Baruch Knew How to Manage For Victory
Title
Baruch Knew How to Manage For Victory
Creator
Unknown
Identifier
WWP16229
Date
1920 March 30
Description
Article describes Bernard Baruch’s method of working with industrial companies as chairman of the War Industries Board as being straight from Wall Street.
Source
Cary T. Grayson Papers, Woodrow Wilson Presidential Library, Staunton, Virginia
Language
English
Text
AS CHAIRMAN OF WAR INDUSTRIES BOARD MADE SELLERS WORK FOR UNCLE SAM
—ALLAN A. RYAN BACK TO MARKET
______Adams, in Pithy Personalities in the Boston News Bureau says: Allan A. Ryan, who has been ill for past nine months, having suffered an attack of pneumonia, returned to the Street early last week. The strength of the securities in which he is interested is sufficient proof that he is a believer in the future of the motor industry as well as the business in general. The half dozen properties in which Mr. Ryan is interested are working full time, and millions of dollars are being expended in extensions. Mr. Ryan was not well pleased with the manner in which the Street handled his stocks during his illness, and he is making certain interests who put out short lines in Stutz, Stromberg; Chicago Pneumatic Tool and Textile pay the penalty. Ryan’s stocks have been conspicuous for their buoyancy in the recent upturn of the market. That Mr. Ryan has certain controversies with certain individuals there seems to be no question, and Wall Street hopes that all differences will be patched up ultimately.
WHAT A SPECULATOR KNEW
In Washington they tell some stories on “Barney” Baruch and his short cuts to action, when chairman of the War Industries Board, with absolute control under orders of the President, over every industry and production in the United States.
The lumber and the motors people denounced him and defied him. They would take no orders from a Wall Street speculator as to prices and production. “You cannot make me work,” said the representative of the lumber men, “even if you commandeer my mills.”
“You and your mills will work for Uncle Sam and the war.”
“Who will make me?”
“I will take your mills,” said Baruch, “and your neighbors will make you run them. If you refuse, every brick in your city will rise up against you.” And the man in the lumber mills went to work for the Government, and at the price for lumber Baruch named.
It was sufficient when he shut off the coal and the steel supplies for two motor companies. They likewise quickly came to terms.Baruch had a Wall Street way of getting information and he knew how to deal with speculation. He generally had a friend in every industry near the top who told him the truth about costs, profits and prices and he did not require any commission for investigation.
He made the prices for nitrates in South America and for wool in Australia. He clipped more than $40,000,000 off a single English contract for Australian wool for the American army.
He halved the price of tinplate over night and did substantially the same for India jute, closing the exchanges of Bombay and Calcutta. They warned him of an India panic and uprising. But Baruch knew how to deal with speculators and speculations. He named the price for copper and coal with knowledge as to cost sheets more accurate than any government commission could gather.
The Attorney-General wrote him twenty-seven letters of protest calling attention to the illegality of his actions. Then Baruch called him on the telephone and said: “Please don’t send any more letters. File the letters in your own portfolio and I will acknowledge them in bulk some time in the future—perhaps when we go duck shooting together next summer.”
When, after the Armistice, the President asked Baruch to consider the question of lifting restrictions, Baruch responded: “Mr. President, I removed all restrictions two days ago.”
“Without consulting me?”
“I did not want to bother you, Mr. President. Somebody might suggest hearings and then there would be months of delay. I knew what ought to be done and how to save you trouble.”
At another time the President said to Mr. Baruch, according to a reported story: “This is the third time you have been here to protest and you know I made up my mind some time ago. Yet you make a third protest.”
“Yes, and I will make a fourth one if you will let me through the door,” said Baruch.
“I suppose,” said the President, “that you would be willing that I compromise this matter by letting you have your own way.”
“That is the only compromise,” said Baruch, and the President compromised. Later the President sincerely thanked him.
—ALLAN A. RYAN BACK TO MARKET
______Adams, in Pithy Personalities in the Boston News Bureau says: Allan A. Ryan, who has been ill for past nine months, having suffered an attack of pneumonia, returned to the Street early last week. The strength of the securities in which he is interested is sufficient proof that he is a believer in the future of the motor industry as well as the business in general. The half dozen properties in which Mr. Ryan is interested are working full time, and millions of dollars are being expended in extensions. Mr. Ryan was not well pleased with the manner in which the Street handled his stocks during his illness, and he is making certain interests who put out short lines in Stutz, Stromberg; Chicago Pneumatic Tool and Textile pay the penalty. Ryan’s stocks have been conspicuous for their buoyancy in the recent upturn of the market. That Mr. Ryan has certain controversies with certain individuals there seems to be no question, and Wall Street hopes that all differences will be patched up ultimately.
WHAT A SPECULATOR KNEW
In Washington they tell some stories on “Barney” Baruch and his short cuts to action, when chairman of the War Industries Board, with absolute control under orders of the President, over every industry and production in the United States.
The lumber and the motors people denounced him and defied him. They would take no orders from a Wall Street speculator as to prices and production. “You cannot make me work,” said the representative of the lumber men, “even if you commandeer my mills.”
“You and your mills will work for Uncle Sam and the war.”
“Who will make me?”
“I will take your mills,” said Baruch, “and your neighbors will make you run them. If you refuse, every brick in your city will rise up against you.” And the man in the lumber mills went to work for the Government, and at the price for lumber Baruch named.
It was sufficient when he shut off the coal and the steel supplies for two motor companies. They likewise quickly came to terms.Baruch had a Wall Street way of getting information and he knew how to deal with speculation. He generally had a friend in every industry near the top who told him the truth about costs, profits and prices and he did not require any commission for investigation.
He made the prices for nitrates in South America and for wool in Australia. He clipped more than $40,000,000 off a single English contract for Australian wool for the American army.
He halved the price of tinplate over night and did substantially the same for India jute, closing the exchanges of Bombay and Calcutta. They warned him of an India panic and uprising. But Baruch knew how to deal with speculators and speculations. He named the price for copper and coal with knowledge as to cost sheets more accurate than any government commission could gather.
The Attorney-General wrote him twenty-seven letters of protest calling attention to the illegality of his actions. Then Baruch called him on the telephone and said: “Please don’t send any more letters. File the letters in your own portfolio and I will acknowledge them in bulk some time in the future—perhaps when we go duck shooting together next summer.”
When, after the Armistice, the President asked Baruch to consider the question of lifting restrictions, Baruch responded: “Mr. President, I removed all restrictions two days ago.”
“Without consulting me?”
“I did not want to bother you, Mr. President. Somebody might suggest hearings and then there would be months of delay. I knew what ought to be done and how to save you trouble.”
At another time the President said to Mr. Baruch, according to a reported story: “This is the third time you have been here to protest and you know I made up my mind some time ago. Yet you make a third protest.”
“Yes, and I will make a fourth one if you will let me through the door,” said Baruch.
“I suppose,” said the President, “that you would be willing that I compromise this matter by letting you have your own way.”
“That is the only compromise,” said Baruch, and the President compromised. Later the President sincerely thanked him.
Original Format
Letter
Article
Files
Collection
Citation
Unknown, “Baruch Knew How to Manage For Victory,” 1920 March 30, WWP16229, Cary T. Grayson Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.