collection: (i!rary of Congress+


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A photo of ilas 4. tra,n *left+% of Chicago: James ;. pangler *center+% of eattle: and >liot ;ads,orth% of 0oston: snappas they attended the ann"al meeting of the 0oard of Directors of the .. Cham!er of Commerce in ;ashington% D.C. onJan"ary 1@% #'@. ilas 4. tra,n and >liot ;ads,orth ,ere mem!ers of the Co"ncil on Foreign Relations.*Photo) 4arris & >,ing Collection7(i!rary of Congress+


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5,en D. o"ng% Chairman of the !oard of 3eneral >lectric Company% takes an oath !efore testifying !efore Monopoly8nestigating Committee on May #2% #'. 5,en D. o"ng ,as a mem!er of the Co"ncil on Foreign Relations.*Photo) 4arris & >,ing Collection: (i!rary of Congress+


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Appearing !efore the pecial enate Committee on "nemployment in ;ashington% D.C. on Jan"ary ?% #'@% Federal Resere 0oardChairman Marriner >ccles declared that payment of the soldiers !on"s in #'/ helped create price distortion that p"shed recoery o

of !alance and led to,ard the c"rrent !"siness recession. *Photo) 4arris & >,ing Collection7(i!rary of Congress+

American ational De!t d"ring the #1s% 3reat Depression% and ;orld ;ar 88

J"ly #% ## - N12%'%2%##'.#1J"ly #% #1 - N1$%$1%?$/%?/.#/J"ne '% #1# - N1'%22%?$%$$1.$?J"ne '% #11 - N11%/'%'@#%2@.'#J"ne '% #1' - N11%'?%22%'/$.'/J"ne '% #1? - N1#%1$%@#1%@.?J"ne '% #1$ - N1%$#/%#'%@@2.J"ne '% #1/ - N#%/?'%1#/%'#$.#J"ne '% #12 - N#@%$##%/%'#.@$J"ne '% #1@ - N#2%/?%1'%1#.?'J"ne 1% #1 - N#/%'#%@@%?@?.#J"ne '% #' - N#/%#@$%'%@'#.?'J"ne '% #'# - N#/%@#%1@#%?#.2#J"ne '% #'1 - N#%?@2%1%???.#'

J"ne '% #'' - N11%$'@%/21%$/.#$J"ne '% #'? - N12%$'%#?#%?#?.?@J"ne 1% #'$ - N1@%2%@1%/1?.$'J"ne '% #'/ - N''%22@%$?'%?'.2'J"ne '% #'2 - N'/%?1?%/#'%2'1.1J"ne '% #'@ - N'2%#/?%2?%'#$.?$J"ne '% #' - N?%?'%$'1%?##.##J"ne 1% #? - N?1%/2%$'#%'2./@J"ne '% #?# - N?@%/#%??'%$'$.2#J"ne '% #?1 - N21%?11%??$%##/.11J"ne '% #?' - N#'/%//%%'1.J"ne '% #?? - N1#%'%'@2%11#.#'J"ne '% #?$ - N1$@%/@1%#@2%?.'J"ne 1@% #?/ - N1/%?11%%#2'.1/

o"rce) http)77,,,.treas"rydirect.go7got7reports7pd7histde!t7histde!tXhisto'.htm

otes)>"gene Meyer ,as the Chairman of the Federal Resere 0oard from eptem!er #/% #' to May #% #''.>"gene R. 0lack ,as the Chairman of the Federal Resere 0oard from May #% #'' to A"g"st #$% #'?.Marriner >ccles ,as the Chairman of the Federal Resere 0oard from oem!er #$% #'? to Jan"ary '#% #?@.
http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo3.htmhttp://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo3.htm


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Directors of t"e +o#ncil on Forei%n Relations #rin% t"e Great De!ression (&''=&'')

R#ssell +. Leffin%well Pa#l War$#r% wen D. Yo#n% tto 4. :a"n Norman 4. Davis

-o"n W. Davis Frank L. Polk Geor%e W. Wickers"am /llen W. D#lles Pa#l D. +ravat"

saia" Bowman &'&=&'?7 Presient of -o"ns 4o!kins 3niversity (&'?=&'#cation (&'&'=&'H)>win F. Gay &'&=&'? Professor of >conomic 4istory at 4arvar 3niversity (&'=&'H)tto 4. :a"n &'&=&' Partner of :#"n, Loe$ 5 +o. I$ankin% firmJ (&conomics at +ol#m$ia 3niversity (&'&=&'&', &'=&')wen D. Yo#n% &'8=&'7 +"airman of t"e $oar of General >lectric +o. (&'=&'', &'=&')

