Bernard Baruch
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Bernard Mannes Baruch (August 19, 1870–June 20, 1965) was an American financier, stock market speculator, statesman, and presidential adviser. After his success in business, he devoted his time toward advising Democratic presidents Woodrow Wilson and Franklin D. Roosevelt on economic matters.
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[edit] Beginnings
Bernard Baruch was born in Camden, South Carolina to Simon and Belle Baruch. He was the second of four sons. His father Simon was a German Jewish immigrant who came to America in 1855. He became a surgeon on the staff of Confederate general Robert E. Lee during the American Civil War. His mother's Sephardic Jewish ancestors came to New York in the 1800, they were in the shipping business. In 1881 the family moved to New York City, and Bernard Baruch graduated from the City College of New York eight years later. He eventually became a broker and then a partner in the firm of A. Housman and Company. With his earnings and commissions he bought a seat on the New York Stock Exchange for $18,000. There he amassed a fortune before the age of thirty via speculation in the sugar market. In 1903 he had his own brokerage firm and had gained the reputation of "The Lone Wolf on Wall Street" because of his refusal to join any other financial house. By 1910, he had become one of Wall Street's financial leaders.
[edit] Presidential Adviser: WWI
During World War I he advised President Woodrow Wilson on national defense, during which time he became the chairman of the War Industries Board. His stenographer was the unknown teenager Billy Rose. Baruch played a major role in turning American industry to full-scale war production. At the war's conclusion he was seen with President Wilson at the Versailles Peace Conference. He never ran for elective office. He supported numerous Democratic Congressmen with $1000 annual campaign donations, and became a popular figure on Capitol Hill. Every election season he would contribute from $100 to $1000 to numerous Democratic candidates (usually incumbents he knew well).
Under President Franklin D. Roosevelt's "New Deal" Baruch was a member of the "Brain Trust" and helped form the NRA.
[edit] Presidential Adviser: WWII
During World War II he was a consultant on economic issues and proposed a number of measures including:
- A pay-as-you-go tax plan
- Rent ceilings
- Stockpiling of rubber and tin
- A synthetic rubber program to replace natural rubber, the sources of which were under enemy Axis Powers control
Baruch argued that in modern war there was little room for free enterprise. He said Washington must control all aspects of the economy and that both business and unions must be subservient to the nation's security interest. Furthermore, price controls were essential to prevent inflation and to maximize military power per dollar. He wanted labor to be organized to facilitate optimum production. Baruch believed labor should be cajoled, coerced, and controlled as necessary: a central government agency would orchestrate the allocation of labor. He supported what was known as a "work or fight" bill. Baruch advocated the creation of a permanent superagency similar to his old Industries Board. Thus Baruch proposed to freeze economic freedom during war in order to preserve it for peace. Obviously his approach enhanced the role of civilian businessmen and industrialists in determining what was needed and who would produce it.[1] Baruch's ideas were largely adopted, with James Byrnes appointed to carry them out.
In 1946 he was appointed the United States representative to the United Nations Atomic Energy Commission (UNAEC) by President Harry S. Truman. On Friday, June 14, 1946, Baruch presented his Baruch Plan to the UNAEC, which proposed international control of then-new atomic energy.
[edit] Park bench statesman
Baruch was a high profile public figure, and did his best thinking in Washington D.C's Lafayette Park and in New York City's Central Park. It was not uncommon to see him discussing government affairs with other people while sitting on a park bench; this became his trademark. It was said that his office was a park bench near the White House.
In 1960, on his ninetieth birthday, a commemorative park bench in Lafayette Park across from the White House was dedicated to him. One would think after 55 years, he would stop to rest, but Baruch was not satisfied with staying put. He continued to advise on international affairs until his death on Sunday, June 20, 1965, in New York City, at the age of ninety-four.
[edit] Quotes
- Anyone taken as an individual is tolerably sensible...as a member of a crowd, he at once becomes a blockhead (quoted in American Journal of Physics, Vol. 75, No. 2, pp. 190, February 2007)
[edit] Trivia
- His winter residence was his 17,500 acre (70 km²) Hobcaw Barony on the coast of South Carolina, which was turned into a wildlife refuge after his death. At Hobcaw House he was host to such world leaders as Winston Churchill and President Roosevelt, who visited for a month in 1944. Other guests included World War I General "Blackjack" Pershing and Mrs. Woodrow Wilson.
