He dismissed those who attacked the RIB as“elements, who appear to
consider the existing state of anarchy and disorder in Russia a healthy
condition, which they desire to become permanently established not
only in Russia, but similarly all over the world.“83 In a November 1919 The Case of Kuhn, Loeb and Company
issue of Struggling Russia, Schlff repeated his assertion that: „We must
aid those who battle against the forces of anarchy in R~ssia.“~~
By late 1919, even Schiff and his fellows were becoming convinced
of Kolchak’s fierce anti-Semitism.“ Schiff warned Sack that he had
„incontrovertible documentary evidence.. . that the most brutal and
cruel murders have been practised against the Jewish people all along
the territory under the sway of the Kolchak regime and that these horrid
deeds have been directly called forth through army orders.“ He
begged Sack to do „something to counter-act this.““ It wasl however,
hardly surprising that by 1920 Schiff’s views on Russia were tinged
with uncertainty. In February 1920 he told Sack: „The whole situation
is so very complex that it is most difficult to find a proper way through
it and out of it, and I can see naught but to trust to time that light may
come out of darkne~s.“~~“All we can do,“ he had suggested a month
earlier, „is to attentively and carefully follow events and consider from
day to day what can, and should be done to better the outlook in
Russia and Siberia.“88 In his opinion the Russian situation was intimately
linked to the „Russian-Jewish problem“ and the two would
have to be settled together.E9 Meanwhile, he felt that the Bolshevik
arrest of Zionist leaders in Moscow on charges of being Allied agents
made it desirable that he and other leading Jews should not be publicly
associated with the RIB.90 He confessed that at times the complicated
Russian situationnvery considerably upset“his nerve~.~lEven so,
until his death in September 1920, Schiff continued to support the RIB
financially, in May pledging $5,000 of the $21,000 needed for the continued
publication of Struggling Russia.92 Soon afterward the end of
Allied intervention and the Bolshevik victory in the Russian civil war
meant that the RIB lost most of its financial support, whereupon it
While Schiff was probably Kuhn, Loeb’s most active antiBolshevist,
other partners also tried to combat what they perceived as
the menace of Bolshevism and radicalism. In the 1920s the staunchly
antiradical Felix Warburg provided funding for David Dubinsly’s
efforts to remove communists from the International Ladies Garment
Workers Union.94 Otto Kahn likewise found the Bolshevik revolution
unsympathetic, and early in 1918 he expressed the hope that „some
men may arise soon in that distracted country with the force and
courage to unite the elements of order, honor and sanity against the
powers of liberty run mad, which now hold sway.“95 He was one of the American Jmish Archives Journal
founders of American Russia Relief, a strictly anti-Bolshevik relief
~rganization.~~ In March 1919 he gave a dinner at his home, attended
by, among others, Theodore Roosevelt, Cornelius Vanderbilt, Felix
Warburg, and Mortimer Schiff, whose purpose was to discuss methods
of dealing with B~lshevism.~~ In Kahn’s case, fervent domestic antisocialism
intensified his fears of Bolshevism. He was one of those
American businessmen most perturbed by what he saw as the domestic
unrest and socialism that the war had provoked. He contributed to
such vehemently antiradical organizations as the League for National
Unity and was most insistent that the wartime government direction
of business must cease immediately after the war did.98 According to
one conservative source, in 1920 Kahn, a nonobservant Jew much
attracted to Roman Catholicism, even said „that it wouldn’t do any
harm to have a little anti-Semitic feeling get about, and take the conceit
out of some of those Jews who have come over here recently and
are trying to run the c~untry.“~~At this time Kahn frequently spoke out
publicly against all radical and socialist activities, helping to whip up
public opinion to the frenzy known as theURed Scarenof 1919, and he
contributed financially to several antiradical organization^.’^^
Kahn, the American Warburg brothers, their German siblings, and
Dr. Karl Melchior, another partner in M. M. Warburg and Company, all
tried to argue that if the Allies did not treat Germany leniently and
extend financial aid to Europe, Bolshevism might well win control of
all of Europe, particularly Germany.lol After the First World War, particularly
during the 1920s, Paul Warburg, now chairman of the
International Acceptance Bank, and his former partners in Kuhn, Loeb
were among those American bankers most committed to American
participation in efforts to revive Europe’s devastated economy and
restore financial and political stability. They called for the reduction or
cancellation of reparations and war debts, took part in the Dawes
Loan and other loans intended to facilitate European economic recovery,
and extended numerous credits for the purchase of American
goods, particularly favoring German-based enterprises. In these
endeavors they often worked closely with M. M. Warburg and
Company as well as other European banks.lO‘
Yet by the 1920s, when Kuhn, Loeb’s efforts to revive the European
economy were at their height, the partners’fears of the spread of communism
had largely dissipated. By 1922 Kahn felt that Bolshevism no
longer appreciably threatened Eastern and Central Europe.'“ By the The Case of Kuhn, Loeb and Company
mid-1920s he and the Warburgs were even taking a certain relaxed
interest in developments in the Soviet Union.’04Kahn went so far as to
sponsor the 1922-23 American tours of the Moscow Art Theatre,
defending the actors against charges that they were communist spies
or agents.lo5 Unlike many American businessmen, Kahn and Paul
Warburg came to support the eventual resumption of trade relations
with Russia, whose granaries might, they hoped, contribute to
Europe’s recovery.lo6 Between 1921 and 1922 Kahn switched from
opposing American trade with the Soviets to supporting the opening
of commercial, though not diplomatic, relations with them. By 1932
he was „the only individual financier of world prominence“ to be a
member of the American-Russian Chamber of Commerce, which by
