“Go as far as you can see; when you get there, you’ll be able to see farther. ” – J.P. Morgan
J. P. Morgan was once a dominant figure in the United States banking industry.
His bank, Drexel, Morgan & Co., was a primary lender for the United States government during the Gilded Age. J. P. Morgan dominated Wall Street at a time when there were more than 20,000 banks in the United States and no central bank to manage them.
Most banks suffered shortages in reserves and bank runs arising from fear of insolvency. No banker worked these financial panics better than J. P. Morgan.
The Life of John Pierpont Morgan
J. P. Morgan never studied finance, accounting, or economics at university. He gained this knowledge under the wing of his father, Junius Spenser Morgan, and became one of the best American bankers and financiers of all time.
Birth and Childhood
John Pierpont Morgan was born on April 17, 1837, in Hartford, Connecticut, to a well-known New England family.
He came from a family of founders. His mother, Juliet Pierpont, was the daughter of a prominent poet and minister. His father, Junius Pierpont Morgan, was a successful American financier and founder of J. S. Morgan & Co. Even his paternal grandfather founded an insurance company.
J. P. Morgan suffered frequent seizures as a child, which prevented him from spending large chunks of time away from home.
He often remained sheltered in the house, mostly visiting galleries and concerts when he was healthy. The galleries sparked a lifelong interest in art.
“When you expect things to happen – strangely enough – they do happen.” – J.P. Morgan
Education
Morgan attended the Hartford Public School in 1848 but transferred to Episcopal Academy in Cheshire, Connecticut.
In 1851, he joined the English High School in Boston, where he graduated in 1854.
Upon graduation, the Morgans relocated to London, where Junius Morgan became a partner in the banking firm of George Peabody & Co. J. P. Morgan went to L’Institut Sillig in Switzerland to study French and later to the University of Göttingen to pursue German.
He moved back to New York in 1857.
Early Career in the Banking Industry
J. P. Morgan was lucky enough to have a father who owned a banking firm. He worked as a clerk at one of the branches of Duncan, Sherman & Co.
On one occasion, Morgan used the bank’s funds to buy coffee from a local merchant and then traded it for a profit. This early success motivated him to venture into business. And therefore, he founded J. Pierpont Morgan & Co.
Becoming a Partner in the Banking Industry
In 1864, J. P. Morgan’s father urged him to partner with Charles Dabney, a senior partner, to establish Dabney, Morgan & Co. The two financiers built their bank together until Dabney’s retirement in 1871.
Morgan then paired with Anthony Drexel, a Philadelphia banker, to form Drexel, Morgan & Co. This company saw Morgan become a railway magnate when he began investing in companies such as the New York Central Railroad and Northern Pacific Railroad.
“No problem can be solved until it is reduced to some simple form. The changing of a vague difficulty into a specific, concrete form is a very essential element in thinking.” – J.P. Morgan
Morgan’s father passed away in 1890, during which he amassed more control of his father’s banking empire.
He took another leap by organizing the merger of Thomson Houston Company and Edison General Electric to establish General Electric.
The highlight of his time as a banker and financier occurred when his company, Drexel, Morgan & Co., was called upon to save the United States from the bank panic of 1893.
Establishing J. P. Morgan & Co.
Anthony Drexel passed away in 1893. Morgan reorganized the company to become J. P. Morgan & Co.
He used this firm to become a steel magnate by purchasing Andrew Carnegie’s steel company for $480 million.
His company also became a fiscal agent overseeing transactions between the United States government and the newly independent Panama.
J. P. Morgan also helped save the United States from the economic panic of 1907. He called upon other bank presidents to propose a solution and then drew up a bailout contract that would see America survive the crisis.
Morgan retired in the 1910s, spending the remainder of his life away from the spotlight collecting arts and performing philanthropic work.
“Well, I don’t know as I want a lawyer to tell me what I cannot do. I hire him to tell how to do what I want to do.”- J.P. Morgan
Personal Life
John P. Morgan married Amelia Sturges in 1861, but she became seriously ill with tuberculosis and died four months after the wedding.
