John Pierpont Morgan, a character in E.L. Doctorow’s novel Ragtime, reflects on the technological advancements and industrialization of the turn of the century in America. This era saw a surge of immigrants and a growing urban landscape. These developments allowed for increased efficiency and mass production, but also raised questions about the impact on the average American worker. One such debate is highlighted in J.P. Morgan’s conversation with Henry Ford regarding the innovations of the assembly line. Doctorow emphasizes the idea that not only should the parts of the finished product be interchangeable, but also that the workers themselves should be interchangeable parts. This concept raises concerns about technology diminishing the value of individuals and their unique abilities (113).
John Pierpont Morgan, a banker and industrialist, was a prominent financial figure globally in the years leading up to World War I. He played a pivotal role in organizing railroads and establishing the United States Steel Corporation. Thanks to his wealth and exceptional financial management abilities, he successfully guided the United States Treasury away from catastrophe.
Born in Hartford, Connecticut, in 1837, Morgan received education at the University of Gottingen in Germany. In 1871, along with the Drexel family of Philadelphia, he established the banking firm Drexel, Morgan & Company in New York. The company started providing substantial loans to railroad builders and industrial corporations in the 1880s. Eventually, it underwent reorganization and became known as J.P. Morgan and Company.
According to Erin Arvedlund, John Pierpont Morgan was a natural financier who enjoyed diversifying his bank account across various foreign currencies. In Ragtime, E.L. Doctorow consistently explores the economic conditions of families and immigrants. J.P. Morgan’s companies were major employers of these immigrants, and his accomplishments in finance and business greatly impacted the families portrayed in the novel. Money had the power to tear families apart when it was scarce. In 1857, Junius Morgan, J.P.’s father, decided to give his son broader experience by sending him to New York. Junius reached out to Duncan, Sherman & Co., which represented the George Peabody Company in America, to secure a position for his son and highlight his admirable qualities as a worker. Although J.P. Morgan was initially denied a promotion, he eventually received one later in his career. In 1860, Morgan left Duncan, Sherman and established J.P. Morgan and Company as an agent for his father’s business. When Junius Morgan passed away in 1890, J.P. became the head of the London house, enabling him to oversee all transactions between the New York firm and their international partner.
Pierpont held leading positions in houses in New York, Philadelphia, London, and Paris, making him a prominent figure in international finance. In 1869, a railway war erupted involving renowned financiers Jay Gould and Jim Fisk. Gould already possessed significant control over the Erie railroad and began acquiring stock in the Albany & Susquehanna Railroad. Morgan became renowned as a reorganizer of the nation’s railways.
In 1886, the Philadelphia and Reading Railroad faced significant difficulties, with an annual deficit of six million dollars. Morgan was enlisted to devalue overinflated stock, lower interest rates on bonds, and collect additional funds from shareholders. In 1888, J.P. Morgan was once again called upon to restructure eastern railroads, including the Chesapeake & Ohio and the Baltimore & Ohio. Although he faced some opposition, he ultimately achieved his goals and reformed the failing economic railroad system.
Morgan’s reputation has likely been established through his involvement in the rise of numerous contemporary companies. With his inherent business acumen, Morgan played a significant role in initiating some of America’s largest corporations. He successfully invested in and aided struggling companies by providing them with financial support and guidance. Furthermore, Morgan played a key role in the establishment of the Federal Steel Company, the National Tube Company, and the American Bridge Company.
In 1895, Morgan became widely known for his assistance to the government. At the time, it was widely believed that Morgan, Carnegie, Rockefeller, and other wealthy financiers had more power than the government and were not bound by regular laws. To maintain the depleting gold reserves, the national Treasury had been issuing bonds. However, their efforts were hindered by the ironic withdrawal of gold by the Treasury itself. President Cleveland and his administration had to seek help from international bankers. Morgan joined forces with other financiers, including August Belmont, to provide the government with $56 million in gold, most of which was acquired from abroad.
The public frequently questioned the large undisclosed sum of money earned by Morgan by supporting the Treasury in 1895. This event was just one of many controversial issues related to Morgan’s control over the government and the American market. President Roosevelt examined Morgan’s significant deal with the U.S. Steel Corporation and Tennessee Railroad Company but found that the methods used were nonetheless effective and profitable. The value of Morgan’s organization of companies and funding is immeasurable, as these companies are some of today’s leading corporations. Although his assistance to the government in a time of need was profitable for himself, it was a necessary act crucial for maintaining a strong economy at that time. Pierpont built America with more than just personal financial gain in mind. His inspirational industrial brilliance overshadowed any greedy impulses he acted upon. A critic of Morgan remarked following his death, “Never again will conditions of government make it possible for any financier to dominate the country like a Colossus, possessing greater force, character, intellect, and vitality than anyone else on Wall Street, he naturally became the leader and remained the leader; in time, only the feeling that man possessed much ability, strength, and genius will remain” (Lindstrom). John Pierpont Morgan is regarded as one of the founding fathers of the modern United States economy.
Despite conflicting opinions on his persona, J.P. Morgan’s influence and character had a profound impact on the business world at the turn of the century. He was known as “a banker, railroad czar, industrialist, financier, philanthropist, yachtsman, and ladies’ man” (Jones). Credited with founding numerous companies including General Electric and AT&T, Morgan possessed an exceptional industrial genius. However, he is regarded as both a saint and a demon (Arvedlund). Harvard University honored him with an honorary degree that recognized him as a public citizen, patron of literature and art, and prince among merchants. It also praised his skill, wisdom, and courage in twice repelling a national financial panic.
Arvedlund, Erin. Unmasking J.P. Morgan. 2000. 9 Apr. 2003Doctorow, E.L. Ragtime. New York: Plume, 2003.
“John Pierpont Morgan.” Microsoft Encarta Encyclopedia 2001 Standard. 2003.
Jones, Lisa L. A Collector’s Portait: John Pierpont Morgan (1837-1913). 2003. 9 Apr. 2003 Lindstrom, Diane. John Pierpont Morgan. 2003. 9 Apr. 2003.
