Financial History

44 Pages·2002·4 MB·English

by  Museum of American Finance

v
,
Amefie^ter^tic Socie^y^,
the Museum of American Financial History
F
S
I
Will the Recording Industry Turn a Deaf Ear Again?
New
Trading Center of the World
$100,000 Bill to Debut in “High Notes” Exhibit
Issue 76 ~ Summer 2002 ~ $4.00
Extremely Rare
UNITED STATES CURRENCY
Gem
Superb UncirculatedFederal Reserve Notes
Legal Tender
I'VfiTO.N.D.C.
145U
G0022
,
a®ssss»s;r^
w7^s^s$§B
9> frr-VGTo,v,
An extraordinary opportunity to own a piece of history. Each one-of-a-kind note is
individually mounted in an exclusive display case, and includes a certificate ol
authenticity and historical guide. In any condition, these high denomination notes
are extremely rare. In gem crisp uncirculated grade they become major rarities.
Limited quantity available.
For more information contactAlain Michael at [phone] Fax: [phone] or call toll-free 1-877-US-NOTES.
Write to: POB 63, Beverly Hills, CA 90213-0063
[email protected]
ww.iinitcdslatcscurrenq.com Thirtydayno-riskguarantee
Visa& Mastercard Accepted
Fred Holabird Americana's
2002 Auctions
Auction July 2002
#14,
Rare Mining-Related Books and References
and Mining Hard Goods
Auction August 2002
#15,
Tokens, Post Cards and Checks
Auction #16, September 2002
Mining Prospectuses... includes over 800
different western mining prospectuses
Auction November 2002
#17,
Western Americana... includes a rare bank
signature collection and a variety of other
important financial documents
Auction December 2002
#18,
Collection of Nevada Fine Art
Quality consignments of
rare Western Americana
now
being accepted.
For more information or to receive a
free catalog for one or more of our
upcoming sales, please contact
Fred Holabird Americana
3555 Airway Dr., #308, Reno, NV 89511
Tel: [phone], Fax: [phone]
email: [email protected]
website: www.holabird.org
WWW.FINANCIALHISTORY.ORG Financial History ~ Summer Z002.
Financial History
Financial
HISTORY
The magazine ofthe Museum
of American Financial History
inassociation with
the Smithsonian Institution
Issue 76- Summer 2002
Features
(ISSN 1520-4723)
Kristin Aguilera 12 A Dark Day on Black Wall Street
Editor
Tulsa’s Greenwood District, a thriving African-American
EditorialAdvisoryBoard business community, is destroyed by the race riot of 1921.
Howard A. Baker, Esq.
By Claudia La Rocco
Howard Baker Associates
Brian Grinder
16 Big Bucks for Big Business
Eastern Washington University
The history ofAmerica’s first underwriting syndicates.
R.M.DiSamnyathEe. H&erCzoo.g, Inc. By John C. Burch, Jr. & Bruce S. Foerster
Gregory D.L. Morris
Executive Editor, 20 A Tale of Two (Thousand) Companies
Bank Investment Marketing Magazine and One Old Shoe
Thomson Media Group
Wells Fargo grows up alongside small-town America.
Douglas Parrillo
Parrillo Communications, Inc. By Andy Anderson
Arthur W. Samansky
The Samansky Group 24 Carlson Launches American
Bank Note Into the Space Age
Bob Shabazian
American Stock Exchange (ret.) The high-tech art ofmaster bank note vignette painter
Richard Sylla, Ph.D. S. Ohrvel Carlson.
Henry Kaufman Professor of
By Mark D. Tomasko
the History of Financial Institutions
and Markets, New York University
30 Trading Center of the New World
Jason Zweig
Senior Writer, Money Magazine A photo essay on four centuries ofinnovation and
entrepreneurship in lower Manhattan, on the one-year
ArtDirection
Alan Barnett, Inc. anniversary ofthe terrorist attacks ofSeptember 11, 2001.
Museum Staff
Brian C. Thompson, Executive Director
Jennifer C. Hirschowitz,
Q
Development Director
MegVentrudo, AssistantDirector for n the Cover
Exhibits and Education
Kristin Aguilera, Communications Director
Thomas Alva Edison
Copyright 2002 by the Museum of By Abraham Archibald S.A./Corbis
American Financial History, publisher, 26 Anderson, 1930.
Broadway, New York, NY 10004.Telephone:
212-908-4519; fax: [phone]; toll-free
Iconografico,
877-98 finance. All rights reserved.
