Episode 26: Contagion
The Crash has come, and the doom it brings will consume many. As the holidays approach, many wrestle with their new circumstances. For some, their despair will become far too much.
When banker J.J. Riordan commits suicide, those around him work to protect the bank from a run by depositors. A large crowd gathers for the funeral to see which famous people attend. Others try to determine their own financial futures.
Archival music provided by Past Perfect Vintage Music, www.pastperfect.com
More suicide related information:
https://www.youtube.com/watch?v=ppSAlO9pmPA
Publish Date: March 18, 2021
Length: 21:00
Opening Music: My Heart Belongs to Daddy by Billy Cotton, Album The Great British Dance Bands
Section 1 Music: A Foggy Day by Carroll Gibbons, Album Sophistication 3
Section 2 Music: Lost In A Fog by Coleman Hawkins & His Orchestra, Album Nightfall – Sophisticated Jazz Classics
Section 3 Music: These Foolish Things by Benny Carter, Album Perfect Blues
End Music: My Heart Belongs to Daddy by Billy Cotton, Album The Great British Dance Band
AS THE MONEY BURNS
Podcast by Nicki Woodard
Episode 026 – Contagion
00:00
[Music – My Heart Belongs to Daddy by Billy Cotton, Album The Great British Dance Bands]
AS THE MONEY BURNS is an original podcast by Nicki Woodard. Based on historical research, this is a deep exploration into what happened to a set of actual heirs and heiresses to some of America’s most famous fortunes when the Great Depression hits.
Each episode has three primary sections. Section 1 is a narrative story. Section 2 goes deeper into the historical facts. Section 3 focuses on contemporary, emotional, and personal connections.
00:28
Story Recap
Supreme hostess Cobina Wright throws her Last Party the same night she learns they lost their fortune. Others continue their routines, not certain how much their fates have just changed.
Now back to AS THE MONEY BURNS
Title
00:47
Contagion
[Music fade out]
Episode Tag
00:49
The Crash has come, and the doom it brings will consume many. As the holidays approach, many wrestle with their new circumstances. For some, their despair will become far too much.
01:02
[Music – A Foggy Day by Carroll Gibbons, Album Sophistication 3]
Section 1 – Story
[Music fade out]
01:13
At the County Trust Company in Manhattan, banker and investor James J. Riordan stares blankedly at the papers on his desk. His male secretary comes to get signatures, and Riordan agrees to sign them by the end of the day.
In the afternoon, Riordan walks around the floor of the bank. He goes up to a stressed out teller. The teller is jumpy worried that a bank robber might appear during these bizarre times. The teller opens his drawer revealing the .38 revolver kept as a security measure.
01:45
At the end of the day, Riordan returns to his empty home. A widower since 1917, he devoted himself to raising his children, now grown off at college or into adulthood. The house was always full of people. As a great host himself, he would mix people of all sorts at any gathering. A Rockefeller might have dinner next to a regular truck driver. At 47 years old, Riordan is well-liked by many.
He goes to the rear of the house on the parlor floor and into his room. He sits down on a plush sofa chair and pulls out the revolver.
02:25
[Sound effect BANG]
Hours later, his sister Mrs. Margaret Murray discovers his body, fully clothed on the floor. She immediately calls the doctor.
The police keep the information hushed while they alert former New York Governor Al Smith who is also member of the board of directors for County Trust Company. It takes several attempts to locate Smith. Meanwhile bank trustee and now acting president John Raskob consults with another man high on the inform list – the awkward and lanky Vincent Astor, the Titanic heir, Jakey’s brother, and a Democrat supporter. They also inform New York Governor Franklin Delano Roosevelt.
03:10
Fear permeates. Like how blood in the water can cause a shark feeding frenzy, there’s a heightened concern announcing this high profile death will cause a panicked reaction.
Secrecy takes over. The consensus is to keep the information private until after the bank closes on Saturday to prevent a bank run by depositors. A bank run is when there’s a rush to withdraw cash funds and reserves.
Saturday, November 9th, at 1pm, the bank closes while a group of auditors furiously pour over all the ledgers and accounts. Once everything is considered sound, Al Smith releases the prepared news statements.
By Saturday evening and Sunday, the newspapers leak the story, angry and critical at the delayed announcement. Still New York City and bank officials prepare for Monday.
04:03
Monday, November 11th, around 8:30am, a group of somber businessmen gather inside the bank. In the lobby, $7 million dollars worth of gold is on display. Along the three paying teller windows, $1 and $20 bills are stacked 4 feet high.