+lass + Director of t"e Feeral Reserve Bank of New York (&'H=&'7)De!#ty +"airman of t"e Feeral Reserve Bank of New York (&'8=&'8)+"airman of t"e Feeral Reserve Bank of New York (&'


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Coun.il on Forei4n Relations 8em0ers and Their 5..upation durin4 theWall 1treet 1to.k 8arket Crash in 5.to0er !"#"

Name em$er (Year) Primary cc#!ationBankers:

6"omas W. Lamont &'&=&'8 Partner of -.P. or%an 5 +o. (&'&&=&'itor of T"e New Yor- Times(&'&=&'8)4amilton Fis" /rmstron% &'&=&'8 >itor of Foreign Affairsma%aAine (&'itor=in=+"ief of *cri!!s=4owar News!a!ers INew York +ityJ (&'8=&'')5r4ani


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-erome D. Greene &'&=&'?7 6r#stee of t"e Rockefeller Fo#nation (&'&=&'&8, &'!isco!al Bis"o! for t"e >!isco!al Diocese of assac"#setts (&'8=&'7)Colle4e /dministrators:

/. Lawrence Lowell &'?=&' Presient of 4arvar 3niversity (&'7'=&')-ames R. /n%ell &'. Brown &'&=&' Presient of New York 3niversity (&'&&=&')4enry . Wriston &'H=&'8< Presient of Lawrence 3niversity I/!!leton, WisconsinJ (&'?=&'8)-osia" 4. Penniman &'8=&' Provost of 3niversity of Pennsylvania (&'=&'')+"arles *eymo#r &'&=&'H& Provost of Yale 3niversity (&'8=&'8)/. Wellin%ton 6aylor &'&=&'H Dean of Gra#ate *c"ool of B#siness /ministration at New York 3niversity (&'&'=&')>.R./. *eli%man &'&=&'' c9ickar Professor of Polit ical >conomy an Finance at +ol#m$ia 3niversity (&'7=&'&)*am#el c+#ne Linsay &'&=&'' Professor of *ocial Le%islation at +ol#m$ia 3niversity (&'78=&'')Wesley +. itc"ell &'=&'< Professor of >conomics at +ol#m$ia 3niversity (&'&=&'&', &'=&')+arlton -.4. 4ayes &'?=&'?& Professor of 4istory at +ol#m$ia 3niversity (&'&'=&'?7)Geor%e Grafton Wilson &''=&'?7 Professor of 2nternational Law at 4arvar 3niversity (&'&7=&'H)>win F. Gay &'&=&'H Professor of >conomic 4istory at 4arvar 3niversity (&'=&'H)+live Day &'&=&'?& :no Professor of Political >conomy at Yale 3niversity (&'=&'H)>win W. :emmerer &'8=&'? Walker Professor of 2nternational Finance at Princeton 3niversity (&'


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Coun.il on Forei4n Relations 8em0ers and Their 5..upationdurin4 the 2reat Depression !"#"%!"&"'

Name em$er (Year) cc#!ation #rin% t"e Great De!ressionBankers:

6"omas W. Lamont &'&=&'8 Partner of -.P. or%an 5 +o. (&'&&=&'!ort +o. (&'=c.&'7)9ice Presient in c"ar%e of overseas o!erations, General otors +or!. (&'=c.&'7)Note0 ooney met wit" 4itler on arc" , &'7 an wit" Goerin% on arc" 8, &'7

/ttorneys:


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-o"n W. Davis &'&=&'?? em$er of Davis, Polk, Warwell, Gariner 5 Ree Ilaw firmJ (&'&=&'??)Frank L. Polk &'&=&' em$er of Davis, Polk, Warwell, Gariner 5 Ree Ilaw firmJ (&'&=&')/llen Warwell &'&=&'? em$er of Davis, Polk, Warwell, Gariner 5 Ree Ilaw firmJ (&'7'=&'?)Lansin% P. Ree &'7=&'H em$er of Davis, Polk, Warwell, Gariner 5 Ree Ilaw firmJ (&'&?=&'8)-o"n Foster D#lles &'&=&'?' em$er of *#llivan 5 +romwell Ilaw firmJ (&'&&=&'')>#stace *eli%man &'H=&'8H em$er of *#llivan 5 +romwell Ilaw firmJ (&'=&'8H)/llen W. D#lles &'8=&'H' em$er of *#llivan 5 +romwell Ilaw firmJ (&'H=&'?&)*evero allet=Prevost &'&=&'< em$er of +#rtis, allet=Prevost 5 +olt Ilaw firmJ (&m#n >. Day &'=&' Presient of +ornell 3niversity (&'8=&'')saia" Bowman &'&=&'?7 Presient of -o"ns 4o!kins 3niversity (&'?=&'rnest . 4o!kins &'7=&'? Presient of Dartmo#t" +olle%e (&'&H=&'?)

