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Eric Rauchway - The Money Makers: How Roosevelt and Keynes Ended the Depression, Defeated Fascism, and Secured a Prosperous Peace

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Eric Rauchway The Money Makers: How Roosevelt and Keynes Ended the Depression, Defeated Fascism, and Secured a Prosperous Peace
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The Money Makers: How Roosevelt and Keynes Ended the Depression, Defeated Fascism, and Secured a Prosperous Peace: summary, description and annotation

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Shortly after arriving in the White House in early 1933, Franklin Roosevelt took the United States off the gold standard. His opponents thought his decision unwise at best, and ruinous at worst. But they could not have been more wrong.
With The Money Makers, Eric Rauchway tells the absorbing story of how FDR and his advisors pulled the levers of monetary policy to save the domestic economy and propel the United States to unprecedented prosperity and superpower status. Drawing on the ideas of the brilliant British economist John Maynard Keynes, among others, Roosevelt created the conditions for recovery from the Great Depression, deploying economic policy to fight the biggest threat then facing the nation: deflation.
Throughout the 1930s, he also had one eye on the increasingly dire situation in Europe. In order to defeat Hitler, Roosevelt turned again to monetary policy, sending dollars abroad to prop up the faltering economies of Britain and, beginning in 1941, the Soviet Union. FDRs fight against economic depression and his fight against fascism were indistinguishable. As Rauchway writes, Roosevelt wanted to ensure more than business recovery; he wanted to restore American economic and moral strength so the US could defend civilization itself. The economic and military alliance he created proved unbeatableand also provided the foundation for decades of postwar prosperity. Indeed, Rauchway argues that Roosevelts greatest legacy was his monetary policy. Even today, the Roosevelt dollar remains both the symbol and the catalyst of Americas vast economic power.
The Money Makers restores the Roosevelt dollar to its central place in our understanding of FDR, the New Deal, and the economic history of twentieth-century America. We forget this history at our own peril. In revealing the roots of our postwar prosperity, Rauchway shows how we can recapture the abundance of that period in our own.

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The Money Makers The Money Makers How Roosevelt and Keynes Ended the - photo 1

The Money Makers

The Money

Makers

How Roosevelt and Keynes Ended
the Depression, Defeated Fascism, and
Secured a Prosperous Peace

Eric Rauchway

A Member of the Perseus Books Group New York Copyright 2015 by Eric Rauchway - photo 2

A Member of the Perseus Books Group

New York

Copyright 2015 by Eric Rauchway

Published by Basic Books,

A Member of the Perseus Books Group

All rights reserved. Printed in the United States of America. No part of this book may be reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. For information, contact Basic Books, 250 West 57th Street, New York, NY 10107.

Books published by Basic Books are available at special discounts for bulk purchases in the United States by corporations, institutions, and other organizations. For more information, please contact the Special Markets Department at the Perseus Books Group, 2300 Chestnut Street, Suite 200, Philadelphia, PA 19103, or call (800) 8104145, ext. 5000, or e-mail special.markets@perseusbooks.com.

Designed by Jack Lenzo

Library of Congress Cataloging-in-Publication Data

Rauchway, Eric.

The money makers : how Roosevelt and Keynes ended the depression, defeated fascism, and secured a prosperous peace / Eric Rauchway.

pages cm

Includes bibliographical references and index.

ISBN 978-0-465-06156-3 (ebook) 1. United StatesEconomic policy19331945. 2. Roosevelt, Franklin D. (Franklin Delano), 18821945Influence. 3. Keynes, John Maynard, 18831946Influence. 4. United StatesEconomic conditions19181945. 5. United Nations Monetary and Financial Conference (1944 : Bretton Woods, N.H.) 6. Depressions1929United States. I. Title.

HC106.3.R26 2015

339.53097309043dc23

2015015259

10 9 8 7 6 5 4 3 2 1

For Kathy

Yes, Im afraid Money is an irretrievably comic subject; but unfortunately it has to be treated seriously.

Dennis H. Robertson,

The Marshall Lectures of the Cambridge

University Faculty of Economics for 1960

Contents

Used for Archives and Publications

Citations from papers use the abbreviations B for Box and f for folder. Collections are listed alphabetically by abbreviation used. (Other works cited in the notes receive a full citation on their first appearance in a chapter.)

ABP

Arthur Ballantine papers, Herbert Hoover Presidential Library, West Branch, IA.

