John Pierpont Morgan (1837 – 1931) is one of the more controversial figures in the history of America and the world of finance. Described as a sui generis, a colossus (McCallum, p. 2), "the organizer" (Miller, 2003), "banker of last resort" (Andrews, 1999), and "the man of the hour" (Corey, p. 348), John Pierpont Morgan has also been called a "robber baron" (Andrews, 1999). Thus, it is evident that J. P. Morgan was a man who was as much praised for his actions in saving the American economy during the 1895 and 1907 crises, as he was criticized and derided for what was seen as his calculated control of the financial world and American business. Viewed from the lens of financial history, however, there can be little doubt that no person, either before or since, has left "upon the great art of money getting so important an influence." (Flynn, p. 452) Indeed, Morgan"s acumen in finance and business is clearly illustrated by the fact that the U.S. government had to set up a whole array of government institutions, from the Federal Reserve to the Securities and Exchange Commission and the Department of Transportation, to carry out the market stabilizing functions that Morgan had once assumed (Andrews, 1999). But perhaps, the biggest testimony to Morgan"s financial astuteness and power lies in the role he assumed as defacto central banker in 1907. For, there can be little doubt that J. P. Morgan single-handedly rescued the American economic system from falling into disarray. .

             The key to understanding how one man could possibly act as the defacto central banker for as democratic, large and influential a country like the United States, lies in not so much analyzing the actual event, but in J. P. Morgan"s personal history. For, only such an approach could possible explain how he possessed the financial power to avert the collapse of one of the richest banking systems in the world.