Raskob, Smith, and Astor position themselves behind the gate and stare as the doors are unlocked at 9am sharp. They brace for a run on the bank. The first 3 men who enter actually make deposits and not withdrawals. There is a seemingly anticlimactic nonreaction by the public to the news.
By 10am of the lackluster unexciting morning, Astor, Smith, and company opt to leave the bank and assure the press the bank has proven sound and in excellent condition.
04:50
The next day, Tuesday November 12th,…
As early as 8am, a crowd gathers outside of Riordan’s home, which is already covered in wreaths and flowers. Patrolmen are placed to help manage onlookers.
Riordan was a poor Catholic kid from Greenwich Village who had gained wealth and status and yet remained kind, relatable, and approachable, a folk hero of sorts.
10,000 regular people gather in the streets at his house, the church, and the cemetery. They gather in hopes to glimpse the who’s who of attendees, the celebrities du jour mainly being other wealthy elites. Would the infamous stock investor and rival to many Jesse Livermore appear? How about the Riordan’s good personal friend Joe Kennedy? Both profited when others lost the previous month and might want to avoid the wrath and outrage.
05:42
At St. Bernard’s Church, the somber and simple funeral is attended by the prominent and high profile. Former Governor Al Smith, Herbert Lehman, and John Raskob serve as pallbearers along with Vincent Astor. They sit in the front pews, while the public are directed to back sections or move through the sides. The masses line up to pay their respects.
After the service, Vincent Astor walks alongside the coffin to the vehicle for the burial at Calvary Cemetery. Then Astor joins the escorted motorcade.
The police supervise the fairly respectable crowd. A somber end to the death of a dream, Riordan through hard work climbed his way up the ladder before his fall.
06:27
Elsewhere,…
In Pennsylvania’s elaborate Whitemarsh Hall mansion, elderly banker and financier Ned Stotesbury strolls about until checking his gold pocket watch. Over at his Philadelphia office, he consults the ledgers then fills out a request to pull out $1 million dollars from his JP Morgan account.
Around their Manhattan Sutton apartment, an unshaven stockbroker Bill Wright has dropped his more pristine golden boy appearance. Moping around in his pajamas and robe, he avoids his wife, the supreme hostess and opera singer Cobina and their young daughter. Cobina secretly worries what Bill might do next. She requests to their butler Fred for the chef to make Bill’s favorite dinner and dessert, in hopes of cheering him up.
07:13
Inside the white marble mausoleum of the Fifth Avenue mansion, ambitious Nanaline Duke sits in her study. Icy cold, frozen, and numb, she stares hard at her financial statements.
By the end of the day, the County Trust Company bank shows a net profit. This week disaster was avoided, next time might not be as lucky.
07:40
[Music – Lost In A Fog by Coleman Hawkins & His Orchestra, Album Nightfall – Sophisticated Jazz Classics]
Section 2 – History & Historiography
[Music fade out]
07:54
The aftermath of the 1929 Stock Market Crash was one of fear and speculation. Like a contagion waiting to be unleashed on the world. Along with the Crash, came news of suicides, embezzlements, some bank robberies, and even a prison riot. Chaos was rising.
08:12
I have stated before the rise of suicides immediately after the Wall Street Crash on October 29th, 1929 is more mythic than real. A myth aid and abetted by two influential figures – radio personality Will Rogers claiming people were lining up to jump out of windows and others selling spaces for bodies in the East River, while reporter and later future British Prime Minister Winston Churchill reported the aftermath of a jumper outside his Savoy-Plaza hotel.
08:43
But for the myth to have any teeth to gain such prominence, there has to be an element of truth. And sure enough there were enough suicides featured prominently in the headlines. While jumping is the preferred tale and second being guns but far less likely, the actual most prominent form of death was by gas. The stories started slightly earlier and followed thereafter.
09:04
Weeks before the Crash around October 1st, Vice President and Treasurer of the Earl Radio Corporation Warren Keyes jumped out of the Hotel Shelton’s window in Manhattan. Amongst his two suicide notes to his mother and wife, the reason revealed, “We are broke. Last April I was worth $100,000. Today I am $24,000 in the red.”
09:27
Another shocking announcement made that same day when German textile executive and Konsul W.G. Kummer slashed his wrists with a razor. A week earlier he had received a key to the Elizabethton, Tennessee. Though his death might not have been financially motivated as he had a gall stones attack the night before.