*tanley :in% &'=&'?7 Presient of /m"erst +olle%e (&'=&'H):ennet" +.. *ills &'


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>.R./. *eli%man &'&=&'' c9ickar Professor of Polit ical >conomy an Finance at +ol#m$ia 3niversity (&'7=&'&)Leo Wolman &'=&'?< Professor of >conomics at +ol#m$ia 3niversity (&'&=&'?win W. :emmerer &'8=&'? Walker Professor of 2nternational Finance at Princeton 3niversity (&'#cation at 6eac"ers +olle%e, +ol#m$ia 3niversity (&'&=&'H)

Re%ional irector, *ocial *ec#rity Boar (&'H=&'itor (&'&=&'8) an >itor=in=+"ief (&'8=&'


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Prominent em$ers of t"e +o#ncil on Forei%n Relations #rin% t"e Great De!ression (&''=&'')

Bankers an B#sinessmen0

4enry *. or%anPartner of -.P. or%an 5

+o. (&'


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B#sinessmen an Lawyers0

Walter *. GifforPresient of /merican

6ele!"one an 6ele%ra!"+o. I/656J (&'?=&'


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Government fficials0

/nrew W. ellon*ecretary of t"e 6reas#ry

(&'&=&')

%en L. ills*ecretary of t"e 6reas#ry

(&'=&')K 3ner*ecretary of t"e 6reas#ry

(&'8=&')

+"arles G. Dawes3.*. /m$assaor to

Great Britain (&''=&'&)

4#%" Gi$son3.*. /m$assaor toBel%i#m (&'8=&',

&'8=&'win R./. *eli%manc9ickar Professor ofPolitical >conomy anFinance at +ol#m$ia

3niversity (&'7=&'&)

Wesley +. itc"elProfessor of >conomic

+ol#m$ia 3niversit(&'&=&'&', &'=&'


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r%aniAation >ec#tives an -o#rnalists0

*te!"en P. D#%%anDirector of 2nstit#te of

2nternational >#cation(&'&'=&'H)

-erome D. Greene6r#stee of t"e RockefellerFo#nation (&'&=&'&8,

&'nowment for2nternational Peace

(&'&7=&'7)

Raymon B. FosickPresient (&'H=&'itor (&'&=&'8) an >itor=in=+"ief(&'8=&'


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Paris Peace +onference, 2nternationalism,5 (P"ony) Disarmament

>war . 4o#se (stanin%, far left) a!!ears wit" mem$ers of t"e +ommission on Lea%#e of Nations in /!ril &'&'. Primeinister of 2taly 9ittorio rlano is seate t"ir from ri%"tK 3.*. Presient Woorow Wilson is stanin% at center. -a!anese/m$assaor to Great Britain *#temi +"ina an -a!anese i!lomat No$#aki akino are seate, res!ectively, on t"e far left.Ro$ert +ecil, a em$er of t"e Britis" Parliament an a mem$er of t"e ilner Gro#!, is seate fo#rt" from left. +"inese i!loDr. 9.:. Wellin%ton :oo is stanin%, fo#rt" from ri%"t. (P"oto0 an#scri!ts 5 /rc"ives, Yale 3niversity)

No$#aki akino@s a#%"ter was marrie to *"i%er# Yos"ia, t"e !ostwar Prime inister of -a!anK No$#aki akino@s %reat=%ranson is 6aro /so, t"e former Prime inister of -a!an.