1926 likewise favored resumption of trade relations between the two
countries and by 1933 supported the reopening of diplomatic relations.’07
Kahn’s atypical posture may have owed something to the fact
that, unlike J. P. Morgan and Company and other New York banks,
which had lent heavily to the Russian government during the First
World War, Kuhn, Loeb’s exposure to defaulted Soviet loans was limited.lo8
Meanwhile, Felix Warburg, whose principal interest after the First
World War was not European reconstruction but the relief of world
Jewry, went further even than his brother or his partner. In 1924 the
Joint Distribution Committee, of which he was chairman, negotiated
a pact with the Soviet government under whose terms an initial 500
Russian bourgeois Jews, who could no longer practice their old trades
under Soviet rule, were resettled as farmers in the Crimea. The JDC’s
support for this project, known as Agro-Joint, was at least partially due
to the passage in the United States of the 1924 Reed-Johnson
Immigration Act, which severely curtailed further potential Russian
Jewish immigration to the United States. Faute de mieq American
Jewish leaders were therefore forced to negotiate with the Soviet
authorities; it seems possible that they had at least tacit State
Department approval and perhaps encouragement in this enterprise,
which could provide American officials at least some information on
conditions within the Soviet Union. Approximately half of AgroJoint’s
funding, $5,000,000, came from the millionaire Julius
Rosenwald, head of Sears Roebuck; and the Rockefeller Foundation
gave $500,000. Felix Warburg munificently donated $1,000,000, while
the less affluent Paul contributed $50,000. Although estimates vary American Jewish Archives Journal
considerably, perhaps 125,000 Russian Jews were relocated to agricultural
settlements in the region during the 1920s and 1930s, even
though from the mid-1930s onward the project experienced substantial
difficulties with and harassment from Soviet authorities and ended
tragically in 1941-42, when Adolf Hitler invaded the area.lo9
Agro-Joint’s American Jewish sponsors were aware that even at
the scheme’s peak Soviet treatment of their co-religionists left much
to be desired. Yet, when asked to comment on Soviet persecution of
Jewish rabbis, Felix Warburg stated that, deplorable as he found such
behavior, it must be remembered that through Ago-Joint the Soviet
government was also helping Russian Jews to regain their economic
independence.l1° Warburg went further and tried to bring about a
Soviet-American rapprochement, unsuccessfully encouraging the
Soviet leader Alexei Rykov to cease anti-American propaganda and
pay the Kerensky government’s debts to the United States.ll‘ By 1929
he favored recognition of the Soviet government on the pragmatic
grounds that it hadUlasted, in different forms, for over twelve years“
and that, from his discussions with Soviet leaders, it seemed likely to
evolve in the direction of capitalism.“‚ By 1933 Warburg even hoped
that a syndicate of American banks might be able to set up annoutpost“
in Berlin, utilizing their frozen German credits and collateral to
acquire the name and expertise of the two private German banking
firms of M. M. Warburg andcompany and the Handelsgesellschaft.
He blithely hoped that the new institution’s American character
would protect it from „the harassing [sic] and hindering influences of
the Hitler Government,“ thus attracting a large German and Jewish
clientele, and that it would also concentrate on the Russian business
that recent American recognition of the Soviet Union had opened to
Overall, it is hard to argue either that the practical and ideological
desire to combat Bolshevism was the strongest reason impelling
Kuhn, Loeb’s partners to support an expanded American international
role in Europe, or that the firm’s members were dedicated friends of
the Soviet government. One can argue far more plausibly that the ties
that bound Kuhn, Loeb’s partners to Europe, particularly their links,
both institutional and personal, with Germany, were important in
leading them to advocate American loans to Europe and in some cases
American membership in the League of Nations, as well as disarmament,
the World Court, and the cancellation of reparations and war
debts. Kuhn, Loeb’s gradual rapprochement with the Soviet govern- The Case of Kuhn, Loeb and Company
ment probably owed much to the partners‘ realistic appreciation that
the regime, however little they approved of it, was unlikely to collapse
in the near future, and to a perception shared by many other prominent
Americans that under the New Economic Policy Lenin and Stalin
were moving in the direction of capitalism. In addition, the partners‘
Jewish roots and the eagerness of at least the Warburgs to establish
Jewish agricultural settlements helped to reconcile them to a regime
they had once vehemently opposed.
When one surveys the dealings of Kuhn, Loeb’s partners with
both the tsarist regime and its Soviet successor, and even the White
Russians, one is struck by their inability to exert anything but the most
marginal leverage on either government. Despite the radical change
of ideology, over forty years the relationship between Kuhn, Loeb and
the Russian government was one in which much remained remarkably
unchanged. In pronounced contrast to the vehement rhetoric common
at the time as to the pernicious influence that Jewish international
bankers enjoyed, one finds that when dealing with autocratic
powers mere financiers, however well connected, found themselves
Priscilla Roberts is a lecturer in History at the University of Hong Kong and
Director of the University’s Center of American Studies. She wishes to acknowledge
with gratitudefinancial supportfrom the Marguerite R. Jacobs Memorial
Postdoctoral Award and the Bernard and Audre Rapoport Fellowship of the
American Jewish Archives; the Hong Kong Research Grants Council; and the
University of Hong Kong’s Research and Conference Grants Committee. She is
also indebted to Jonathan Sarna for illuminating comments that helped to
improve this article.
1. See, e.g., Zosa Szajkowski, Jews, Wars, and Communism, 4 vols. (NewYork: Ktav,
1972-77), 1:290, 379-80; 2:7, 64, 154; Ron Chemow, The Warburgs: The 20th-Century
Odyssey of a Remarkable Jewish Family (NewYork: Random House, 1993), 267-76.