09:47
Tuesday, November 5th & Wednesday, November 6th – Wall Street broker clerk 51 year old Hulda Burowski after two difficult shifts, even falling asleep in the wire room, was sent home, only to return the next day at 9am. She took the elevator up 40 floors, missing her floor on the way up and down, then at 10am went to roof then jumped down to Broadway, hitting the curbstone of Cedar Street.
November 13th, retired cigar maker and Bronx resident Ignatz Engel laid down in his kitchen next to the open jets of the gas range.
The next day president of Rochester Gas and Electric Corp had loss nearly $1.2 million then ended his own life via gas.
10:36
Just prior to Thanksgiving on November 22nd, Margaret Mason known supplier of the holiday turkeys set fire to her barn with her and her birds inside – the same day the turkeys were to be slaughtered and sent to the market for the holiday. Mason was distraught over their fowl fates as dinner and not stocks.
On December 10th, Chicago dentist Dr. Arthur Tanner killed himself with gas, driven by guilt over the loss of employees and friends in the stock market. His female aide and lab technician invested in the market after he encouraged them with his initial success. He could handle his loss but not theirs.
By New Year’s Day 1930, a Brooklyn broker whistled and sang hymns for most of the night keeping his neighbor awake. Death via gas, the broker would be found in a blue serge suit, gray kid gloves, and pearl colored spats.
11:30
Despite having done well during the initial Crash, the most famous speculator Jesse Livermore would eventually shoot himself in 1940.
However the most prominent suicide tied to the Crash was J.J. Riordan, who shot himself on November 8th but the news wasn’t released until November 10th. The fear surrounding his death involved another kind of panic.
11:52
This is somewhat understandable and at the same time somewhat questionable. Humorist Robert Benchley, under the pseudonym Guy Fawkes, penned a New Yorker article “The Wayward Press” on December 7th, 1929, admonishing the secrecy surrounding Riordan’s death as well as the media’s collusion in giving false hopes to the public while a certain group of men secretly met and determined policy. Former New York Governor and failed Democrat 1928 presidential candidate Al Smith being one of those men.
12:24
The Medical Examiner Dr. Charles Norris withheld publishing his report, and by the time the newspapers were informed the bank was prepared to prove their own stability and solvency to prevent further paranoia. The press also made several attempts with the quotes by prominent financiers to encourage buying – indicating the rise should come again but then over the next two consecutive weeks still suffered losses.
12:50
To hold off fears, New York City announced it would leave $3 million at the bank, while Riordan’s other company the US Trucking Corporation pulled up with 3 trunks of money under heavy guard. By the day of the funeral, the bank showed an additional net gain of $700k in deposits.
The bank was proven solvent, along with multiple government and companies assuring their trust. Riordan left behind $438,395 in assets, but his debts totaled over $900k. Smith himself received a $40k dollar repayment on a loan.
13:27
There was also influence and pressure to have Riordan absolved of the sin of suicide by “temporary insanity” so that he could receive a proper church burial. A boy from the streets, Riordan made some powerful friends as he moved upwards. One of his close friends was Joe Kennedy, another self-made millionaire valued at $4 million in 1929. Riordan and Kennedy were close allies and friends with the more influential Al Smith and John Raskob.
13:55
John Raskob was a well-known businessman and one of the prime promoters of the stock market who also dabbled in politics. Throughout the 1920s, Raskob touted investment in common stocks even publishing the article “Everbody Ought to Be Rich” two months before the Crash. Raskob also encouraged Riordan to invest in various things with the offer to cover any losses. Earlier in 1929, Raskob showed Riordan a mini-replica of his latest and most famous investment slated for construction – the Empire State Building. The two marveled over that potential feat.
14:32
Raskob would continuously battle against the flamboyant investor Jesse Livermore, whose short selling yielded him a fortune in October. Though accusing the latter of manipulative ventures, Raskob had several though equally disreputable allies. Billy Durant focused on overthrowing policies of the Federal Reserve, and the chairman of America’s biggest bank Charles Mitchell schemed to avoid paying income taxes on his millions. All big influential players tied to the Crash.
15:00
The Wall Street Crash and the Great Depression are two interlinked events with an implied cause and effect relation. Though in some economic theories, it is not the Stock Market Crash that produced the residual Great Depression nor determined its length, but the massive failure of banks and the banking system that followed.
