Presentation Transcript

1. John Pierpont Morgan(1837-1913) No problem can be solved until it is reduced to some simple form. The changing of a vague difficulty into a specific, concrete form is a very essential element in thinking. -John Pierpont Morgan Stephen Good
2. Childhood and Early Life Born in Hartford Connecticut in 1837 Born into a well to do family- His father was a wealthy banker For this reason, JP did not ever experience poverty, (Bowen) Attended several academies in New England Throughout Morgan’s childhood, his father taught him how to act and talk like a proper banker, a skill he exhibited from an early age Intoadulthood, JP maintained a close relationship with his father because they worked in the same field of business, (Bowen)
3. The life OF Mr. Morgan JP Morgan had an imposing figure and a very serious personality He was also quite reserved and was not socially graceful, (Steichen) As the quote on the title suggests, Pierpont was a man grounded in reality JP considered himself to be Episcopalian and was generally politically conservative He married twice and had four children in his second marriage His second marriage was not successful although it did not end in divorce
4. Early business Educated at the University of Gottingen in France The university focused on practical sciences and was a prestigiousuniversity in 19th century Europe Pierpont did not graduate in order to begin a career in business, (Telegraph) Pierpont moved to New York and became a stock broker at Duncan, Sherman and Company During his time with Duncan, Sherman and Company he traveled to Florida for business While there, he decided to buy a shipment of coffee beans in hopes of makinga profit JP was successful in the venture but his managers felt he had overstepped his boundaries, (Telegraph) The coffee bean incident explains JP Morgan very well and is one of the defining moments in the young man’s career He was autonomous in every aspect of his life Hewas able to know very easily if the business venture would be profitable He also claimed the ability detect dishonesty based on ones appearance
5. Big business From 1864-1871, Morgan partnered with his father at Dabany Morgan and Co. (Bowen) Made early profits by selling equipment to the US military for the civil war His time at D.M. & Co. earned him his first significant profits Pierpont founded an investment firm in 1871 that later became JP Morgan & Co. Anthony Drexel was a partner until his death in 1893, (Bowen) Within a year after opening, the firm moved to Wall Street 23, Wall St. was the most expensive piece of real estate in New York As the end of the century neared, Morgan began to use his wealth to consolidate businesses into corporations He consolidated almost every railroad company into six corporations, Morgan owned one of these corporations In 1889 and 1992, JP merged electrical companies which allowed him to monopolize the industry In 1901, the steel industry was consolidated when United States Steel was founded The consolidation of businesses made it essentially impossible for a small company to prosper without Morgan’s assistance
6. Big Business Cont. Corruption in terms of breaking the law did not occur often with JP Morgan but some consider the tactics he used to be corrupt. Consolidation of businesses forced them to depend on Morgan’s financial resources, (Bowen) The bankers began to control the appointment of managers, marketing and even the value of the corporation's stock The Philanthropy is associated with his name but he is typically remembered for assisting the government financially In the financial Crisis of 1907, Morgan was able to give $25,000,000 to keep the stock market from closing, (Bowen) If the stock market would have closed, Morgan's corporations would have suffered Grants have been given to schools, churches and Hospitals, (Steichen) JP Morgan donated a lot of his art and other culturally significant items to the city of New York
7. Politicalcartoon The boat represents the economy of America As apposed to the government (uncle Sam), guiding the economy, JP Morgan is doing most of the work This is a reference to when the government asked Morgan to resolve the financial crisis of 1907 Because the oar is a lever and JP Morgan is further from the fulcrum than Uncle Sam, Morgan is able to exert more leverage/ power on the boat During the panic of 1907, Pierpont gave a large sum of money in order to stabilize the national banking system This also showed how he was able to control the finances of America which also gave him considerable control over the government It can also be noted that the sail on the boat is not being used and is lying in the hull of the boat. This is showing how laissez-faire was not followed strictly in this time period.
8. Works Cited Bowen, Liz. “J.P. Morgan: A biography by Liz Bowen”. fordam.edu. Web. 3 February 2012. “J. P. Morgan Quotes”. Brainyquote.com. Web. 3 February 2012. “Morgan, J.P.”. Jrank.org. Web. 3 February 2012. Puck Magazine, The Helping Hand. 1911. Library of Congress, Washington. Wikipedia.org. Web. 2 February 2012. Steichen,Edward. “J. P. Morgan as Cutthroat Capitalist”. smithsonianmag.com. Web.3 February 2012. “The original Fat Cat and robber baron of his time”. telegraph.co.uk. Web. 2 February 2012.