2. Peter G. Filene, Americans and the Soviet Experiment, 1917-1933 (Cambridge:
Harvard University Press, 1967), 33; George F. Kennan, Russia Leaves the War
(Princeton: Princeton University Press, 1956), 412-20, 427-28, 455-56; idem, The
Decision to Intervene (Princeton: Princeton University Press, 1958), 9-10,110-11; Betty
Miller Unterberger, America’s Siberian Expedition, 1918-1920 (Durham, N.C.: Duke
University Press, 1956), 10-11.
3. Szajkowski, Jews, Wars, and Communism, 1: 277-79; 2:154.
4. Ibid., 2: 7, 74,154, 157, 161,167.
5. See Arno J. Mayer, Politics and Diplomacy of Peacemaking: Containment and American Jewish Archives Journal
Counter-Revolution at Versailles (London: Weidenfeld and Nicolson, 1968); N. Gordon
Levin, Jr., Woodrow Wilson and World Politics: America’s Response to War and Revolution
(NewYork: Oxford University Press, 1968).
6. Vincent I? Carosso, Investment Banking in America: A Histoy (Cambridge:
Harvard University Press, 1970), 92.
7. The major source on Schiff is still the official biography, Cyrus Adler, Jacob H.
Schiff His Life and Letters, 2 vols. (Garden City, N.Y.: Doubleday, Doran, 1928), commissioned
by the family a few years after his death and written by a close friend and
associate of its subject.See also idem, Jacob Hen y Schiff A Biographical Sketch (New
York: American Jewish Committee, 1921); Frieda Schiff Warburg, Reminiscences of a
Long Life (n.p., 1956), esp. 51-63; Bertie C. Forbes, Men Who Are Making America (New
York: B. C. Forbes Publishing Co., 1917), 328-55; Stephen Birmingham, „Our Crowd“:
The Great Jewish Families of New York (NewYork: Harper and Row, 1967), 154-211. On
SchifYs involvement in the diplomacy of international Jewry, see esp. Gary Dean Best,
To Free a People: American Jewish Leaders and the Jewish Problem in Eastern Europe,
1890-1914 (Westport, Conn.: Greenwood Press, 1982).
8. On Mortimer Schiff, see Adler, Jacob H. Schifj 1:16-17; F. S. Warburg,
Reminiscences, 73-76, 82-84, 137; Birmingham, „Our Crowd,“ 187; Jeffrey Potter, Men,
Money b Magic: The Sto y of Dorothy Schlff (NewYork: Coward, Cann and Geoghegan,
1976), 22-25, 40; New York Times, June 5, 1931.
9. The most extensive work on Felix Warburg and his brothers is Chernow, The
Warburgs. See also Cyrus Adler, „Felix M. Warburg,“ American Jewish Yearbook 40
(1938-39): 23-40; Felix M. Warburg,“Under the Seven Stars,“Biographies File, Jacob
Rader Marcus Center of the American Jewish Archives, Cincinnati, Ohio (hereafter
cited as AJA); F. S. Warburg, Reminiscences, esp. 87-117; Max M. Warburg, Aus Meinen
Aufieichnungen (n.p., 1952), 7-8; James I? Warburg, The Long Road Home: The
Autobiography of a Maverick (Garden City, N.Y.: Doubleday, 1964), 11; Birmingham,
„Our Crowd,“ 190-99; David Farrer, The Warburgs: The Story of a Family (New York:
Stein and Day, 1975), 63-70,93-108.
10. Chernow, The Warburgs, esp. chaps. 7,lO; Paul M. Warburg,“Memorandum,“
November 20,1925, Reel 694, Jacob H. Schiff Microfilms, AJA; J. Warburg, Long Road
Home, 7-8, 11, 15-18; M. Warburg, Aufieichnungen, 7; Lewis L. Strauss, Men and
Decisions (Garden City, N.Y.: Doubleday, 1962), 84; Forbes, Men Who Are Making
America, 398405; Eduard Rosenbaum,“ M. M. Warburg & Co. Merchant Bankers of
Hamburg: A Survey of the First 140 years, 1798 to 1938,“ Yearbook of the Leo Baeck
Institute 7 (1962): 57-62, 85-92. The deep affection and respect that developed
between Paul Warburg and Jacob Schiff are apparent from their surviving correspondence,
such as that in the Paul M. Warburg File, Box 441, Jacob H. Schiff Papers, AJA.
11.The only biographies are the somewhat adulatory work commissioned by the
family: Mary Jane Matz, The Many Lives of Otto Kahn (NewYork: Macmillan, 1963),and
the rather superficial John Kobler, Otto the Magnijicent: The L$e of Otto Kahn (New
York: Charles Scribner’s Sons, 1988). See also „Otto Kahn: A Man of Steel andvelvet,“
New Ybrk Xmes, August 7, 1910; ibid., March 30, 1934; Forbes, Men Who Are Making
America, 214-23;“Search-Light,“Xmes Exposures (NewYork: Boni and Liveright, 1926),
13-20; The Mirrors of Wall Street (NewYork: G. Putnam’s Sons, 1935), 165-77; Adler,
Jacob H. Schifj 1:16; Birmingham,“Our Crowd,“200-202,303-12.
12. Strauss, Men and Decisions, 84; proof of article on Hanauer, April 2, 1928, Box
28, Lewis L. Strauss Papers, Herbert Hoover Presidential Library, West Branch, Iowa; The Case of Kuhn, Loeb and Company
Nao York Times, September 4,1938.