Financial Flistory is the official membership
magazine of the Museum of American Archivo
Financial Flistory. Annual individual mem- ©
bership is $40. Payment must be made in
dollars, by credit card or check payable to
the Museum of American Financial History.
Letters to the Editor are welcome. Please send
themtoFinancialFlistoryattheaboveaddress
or e-mail [email protected].
financialhistory.org
Financial History ~ Summer 2002 2 WWW.FINANCIALHISTORY.ORG
Trustees
Molly G. Bayley
ExecutiveVice President,
The X-Change Corporation
Stephen A. Cooper
President,
Nemco Brokerage, Inc.
pippn.rtme.nts
David N. Deutsch
President,
5 Founder’s Letter David N. Deutsch & Company LLC
By John E. Herzog
John E. Herzog, Chair
Founder,
6 Message to Members Museum ofAmerican Financial History
By Brian C. Thompson m
George M.Jones,
President,
Members’ News TheManhattan Group
On October i, the $100,000 bill will make its public debut
in the Museum's "High Notes exhibit, guest curated by RoJsoehbnroGo.kLCaaypnigtal
former U.S. Treasurer Mary Ellen Withrow.
William M. Pinzler, Esq.
Attorney at Law
10 Educators’ Perspective
Will the Recording Industry Turn a Deaf Ear...Again? WilburL. Ross,Jr.
By Brian Grinder 8c Dan Cooper Chairman and ChiefExecutiveOfficer,
WL Ross 8c Co. LLC
34 Book Review
Richard Sylla, Ph.D.
A Thread Across the Ocean: The Heroic Story of HenryKaufman ProfessoroftheHistory
the Transatlantic Cable, by John Steele Gordon. ofFinanSctiearlnISncshtoiotultioofnsBuasnidneMssarkets,
Reviewed by Gregory D.L.. Morris NewYorkUniversity
Brian C. Thompson, Secretary (ex-officio)
Executive Director,
Museum of American Financial History'
Every Issue
David M. Taylor, Treasurer
ExecutiveVicePresident(ret.),
Federated SecuritiesCorp.
35 Trivia Quiz
Paul Underwood, Vice Chair
37 Summer/Fall 2002 Events Calendar ViceChairman,
Salomon Smith Barney Inc.
38 Marketplace Jason Zweig
SeniorWriter,
Money Magazine
40 Museum Information
Martin E. Zweig, Ph.D.
Chairman,
The Zweig Funds
Stock certificate vignette painting
by S. Obrvel Carlson.
WWW.FINANCIAL.HISTORY.ORG Financial History - Summer 1001
3
Risk Management
A
Give Us Try
Saperston Asset Management
A
Full Service Brokerage.
Member: NASD, SIPC, MSRB.
Your localsourcefor investmentplanning.
716-854-7541
In the searchforproperty, it’s
Saperston Real Estate
&
Serving The Industrial Commercial Real Estate Markets.
716-847-1100
In thepursuit ofbetter business, it’s
Saperston Management
For Tax Assistance, Payroll Services,
&
Bookkeeping Financial Reporting.
716-854-7541
“The Dollar Doctor”
Answers To YourMoney Questions Everyday
aperston
r§\
1-800-879-7541
237 MAIN STREET • BUFFALO
Visit Our Website: www.saperston.com
Financial History ~ Summer 2002 WWW.FINANCIALHISTORY.ORG
* * It is not our affluence that grips the imagina- Founder’
upon which
tion of others, it is the values Letter
When we depart from
our system is built.
these values, we do so at our peril, j } By John E. Herzog.
Chair
_lIS. Senator], William Fulbright (1961)
One of our favorite observers The situation is not entirely
of the economic scene conjectured at unlike the mood of the nation in
a Museum program last November the wake ofthe 1987 market collapse,
that the generous public-mindedness which stunned investors and sent
we saw on Wall Street in the imme- ripple effects through the economy.
