THE GREAT QATSPY® Quapaw Aviation Tactical Sportswear Performance Yukon Outfitters
By: Charles W. Boatright
J.P. Morgan What Makes an Enduring Classic?– Historical Financial Crises We’re Experiencing Now isn’t the First, 1907 Reshaped our Financial Markets
The financial crisis of 1907 was averted by razor-thin margin by one John Pierpont Morgan, better known as J.P. Morgan. J.P. Morgan foresaw this 1907 crisis on the horizon that was caused by Moore and Schley, a brokerage firm. Moore and Schley firm invested $6 million of borrowed capital to purchase speculative stock in the Tennessee Coal, Iron & Railroad Company (TCI).
Investment 101- It is never a good idea to borrow money to invest, especially in speculative stock anytime.
The crisis started when the banks called the loan in from the Moore and Schley firm that couldn’t pay the loan back. This would have caused Moore and Schley to default on the loan, setting up a horrible chain of events that would have caused a financial crisis in the banking industry and on Wall Street. This default would have reverberated throughout the United States that did occur again in October of 1929, causing the Depression that lasted until 1945.
The $6 million investment by Moore and Schley firm would be equivalent to $157.92 million in today’s dollars!
J.P. Morgan, seeing this disaster, called in his financial banking experts to his home in New York to advise and devise a rescue plan that would avoid this financial meltdown. Morgan’s financial experts wanted to know what the outline for the rescue package should look like. J.P. Morgan, puffing on his Maduro Meridiana Kohinoor cigar, replied (I am paraphrasing here), I will know the rescue plan that will work when I see it. Definition of a Classic, you’ll know it when I see it!
J.P. Morgan cigar of choice was the 8” Maduro Meridiana Kohinoor: article in CIGAR LIFE GUY- The Cigar Habits of J.P. Morgan
This one phrase by J.P. Morgan stuck with me ever since my college days in 1983. An instant classic is one where we see it for the first time and know it has all the makings of what we consider to be a classic. Whether that classic be a WWII aircraft, automobile, motorcycle, football game, an antique, piece of art, or music, especially a light soft jazz selection, like a classic by Cindy Bradley. I enjoy soft jazz, but music from Cindy Bradley or Alex Parchment, trumpet players, are among by favorite artist. A saxophone usually receives the lion share of attention.
Grey Area:
Instant Classic Since June of 1931
This is how classics are established and recognized in our history, by people knowing what a classic is when they read, see, or listen to one. This is much like how the June 1931 A-2 Leather Flight Jacket, below, that pilots in the cockpit or elite 82nd and 101st Airborne Units wore during World War II.
This A-2 Leather Flight Jacket became an instant, iconic classic when it was introduced in June of 1931. I wear my as my sports jacket for business or leisure wear. I have long-since mothballed my cloth sports jacket because my A-2 Leather Flight Jacket only has to be wiped-down to be sanitize and clean. NO DRY CLEANING NEEDED! IT TRAVELS WELL ALSO that is right for any occasion, even covering sports that I do!
The A-2 Leather Flight Jacket still remains a classic even today that has virtually been unchanged since its introduction in 1931. The A-2 design was submitted to replace the button-up-front-flap and open sleeves and waistline of the A-1 Leather Flight Jacket worn by the U.S. Army Air Corps in WWI. The A-2 Leather Flight Jacket served as the basis for the Indiana Jones-Style Leather Jacket that Indy wore on his world-wide archaeological adventures and expeditions, see below:
So What was the J.P. Morgan Rescue Plan?
So what did J.P. Morgan’s rescue plan involve? It involved J.P. Morgan purchasing both TCI Company and Moore and Schley Firm for $30 million; but the plan hinged on J.P. Morgan receiving immunity, or exemption, from antitrust restrictions from President Theodore Roosevelt, that Roosevelt granted. Just to grasp the magnitude of $30 million, in 1907, it would be worth in today’s dollars– approximately $789,600,000.00, or almost a billion dollars in today’s money.
Just a sense of $30 Billion in 1907- Elon Musk, CEO of Tesla, is offering $44 million to purchase Twitter down from $54,20 million just to give you another sense of this 1907 financial crisis of $789.6 million in today’s dollars, pretty impressive offer by J.P. Morgan in 1907.
In addition to banks, J.P. Morgan owned U.S. Steel, Aetna, International Harvester, Western Union, Pullman Car, and 21 railroads. Owning Railroads and Steel companies was the reason why J.P. Morgan needed the antitrust exemption from President Roosevelt to purchase both TCI and Moore and Schley. If you want a great book to read on Theodore Roosevelt, read a book by Edmund Morris entitled Theodore Rex. I have this book in my library and is in the featured photograph above.
The 1913 Federal Reserve System
The U.S. Government took action in 1913 to avert this crises from happening again since there might not be a J.P. Morgan walking around in the future in New York City ready to bail out a questionable investment. To avert another financial meltdown in the future, in 1913, the banking industry with the U.S. Government, established the Federal Reserve System, which was sponsored by Senator Nelson Aldrich, from Rhode Island. As we are all aware of today, the Federal Reserve System is responsible, for better or worse, for establishing interest rates and monetary policies presently.
The reason I was aware of this particular account in U.S. financial history was in college taking Engineering Economy, or Engineering Econ for short, I had an Economics Professor, Prof. Duncan. Professor Duncan was a purveyor of both finance and American history in a great deal detail. He was such a great historian that when he told this particular story, it was as if it occurred that week.
History is there for us to read, study, learn, understand, and try to improve outcomes in applying what worked and what failed to real situations. This is why history is so important for us to use today to debate it and develop lessons learned to achieve success and avoid failures in the future.
THE QATSPY® Quapaw Aviation Tactical Sportswear Performance Yukon Outfitters Collection provides the classical style Leather Jackets that you are looking for in business and for the weekend with friends. Whether wearing khakis or blue jeans, our leather jackets that include the authentic flight jackets are provided to the U.S. Military and to Hollywood that provides that style for any of your occasions:
Our Quapaw Aviation Tactical Sportswear Collection:
I also have a book on KINDLE detailing the DIET & FITNESS program that I developed that has allowed me to lose 45- LBS. in 8-short weeks. Below is a photograph taken in our hangar after we did a photoshoot in August 13, 2022 for the Quapaw Aviation Tactical Collection. Not only did I lose pounds and inches, I lose years off the appearance of my skin to allow me to model at age 65, shown below:
THE DELPHI DIET & CAST FITNESS System book on KINDLE:
My Book on KINDLE: DELPHI DIET & CAST FITNESS System: