Evening star., 1943-03-14
Morgan Firm Served
As sBankerfor Allies
During World War
Choirmonship Expected
To Go to Lamont,
Breaking Succession
BY The Associated Press,

NEW YORK. March 13.-Whethel
the passing of j. P. Morgan marks
the end of an historic era is some
thing for historians of a later gen.
Grafton to tell
The long tradition that finance
was a matter of individuals and
families stemmed back to the be-
ginnings of the present day system
of money and credit. back to the
goldsmiths and merchant bankers
of the middle ages.
Mr.. Morgan told a committee OF
Congress 10 years ago:
The private banker is a member
OF a profession which has been prac-
tlced since the middle ages. In
the process of time there has grown
UP code of professional ethics and
customs, on the observance of which
depend his reputation, his fortune
and his usefulness to the community
in which he works"
With the growth of commerce
kings and governments soon found
that the great merchant families
were the only source of adequate
credit to finance their mighty under
takings
Financing Demands Grew.
an the last century, the railroads
brought new and enormous demands
for financing London was the
worlds financial capital. j. Pierpont
Morgan, father of J. P, was be-
ginning his career in a business
house which acted as American cor
respondent for London banking
house.
The demand for funds to string
a web of steel rails over the Ameri-
can continent was Turing the pounds
sterling of canny British investors.
But with the long European tradi-
ton that you must deal through an
individual or family you can trust,
they needed private banker 60
between. There was competition for
the business. The Rothschilds and
others had American representa-
tives.
But the youthful Morgan, allying
himself with the wealthy Drexel
family of Philadelphia, soon was
London's principal private banker
here British funds became less
important to Mr.. Morgan as the
wealth of America fiourished. The
elder Morgan branched out into
financing not only rails, but rapidly
growing industries of the United
States. He formed United States
Steel Corp. and channeled millions
into other youthful industrial giants.
When he died in 1918. his son, J. P.
Morgan, was the American banker
prince.
When world War I swept over
Europe, the House of Morgan quickly
began to act for Allied govern
ments. floating loans of then lm-
precedented magnitude. 1t became
the purchasing agent for the Allies
in the United States With the
United States entrance into the
war the House of Morgan worked
closely with the United States Treas
ury in the fiscal problems of war
stime.
Sold $4,000, 600, 600 in Bonds.
Peace found New York the worlds
great money market, and Morgan
the American fiscal agent for most
of the major governments. In the
decade that followed, the house sold
some $6 900 100000 in bonds.
Mr.. Morgan remained consistent
to the end-publicity shy. He dis
liked publicity so much that he
almost never went to a theater
opera or any public gathering and
could almost number on the fin
gers of one hand the times in his
IS years he made a public statement.
Being a rich man, MI Morgan
lived like one.
He liked good food and good liquor
although his associates emphasize
he always drank in moderation.
They say he was one of the few re-
manning experts who really knew
"his Madeira wine
And he had a taste for good gin,
always buying the best which was
sometimes too good for the taste Of
those who knew only the ordinary
gin.
At one party Mr.. Morgan gave
FOR some friends, an associate says,
a guest who had never tasted the
best sampled a cocktail and, little
disappointed, said: "Phhh, what
kind of gin is this?"
Masterpieces Filled Homes.
Mr.. Morgans homes in the
Murray Hill section of New York
and Glen Cove, Long Island, were
crammed with masterpieces of
statuary and tapestry collected by
his father. Mr. Morgan himself
collected very little and had sold or
given to museums great fortune
in art
But in both homes, whistling and
calling in the midst of Vanloo's S
Madame Pompadour" and Sar-
gents portrait of Mrs Morgan.
Chlppendale furniture and Oriental
carpets. for years there wandered
the bankers favorite parrot, Again
menon"
The museum collection-which he
gave to the city-adjo Joining his home
included original and illuminated
manuscripts. metal book covers.
drawings, bookbindings. cylinders,
papyrl, etchings, messotint engrav-
lngs printed books, autographed
manuscripts. letters and documents
and books with bindings executed
Tor historic persons, mostly kings
and queens.
Among the etchineS were some OF
The finest in the country. Among
The original manuscripts were the