13. J. Warburg, Long Road Home, 1G11; Adler, Jacob H. Schiff, 2: 44-47.
14. Adler, Jacob H. Schifj 1: 36245,2: 48.
15. Oscar Handlin, Adventure in Freedom: Three Hundred Years of Jewish Life in
America (NewYork: McGraw Hill, 1954), 8G108; Moses Rschin, The Promised City:
New York’s Jaos, 1870-1914 (Cambridge: Hanard University Press, 1962), 19-33.
16. Adler, Jacob H. Schifj 1: 392-96; idem, „Felix M. Warburg,“ 25; Handlin,
Adventure in Freedom, 147-52; Rischin, Promised City, 98-104.
17. F. M. Warburg,“Under the Seven Stars,“ 16-17; Adler, Jacob H. Schifi 1: 382-
92; Handlin, Adventure in Freedom, 26; Rischin, Promised City, 206-09; Lillian D. Wald,
The House on Henry Street (NewYork: Henry Holt, 1915).
18. Handlin, Adventure in Freedom, 14347; Rischin, Promised City, 95-98.
19. Handlin, Adventure in Freedom, 156-57; Rischin, Promised City, 98-103.
20. New York Times, December 13,29,1906, May 27,1907, June 27, July 19,1909,
January 17, 24, 31, 1910, January 23, 1911; Schiff to Woodrow Wilson, January 15, 29,
1915, File 292, Series 4, Woodrow Wilson Papers, Manuscripts Division, Library of
Congress, Washington, D.C.; Adler, Jacob H. Schifj 2: 75-114; Gary Dean Best, „Jacob
H. Schiff’s Galveston Movement: An Experiment in Immigrant Deflection, 1907-
1914,“American Jewish Archives 30 (April 1978): 43-79; idem, To Free a People, 141-65;
Zosa Szajowski, „Paul Nathan, Lucien Wolf, Jacob H. Schiff and the Jewish
Revolutionary Movements in Eastern Europe (1903-1917),“ Jewish Social Studies 29
(January 1967): 22-26; Rischin, Promised City, 54.
21. Best, To Free a People, 23-24; Adler, Jacob H. Schifj 2: 114-15.
22. Best, To Free a People, 4245,65,114-15; idem,“The Jewish’Center of Gravity‘
and Secretary Hay’s Roumanian Notes,“ American Jewish Archives 32(April1980): 24-
25; Adler, Jacob H. Schifj 2: 152-55.
23. Best, To Free a People, 45-90,11440; idem, „Jewish’Center of Gravity,“‚ 25-34;
Adler, Jacob H. Schiff, 2: 117-19,13640.
24. Best, To Free a People, 50-60; idem,“Jewish’Center of Gravity,“’28-33; Adler,
Jacob H. Schifj 2: 153-54.
25. Best, To Free A People, 72-87, 123-31; Adler, Jacob H. Schifj 2: 118-219.
26. Adler, Jacob H. Schifj 2: 156-59.
27. Theodore Roosevelt to Schiff, December 14, 1905, June 18, July 26, 1906,
Series 2, Theodore Roosevelt Papers, Manuscripts Division, Library of Congress; Best,
To Free a People, 120-21,128-31; Judith S. Goldstein, The Politics of Ethnic Pressure: The
American Jewish Committee Fight Against Immigration Restriction, 1906-1917 (NewYork:
Garland, 1990), 44-51; Adler, Jacob H. Schzfj 2: 138-39.
28. Best, To Free a People, 10-12; Naomi Cohen, Not Free to Desist: The American
Jewish Committee, 1906-1966 (Philadelphia: Jewish Publication Society of America,
1972), 55-56; Goldstein, Politics of Ethnic Pressure, 14-20,13941; Adler, Jacob H. Schifi
29. Schiff to Roosevelt, July 31, August 7, 1904, Series 1, Roosevelt Papers;
Roosevelt to Schiff, August 5,1904, Series 2, ibid.; Schiff to William Howard Taft, July
20, 24, August 3, 1908, Series 3, William Howard Taft Papers, Manuscripts Division,
Library of Congress; Taft to Schiff, July 21,31,1908, Series 8, ibid.; Best, To Free a People,
74-75, 101-03, 171-72; Cohen, Not Free to Desist, 5%. Goldstein, Politics of Ethnic
Pressure, 43; Adler, Jacob H. Schifj 2: 14547.
30. Best, To Free a People, 169-84; Cohen, Not Free to Desist, 57-69; Goldstein, American Jewish Archives Journal
Politics of Ethnic Pressure, 14246; Adler, Jacob H. Schifj 2: 14749.
31. Best, To Free a People, 194-98; Cohen, Not Free to Desist, 69-78; Goldstein,
Politics of Ethnic Pressure, 146-62; Adler,Jacob H. Sch# 2: 150-52.
32. Schiff to Wilson, March 25, 1915, Wilson to Schiff, April 1, 1915, Series 2,
Wilson Papers; Best, To Free a People, 198-200, 208; Cohen, Not Free to Desist, 78-80;
Goldstein, Politics of Ethnic Pressure, 162-83.
33. Schiff to Joseph Tumulty, April 11,1915, File 2772, Series 4, Wilson Papers.
34. Adler, Jacob H. Schifj 2: 122-28, 133, 14243; Szajkowski, „Paul Nathan,
Lucien Wolf, Jacob Schiff“ part 2, 77; Best, To Free a People, 94, 111, 127; idem,
„Financing a Foreign War: Jacob H. Schiff and Japan, 1904-05,“ American Jewish
Historical Quarterly 61 (June 1972): 314-15; C. C. konsfeld,“Jewish Bankers and the
Tsar,“ Jewish Social Studies 35 (April 1973): 101-03.
