The Panic of 1893: Boosting Bankers’ Money and Power
Junius Morgan was, at best, a third-tier English banker in the 1850s, who was fortunate to have had a hand in a number of lucrative financings, mostly for industries seeking seasonal financing. His conservative nature was partly a cause of his lack of distinction. He’d inherited a substantial sum when his father died and was exceedingly careful when risking any part of it. One of the maxims Junius instilled into his son, John Pierpont Morgan, was, “Never under any circumstances do an action which could be called into question if known to the world.”
The two first-tier international banking families were the Baring Brothers and the Rothschilds. Barings financed the Louisiana Purchase and the French indemnity payment after Napoleon’s loss to the Duke of Wellington at Waterloo. So influential was Barings that the Duke of Richelieu commented: “There are six great powers in Europe: England, France, Prussia, Austria, Russia, and Baring Brothers.” It enjoyed an exclusive list of clients: the governments of Russia, Norway, Austria, Chile, Argentina, Canada, Australia, and the United States.
The other pre-eminent international banking family, the Rothschilds, served as the agent bank for England, and was spreading its influence into countries not served by Barings.
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