“Those who deny history are doomed to repeat it”. Santayana

In 1907, the crash immediately preceding the one prior to the 1929 Depression, John Pierpont Morgan is credited with personally saving the financial system when he led a band of capitalists in infusing private capital into a doddering stock market. The loans were repaid and America went about its business in due course. Since then, various US governments have repeated his actions but, sadly, using your money and mine to bail out crooks both on Wall and Main Streets.

So after yesterday’s greatest ever one day percentage decline in the Dow index, it seems only appropriate to recall how Wall Street (or, more correctly, Broad Street) looked back then.

A magnificent picture of the limits of greed. Photographer unknown.

The building at left – 23 Wall Street – served as J. P.Morgan’s headquarters until the 1990s when it was sold and converted to residential housing. It’s at the corner of Broad (where you can see the Stock Exchange) and Wall (not visible, Wall is behind you). Morgan purposely limited its height to two stories as the ultimate statement of WASP wealth and power.

I was lucky that the Morgan Bank was my client in the 1981-1983 period but less lucky with my assigned seating in the Board Room, which has to have had one of the longest tables ever made. For some reason the usher always insisted on seating me right opposite the glowering, mutton chopped oil of JP himself, staring down on me from Protean heights. To this day all I can remember of those tedious and boring meetings is Morgan’s censorious glare. We could use him today.

If you continue west a few yards on Wall Street you come to Trinity Church, burial place of America’s first and greatest Treasury Secretary, Alexander Hamilton. I used to visit it often. Each time I would pass the shoeshine boy outside the Church and was always reminded of the (perhaps apochryphal) tale attributed to financier Bernard Baruch who, upon receiving a stock tip from the boy in early 1929, promptly went out and sold all his shares. He survived the Depression and prospered mightily. When asked his secret, Baruch honestly responded “I made my money by selling too soon”.

In January 2008 I followed Baruch’s advice.

Schadenfreude? No. Santayana. “Those who deny history are doomed to repeat it”.

Strange that many years later I would end up working for America’s other great Treasury Secretary, Bill Simon, but that’s a story for another time.