Morgan then married Frances Louisa Tracy in 1865, with whom he had four children.
He was known to be a private individual. We don’t know much about his personal life beyond his professional accomplishments. However, he was a prominent art collector, philanthropist, and influential leader of the Episcopal Church in Manhattan.
Death
John Pierpont Morgan died on March 31, 1913, at 75. In the later years of his life, he suffered from various health problems, such as arteriosclerosis and rheumatism.
Morgan’s health had been declining for some time, and his death was attributed to a cold he caught while traveling to Europe.
His condition worsened, and he eventually passed away in a hotel room in Rome, Italy.
The official cause of his death was complications from bronchitis.
“A man always has two reasons for doing anything: a good reason and the real reason.” – J.P. Morgan
J.P. Morgan Timeline
J.P. Morgan Timeline1837:
John Pierpont Morgan is born in Hartford, Connecticut.
1854:
 John Pierpont Morgan graduates from English High School, Boston.
1857:
J. P. Morgan graduates from the University of Göttingen.
1858-1861:
Morgan works for the banking firm Duncan, Sherman & Co. in New York.
1861:
J. P. Morgan marries Amelia Sturges and starts his firm, J. P. Morgan and Company.
1864:
Morgan joins the banking firm Dabney, Morgan & Co.
1865:
John Pierpont Morgan marries Frances Louisa Tracy.
1866:
John and Frances welcome their first child, Louisa Pierpont Morgan.
1867:
John and Frances have their second child, J. P. Morgan Jr.
1870:
John and Frances have their third child, Juliet Pierpont Morgan.
1871:
Morgan partners with Anthony Dreel to create the banking firm Dreel, Morgan & Co.
1873:
John and Frances have their last child, Anne Tracy Morgan.
1895-1903:
Morgan gets involved in several transactions, including the reorganization of the U.S. Steel Corporation, the formation of the Northern Securities Company, and the consolidation of various railroad companies.
1907:
Morgan helps prevent financial panic in the U.S. by organizing a syndicate of banks to lend money to troubled financial institutions.
1912:
Morgan retires from active participation in J. P. Morgan & Co.
1913:
John Pierpont Morgan dies in Rome, Italy.
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Frequently Asked Questions
The information in this post answers many of the questions about J. P. Morgan. This section provides a summary and any additional information.
1. What is John Pierpont Morgan known for?
J. P. Morgan is most known for his role as a prominent American financier and banker during the Gilded Age.
He was one of the most influential people in American capitalism who prevented the U.S. economy from collapsing.
2. How did J. P. Morgan make his money?
J. P. Morgan made his money primarily through his work as a banker and financier.
Morgan was involved in various financial transactions, including the establishment of U.S. Steel and the acquisition of the Northern Pacific Railroad. In addition, he received a hefty inheritance upon his father’s death.
3. How much was J. P. Morgan worth?
Some estimates suggest that Morgan’s net worth at the time of his death was approximately $80 million, equivalent to around $2.2 billion in today’s dollars.
Other estimates suggest that his net worth totaled $118.3 million (roughly $49 billion today), after including his estate and art collection.
4. What happened to J. P. Morgan’s money after he died?
Morgan left a significant portion of his estate to his family and close associates.
He also donated millions to charities and public institutions such as the Metropolitan Museum of Art in New York City, the American Museum of Natural History, and the British Museum.
5. Why did J. P. Morgan die?
Morgan suffered from various health problems in the later years of his life. He got a cold while traveling in Europe.
His condition worsened, and he eventually passed away in Rome. The official cause of his death was listed as complications from bronchitis.
6. Does the Morgan family still have money?
The Morgan family is still wealthy and influential, despite the diminishing of their fortune during the Great Depression.
Still, the extent of their current financial holdings is not widely known as they are a private family.
7. Who owns most of J. P. Morgan?
J. P. Morgan, the banking institution, is today owned by a diverse group of shareholders.
The largest institutional shareholders of J. P. Morgan include The Vanguard Group, BlackRock, and State Street Corporation, among others. No single individual or family owns a controlling stake in J. P. Morgan.