ASP

Alexander Sachs papers, Franklin D. Roosevelt Presidential Library, Hyde Park, NY.

AYP

Arthur Young papers, Hoover Institution Archives, Stanford, CA.

BWP

Proceedings and Documents of the United Nations Monetary and Financial Conference, Bretton Woods, New Hampshire, July 122, 1944, 2 vols., State Department (US).

BWT

Bretton Woods Transcripts, edited by Kurt Schuler and Andrew Rosenberg, Center for Financial Stability, 2012.

CJD

Celeste Jedel diary, RMP, B1f1.

CPPC

Complete Presidential Press Conferences of Franklin D. Roosevelt, with an Introduction by Jonathan Daniels, 25 vols., Da Capo, 1972. Press conferences are cited as PC with number and date.

CTP

Charles Taussig papers, Franklin D. Roosevelt Presidential Library, Hyde Park, NY.

CW

Collected Writings of John Maynard Keynes, 31 vols., Macmillan, St. Martins, for the Royal Economic Society, 19711989.

DHRP

Documentary History of the Franklin D. Roosevelt Presidency, edited by George McJimsey, 47 vols., University Publications of America/LexisNexis, 20002010.

DO

Dominions Office (UK) papers, The National Archives (TNA) at Kew. Cited using TNAs citation system.

DRP

Dennis Robertson papers, Wren Library of Trinity College, Cambridge, UK. Cited using Trinitys citation system.

ECUNMFC

Editorial Comment on the United Nations Monetary and Financial Conference, bound document, Oscar Cox papers, Franklin D. Roosevelt Presidential Library, Hyde Park, NY, B129.

EFGP

Edwin F. Gay papers, Hoover Institution Archives, Stanford, CA.

EMOH

Eugene Meyer oral history, 1953. Columbia Oral History Collection.

FMD

John Morton Blum, From the Morgenthau Diaries, 3 vols., Houghton Mifflin, 19591967.

FRUS

Foreign Relations of the United States. State Department (US).

GFWD

George F. Warren diary in GFWP.

GFWP

George F. Warren papers, Division of Rare and Manuscript Collections, Kroch Library, Cornell University, Ithaca, NY.

GHP

George Herron papers, Hoover Institution Archives, Stanford, CA.

GSP

George Sokolsky papers, Herbert Hoover Presidential Library, West Branch, IA.

HDWP

Harry Dexter White papers, Mudd Manuscript Library, Princeton University, Princeton, NJ.

HHCF

Herbert Hoover Clipping File on Bretton Woods in PPS, Herbert Hoover Presidential Library, West Branch, IA.

HMJP

Henry Morgenthau, Jr., Papers, Franklin D. Roosevelt Presidential Library, Hyde Park, NY.

HSUS

Historical Statistics of the United States: Millennial Edition, edited by Susan B. Carter, Scott Sigmund Gartner, Michael R. Haines, Alan L. Olmstead, Richard Sutch, and Gavin Wright. Cambridge University Press, 2006.

JFNP

John Francis Neylan papers, Bancroft Library, University of California, Berkeley, CA.

JMKP

John Maynard Keynes papers, Kings College Archive Centre, Cambridge, UK. Cited using Kingss citation system.

JWD

James Warburg diary, as cited in JWOH.

JWOH

James Warburg oral history, 1952. Columbia University Oral History Collection.

LSP

Lewis Strauss papers, Herbert Hoover Presidential Library, West Branch, IA.

MDM

Henry Morgenthau, Jr., Microfilm. For cited locations, four numbers are given; these represent book:page:series:reel. The Morgenthau diaries begin with the Farm Credit Administration diary, which is book 00. Series 1 is Depression and the New Deal, 19331939; series 2 is Prelude to War and War; series 3 is World War II and Postwar Planning. These are distinct from the two-reel collection of presidential diaries (see MPDM).

MPDM

Henry Morgenthau, Jr., Presidential Diaries Microfilm.

NBER

National Bureau of Economic Research; NBERWP = NBER Working Paper.

PPA

Public Papers and Addresses of Franklin D. Roosevelt, compiled by Samuel I. Rosenman, 5 vols., Random House, Macmillan, Harper & Bros., 19371945.

PPI

Post-Presidential Individual file, Herbert Hoover Presidential Library, West Branch, IA.

PPS

Post-Presidential Subject file, Herbert Hoover Presidential Library, West Branch, IA.

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