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em$ers of t"e 2n#iry a!!ear to%et"er at t"e Paris Peace +onference in &'&'. *eate, from left to ri%"t0 +"arles 4omer 4askins, 2saia"Bowman, *iney eAes, -ames Brown *cott, an Davi 4#nter iller. *tanin%, from left to ri%"t0 +"arles *eymo#r, Ro$ert 4. Lor, W. L

Westermann, ark -efferson, >war . 4o#se, Geor%e Lo#is Beer, Do#%las W. -o"nson, +live Day, W. >. L#nt, -ames 6. *"otwell, an/llyn /. Yo#n%. >veryone in t"at !"oto ece!t for Westermann, -efferson, Beer, an L#nt were mem$ers of t"e +o#ncil on Forei%n Relatio>war . 4o#se was t"e fo#ner of t"e +o#ncil on Forei%n Relations, an internationalist or%aniAation locate in New York +ity.(P"oto0 an#scri!ts 5 /rc"ives, Yale 3niversity)

Prominent mem$ers of t"e +o#ncil on Forei%n Relations w"o serve as /merican am$assaors to Great Britain $efore an after Worl Wa

-o"n W. Davis, Frank B. :ello%%, /lanson B. 4o#%"ton, +"arles G. Dawes, /nrew W. ellon

W. /verell 4arriman, Lewis W. Do#%las, Walter *. Giffor, Wint"ro! W. /lric", -o"n 4ay W"itney, Davi :.>. Br#ce


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From left to ri%"t0 Prime inister of Great Britain Davi Lloy Geor%e, Prime inister of 2taly 9ittorio rlano, Prime inister o

France Geor%es +lemencea#, an Presient of t"e 3nite *tates of /merica Woorow Wilson meet at t"e Paris Peace+onference in 9ersailles, France, near Paris, in &'&'.


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(eag"e of ations Assem!ly in #'1. The nited ations s"cceeded the (eag"e of ations in #?$.

(eag"e of ations 4ead"arters in 3enea% ,it=erland


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>"ropean enoys ascend the steps to the .. tate% ;ar% and ay !"ilding in ;ashington% D.C. in #1# to !egin the ;ashingtonaal Conference designed to set limits on naal fleets. *Photo) ational Archies+

0ritish% French% and 3erman diplomats meet at (ocarno% ,it=erland in #1$ to improe diplomatic relationships !et,een the threenations. *Photo) 0ildarchi Pre"ssischer Q"lt"r!esit=+


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6"e first official !"oto%ra!" of t"e +onference on Limitation of /rmaments on Novem$er , &'&, at t"e o!enin% of t"e t"ir Plenary session t"e 4ea#arters of t"e B./.R. is s"own. *eate at t"e "ea of t"e ta$le are left to ri%"t Premier /ristie Brian, of FranceK *enator sca3nerwooK 4on. >li"# Root, an *enator 4enry +a$ot Lo%e, t"e /merican Dele%ationK *ecretary of *tate +"arles >vans 4#%"es, t"e+"airmanK 4on. /rt"#r -ames Balfo#r, Lor Lee of Fare"am an *ir /#cklan Gees, (Britis" /m$assaor at Was"in%ton). /l$ert *arra#tan Rene 9iviani, Frenc" ele%ation. *eate on t"e ri%"t sie left to ri%"t are *enator /l$ertini, /m$assaor Rolano Rioot, an *enator +*c"anAer, of 2talyK *rinavasa *astri, of 2niaK *ir -o"n *al"on, of New UealanK *enator Geor%e Pearce, of /#straliaK an *ir Ro$ert Boreof +anaa. *eate at t"e ta$les in t"e fore%ro#n, (facin% 4#%"es), are left. >li"# Root an +"arles >vans 4#%"es were mem$ers of t"e

+o#ncil on Forei%n Relations. (3nerwoo 5 3nerwoo1+RB2*)

W"ile 3.*. *ecretary of *tate 4enry *timson looks on, -a!anese /m$assaor :ats#;i De$#c"i si%ns t"e :ello%%=Brian Pact an "o#r !rior

t"e ratification ceremony on -#ly , &''. (+RB2*)


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Frank B. :ello%% (center), 3nite *tates *ecretary of *tate, si%ns t"e :ello%%=Brian Pact in t"e +lock *alon in Paris, France on /#%#st 8&'


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Feli War$#r% (left), 9era WeiAmann, Friea *c"iff War$#r%, an +"aim WeiAmann a!!ear at a Boston conference for t"e 3nite Palestine/!!eal in &'m#n /llen$y (left) an 4i%" +ommissioner of Palestine *ir 4er$ert *am#el(ri%"t) #rin% "is visit to -er#salem for t"e o!enin% of t"e 4e$rew 3niversity in /!ril &'?.


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Feli War$#r% an "is $rot"er a War$#r% visit -er#salem on /!ril ec#tive +ommittee of t"e -oint Distri$#tion +ommitteeK Rev. 4. Pereira enesK orris >n%elman, em$er of t"e >ec#t+ommittee of t"e -D+. a War$#r% was a irector of 2.G. Far$en.

