J. P. Morgan Jr.

John Pierpont Morgan Jr.
Born	Irvington, New York, U.S.
Died	13 March 1943(1943-03-13) (aged 75) Boca Grande, Florida, U.S.
Occupation(s)	Financier, banking executive
Years active	Late 19th century – 1943
Known for	Head of J.P. Morgan & Co.; financing World War I efforts; philanthropy including founding the Pierpont Morgan Library

John Pierpont Morgan Jr. (September 7, 1867 – March 13, 1943) was a prominent American financier and banking executive who inherited his family's wealth and took the helm of J.P. Morgan & Co. following the death of his father, J. P. Morgan, in 1913.

Having completed his education at St. Paul's School and Harvard College, Morgan honed his expertise under the guidance of both his father and grandfather. He emerged as a leading figure in banking, specializing in lending and serving as a director for multiple corporations. His philanthropic efforts included support for New York's Society for the Lying-In Hospital, contributions to the Red Cross, involvement with the Episcopal Church, and funding the rare book and manuscript collections housed at the Morgan Library.

During World War I, Morgan secured an exclusive contract that designated his firm as the primary purchaser of munitions and supplies for the British and French governments, earning a 1% commission on transactions totaling $3 billion ($30 million). Additionally, he arranged financial backing for various foreign governments throughout and after the conflict.

Early life

Born on September 7, 1867, in Irvington, New York, John Pierpont Morgan Jr., often called Jack, was the son of J. P. Morgan and Frances Louisa Tracy. He completed his studies at St. Paul's School before graduating from Harvard College in 1886, where he was a member of the Delphic Club, previously known as Harvard’s chapter of Delta Phi.

His siblings included Louisa Pierpont Morgan (1866–1946), who married Herbert L. Satterlee, Juliet Pierpont Morgan (1870–1952), who wed William Pierson Hamilton, and noted philanthropist Anne Tracy Morgan. His paternal grandparents were Junius Spencer Morgan and Juliet Pierpont, herself a daughter of John Pierpont.

Career

Like his father, Morgan Jr. preferred to avoid public attention and maintained a philanthropic approach to business. In 1905, his father acquired Guaranty Trust Company to strengthen New York’s banking sector; after his passing in 1913, John Jr. used this institution as his primary base of operations.

World War I

Morgan was instrumental in financing efforts during World War I, arranging an initial $12 million loan to Russia shortly after hostilities commenced. In 1915, he facilitated a $500 million loan to France and Britain via the Anglo-French Financial Commission. This financial involvement led to allegations that the bank sought to sway U.S. policy toward supporting the Allies in order to safeguard its loan interests. By 1915, anticipating a prolonged war, the firm formalized its alliance with France; however, tensions arose due to personal disagreements and perceived preferential treatment toward British interests.

Through his association with Cecil Spring Rice, Morgan secured his firm’s position as the official purchasing agent for the British government beginning in 1915, managing procurement of cotton, steel, chemicals, and foodstuffs while earning a 1% commission. He also organized a syndicate comprising approximately 2,200 banks to underwrite the $500 million Allied loan. By late 1916, Britain increasingly depended on unsecured credit following extensive sales of American securities.

Initially met with skepticism by Treasury Secretary William Gibbs McAdoo and President Wilson’s administration due to its close ties with Britain, Morgan & Co.'s role evolved into one of collaboration after America entered the war, resulting in favorable financial arrangements. From 1914 through 1919, Morgan served on the advisory board of the Federal Reserve Bank of New York.

On July 3, 1915, assassin Eric Muenter shot Morgan twice at his Long Island estate as a protest against arms profiteering and to demand an embargo; Morgan survived and recovered swiftly.

Postwar

Following World War I and the Treaty of Versailles, Morgan Guaranty took on the role of overseeing Germany's reparations payments and emerged as a principal creditor to both Germany and the broader European region. In 1919, Morgan led an international consortium of American, British, and French bankers dedicated to safeguarding investors holding Mexican securities. Later that year, he became involved with the Foreign Finance Corporation, an organization committed to financing overseas ventures. By the decade's close, Morgan Guaranty had established itself as one of the foremost banking entities worldwide. However, the Great Depression inflicted heavy financial setbacks, with the House of Morgan’s assets declining by 40%, from $704 million down to $425 million. The firm came under rigorous examination during the 1932 U.S. Senate Pecora hearings, which intensified public disapproval of Wall Street practices.

In addition to his banking activities, Morgan held board positions at several major companies, including U.S. Steel, Pullman Company, Aetna Life and Casualty, and Northern Pacific Railway.

He passed away from a stroke on March 13, 1943, in Boca Grande, Florida.

Personal life

Morgan entered into marriage in 1890 with Jane Norton Grew (1868–1925), the daughter of Boston financier Henry Sturgis Grew. Together they had four children:

• Junius Spencer Morgan III (1892–1960), who wed Louise Converse (1895–1974), daughter of composer Frederick Shepherd Converse, in 1915.
• Jane Norton Morgan Nichols (1893–1981), married George Nichols (1878–1950), sibling of John Treadwell Nichols.
• Frances Tracy Pennoyer (1897–1989), who married attorney Paul Geddes Pennoyer (1890–1970) in 1917.
• Henry Sturgis Morgan (1900–1982), co-founder of Morgan Stanley, married Catherine Lovering Adams (1902–1988), a descendant of President John Adams.

Philanthropy

In 1920, Morgan gifted his London property at 14 Princes Gate—located near Imperial College London—to the United States government for use as its embassy.

Four years later, in 1924, he founded the Pierpont Morgan Library as a public institution to honor his father’s legacy. His personal librarian, Belle da Costa Greene, became its inaugural director and significantly expanded its holdings to include illuminated manuscripts, original manuscripts, incunabula, prints, drawings, early printed Bibles, and exquisite bookbindings. Presently, this library functions as both a museum and a center for scholarly research.

Morgan Jr. also donated a substantial part of his father's collection to the Metropolitan Museum of Art.

Social

A passionate yachtsman like his father before him, Morgan served as commodore of the New York Yacht Club between 1919 and 1921. In 1930, he commissioned the construction of the turbo-electric yacht Corsair IV at Bath Iron Works in Maine. Launched on April 10 that year, it ranked among the most opulent yachts ever built in the United States at that time, measuring in length with a beam and . The shipyard credits Morgan with coining the phrase "If you have to ask, you can't afford it" regarding this vessel’s expense; though this saying is more frequently attributed to his father and the earlier Corsair launched in 1891.

In 1940, Morgan sold Corsair IV to the British Admiralty for one dollar to aid Britain’s wartime efforts. After World War II concluded, the yacht was acquired by Pacific Cruise Lines and began operating luxury cruises between Long Beach and Acapulco starting in 1947. The vessel was lost after hitting a rock near Acapulco in 1949; fortunately, all passengers and crew were saved.

Morgan was also affiliated with the exclusive Jekyll Island Club ("The Millionaires' Club") on Jekyll Island, Georgia—a membership shared by his father as well.

Further reading

• De Long, J. Bradford. "J.P. Morgan and his money trust." Wilson Quarterly 16.4 (1992): 16-30 online