15:18
The truth is a little more intertwined. In previous economic dips, the down times would last roughly 15 months before things improved to prior levels. However the heavy sustained losses on the market meant high investors and corporations who lost on the stock market pulled their cash resources out of the bank in large amounts causing a deficit. That would then cause banks to scramble and withdraw, call in, or default on their loans. Worse, the backing and securities were private not governmental, and the system became overwhelmed.
15:50
In panics and waves, people would rush the banks and withdraw their deposits causing an ongoing domino effect further exacerbating the financial situation. The results massive bank failures, more panic, more withdraws,…
By fall of 1930, things got even worst. From 1930 to 1933, over 9,000 banks failed, with 4,000 being in 1933. Over $1.3 billion dollars were lost by depositors. The continual runs on the banks and withdrawals and closures would stop with the formation of the FDIC under President Franklin Delano Roosevelt in 1934.
As author Dan Brown in his novel Inferno once stated, “Only one form of contagion spreads faster than a virus. And that’s fear.”
16:37
[Music – These Foolish Things by Benny Carter, Album Perfect Blues]
Section 3 – Contemporary & Personal Relevance
[Music fade out]
16:48
We normally think of FOMO and the fear of missing out, but there are other things that could be classified as FOBI, or the fear of being included. This long drawn out pandemic and coinciding lockdowns has definitely played on all of our psyches. Emotional reactions run high, and people’s mental reserves are being tested.
There seems to be a concept prevalent that privileged once gained is permanent and immutable. That is so not true. In fact, as many things, privilege can be quite fleeting especially when it is based on something like money.
17:25
A fortune can take decades or generations to build and accumulate. Only a few seem to happen instantly overnight. However most require a conscientious effort to build and even more considerable effort to maintain and sustain.
And yet, they can disappear too. Sometimes in a trickle, sometimes overnight. Rarely do fortunes endure for a century or longer. The Rothschild and British monarchy would be among the very, very rare few families and institutions with longstanding generational wealth.
17:59
Speaking of the monarchy, another spike in the topic of suicide occurred last week. In the process of working on this episode, the highly profiled Oprah Winfrey interview with Meghan Markle and Prince Harry aired. Meghan mentioned that she had suicidal ideation during her first pregnancy while being a part of the firm and palace.
No matter which side you take on that interview, it did instigate conversations on multiple topics in our fear laden times. Financial security, physical safety, and suicide are featured heavily within this podcast.
18:30
Much like in the past era, there is cause for contemporary speculation and concern over suicide as we have faced an enormously extended lockdown due to the pandemic. Earlier this year, during a virtual baby shower, a friend and surgical nurse in a hospital transplant unit relayed they are very busy due to the unfortunate donations related to the recent increase in suicides.
18:54
As previously discussed in my prior episode covering suicide Episode 8 Never After, there was anticipated uptick related to the situations we are now facing much like the Great Depression. There are also studies pointing out to the suicide effect when celebrities or media, like the Netflix show Thirteen Reasons Why or celebrity deaths like Marilyn Monroe, have a residual undesirable increase in suicidal attempts.
It spreads, but so can hope. In contrast, there are also studies that point to how interviews or media that address suicidal ideation and failed attempts help reduce other attempts and potentially result in seeking help and treatment or other positive resolutions to the dark thoughts.
19:38
Thus a reminder on the fragility of suicidal ideation. It can happen to anyone at any time. The seductive crooner Frank Sinatra twice possibly thrice attempted suicide during his marriage to Ava Gardner.
This is a very dark and complicated subject. Whether you have those thoughts or fear someone close to you might be, please consult services that may help. Psychology Today has published several articles covering this subject, and I will include some in the notes section provided.
Hook
20:10
[Music – My Heart Belongs To Daddy by Billy Cotton, Album The Great British Dance Bands]
Next when we return to AS THE MONEY BURNS…
As family fortunes are lost, wayward sons learn they might need to make some adjustments in their lifestyles. That is unless they can find the right young heiress to marry.
Until then…
Credits
20:28
AS THE MONEY BURNS is an original podcast written, produced, and voiced by Nicki Woodard, based on historical research. Archival music has been provided by Past Perfect Vintage Music, check out their website at www.pastperfect.com.
Please come visit us at As The Money Burns via Twitter, Facebook, or Instagram. Transcripts, timeline, episode guide, and character bios are available at asthemoneyburns.com.
21:00
THE END
More suicide related information:
https://www.youtube.com/watch?v=ppSAlO9pmPA