The Wall Street General who rebuilt Germany's economy
In short: While some wanted to dismantle Germany's industrial power after World War II, one man argued that rebuilding it was the only path to peace. Known as the "Wall Street General," William Henry Draper Jr. traded his uniform for economic blueprints to shape the modern West.
Following World War II, the United States faced a critical dilemma regarding the future of Germany. The Morgenthau Plan proposed deindustrializing the nation, effectively turning it into a pastoral country to prevent any future military resurgence. However, Draper, serving as the chief of the Economics Division for the Allied Control Council for Germany from 1945 to 1947, vehemently opposed this approach. He advocated for a rapid economic recovery built on liberal free-market and democratic principles, a vision later championed by Konrad Adenauer and Ludwig Erhard.
Draper's influence was rooted in his unique background as both a high-ranking military officer and a seasoned investment banker. Before his government service, he held significant roles at National City Bank and Dillon, Read & Co., where he managed the promotion of Soviet bonds and underwrote millions of dollars in German industrial bonds during the 1920s and 1930s. This dual expertise allowed him to navigate the complexities of reconstruction, though his methods were not without controversy. He faced criticism from officials like James Stewart Martin for allowing certain former Nazis to retain positions within the industrial sector.
His career extended far beyond the ruins of Europe. Draper served as the first Under Secretary of the Army from 1947 to 1949 and later became the first U.S. Ambassador to NATO in Paris. In Japan, he was instrumental in overturning progressive reforms sought by other officials, earning a reputation for prioritizing market stability. Even in his later years, he remained a titan of finance, forming the first West Coast venture capital firm in 1959 and serving as a delegate to the United Nations Population Commission.
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- Summary by Intellect · source: William Henry Draper Jr.
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