diate aftermath of September 11 The Museum got its start in direct
might go far to bolster the sagging response to the need back then
reputation of American business and for an independent platform able
the capital markets. How quickly to provide historical context and
We
was that momentary, optimistic out- objective interpretation. a—re
look entirely overtaken by calamitous getting those calls again now'
news out of the business sector. from Museum members, journalists,
The months leading up to the researchers, and from government
physical attack on lower Manhattan agencies in Washington, all search-
had witnessed the explosive charge ing for meaning and understanding
that some of the big financial between the lines of today’s business
houses were skewing advice to headlines. They recognize that in the
investors. If 9-1 1 briefly distracted gallery, in our speakers programs,
us from these criticisms, today, and here in Financial History we
the shock value of these allegations have illuminated the controversial
pales alongside the havoc wreaked tactics of the Robber Barons, the
by more recent developments. origins and watchdog responsibility
Escalating charges of conflict and of the SEC! and the stabilizing role
corruption, of insider trading and of the Fed, and the long-term health
accounting fraud, have made their of the market. It is enormously grat-
way up the chain of command ifying to me, as 1 hope it is to you
to the front offices of some of as a member, that today the Museum
— —
the country’s best-known companies still unique in the nation can
—
and to the feet of some of Amer- help meet the public’s need for
ica’s best-known businessmen and answers with a 15-year track record
women. The market is reeling, con- under its belt.
sumer confidence is down, and
Americans want to know whether
they can keep faith in institutions.
WWW.FINANCIALHlSTORY.ORG Financial History - Summer :ooi
5
:
mzwa.2/ -&' mi/s
i
Message Members
to
By Brian C. Thompson, Executive Director
With costs rising and competition We haven’t been quite so aggressive
increasing, many museums are chal- in diving for donors, but that’s about
lenged to go to great lengths when it to change. By now you are accus-
comes to staying in front of donors. tomed to reading in these pages how
At a science museum near the Great the Museum of American Financial
Lakes, the private curator’s tour for History is being called upon to
top givers has given way to all-night meet a rapidly growing demand.
sleepovers before the opening of new We know it will take more to do
exhibits. (Just imagine awakening it: more volunteers, more staff, more
in the Hall of Reptiles at morning programs in the gallery, more presence
feeding time!) An institution here in our community and beyond. And
in the city keeps its researchers on more money.
We
call to staff a perpetually incomplete are thrilled that Jenny
demonstration project during donor Hirschowitz has joined our able,
—
walk-throughs not unlike the old streamlined staff as the Museum’s first
FBI building in Washington where full-time Development Director. Jenny
for decades, the same well-worn holds a law degree and comes to
suspended carpet was beaten by club- us from the Museum of the City of
wielding agents to shake loose New York, where she supervised the Honorary Trustee Peter Quick American
,
“fiber evidence” for VIP visitors. major gifts program. She impressed Stock Exchange president, ata recent
donor reception hosted by Board
Major benefactors of an aquarium us with her strong enthusiasm for member Marty Zweig.
in Louisiana recently got the scare building purposeful community ties.
of their lives when a rickety steel Her first and foremost task will be to
catwalk collapsed during a behind- help us continually remind all of you tributors in the magazine, on the web,
the-scenes tour, collectively plunging who have contributed to our growth and in the gallery, that vital support is
the top tier of the donor roll feet during our first 15 years of just how helping us do meaningful work on a
first into the shark tank. For several important and productive your sup- bigger scale. We are deeply grateful,
terrifying minutes, as contributors port has been. As we go forward, and encouraged to do more.
were plucked from the icy water, she will play a key role in bro—adening As a Museum member, I hope you
aquarium keepers feared that the the Museum’s financial base build- will stop to say “hello” to Jenny and
violent commotion on the surface ing new support relationships, and call on any of us here during your next
would incite the sharks to bite. managing donor services. As we work visit. We’d love to see you. And we
Thank goodness no one was injured. to give greater recognition to our con- don’t bite. E33
The Museum would like to thank these members for their generous recent gifts
Sponsor-$i,ooo+ Smithsonian Membership-$i50+
Mr. Mark M. Carhart Mr. Andrew M. Blum The Museum thanks all contributors,
Mr. Randy Cepuch Mr. John Cioffi old and new, for their continued
Ms. Gail M. Dudack Mr. Michael Delaney support. To learn how you or
your organization can participate
Ms. Bobye List Mr. E. John Finn
Mr. Louis Rukeyser Mr. 8c Mrs. Warren Hanscom in the Museum’s program,
educational, and service mission,
Mr. &c Mrs. Ted Theodore Ms. Diana Henriques
Mr. Martin Packouz please call Jenny Hirschowitz
Alexander Hamilton Society-$500+ Mr. William M. Pinzler at 212-908-4519.