35. Best, To Free a People, 93-94; idem,“Financing a Foreign War,“315; Adler, Jacob
H. Schifj 2: 117-22.
36. Adler, Jacob H. Schifj 1: 212-32; New York Times, September 18, 1905; Best, To
Free a People, 94-98; idem, „Financing a Foreign War,“ 313-24; idem, „Jacob SchiffS
Early Interest in Japan,“American Jewish History 69 (March 1980): 355-59; konsfeld,
„Jewish Bankers and the Tsar,“l02; Carosso, Investment Banking, 81; Kuhn, Loeb and
Company, A Century of Investment Banking (n.p., 1967), 17; M. Warburg,
Aufzeichnungen, 19-22; Rosenbaum, M. M. Warburg G. Co., 101-03; AlfredVagts,“M. M.
Warburg & Co.: Ein Bankhaus in der deutschen Weltpolitik 1905-1933,“ Sozial-und
Wirtschaftgeschichte 45 (September 1958): 298-307.
37. Schiff to Harry Schneiderman, January 21, 1916, Box 449, Schiff Papers;
Szajkowski, Jews, Wars, and Communism, 1: 13.
38. Schiff to Herman Bernstein, February 16, June 8,1915, Box 442, Schiff Papers;
Schiff to D. Soberheim, November 24,1915, Box 446, ibid.
39. See the extensive correspondence relating to the American Jewish Relief
Committee and the Joint Distribution Committee during the war years, files of which
are scattered throughout the Schiff Papers for this period and likewise through those
of the same time in the Felix M. Warburg Papers, AJA. See also Adler, Jacob H. Schifj
2: 287-93; idem, „Felix M. Warburg,“ 29-31; Oscar Handlin, A Continuing Task. The
American Jewish Joint Distribution Committee 1914-1964 (New York: Random House,
1964), 19-32; Cohen, Not Free to Desist, 84-87; Best, To Free a People, 208-09; Joseph C.
Hyrnan, „Twenty-Five Years of American Aid to Jews Overseas: A Record of the Joint
Distribution Committee,“ American Jewish Yearbook 41 (193940): 14048; Zosa
Szajkowski, „Jewish Relief in Eastern Europe 1914-1917,“ Yearbook of the Leo Baeck
Institute 10 (1965): 3241; Joseph Rappaport,“Jewish Immigrants and World War I: A
Study of American Press Reactions“ (Ph.D. diss., Columbia University 1961), 23744.
40. See the correspondence between Schiff and Max Warburg in Box 440, Schiff
Papers, and Box 171a, Felix Warburg Papers.
41. On the financing and supplies the Morgan firm handled for the Allies during
the First World War, see „Memorandum Relative to Financing by J. P. Morgan &
Co. during the World War,“n.d., File 213-7, Thomas W. Lamont Papers, Baker Library,
Harvard Business School, Cambridge, Mass.; Kathleen Burk, Britain, America and the
Sinews of War, 1914-1918 (Boston: Allen and Unwin, 1985), chaps. 1-5; idem, Morgan
Grenfell 1838-1988: The Biography of a Merchant Bank (Oxford: Oxford University
Press, 1989), 103-34; Ron Chemow, The House of Morgan: An American Banking
Dynasty and the Rise of Modem Finance (NewYork: Atlantic Monthly Press, 1990), chap.
32 The Case of Kuhn, Loeb and Company
42. Nezu York Times, September 23, 29, October 2, 1915; Commercial aizd Fiizancial
Chronicle lOl(0ctober 2,1915): 1054; Adler,J~cob H. Schiff; 2:250-53; Matz, Maizy Lives
of Otto Kahn, 170-71; Best, To Free a People, 209.
43. Quoted in Matz, Many Lives of Otto Kahn, 187; see also 171; Adler, Jacob H.
Schiff; 2: 253; Szajkowski, Jms, Wars, and Cot~lnzunism, 1: 20-21.
44. Quotation from Schiff to William D. Guthrie, October 6,1915, Box 443, Schiff
Papers; see also Schiff to Oswald Gamson Villard, February 5, 1915, Box 446, ibid.;
Adler, Jacob H. SchiB 2: 250-53; Best, To Free a People, 250-53.
45. Louis Marshall to Alexandre Guenzburg, October 23, 1915, quoted in
Szajkowski, Jews, Wars, and Communism, 1: 17-18.
46. See, e.g., Schiff to G. Wilenkin, September 23, 1914, Box 441, Schiff Papers;
Schiff to Herman Bernstein, March 5, 1915, Box 442, ibid.; Best, To Free a People, 208.
One should, however, note that Schiff appears to have believed that whether by revolution
or evolution is not clear, the war wouldUbring about the removal of the pale of
settlement and other Jewish disabilities.“ Schiff to Cyrus L. Sulzberger, October 13,
1915, Box 444, Schiff Papers.
47. Marshall to Schiff, January 14, 1915, Marshall to Wilson, January 14, 1915,
Marshall to McAdoo, January 14, 1915, Schiff to Marshall, January 15, 1915, Box 444,
48. Warburg to Schiff, February 13, 1915, Schiff to Warburg, February 15, 1915,
Box 440, ibid.; P. Warburg, „History of the Development of the Acceptance
Regulation,“October 5, 1915,lO-12, Box 12, Paul M. Warburg Papers,Yale University
Library, New Haven, Conn.
