Tag Archives: Franklin D. Roosevelt

The Bond Club of New York

Professional organizations and clubs have long provided a place for both networking and socializing. One club, The Bond Club of New York, traces its history back to 50 Wall Street, on the same block that the Museum of American Finance now sits.

The Bond Club of New York was founded in 1917 as a way for the men selling Liberty Bonds to sell more through a collective effort. While they are no longer selling Liberty Bonds, the club still serves as a social organization for people involved in the financial world of New York City.

1983 Dinner Invitation from the Bond Club of New York.
1983 Dinner Invitation from the Bond Club of New York. The speaker that night was John Glenn.

The club has a long history of having prominent businessmen and politicians as speakers at their luncheons and annual club dinners. This distinguished group includes future presidents Franklin D. Roosevelt, Dwight D. Eisenhower, Richard M. Nixon and George H.W. Bush, along with multiple vice presidents, senators (including astronaut John Glenn), governors, New York City mayors, CEOs of major corporations and members of the armed forces. The trend of having noteworthy speakers continues today with recent speakers including former Governor Jeb Bush, Governor Chris Christie and Mayor Rudolph Giuliani.

Cartoon from the June 29, 2009 edition of the Bawl Street Journal entitled: The Buy and Shell Game.
Cartoon from the June 29, 2009 edition of the Bawl Street Journal entitled: The Buy and Shell Game.

Along with luncheons and dinners, the Bond Club publishes The Bawl Street Journal, a satirical newspaper that pokes fun at the club members and Wall Street events. It is filled with cartoons and mock advertisements that provide commentary on the financial world of New York City.

The Bawl Street Journal has been published since the Bond Club of New York’s founding. Before it went digital in 2005, it was traditionally distributed at the annual field day at the Sleepy Hollow Country Club in Westchester County, New York.

1949 Field Day Invitation
Invitation to 1949 Bond Club of New York Field Day.

The Bond Club of New York archive held at the Museum of American Finance consists mainly of documents from the 1970s and 1980s. Notable items in the collection include membership applications from that time period, including the first applications that were submitted by women in 1979.

Along with the applications, the archive includes records from the 1970s and 1980s, assembled annually by the club secretaries. These records include information about the club’s events along with notes from board meetings and examples of Bond Club of New York letterhead.

The Museum also holds documents from the club’s early history. These early documents include copies of the annual year books from 1920 and 1923, which list the members for that year along with earlier speakers and former club officers. There is also an article from the New York Post on the Bond Club of New York from 1925 that outlines its early history, as well as a set of meeting notes from the early 1920s which provides another window into the early history of the club.

Peter Macfarlane is a Senior Collections Intern at the Museum of American Finance.

State Level Deposit Insurance Before the FDIC

The Federal Deposit Insurance Corporation (FDIC) has been the government agency responsible for providing deposit insurance to banks since its creation in the Glass-Steagall Act of 1933. While the establishment of the FDIC was an important event in the history of government regulation of the economy, it was not the first instance of deposit insurance in the United States. Several states had previously had state level institutions of deposit insurance in the 1800s and early 1900s.

President Franklin D. Roosevelt signing the Banking Act of 1933 (Glass-Steagall Act), which established the FDIC.

At various times before the Civil War, Vermont, Michigan, Indiana, and New York insured both banknotes and deposits, while Iowa and Ohio insured only banknotes. Most of these systems operated successfully up to the Civil War, with the notable exception of Michigan’s which had been established immediately before the Panic of 1837 and had failed rather quickly. These state deposit insurance systems generally required participating banks (and participation was voluntary) to pay for insurance to pay off deposit returns from failed banks.

Such systems did not survive the Civil War and nationalization of the banking system. However, interest in state level deposit insurance systems was increasing again by the end of the 1800s, though it was not until 1907 that Oklahoma became the first state since the Civil War to establish a state deposit insurance system. Seven more states followed suit in the following ten years. The deposit insurance systems of the early 20th century had less positive results and unintended consequences. A common observation of banks insured by state deposit insurance in the 1920s was that in spite of nominal regulations against risky behavior by banks, the state deposit insurance actually encouraged risky behavior by banks, increasing the proportion of bank failures and thus insurance burden. By the end of the 1920s the state deposit insurance schemes had largely failed. In some states voluntary participation left banks the option to simply opt out, and most did, while in other states high insurance costs led to deposit insurance being repealed. Yet while state level deposit insurance appeared to be a failure, it was a model that would pave the way for the establishment of the FDIC, deposit insurance on the federal level and subject to stricter regulation.

Vaughn Rennie  is a summer museum intern at the Museum of American Finance.