Mr. 8c Mrs. Allan M. Keene Mr. Kevin Shine
Mr. Richard L.N. Weaver
Financial History Summer zooi 6 www.financiai.history.org
“High Notes”
Museum To Display Top Dollars in
Former U.S. Treasurer to curate exhibit of high denomination currency
By Meg Ventrudo, Assistant Director
for Exhibits and Education
On October i, 2002, the Museum
will unveil an exhibition of high Collection,
denomination currency guest curated
by former Treasurer of the United Numismatic
States Mary Ellen Withrow. “High
Notes” will be the first public exhi- National
bition to showcase rare high denomi- photographer
nation bills from the Smithsonian Institution,
Institution’s National Numismatic Mudd
Collection, including a $100,000 gold Smithsonian
Douglas
certificate from 1934 that was used
to transfer funds between the Federal This Si00,000 gold certificate, issued in 1934- w'dbe displayed in "High Notes.
Reserve Banks and a 1934 series
$10,000 gold certificate. Presently,
the largest U.S. note in circulati—on
is the $100 bill. Larger notes
in denominations of $500, $t,oo—o,
$5,000, $10,000, and $100,000
were eliminated in 1969 due to
declining demand.
The exhibit will also feature several
examples of inflationary currency
from around the world, most of
which resulted from wars and
unstable economic policies. Histori-
cally, the most famous example
German currency from the era
is
between the first and second world
wars. Illustrations of the time depict
people exchanging wheelbarrows
of reichsmarks for a loaf of bread. Examples ofinternational inflationary
In some cases, new denominations 4 p.m. in the Museum gallery, which currency. Clockwise from top left:
were printed over the existing curren- members and their guests are invited <j1ooombiilllliioonnYHuugnogsalraiviaannpdeinngaor;a;
cies to save the expense of starting to attend. During her tenure as one million Nicaraguan cordobas;
from scratch. Examples of interna- U.S. Treasurer, Withrow’s signature and one trillion German reichsmarks
tional inflationary money, such as appeared on more currency than that (“billion” in German translates
to “trillion” in English).
a note for 300,000,000 German of any of her predecessors. She also
reichsmarks from 1923 and a modern- holds the distinction of being the only
day 10,000,000 Turkish lira note, person to hold the treasurer position
will also be on display. at the city, state, and national levels.
Withrow will lead a curator’s tour “High Notes” will be on display
of “High Notes” on October 16 at through February 28, 2003. HD
WWW.FlNANCIALHISTORY.ORG Financial History ~ Summer 2002
Gold Rushes and Campfire Songs
Wells Fargo exhibit and events bring the Wild West to Wall Street
By Kristin Aguilera, Editor
The Museum’s summer exhibit, interns, who greeted gallery visitors Members toured the Federal Reserve
“Born in New York,” traced Wells with stories of Wells Fargo’s role in Bank of New York’s gold vaults,
Fargo’s history back 150 years to its the country’s westward expansion participated in a campfire sing-along
founding just a few blocks from the and assisted in the creation of exhibit- with their children aboard the ship
Museum at 16 Wall Street. Many visi- related educational materials. Museum Peking at the South Street Seaport,
tors were surprised to learn of the intern Erica Borgese, a senior at and listened to a lecture by Wells
company’s place of origin, as most Loyola College in Maryland, mounted Fargo’s chief historian, Andy Ander-
assumed it was founded out West an exhibit sidebar on Wells Fargo’s son, on his new book, Stagecoach:
where Wells Fargo branches dominate survival through the San Francisco Wells Fargo and the American West.
the banking landscape. Others were earthquake of 1906, a story of “Born in New York” will be on
more intrigued by the fact that the endurance that is especially poignant display through September 14. Mem-
company’s founders, Henry Wells and since September 11, 2001. bers are invited to join assistant
William Fargo, also founded the For the Museum’s members, espe- director Meg Ventrudo at noon that
American Express Company two years cially those who reside in New York, day in the Museum’s gallery for the
to the day earlier at the same location. the exhibit and its associated events final exhibit-themed event, “Pioneer-
The exhibit also provided a learning provided the flavor ofthe West without ing Business: Lessons and Reflections
experience for the Museum’s summer having to venture outside the city. from Wells Fargo’s History.”Ba
Top: Dr. Andy Anderson, Wells Fargo’s
chiefhistorian, gives a talk on his new
book, Stagecoach.
Museum intern Erica Borgese, a history
Right: Folk singer Michael Power leads majorat Loyola College in Maryland,
children and theirparents in a campire prepares a case for the Wells Fargo exhibit.
sing-alongaboard the Peking ship at
the South Street Seaport. The program
brought the western theme ofthe
Wells Fargo exhibit to a wideraudience.
Financial History - Summer zooz 8 WWW.FINANCIALHlSTORY.ORG