49. Schiff to Max M. Warburg, November 23,1915, Reel 695, Schiff Microfilms.
50. Commercial and Financial Chronicle 102 (June 17, 1916): 2211-12; ibid., 103
(November 25,1916): 1934; Carosso, Investment Banking, 216.
51. Schiff to George R. Hilty, March 2, 1916, Schiff to Leonard Haas, March 6,
1916, Box 453, Schiff Papers; Schiff to Marshall, June 21,22,1916, Box 452, ibid.; Schiff
to R. Blank, June 6,1916, Schiff to Cyrus Adler, June 23,1916, Box 449, ibid.; Nm York
Times, November 26,1915, February 29,1916; Best, To Free a People, 210-11.
52. Warburg to Benjamin Strong, July 31, August 9, September 1, 1915, in U.S.
Cong., 2d sess., Hearings Before the Committee Investigating the Munitions Industry, pt.
40 (Washington, D.C.: Government Printing Office, 1934-36) 30: 9587, 9082; Charles
S. Harnlin, diary, vol. 4, November 25, 1916, Charles S. Hamlin Papers, Manuscripts
Division, Library of Congress.
53. Mortimer L. Schiff to Jacob H. Schiff, March 21, 1917, Jacob Schiff to
Mortimer Schiff, March 22,1917, both in Adler, Jacob H. Schiff; 2: 254; Mortimer Schiff
to Jacob Schiff, March 22, 1917, Box 455, Schiff Papers. Quotation from Kuhn, Loeb
to Jacques de Neuflize, August 30,1916; Investigating the Munitions Industry, 28: 8968.
54. FrankA.Vanderlip to James Stillman, March 23,1917, Box 7, Series 8-1, Frank
A.Vanderlip Papers, Columbia University Library, NewYork City.
55. Quotation from Schiff to Philip Schiff, April 6, 1917, Box 461, Schiff Papers;
see also A. J. Sack, cablegram to Petrograd, April 13,1917, Schiff to Count Ilya Tolstoy,
May 9,1917, Schiff to Jacques Seligrnann, May 17,1917, ibid.; Schiff to Paul Milyukov,
March 19,1917, Milyukov to Schiff, April 8,1917, Box 462, ibid.; Schiff to David Lubin,
April 25, 1917, Schiff to D. G. Lyon, April 26, 1917, Box 458, ibid.; material in Russia
File, Box 468, ibid.; Nm York Times, April 18, 24, 26, May 10, 13, 1917; Adler, Jacob H.
Schiff; 2: 254-58; Best, To Free a People, 214-16. American Jewish Archives Journal
56. Adler, Jacob H. Schiff, 2: 25657; on general American Jewish sentiment
toward the early Russian Revolution, see Szajkowski, Jms, Wars, and Communism, 1:
57. Schiff to Alfred A. Knopf, June 12,1917, Box 458, Schiff Papers.
58. Schiff to Charles A. Howland, April 23, 1917, Box 457, ibid.; A. J. Sack to
Petrograd, April 13,1917, Box 461, ibid.
59. Schiff to Charles A. Howland, April 23,1917, Box 457, ibid.
60. Schiff to Boris Kamenka, April 23, 1917, Box 468, Schiff Papers; Adler, Jacob
H. Schifj 2: 256-57.
61. Schiff to Kamenka, April 15, 1917, quoted in Szajkowski, Jms, Wars, and
Communism, 1: 553, n. 20.
62. Schiff to D. G. Lyon, April 26,1917, Box 458, Schiff Papers.
63. Schiff to Kamenka, December 27, 1917, January 18, 1918, Kuhn, Loeb to
Banque de Commerce de l’Azoff Don, January 18, 1918, Kamenka to Schiff,
September 19,1918, Box 467, Schiff Papers; Schiff to Sack, May 6,1920, Box 470, ibid.
64. Schiff to Sack, October 11,1918, Box 468, ibid..
65. Schiff to Lord Swaythling September 30,1918, Box 469, ibid.
66. Schiff to Marshall, August 19,1918, Box 467, ibid.; Schiff to Julius Rosenwald,
June 3,1920, Box 470, ibid.
67. Schiff to Marshall, September 30,1918, Box 469, ibid.
68. See, e.g., Samuel Mason to Marshall, June 10,1918, Box 467, ibid.; Mason to
Schiff, November 25,1918, Schiff to Mason, November 26,1918, Box 465, ibid.
69. Schiff to Sack, October 17,1919, Box 187, Felix Warburg Papers.
70. E. B. Schatsky to Schiff, April 30,1917, Schiff to Schatsky, May 1,3,1917, Box
461, Schiff Papers.
71. Szajkowski,Jms, War, and Communism, 2: 194-95; 3: 28-31; Joan Hoff Wilson,
Ideology and Economics: U.S. Relations with the Soviet Union, 1918-1933 (Columbia:
University of Missouri Press, 1974), 63-64; Kennan, Decision to Intervene, 322-23.
Other American businessmen and public figures who served as honorary advisers to
the RIB included Theodore Roosevelt; Edward N. Hurley, chairman of the U.S.
Shipping Board; Nicholas Murray Butler, president of Columbia University; Lawrence
F. Abbott, editor of the Outlook; Charles A. Coffin of General Electric; Darwin Kingsley,
president of the New York Life Insurance Company; Samuel McRoberts, executive
manager of the National City Bank; Charles H. Sabin, president of the Guaranty Trust
Company. The RIB was closely associated with the NewYork-based Russian-American
Chamber of Commerce.
