Wall Street

The Great Depression in New York City: A Primer

September 11, 2023 by Guest Contributor Leave a Comment

As the 1920s advanced, the economy soared. But with that dramatic expansion came irrational exuberance and unchecked speculation: stock prices reached levels that had no basis in reality; margin purchases were rampant; banks handed out loans lavishly and imprudently; and giddy product production resulted in a vast oversupply of goods.

On Tuesday, October 29, 1929, it all came crashing down. This is the story of the Great Depression in New York City. [Read more…] about The Great Depression in New York City: A Primer

Citigroup Acknowledges it ‘Indirectly’ Profited from Slavery – Maybe

August 1, 2023 by Alan J. Singer Leave a Comment

Citigroup now acknowledges that its predecessor banks may have indirectly profited from slavery and the trans-Atlantic slave trade. Connections with slavery include a 19th century bank president who promoted the Cuban sugar trade, the relationship between the Farmers’ Loan and Trust Company, one of Citigroup’s predecessor banks, and Alabama cotton planters, and Lehman Brothers, which merged with Citibank in 1998 and in the 1850s traded in cotton. [Read more…] about Citigroup Acknowledges it ‘Indirectly’ Profited from Slavery – Maybe

Here in Manhattan: A New Pop-History Guide

June 22, 2023 by Editorial Staff Leave a Comment

The new book Here in Manhattan: A site-by-site guide to the history of the world’s greatest city (Sutherland House Books, 2023) by Tom Begnal tells the story of Manhattan, ranging from Fort Washington to Wall Street, bridging important history and pop-culture moments. Here in Manhattan is a site-by-site guide to the wonders of the city. [Read more…] about Here in Manhattan: A New Pop-History Guide

Ben Brotherson’s Bank Scheme

February 1, 2023 by Dave Waite Leave a Comment

Around 1800, Philip and Catharine Brotherson arrived in Blue Corners on the western edge of Charlton in Saratoga County. Over the next 40 years, their five children grew to maturity, the last being Benjamin Kissam Brotherson, born in 1819.

At the age of sixteen, Benjamin was hired as a clerk for the dry goods merchant James Winne in Albany, New York. During his time in Albany, he was known as an upstanding young man of good moral character. Three years later, in 1838, he moved to the city of New York and took a job at Union Bank, where he would work for the next twenty years. [Read more…] about Ben Brotherson’s Bank Scheme

Wall Street History: The Great Depression & A New Deal For Working People

March 14, 2022 by James S. Kaplan 1 Comment

In 1933, during Franklin D. Roosevelt‘s first year as President, the Democrats launched a number of New Deal social welfare and economic recovery efforts to combat the Great Depression.

Among the more popular and successful of these was the creation of the Public Works Administration (PWA) and the Civilian Conservation Corps (CCC), jobs programs which were modeled on similar programs in New York State. [Read more…] about Wall Street History: The Great Depression & A New Deal For Working People

The First Great Reset: Wall St, the Great Depression & the Pecora Commission

March 9, 2022 by James S. Kaplan 4 Comments

Initially many thought the severe Wall Street crash of October 1929 was a temporary phenomenon and like many subsequent crashes (i.e. 1987, 2008) the stock market would recover in a few months or years.

Unfortunately, this did not prove to be the case. After some upward spurts, stocks on the New York Stock Exchange continued to fall for the next three years and economic conditions throughout the country continued to worsen, so that by 1932 the market closed at 41, a drop of 89% over its 1929 high of 381. Employment in Wall Street firms plummeted, as the once heady activity evaporated and the Great Depression took hold.

The response would require a great reset between Wall Street and working Americans. [Read more…] about The First Great Reset: Wall St, the Great Depression & the Pecora Commission

Wall Street History: Individual Investors & The Crash of 1929

February 28, 2022 by James S. Kaplan Leave a Comment

The break-up of Standard Oil and other monopolies during the Trust-busting Era, created somewhat greater competition, but did not significantly impact Wall Street, or its major players. For example, after the success of the Justice Department in the 1911 Supreme Court Case United States v. Standard Oil (in which the Court ruled that Standard Oil of New Jersey violated the Sherman Antitrust Act), the company was ordered broken into 34 ostensibly independent companies. *

The stock in each of these companies was distributed to Standard Oil Company shareholders (principally the Rockefeller family) and each company had separate boards of directors and separate management, but by and large they continued to operate on separate floors of the same building — 26 Broadway in Manhattan. [Read more…] about Wall Street History: Individual Investors & The Crash of 1929

Trust Busting: William Jennings Bryan & Theodore Roosevelt

February 10, 2022 by James S. Kaplan 2 Comments

As control of the American economy became increasingly centralized in trusts located on Wall Street after the Civil War, and the wealth of men like J.P. Morgan and John D. Rockefeller grew exponentially, there developed an increasing backlash against such concentrations of wealth. In the 1880s, through an investigation by a committee of the New York State Legislature, Americans became aware that Standard Oil secretly controlled a number of supposedly competing oil companies. By 1910 almost 90% of the world’s oil supply was controlled from the company’s headquarters at 26 Broadway in Manhattan. [Read more…] about Trust Busting: William Jennings Bryan & Theodore Roosevelt

Wall Street History: Vanderbilt, Rockefeller, Gould, and Morgan

January 31, 2022 by James S. Kaplan 3 Comments

The period after the Civil War was one of significant economic and technological expansion in the nation and one in which corporations headquartered in Lower Manhattan and Wall Street would obtain a significant hegemony over the American economy.

This was a time in which individual entrepreneurs were running private businesses located on Wall Street. Men such as Cornelius Vanderbilt, Jay Gould, John D. Rockefeller and J.P. Morgan were major figures in the country and attained economic power and wealth on a scale previously unknown in United States history.

Much of their wealth was derived exploiting natural resources and technological innovations (notably steam engines, railroads, and oil). It was also largely dependent on the economy’s western expansion and African-American and immigrant labor. These men, who some call “Titans of Industry” and others “Robber Barons,” generally consolidated independent businesses into national enterprises, large monopolies, and multinational corporations. Many of these were headquartered in Lower Manhattan. [Read more…] about Wall Street History: Vanderbilt, Rockefeller, Gould, and Morgan

Wall St History: 19th Century Growth of Investment Banking

January 24, 2022 by James S. Kaplan 3 Comments

With the demise of the Philadelphia based Bank of the United States, the financial center of the country shifted to the privately owned state chartered financial firms on Wall Street.

As the nation recovered from the severe depression in the Panic of 1837, President James K. Polk’s policy of Manifest Destiny took root and significant westward settlement of Indigenous land expanded in the 1840s. Fortified by the Erie Canal and its Canal Fund, Wall Street financial institutions became strongly influenced by four factors: the invention of the telegraph; the development of railroads; the discovery of gold and other precious minerals in the West (particularly the California Gold Rush of 1849); and the arrival of significant numbers of Jewish and Irish immigrants in the city of New York. [Read more…] about Wall St History: 19th Century Growth of Investment Banking