6"e War$#r% $rot"ers !ose for a %ro#! !"oto on /#%#st &, &''. From left to ri%"t0 Pa#l War$#r%, Feli War$#r%, a War$#r%, FritAWar$#r%, an /$y War$#r%. Pa#l War$#r% was t"e 9ice +"airman of t"e Feeral Reserve #rin% WW2K a War$#r% was Germany@sre!resentative at t"e Paris Peace +onference in 9ersailles, France in &'&'. (P"oto0 T"e *ar+urgs$y Ron +"ernow)


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em$ers of t"e Re!arations +ommission a!!ear to%et"er at t"e Paris Peace +onference in &'&'. *eate from left to ri%"t0 4er$ert 4ooveGen. 6asker Bliss, W. *. Benson, Bernar Bar#c", an 4enry . Ro$inson. *tanin% from left to ri%"t0 6"omas W. Lamont (7artner of ,-78or4an 9 Co-), W"itney 4. *"e!arson, Norman 4. Davis, >war . 4o#se, Goron /#c"incloss, an 9ance c+ormick. >veryone in t!"oto ece!t for Bernar Bar#c" an W. *. Benson were mem$ers of t"e +o#ncil on Forei%n Relations. 6"e Re!arations +ommissionm!ose "ars" re!arations on Germany w"ic" wo#l lea to t"e *econ Worl War.

Brown Brot"ers 4arriman 5 +o. !artners (from left to ri%"t) >. Rolan 4arriman, Prescott B#s", :ni%"t Woolley, an Ro$ert Lovett meet!rivately at t"e Brown Brot"ers 4arriman office on -#ly


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Governor of New York an Democratic Party !resiential caniate Franklin D. Roosevelt (left) meets wit" C+olonel >war . 4o#se in&'. C+olonel >war . 4o#se was a mem$er of t"e +o#ncil on Forei%n Relations. (6"e Bettmann /rc"ive)

3.*. 3nersecretary of *tate an Presient Franklin RooseveltQs s!ecial envoy to >#ro!e, *#mner Welles (left), wit" 3.*. /m$assaor toGreat Britain, -ose!" P. :enney (ri%"t), say %oo$ye to First Lor of t"e /miralty, Winston +"#rc"ill, after !ayin% "im a visit in Lonon onarc" 8, &'7. Winston +"#rc"ill was t"e Prime inister of Great Britain from ay &7, &'7 to -#ly H, &'? an from cto$er H, &'?&

/!ril 8, &'??. (P"oto0 Rany Faris1+RB2*)


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or%an Partners meet in t"e ca#c#s room of t"e *enate ffice B#ilin% in Was"in%ton, D.+. on ay &, &' as t"e or%an 4earin%reo!ene. Left to ri%"t0 -#ni#s *. or%an, son of -.P. or%an, 4arol *tanley, Geor%e W"itney, 6"omas W. Lamont, an Fre *c"wartA of Davis IPolk, WarwellJ law firm (co#nsel for or%an). >veryone ece!t for Fre *c"wartA was a mem$er of t"e +o#ncil on Forei%n Relatio(P"oto0 Bettmann1+RB2*)

-.P. or%an 5 +o. !artners 6"omas W. Lamont (left) an Geor%e W"itney (center) avise t"eir $oss -.P. C-ack or%an -r. in -an#ary &'H6"omas W. Lamont an Geor%e W"itney were mem$ers of t"e +o#ncil on Forei%n Relations.


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Former Britis" Prime inister Davi Lloy Geor%e (left, *e!tem$er , &') an former /merican Presient Woorow Wilson (ri%"t, Novem&, &') a!!ear on t"e front cover of Timema%aAine.

+o#ncil on Forei%n Relations fo#ner >war . 4o#se (left, -#ne ?, &') an former Prime inister of France Geor%es +lemencea#(-an#ary , &'H) a!!ear on t"e front cover of Timema%aAine.


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Britis" Prime inister -ames Ramsay aconal (left, cto$er 8, &'') an Britis" +"ancellor of t"e >c"e#er Neville +"am$erlain (ri%"t/!ril ?, &') a!!ear on t"e front cover of Timema%aAine.

Governor of t"e Bank of >n%lan onta%# +. Norman (left, /#%#st &', &'')K Britis" *ecretary of *tate for t"e +olonies Leo!ol +. CLeo/mery (ri%"t, -an#ary , &'8) a!!ear on t"e front cover of Timema%aAine.