72. Szajkowski,Jms, Wars, and Communism, 2: 195.
73. Schiff to Sack, October 6,1919, Box 187, Felix Warburg Papers.
74. Schiff to Rosenwald, June 3,1920, Box 470, Schiff Papers.
75. See the A. J. Sack Files, Boxes 461, 468, and 470, in Schiff Papers, and Box
187, Felix Warburg Papers.
76. Szajkowski, Jms, Wars, and Communism, 3: 30-31,53-54.
77. Schiff to Sack, July 7,11, 1919, Box 187, Felix Warburg Papers.
78. Sack to Schiff, July 16,1919, ibid.
79. Szajkowski, Jms, Wars, and Communism, 3: 31-32.
80. Ibid., 32-33.
81. Quoted in ibid., 193.
82. Accounts of this episode are given in Kennan, Decision to Intervene; The Case of Kuhn, Loeb and Company
Unterberger, America’s Siberian Expedition.
83. Schiff to Sack, October 6,1919, Box 187, Felix Warburg Papers.
84. Quoted in Szajkowski, Jews, Wars, and Communism, 3: 193.
85. Ibid., 32-33, 97-98.
86. Schiff to Sack, December 4,1919, Box 187, Felix Warburg Papers.
87. Schiff to Sack, February 7,1920, Box 470, Schkff Papers.
88. Schiff to Sack, January 26, 1920, ibid.
89. Schiff to Sack, January 12, 1920, ibid.
90. Schiff to Sack, May 19, 1920, ibid.
91. Schiff to Sack, February 7,1920, ibid.
92. Schiff to Sack, May 6,1920, Sack to Schiff, May 7,1920, ibid.
93. Szajkowski, Jews, Wars, and Communism, 2: 195. –
94. Chernow, The Warburgs, 290.
95. Kahn to Gregory Wilenkin, January 16, 1918, Box 92, Otto H. Kahn Papers,
Firestone Library, Princeton University, Princeton, N.J.
96. Szajkowski, Jews, Wars, and Communism, 2: 331, n. 25.
97. Ibid., 193.
98. For Kahn’s fear of Bolshevism and radicalism in the United States at this
time, see Kahn to M. G. Gunsberg, October 17,1917, Box 79, Kahn Papers; to William
T. Hornaday, November 23,1917, to M. E. Hutchinson, October 10,1917, Box 80, ibid.;
to Charles W. Ames, April 2,1918, to F. G. R. Gordon, November 22, 1918, Box 100,
ibid; to John T. Milliken, December 19,1918, Box 103, ibid.; to B. Perrin, November 15,
1918, to Allen Walker, August 8, October 7,14, 1918, Box 110, ibid.; Matz, Many Lives
of Otto Kahn, 192. For his views on governmental direction of the economy, see Kahn
to F. C. Bray, December 20,1917, Box 73, to Joseph de Grott, April 10, 1917, Box 76,
ibid.; to Louis Brandeis, August 12, 1918, Box 95, to James Dunning, December 5,
1918, to A. C. Murphy, January 25, 1918, Box 103, to American Telephone and
Telegraph Company and similar letters he sent to other large corporations, February
13,1918, Box 105, all in Kahn Papers; Kahn,“The Menace of Paternalism,“ September
27, 1918, in Reflections ofa Financier: A Study of Economic and Other Problems (London:
Hodder and Stoughton, 1921), 146-83.
99. Ralph M. Easley to Samuel Gompers, September 16, 1920, quoted in
Szajkowski, Jews, Wars, and Communism, 1: 219.
100. Kahn to A. H. Alden, December 29,1919, Box 111; to Jacob D. Cox, May 20,
1919, to Grosvenor Clarkson, November 29,1919, to L. T. Crabtree, April 11,1919, to
W. A. Curtis, January 15, December 1,1919, all in Box 114; to George W. Hams, April
11,1919, to Archibald Hopkins, February 24, March 10, Jdy 1,1919, Box 118; to Leigh
H. Irvine, October 9,1919, Box 119; Warren G. Harding to Kahn, February 21,25,1919,
Kahn to Harding, February 24, 1919, Box 122; Kahn to Francis R. Welsh, October 31,
November 1, December 28,1918, January 2, February 5, October 29,1919, Box 128;
to Eric Broberg, September 10,15,1920, Box 140, Kahn Papers.
101. Kahn, Reflections, 33841; idem, „The Resumption of Trade Relations with
Germany,“November 11,1919,3-6, Kahn Papers; idem,“Irnpressions from a Journey
in Europe, „July 1920, 11-12, ibid.; Paul M. Warburg. „Europe at the Crossroads,“
Political Science Quarterly 9 (June 1920): 602-03; report by Thomas W. Lamont of a
conversation with Max M. Warburg at Senlis, in Lamont, diary, April 10, 1919, File
164-20, Lamont Papers; Lamont, „Memorandum as to meeting at Chateau Villette
today (April 16, 1919),“ with Max Warburg, enclosing memorandum written by American Jmish Archives Journal
Warburg, File 171-27, ibid.; Mason to Paul Warburg, a telegram repeating a telegram
received from Max M. Warburg, April 15,1919, Box 10, Paul M. Warburg Papers; Max
M. Warburg, „The German Problem,“ n.d., but probably 1920, Box 17, ibid.;
Rosenbaum, M. M. Warburg G. Co., 124; Mayer, Politics and Diplomacy of Peacemaking,
91-98; Klaus M. Schwabe, Woodrow Wilson, Revolutionary Germany, and Peacemaking,
1918-1919: Missionary Diplomacy and the Realities of Power (Chapel Hill: University of
North Carolina Press, 1985), 195,200-202,209,251-52,256,308-12,35740,404.
