Benjamin Strong Jr. (born 1872, died in October 1928) - American economist, president of the Federal Reserve Bank of New York in the years 1914-1928. [2]
| Benjamin Strong, Jr. | |||||||
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| Benjamin Strong, Jr. | |||||||
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| Predecessor | not | ||||||
| Successor | George L. Harrison | ||||||
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| Profession | economist | ||||||
Benjamin Strong began his career in the financial and banking industry in 1891. In the future, he actively participated in the creation of the Federal Reserve System , when, after the banking panic of 1907, leading bankers began to develop the idea of creating a Central Bank that performs the function of issuing money .
Strong, being vice president of Trust of New York , was an emissary of JP Morgan and one of nine participants in a secret meeting held at the Hunt Club Hotel on Jekyll Island ( GA ) in November 1910. It was also attended by Paul Warburg , a recent immigrant from a prominent German banking family, who was a partner in New York at the Kuhn banking house , Loeb & Co , senator Nelson Aldrich ( Nelson Rockefeller was named after Aldrich, his maternal grandfather); A. Platt Andrew , Assistant Minister of Finance and Special Assistant to the National Monetary Commission, as well as other bankers including Frank A. Vanderlip , President of the National Bank of the City of New York , Henry P. Davison , Senior Partner, JP Morgan & Co. and Charles D. Norton , President of Morgan-controlled First National Bank of New York .
As it became known, this group created an Aldrich plan. The plan was written on the island in secret, since the public would never approve a banking reform bill written by bankers. Aldrich's plan was presented to the US Congress and caused a lot of controversy, but it never came to a vote. But the main ideas of Aldrich’s plan ultimately served as the model on which the Federal Reserve was created, but significant changes were made to the control of the US government. The bill was passed by Congress in 1913.
Strong became President of the Trust Bank in 1914 and, shortly thereafter, in the same year, was appointed President of the Federal Reserve Bank of New York , a position he held until his death in 1928.
For 14 years, Strong has played a huge role in creating the international financial system. Together with the president of the Bank of England , Montague Norman , he created a tandem that literally shook the global economy. Its unusually generous and wasteful credit policy for other countries led to an even greater dependence of the world economy on the US economy. Representatives of the Austrian school accused him of promoting the spread of the Great Depression in the global economy. However, his willingness to maintain the liquidity of banks during a panic was highly appreciated by representatives of the monetarist school . [3]
Notes
- ↑ 1 2 SNAC - 2010.
- ↑ Milton Friedman, Anna J. Schwartz, Monetary History of the United States , (1963)
- ↑ Rothbard, Murray, America's Great Depression (2000), page xxxiii
Literature
- Liaquat Ahamed , The Lords of Finance. Bankers who turned the world around , Alpina Publisher , 2011. ISBN 978-5-9614-1568-1
- Chandler, Lester V., Benjamin Strong: Central Banker , Brookings Institute, 1958.
Links
- Benjamin Strong Collection at the Seeley G. Mudd Manuscript Library, Princeton University (Eng.)
- Strong's Biography at the Federal Reserve Bank of New York (eng.)