Morgan's Activities in 1895-1896 in Selling U.S. Gold Bonds in Europe Were Based on His Alliance with the House of Rothschild; These Activities Added to His Reputation as a Rescuer of Governments

The power of J. P. Morgan and Co. was based initially on its ability to sell railroad stocks and bonds in the English and European markets. European investors placed $2.4 billion in the United States during 1880-1895, and owned a total of $4.5 billion in government and nongovernment bonds and shares in 1914. Morgan's activities in 1895-1896 in selling U.S. gold bonds in Europe were based on  his alliance with the House of Rothschild; these activities added to Morgan's reputation as a rescuer of governments. That reputation was often the key to his power, and it lasted long after the power was greatly diluted. Morgan and a few large bankers saved the New York Clearing House in 1893, and, seemingly, the United States' financial standing only a few years later. Accomplishments of this  magnitude enhance one's reputation indeed!

--Gabriel Kolko, The Triumph of Conservatism: A Reinterpretation of American History, 1900-1916 (New York: The Free Press, 1977), 142.