- Latitude (33.35) Longitude (-79.18)
- In 1931, Sir Winston Churchill was hit by a taxi, while on his way to meet Bernard Baruch.
- He made a $50,000 contribution to Woodrow Wilson's 1912 presidential campaign.
- Upon appointment to his first post by Woodrow Wilson, he divested his considerable financial holdings and sold his New York Stock Exchange seat to serve in government unencumbered.
- Baruch endured days of grilling testimony from Alger Hiss, Counsel for the Senate Munitions Committee (the Nye Committee), answering innuendo about personal finances and wartime profitteering.
- Bernard Baruch was the first to coin the term "Cold War" in reference to the conflict between United States and the Soviet Union while giving a speech on April 16, 1947. By September 1947 it was picked up by journalist Walter Lippmann and became standard. See Origins of the Cold War on more information about the origin of the term.
- Baruch owned a tungsten (wolfram) mining community named Atolia in California's Mojave Desert. During the years 1906 to 1926, Baruch spent one month a year at Atolia. The once thriving community of 4,000 individuals became a ghost town when, after World War I, tungsten was no longer considered a strategic material, and lower-cost sources were developed.
- Secretary of Defense James Forrestal had this diary entry about a lunch meeting with Baruch on February 3, 1948: "He took the line of advising me not to be active in this particular matter and that I was already identified, to a degree that was not in my own interests, with opposition to the United Nations policy on Palestine. He said he himself did not approve of the Zionists' actions, but in the next breath said that the Democratic Party could only lose by trying to get our government’s policy reversed, and said that it was a most inequitable thing to let the British arm the Arabs and for us not to furnish similar equipment to the Jews." (The Forrestal Diaries, Walter Millis, editor, 1951, p. 364.) Correspondence from Baruch to his friend, Forrestal, can be found in the Forrestal papers collection at Princeton for every year from 1940 to Forrestal's death in 1949. [1]
- Baruch College, in Manhattan, New York has a statue of Bernard Baruch sitting on a bench inside of its entrance center. This statue is often mistaken to be a real person.
- He was on the cover of TIME magazine a total of three times in his life.
- "In Wall Street it is always ba-rook', but his friends say bahr'ook [with the stress on the first syllable]." (Charles Earle Funk, What's the Name, Please?, Funk & Wagnalls, 1936.)
- His grave is at Flushing Cemetery, Flushing, Queens, New York City, USA
- Latitude (40.7522) Longitude (-73.7994)
[edit] Bibliography
[edit] Primary Sources
- Bernard M. Baruch Baruch: My Own Story (1957) two volumes. ISBN 1-56849-095-X
- Bernard M. Baruch; The Making of the Reparation and Economic Sections of the Treaty 1920.
- Bernard M. Baruch; American Industry in War: A Report of the War Industries Board (March 1921) ed by Richard H. Hippelheuser; 1941.
[edit] Scholarly secondary sources
- Margaret L. Coit Mr. Baruch (2000) ISBN 1-58798-021-5
- Carter Field Bernard Baruch, Park Bench Statesman (1944)
- James L. Grant Bernard M. Baruch: The Adventures of a Wall Street Legend (1997)ISBN 0-471-17075-5
- Kerry E. Irish, "Apt Pupil: Dwight Eisenhower and the 1930 Industrial Mobilization Plan" The Journal of Military History 70.1 (2006) 31-61. Eisenhower worked closely with Baruch in 1930
- Jordan A. Schwartz The Speculator: Bernard M. Baruch in Washington, 1917–1965 (1981) ISBN 0-8078-1396-6
- William Lindsay White, Bernard Baruch: Portrait of a Citizen (1971) ISBN 0-8371-3348-3
[edit] Personalities of Wall Street
See List of personalities associated with Wall Street.
[edit] External links
- Bernard Baruch Portrait
- Bernard Baruch - Jewish Virtual Library
- Bernard Baruch Bench Of Inspiration
- Hobcaw Barony Wildlife Refuge
- Baruch College of the City University of New York
- Investment Banking Club - Bernard Baruch College
- Annotated bibliography for Bernard Baruch from the Alsos Digital Library for Nuclear Issues
- FBI file on Bernard Baruch
