Eugene Meyer (financier)
Eugene Meyer | |
|---|---|
| Born | Template:Birth date Los Angeles, California, U.S. |
| Died | July 17, 1959 (aged 83) Washington, D.C., U.S. |
| Occupation(s) | Financier, banker, newspaper executive |
| Years active | Early 1900s–1959 |
| Known for | Chairman of the Federal Reserve (1930–1933), Publisher of The Washington Post (1933–1946), First President of the World Bank (1946) |
Eugene Isaac Meyer (October 31, 1875 – July 17, 1959) was a distinguished American financier, banker, and newspaper executive. He held the position of the fifth chairman of the Federal Reserve from 1930 until 1933. In 1933, Meyer purchased The Washington Post and served as its publisher until 1946; the publication remained under his family's control throughout the twentieth century. Additionally, he was appointed as the inaugural president of the World Bank Group from June to December 1946.
His daughter, Katharine "Kay" Graham, took over leadership of the Post in 1963 and maintained that role until her passing in 2001.
Early life and education
Born in 1875 into a Jewish household in Los Angeles, California, Meyer came from a lineage of rabbis and community leaders. He was one of eight siblings born to Harriet (née Newmark) and Marc Eugene Meyer, with his maternal grandfather being Joseph Newmark. Raised in San Francisco, he initially enrolled at the University of California, Berkeley before transferring to Yale University, where he completed his bachelor's degree in 1895 and later earned a Doctorate of Law.
Banking and finance
Following his graduation, Meyer began working at Lazard Frères, where his father was a partner; however, he departed in 1901 to focus on independent investments. He became a prosperous investor and speculator, securing a seat on the New York Stock Exchange. By 1915, at age forty, his personal wealth had grown to $40 million.
In 1920, Meyer collaborated with William H. Nichols of General Chemical to merge five smaller chemical companies into Allied Chemical & Dye Corporation. This entity later became Allied Chemical Corp., which eventually integrated into AlliedSignal, the precursor to Honeywell’s specialty materials division. Both founders are commemorated with buildings bearing their names at Honeywell’s headquarters in Morris Plains, New Jersey.
Chairman of the Federal Reserve
During World War I, Meyer contributed as a dollar-a-year man under President Woodrow Wilson, overseeing the operations of the War Finance Corporation throughout and after the conflict. In 1927, President Calvin Coolidge appointed him chairman of the Federal Farm Loan Board.
Under President Herbert Hoover, Meyer assumed the role of chairman of the Federal Reserve Board in 1930. In 1932, he also headed the Reconstruction Finance Corporation, Hoover's program designed to extend loans to struggling enterprises. Meyer stepped down from his Federal Reserve position shortly after President Franklin D. Roosevelt took office in May 1933.
Meyer was criticized for not implementing monetary stimulus during the early years of the economic downturn in the 1930s, actions that many believe intensified bank failures and deepened the Great Depression. At the time, critics identified him as one of the key figures contributing to worsening conditions. Later economic scholars such as Nobel laureate Milton Friedman and Anna Schwartz contended in A Monetary History of the United States that under Meyer's leadership, the Federal Reserve missed critical chances to alleviate the Depression by failing to adopt aggressive monetary policies or prevent banking crises.
The Washington Post
In June 1933, Eugene Meyer purchased The Washington Post at a bankruptcy sale for $825,000, surpassing bids from rivals such as William Randolph Hearst. The newspaper had suffered severe financial damage under its previous owner Ned McLean, compounded by the effects of the Great Depression. Although new to the publishing industry and recently stepping down as Federal Reserve chairman, Meyer was prepared to invest up to $2 million but sought to keep his identity confidential during the acquisition process.
The transaction became public knowledge on June 13, 1933, when Meyer committed to managing the Post independently while enhancing its overall quality. Despite his Republican affiliation, he dismissed speculation that the paper would adopt a partisan stance. The media regarded this purchase as a crucial public service to ensure continued news coverage from Washington, D.C.
Editorial commentary anticipated a revitalized and influential newspaper under Meyer's stewardship. While the Post preserved its editorial autonomy, its content and opinion pieces often mirrored Meyer's resistance to Franklin D. Roosevelt's New Deal initiatives, especially regarding the National Recovery Administration (NRA). Meyer also penned articles under assumed names to shape public opinion.
Over more than twenty years, Meyer dedicated substantial financial resources to support the previously unprofitable publication, emphasizing improvements in journalistic excellence. By the 1950s, the Washington Post had achieved consistent profitability and earned acclaim for its distinguished reporting and editorials. Meyer occasionally made direct contributions; notably, his relationship with British Ambassador Lord Lothian enabled an exclusive report on Edward VIII's abdication crisis involving Wallis Simpson.
World Bank
In June 1946, at age 70, Eugene Meyer was appointed by U.S. President Harry S. Truman as the inaugural president of the World Bank. During his tenure, he appointed his son-in-law, Phil Graham, who was then the Post publisher. After serving six months in this role, Meyer returned to the newspaper and held the position of chairman of the Washington Post Company until his passing in Mount Kisco, New York in 1959.
Personal life
In 1910, Meyer wed Agnes Elizabeth Ernst, and together they had five children, including future publisher Katharine Graham and daughter Florence Meyer. His sister, Florence Meyer Blumenthal, established the Franco-American Florence Blumenthal Foundation, which awards the Prix Blumenthal. His brother Edgar J. Meyer was married to Leila Saks Meyer (daughter of Andrew Saks) and tragically died in the sinking.
Eugene Meyer passed away at age 83 on July 17, 1959, at George Washington University Hospital in Washington, D.C., following treatment for heart disease and cancer.
Legacy
The Eugene Meyer Elementary School in Washington, D.C., named in his honor in 1963, was closed in 2008; its facility currently functions as temporary space for District of Columbia Public Schools.