Part 2 Chapter 19 Crack-up Summary and Analysis

The House of Morgan people hope for repeal of the Glass-Steagall Act. In 1934, they fight against the proposed Securities and Exchange Act to no avail. Jack Morgan's hatred of Roosevelt intensifies. There is a radio priest of the time, a Father Charles E. Coughlin, who begins to attack the banking industry in his broadcasts, along with the Hearst press and others. They blame the banking establishment for the war and the Depression. Roosevelt makes an attempt at trying to settle the differences with the Wall Street bankers, but it is to no avail. In 1934, Utah banker Marriner Stoddard Eccles recommends that the Federal Reserve Board in Washington absorb the New York Fed's power, in an attempt to remove Wall Street influences from the system. This is accomplished by the Banking Act of 1935.

By the summer of 1935, Morgan...