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6"e Rise of 2m!erial -a!an

From the Grassy Knoll in ar!in, )hina:

Lone Gunman or Patsy?The Assassination of 8to 4iro!"mi% Former Prime Minister of Japan%

!y Qorean Patriot Ahn J"ng-ge"n *5cto!er 1/% #+

7m =ust a patsyH;: Qorean patriot Ahn J"ng-ge"n assassinates and kills Japanese diplomat 8to 4iro!"mi% ,ho sered as

Resident 3eneral of Qorea from Decem!er 1#% #$ to J"ne #?% #% at the 4ar!in Rail,ay tation in 4ar!in% ChinaManch"riaU on 5cto!er 1/% #. *Painting) http)77,,,.pennfamily.org7Q-A7korean-on-stamp-$.html+
http://www.pennfamily.org/KSS-USA/korean-on-stamp-5.htmlhttp://www.pennfamily.org/KSS-USA/korean-on-stamp-5.html


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J.P. Morgan & Co. partner Thomas ;. (amont *T;(+ *third from right+ and 0oston la,yer Jeremiah mith Jr. *second from right+mem!er of 4errick% mith% Donald & Farley la, firm in 0oston% isit the Mei9i *hinto+ hrine in Tokyo% Japan in 5cto!er #12.Thomas ;. (amont and Jeremiah mith Jr. ,ere mem!ers of the )ouncil on Forei#n Relationsin #12. 0oth Thomas ;. (amonand Jeremiah mith Jr. earned a 0achelor of Arts degree at 4arard niersity in #@1.

*o"rce) The 0mbassador from all "treet: The "tory of Thomas * amont, 3* .* Morgan4s /hief )ec$tive!y >d,ard M. (amon


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em$ers of t"e -a!anese ele%ation to t"e Worl >conomic +onference in Lonon $i %oo$ye to 3.*. Presient Franklin Delano Roosevat t"e W"ite 4o#se in Was"in%ton, D.+., 3.*./. on ay 8, &'. Left to ri%"t0 9isco#nt :ik#;iro 2s"ii, "ea ele%ate an former -a!anese/m$assaor to t"e 3.*. (&'&conomic aviserK Presient RooseveltK -a!anese $anker >i%o F#kai (Governor of Bank of -a!an from &'? to &'8)K an :ats#;i De$#c"i, -a!anese /m$assaor to t"e 3.*. (2ma%e0 M Bettmann1+RB2*)

Cro,n Prince 4irohito of Japan *left+ appears ,ith Qing 3eorge H of 3reat 0ritain in (ondon in #1#.*Photo)Hirohito: 5ehind the Myth!y >d,ard 0ehr+


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R#ssian an -a!anese i!lomats ne%otiate t"e 6reaty of Portsmo#t" in Portsmo#t", New 4am!s"ire in &'7?. From left to ri%"t0 t"e R#ssiaat far sie of ta$le are :orostovetA, Navo"off, *er%ei Witte (former Finance inister of R#ssia), Roman Rosen (R#ssian /m$assaor to t"e3nite *tates of /merica), PlancoffK an t"e -a!anese at near sie of ta$le are /ac"i, c"iai, -#taro :om#ra (Forei%n inister of -a!an a%ra#ate of 4arvar Law *c"ool), :o%oro 6aka"ira (later -a!anese /m$assaor to 2taly), *ato. 6"e lar%e conference ta$le is toay !reservat t"e #se#m ei;i #ra in 2n#yama, /ic"i Prefect#re, -a!an. (P"oto $y P. F. +ollier 5 *on)

3.*. Presient 6"eoore Roosevelt (center) meets wit" !eace envoys from R#ssia an -a!an at t"e si%nin% of t"e 6reaty of Portsmo#t" inPortsmo#t", New 4am!s"ire in &'7?.


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(eft to right) Capt. 8sorok" amamoto% Japanese naal attachK in ;ashington% D.C.% .. ecretary of the ay C"rtis D.;il!"r% another Japanese naal officer% and Adm. >d,ard ;. >!erle% Chief of .. aal 5perations% on Fe!r"ary #2% #1/.*Photo) (i!rary of Congress% ;ashington% D.C. *digital. id. npcc 12$?++*o"rce) http)77media-1.,e!.!ritannica.com7e!-media7?@7#1@2?@-$-'@?F$A01.9pg+
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