102. Chernow, Tke Warburgs, 273-75; J. Warburg, Long Road Home, 166-67;
Rosenbaum, M. M. Warburg G. Co., 126-27, 131, 135-38; Priscilla Roberts, „The
American’Eastern Establishment’and World War I: The Emergence of a Foreign Policy
Tradition“ (Ph.D. diss., Cambridge University, 1981), 530-36. On Europe’s economic
recovery of the 1920s, and the role American financiers generally played therein, see
Peter H. Buckingham, International Normalcy: Tke Open Door Peace with the former
Central Powers, 1921-29 Wlmington, Del.: Scholarly Resources, 1983); Josephine
Young Case and Everett Needham Case, Owen D. Young and American Enterprise: A
Biography (Boston: Godine, 1982), 272-314, 434-54; Chernow, House of Morgan,
270-359; StephenV. 0. Clarke, Central Bank Cooperation 1924-1931 (NewYork: Federal
Reserve Bank of NewYork, 1967); idem, The Reconstruction of the International Monetary
System: Tke Attempts of 1922 and 1933 (Princeton: Princeton University Press, 1973);
Frank Costigliola, Awkward Dominion: American Political, Economic, and Cultural
Relations with Europe, 1919-1933 (Ithaca, N.Y.: Comell University Press, 1984), 140-66;
Michael J. Hogan, Informal Entente: The Private Structure of Cooperation in
Anglo-American Diplomacy 1918-1928 (Columbia: University of Missouri Press, 1977),
chaps. 1-5; Edward M. Lamont, Tke Ambassadorfrom Wall Street: Tke Story of Tkomas
W. Lamont, J. P. Morgan’s Chief Executive (Lanham, Md.: University Press of America,
1994), 174, 189-90, 201-12, 254-62; Melvyn l? Leffler, Tke Elusive Quest: America’s
Pursuit of European Stability and French Security, 1919-1933 (Chapel Hill: University of
North Carolina Press, 1979), chaps. 2-5; William C. McNeil, American Money and the
Weimar Republic: Economics and Politics on the Eve of the Great Depression (New York:
Columbia University Press, 1986); Richard Hemmig Meyer, Bankers‘ Diplomacy:
Monetary Stabilization in the Twenties (New York: Columbia University Press, 1970);
Neal Pease, Poland, the United States and the Stabilization ofEurope 1919-1933 (Oxford:
Oxford University Press, 1986); Stephen A. Schuker, The End of French Predominance in
Europe: The Financial Crisis of 1924 and the Adoption of the Dawes Plan (Chapel Hill:
University of North Carolina Press, 1976); Dan P. Silverman, Reconstructing Europe
after the Great War (Cambridge, Mass.: Harvard University Press, 1982); essays by
Michael J. Hogan and John M. Carroll in U.S. Diplomats in Europe, 1919-1941, ed.
Kenneth Paul Jones (Santa Barbara: ABC-Clio, 1983), 5-24,43-62.
103. Kahn to Sir Philip Lloyd-Graeme, August 31,1922, Box 179, Kahn Papers.
104. Kahn to Baron Michael Peter, January 17,1921, Box 161; to Alton B. Parker,
January 24,1921, Box 59; to Alexander J. Sack, December 12,1921, Box 185; „Mr. Otto
H. Kahn’s statement at luncheon on January 21st 1922 in Reply to Rabbi Silverman,“
Box 178; all in ibid.; Otto Kahn, Of Many Tkings: Being Reflections and Impressions on
International and Domestic Topics and the Arts (New York: Boni and Liveright, 1926),
337-39; Paul M. Warburg, Tke Federal Resme System: Its Origns and Growth: Reflections
and Recollections, 2 vols. (NewYork, 1930), 2: 751-52.
105. Kobler, Otto the Magn$cent, 134-35. The Case of Kuhn, Loeb and Company
106. Kahn to Sack, December 12, 1921, Box 185; to Graham A. Laing, April 17,
1922, to Lloyd-Graeme, August 31,1922, Box 179, all in Kahn Papers; Kahn, Of Many
Things, 337-39; Warburg, „Barking Up the Wrong Tree,“ 751-52; P. Warburg, Federal
Reserve System, 2: 751-52, 793-94.
107. Kahn to Peter, January 17, 1921, Box 161; to Parker, January 31, 1921, Box
159, both in Kahn Papers; Wilson, Ideology and Economics, 88.
108. Wilson, Ideology and Economics, 8&88.
109. James Rosen, After Three Years: The Progress of the Jewish Farm Colonies in
Russia (New York: United Jewish Campaign, 1927), 1-24; James N. Rosenberg,
Painter’s Self-Portrait (NewYork: Crown, 1958), 51-53; Jerome C. Rosentha1,“Dealing
with the Devil: Louis Marshall and the Partnership Between the Joint Distribution
Committee and Soviet Russia,“American Jewish Archives 39 (April 1987): 1-22;Yehuda
Bauer, My Brother’s Keeper: A History of the American Jewish Joint Distribution Committee
1929-1939 (Philadelphia: Jewish Publication Society of America, 1974), 57-104;
Chernow, The Warburgs, 289-96; Szajkowski, Jews, Wars, and Communism, 1: 426-29;
110. Bauer, My Brother’s Keeper, 102.
111. James Becker’s report of Warburg’s interview with Rykov, May 20,1927, Box
249, Felix Warburg Papers; Chernow, The Warburgs, 294-95.
112. Felix M. Warburg to John B. Trevor, January 4,1929, Box 252, Felix Warburg
113. Warburg, memorandum, December 19,1933, Box 303, ibid.