In the United States of America, there was a drastic period, when it was not built yet. There were many people who helped to build it in the first place, however, there was one industry that majored in banking. He goes by his life quote “Go as far as you can see; when you get there, you’ll be able to see farther.”. The person that created the banking industry that inspired many people is JP Morgan. John Pierpont Morgan was born on April 12, 1837, in Hartford, Connecticut. His father, Junius, became a partner in a successful dry goods business. Junius then married Juliet Pierpont, daughter of a noted minister and poet John Pierpont.
His paternal grandfather, Joseph, was a founder of a major insurance company, Aetna Insurance. A maternal relative, James Pierpont, was a songwriter. In 1854, Junius Morgan moved the family to London to begin his new career as a partner in the banking firm of George Peabody & Co.
Pierpont was sent to the Institute Sillig in Switzerland, where he became fluent in French and displayed an aptitude for mathematics, and then to Göttingen University in Germany. After finishing his education in 1857, Morgan moved to New York to work as a clerk at Duncan, Sherman & Co., the American branch of his father’s firm. After he moved to New York, he met Amelia Sturges, the daughter of a successful merchant, in New Orleans, for business terms. Pretty soon after te Sadly, pretty after they finally got married it was over because of when Amelia was diagnosed with tuberculosis. She then died February 17, 1862. Devastated, Morgan returned to New York and plunged himself into his work. In 1864, at the urging of his father, he paired with senior partner Charles Dabney to form Dabney, Morgan & Co.
With Junius Morgan now heading the London banking firm, the Morgans continued to expand their wealth and influence by funneling overseas investments into American businesses. Four years after Amelia’s death he met Frances Louisa Tracy, daughter of a New York lawyer, they then married in May 1865. Together now they had 4 kids, J. P.
Morgan Jr., Anne Morgan, Louisa Pierpont Morgan, Juliet Pierpont Morgan. After that, came the retirement of Dabney, in 1871, pretty soon Morgan found a Philadelphian banker, Anthony Drexel, and created the newfound company, Drexel, Morgan, & Co. Morgan’s already successful career took a leap forward in 1879 when William Vanderbilt approached him about the sale of 250,000 shares of stock in the New York Central Railroad.
Morgan pulled off the massive transaction without driving down the share price, and in return, he secured a seat on the New York Central board of directors.On July 10, 1885, aboard his yacht, Corsair, J. Pierpont Morgan negotiated an agreement between two major East Coast railroad competitors, New York Central and Pennsylvania Railroad. The outcome was called the “Corsair Compact.
” The stakes were high. Railroads in the late 19th century were plagued by overcapacity and rate wars that roiled the industry and markets. Undeterred, William H. Vanderbilt, owner of New York Central, and Jay Gould, who owned Pennsylvania Railroad, used their competing railroads to wage financial war. Morgan managed to persuade the presidents of both companies to join him on the Corsair, where he impressed on them the potential catastrophe for their companies, investors and the global markets if they did not resolve their differences. He then mapped out a truce. By the time the Corsair docked in New Jersey, the men had agreed to the terms. Also in 1901, Morgan teamed with James J.
Hill to form the Northern Securities Company. Northern Securities held the majority of shares in the Northern Pacific, the Great Northern and the CB&Q railroads, giving Morgan control of approximately one-third of the country’s railways. However, he soon encountered resistance from President Theodore Roosevelt, who sought to leverage the populist tide against the wealthy “robber barons” of Wall Street. In 1902, the Justice Department charged Northern Securities with violating the Sherman Antitrust Act of 1890. A protracted legal battle was settled when the Supreme Court ruled in favor of the government in 1904. Morgan set sail on an overseas voyage after the hearings, but his health steadily declined, and he died at a hotel in Rome, Italy, on March 31, 1913. To commemorate his passing, the New York Stock Exchange remained closed until noon on the day of his funeral. Morgan’s astounding success transformed the financial industry and left behind a powerful legacy.
Although he twice bailed out the U.S. Treasury, his ability to do so left many unsettled, spurring the creation of the Federal Reserve System in late 1913. His name lives on through the massive international banking firm he created, which entered the 21st century as JPMorgan Chase & Co.