Chapter 40 4. The bankers who made a lot of war money

When the United States entered the war on April 6, 1917, Wilson handed over major powers in the country to three sets of men who had contributed most to his campaign: Paul.Warburg mastered the American banking system; Bernard.Baruch served as chairman of the Wartime Industries Committee; Eugene.Mayer took control of Wartime Finance Corporation.warburg brothers Paul's elder brother Max was the head of the German intelligence service at the time, while Paul was the highest financial decision maker in the United States and the vice chairman of the Federal Reserve; the third brother Felix was a senior partner of Leibokuhn Company, and the fourth brother Fritz was Chairman of the Hamburg Metal Exchange, who represented Germany in a secret peace with Russia.The four brothers are all top figures in Jewish banking families.

Regarding the information about Paul Brothers, the secret report of the U.S. Navy on December 12, 1918 stated: Paul.Warburg: New York, German descent, naturalized US citizen in 1911.In 1912, he was awarded by the German Emperor.Served as vice chairman of the Federal Reserve.One brother served as head of German intelligence.Another report mentions that the Kaiser (Wilhelm II) once slapped the table and yelled at Max, are you always right?But then I will listen carefully to Max's views on finance. Curiously, Paul had resigned from the Federal Reserve in May 1918, which is not mentioned in this report.After the United States entered the war, because Paul's brother served as the head of the German intelligence service, Paul could theoretically be accused of collaborating with the enemy, but in fact no one in the United States can touch Paul, who holds the financial lifeline.In June 1918, after Paul resigned from the Federal Reserve, he wrote Wilson a note: I have two brothers who are bankers in Germany.Naturally they are helping their country as much as they can right now, just as I am helping mine.

Bernard.Baruch: The Czar of Wartime American Industry Ballou, who started out as a speculator, merged six major American tobacco companies in 1896 and established the United Tobacco Company. Later, he helped the Guggenheim family merge the American copper mining industry.He also worked with Sheff's Harriman to take control of New York's transit system.In 1901, together with his brother, he founded Balloo Brothers. When President Wilson appointed Baruch chairman of the U.S. War Industries Board in 1917, he immediately had the life and death power over all U.S. industrial companies.His annual procurement amount is as high as 10 billion US dollars, and almost one person alone determines the price of the US government's war material procurement.In a later congressional hearing in 1935, Ballou said: President Wilson gave me a letter authorizing me to take over any factory or industrial enterprise.Me and Gage, President of U.S. Steel Corporation.Gary had a bit of a bad time, and when I showed him the letter, he said: Looks like we need to sort out our differences, which he did.

Some members of Congress questioned Baruch's qualifications to exercise the power of life and death in American industry, believing that he was neither an industrialist nor spent a day in a factory. He himself also stated in congressional hearings that his occupation was a speculator. The New Yorker reported that Ballou once made $750,000 in a day after learning of the false peace news circulating in Washington. Eugene.Mayer's Wartime Finance Corporation Eugene.Meyer's father is the famous international bank Lieder.A partner at Fryer & Co., Eugene had an uncanny enthusiasm for public office.He once co-founded an Alaska gold mining company with Ballu, and conspired with him in some other financial matters, so he was considered an old acquaintance.

One of the important missions of wartime financial companies is to sell U.S. treasury bonds to provide financial support for the war. One of the most egregious acts of Eugene's War Finance Corporation was its false accounting.Later, when Congress investigated the company, the company unexpectedly revised its accounts temporarily every night, and then showed it to congressional investigators the next day.In the two investigations of the company led by Senator McFadden in 1925 and 1930, a large number of problematic accounts were found: the number of duplicate bonds amounted to 2,314 sets, and the number of duplicate discount coupons amounted to four. One thousand six hundred and ninety-eight groups, denominations ranging from fifty dollars to ten thousand dollars, redemption date until July 1924.Some of these duplications were errors, others were frauds.

No wonder Eugene was able to buy the Union Chemical and Dye Company after World War I, and later the Washington Post. It is estimated that Eugene's false accounts caused at least hundreds of millions of dollars in the national debt difference. Statinius: The Founder of the American Military-Industrial Complex Stetinius was a meticulous person, obsessed with details, and made a fortune in grain speculation in Chicago in his early years.He was spotted by Morgan during the war and was in charge of the export department, mainly responsible for arms procurement.He became the world's largest consumer during the war, buying up to $10 million a day in military supplies, which he then shipped, insured, and shipped to Europe.He spared no effort to improve production efficiency and transportation efficiency. With one order from his headquarters at 23 Wall Street, countless agents and manufacturers of military components poured into his office building, and he set up an office in front of almost every door guard.Every month, his purchases are equivalent to the gross national product of the world twenty years ago.The Germans never thought that the United States could switch to the military industrial production track in such a short period of time.

morgan's confidant davidson As a senior partner of JP Morgan, Davidson has made great contributions to the Morgan Empire. He has obtained the fat of the American Red Cross, thus controlling the huge sum of US$370 million donated by the American people.