How one man became the primary financier for the Allied powers in World War I
In short: While his father was known for a masterful, dominant personality, J.P. Morgan Jr. wielded a different kind of influence. For the initial three years of World War I, he served as the only procurement agent for France and Britain, overseeing billions of dollars in Allied bonds and military supplies.
Born on September 7, 1867, in Irvington, New York, John Pierpont Morgan Jr. was destined for a life of high finance. After graduating from Harvard in 1889, he spent eight years working in the London branch of his father's firm, J.P. Morgan and Company. Upon his father's death in 1913, he inherited an estate exceeding $50,000,000 and assumed leadership of the banking house.
His influence reached a global scale during World War I. He managed the purchase of approximately $3,000,000,000 worth of supplies from American firms. To support these efforts, he organized over 2,000 banks to underwrite more than $1,500,000,000 in Allied bonds. One source notes that his company earned a 1% commission on the $3 billion in supplies, totaling $30 million.
The post-war era saw his firm facilitate loans exceeding $10,000,000,000 for European reconstruction. However, the landscape of American finance shifted under his watch. Following the 1929 stock market crash, Morgan joined other major bankers in a failed attempt to stabilize stock prices. By 1933, the Banking Act forced a structural change: his firm had to separate its investment banking from its commercial banking activities. This resulted in the creation of Morgan Stanley and Company, while J.P. Morgan and Company became a strictly commercial entity.
Beyond finance, Morgan was a dedicated philanthropist. He provided aid to the Episcopal Church and Red Cross, while also funding a rare manuscript and book collection at the Morgan Library.
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Sources
- Summary by Intellect · source: John Pierpont Morgan, Jr. | Industrialist, Philanthropist, Banker | Britannica Money
- Also: J. P. Morgan Jr.
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