John Moody answers: "The Rothschilds were content to remaina close ally of Morgan rather than a competitor as far as theAmerican field was concerned."2 Gabriel Kolko says: "Morgan'sactivities in 1895-1896 in selling U.S. gold bonds in Europe werebased on his alliance with the House of Rothschild."3 Sereno Prattsays: "These houses may, like J.P. Morgan & Company ... representhere the great firms and institutions of Europe, just as AugustBelmont & Company have long represented the Rothschilds."4 AndGeorge Wheeler writes: "Part of the reality of the day was an uglyresurgence of anti-Semitism.... Someone was needed as a cover.
Who better than J. Pierpont Morgan, a solid, Protestant exemplar ofcapitalism able to trace his family back to pre-Revolutionarytimes?"5
RISE OF THE HOUSE OF MORGAN
With these considerations as background, the meteoric rise ofMorgan's star over London and Wall Street can be readily understood. It is no longer surprising, for example, that Peabody &Company was the sole American investment firm to receive agigantic loan from the Bank of England during the U.S. panic of1857, a loan which not only saved it from sinking, but made it 1. Derek Wilson, p. 182.
2. Moody, p. 27.
3. Kolko,
4. Sereno S. Pratt,
5. Wheeler, pp. 17-18, 42.
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THE CREATURE FROM JEKYLL ISLAND
possible to seize and salvage many other ships that were then capsized on Wall Street.
Peabody had become active in the business of discountingacceptances, which is banker language for insuring commercialloans issued for the purchase of goods. This is how it works: Theseller issues a bill with a stipulation that he must be paid at a futuredate, usually ninety days. When the buyer receives the bill, his bankwrites the word "accepted" across the face of it and adds the signature of an officer, making it a legally binding contract. In otherwords, the bank becomes a co-signer on the buyer's credit and guarantees payment even if the buyer should default.