8. How big was J. P. Morgan’s business?
While it is difficult to compare the size of Morgan’s business empire to modern-day companies.
He was one of the most powerful and influential business figures of his time, with a wide range of business interests and an enormous impact on the financial world.
Morgan’s business interests included investments in railroads, steel, and electricity.
His business also played a role in helping the U.S. government stabilize the financial system during times of crisis, such as the panics of 1893 and 1907.
Facts
J.P. Morgan was famous for taking over failing businesses and reorganizing them into more profitable enterprises. It became known as “Morganization”.
Because of a chronic skin condition that disfigured his nose, he hated being photographed, but he was a patron of Edward S. Curtis, giving him $75,000 in 1906.
Over 100,000 miles of railroad were owned by Morgan’s 24 companies, which controlled half of the country’s railroads by 1900.
New York’s first electrically lit private residence was Morgan’s at 219 Madison Avenue.
Morgan was scheduled to travel on the Titanic as the owner of White Star Line, but chose to remain in France instead.
Lessons We Can Learn From J.P. Morgan
There are many lessons we can learn from J.P. Morgan. I have selected three to include in this post, which you will find below, along with my perspective for each.
Lesson 1:Â Trust Is One of the Most Important Things In Business.
J.P. Morgan testified before a Congressional committee in 1912 when he was asked if commercial credit was based on money or property.
“The first thing is character,” he responded. “Before money or anything else. Money cannot buy it.… A man I do not trust could not get money from me on all the bonds in Christendom. I think that is the fundamental basis of business.”
Trust is an important factor when running a business. You won’t be able to depend on the people you don’t trust.
Even if you have to work with someone unreliable, you will still be second-guessing every decision they make, and your productivity will suffer.
Therefore, a business leader must have a trustworthy team, especially those that hold key positions.
One thing you can do when you sense trust issues is document all the points that occur to confirm your suspicions. Then, when you are sure, you can take action depending on your findings.
Looking at this lesson from a different perspective. Let’s switch sides. How can you be more trustworthy? One thing you can do as a business owner is to ensure that you stick to your values and beliefs.
Focus on win-win outcomes so everyone benefits and never deceive. That applies to people that work with you, customers, and suppliers. So, for every key decision and action you take, ensure you stick to your values.
Lesson 2: Being Respectful and Dignified Toward Everyone.
The second lesson from J.p. Morgan in this post is to be respectful toward others.
In business and life, you will be dealing with people you don’t get along with or dislike, and that’s natural.
However, respecting others regardless of your feelings toward them is important. Practicing this helps to keep stress and tension to a minimum when dealing with them.
Respecting others doesn’t mean you have to be best friends, but even if you disagree with their behavior or thought process, you can still respect them.
For example, instead of lashing out at them to make an effort to prove they are wrong, you can keep your calm and say something like, with all due respect, I see your point, but I see things differently.
Lashing out at them or saying something like the above point out that you see things differently, but the above statement does it respectfully.
So the next time you’re dealing with someone you dislike, remember to respect them, no matter what.
In addition, when you respect other people, it makes you a better person and leader. When you get into the habit of respecting others, many will respect you in return, and when there is mutual respect, you’ll find it so much easier to succeed.
Lesson 3: Questioning and Debating When Making a Decision.
The third and final lesson we can learn from J.P. Morgan in this post is to ask questions when facing an important decision. This helps you see the big picture and anticipate different outcomes.
For example, let’s say you plan on quitting your job and starting a business. Naturally, you wouldn’t jump right into it and go by your gut feeling. You have to plan and think about it.
It’s a good idea to anticipate different outcomes by asking yourself a series of questions like the following examples:
- What will happen if the business fails?
- Can I give up a steady paycheque and pursue this new business venture?
Is my plan accurate? - Do I have enough information to proceed?
- Is my family supportive of my decision?
- If I leave my job and the business fails, can I return?
- Do I have the knowledge and skill to run a business?
- Can I run the business independently, or will I need to hire people? If so, can I afford it in the early stages of operation?
The example questions above help you to think more clearly about your decision, and even though you may not get a yes or no answer for each of them, it does allow you to look deeper into the matter.