J.P. Morgan, the future financial emperor who would one day even surpass the Rothschilds, was at this time nothing more than a representative working under his Father, and did not yet enjoy the status of a future financial monarch.
Instead, the fame of his Father, Junius Spencer Morgan, was immense.
Having started as a partner to the great financier George Peabody, he was now the head of the JS Morgan Company, which had succeeded it.
He was also a man who had reaped enormous profits by acquiring French bonds that had plummeted following France’s defeat in the Franco-Prussian War.
(For some reason, this episode is often mistakenly passed down as a story about his son, J.P. Morgan.)
I asked William Turner.
“If it’s JS Morgan, you mean the man who made a fortune with French bonds during the Franco-Prussian War, right?”
“Oh, you know that story. That is exactly the man. You might also recognize the name of his partner, George Peabody. The current JS Morgan Company is simply the Peabody Company with a changed name.”
“Then what is the primary business of the JS Morgan Company?”
“They primarily raise funds in the United Kingdom and supply them to American industries. Without Junius Morgan, even that arrogant Cornelius Vanderbilt wouldn’t be able to run his railroad business properly.”
“Isn’t Cornelius Vanderbilt dead?”
“Yes, Cornelius Vanderbilt is dead, and his dull son, William Vanderbilt, has succeeded him. He came to the United Kingdom once before, and I must say, in all my life, I have never seen such an arrogant individual.”
“Doesn’t a man with a fortune reaching 20 million pounds have a right to be arrogant? With that much wealth, he is the richest man in the world, no matter what anyone says.”
“Hmm? Is his wealth really that substantial?”
“Yes, from what I’ve heard, it’s about that much.”
“Well, then he certainly had a reason to be arrogant. I didn’t realize it was to that extent.”
Indeed, Cornelius Vanderbilt’s exact wealth was not clearly known at this point in time.
“By the way, is he close with Baring Bank?”
“Our relationship with that firm has been deep since the days of his predecessor, Mr. George Peabody. That’s why I’m introducing you to him.”
“I’ve heard that the United States currently has the most dynamic economy in the world. If you could establish a connection for me with the United States, I would be truly grateful to you, Mr. Turner.”
The next day, I diverted Yuli Briner elsewhere and headed to the JS Morgan Company accompanied only by Bittu Singh and Chitt Singh.
William Turner’s letter of introduction, as an executive of Baring Bank, was highly effective.
Furthermore, the rumors about me that had begun to circulate a few days ago were also quite potent, and Junius Morgan welcomed me warmly.
Junius Morgan was already over 60 years old, so his hair was completely white.
Unlike many Europeans of this era who grew beards in various styles, he was clean-shaven.
“So you are that famous young oriental tycoon. I am Junius Morgan.”
“It’s a pleasure to meet you. I have been hearing the name of the JS Morgan Company since I was in Russia and Asia.”
After exchanging such brief greetings, we got down to business.
“William tells me you possess an enormous fortune and are looking for investment opportunities. What do you think? Are you interested in investing in the United States, the most dynamic country in the world right now?”
“As a matter of fact, I also believe the United States is the most dynamic country in the world and will eventually surpass the United Kingdom in the future.”
When I said the United States would surpass the United Kingdom in the future, Junius Morgan merely smiled.
It seemed he took it as simple flattery or empty praise.
“I’m not just saying this to sound pleasant; I’m saying it because I truly believe it. I expect the United States will economically overtake the United Kingdom within thirty years. Therefore, I would like to invest 200,000 pounds worth of gold in the United States. Is that possible?”
Junius Morgan, who had been listening with a smile, showed clear signs of surprise at the mention of 200,000 pounds worth of gold.
“Did you say not just 200,000 pounds, but 200,000 pounds worth of gold?”
“Why are you so surprised by that amount of gold in the United States, the land of gold?”
Since gold in South Africa had not yet been discovered, the world’s largest gold producer at this time was California in the United States.
While the gold rush in California by the western pioneers—called the Forty-Niners because of the 1849 boom—had subsided to some extent, large amounts of gold were still being mined from the already developed gold mines.
However, much of that mined gold did not accumulate within the United States due to the immature American government and financiers, and instead flowed out to the United Kingdom.
“No matter how much gold comes out of California, it is rare for it to pile up right in front of us financiers. But are you really going to invest in physical gold?”
“Yes, because that is more convenient for me.”
“But you said investment, not a deposit, correct?”
“Yes, I hold the future of the American economy in very high regard, so I wish to invest.”
“Do you perhaps have specific stocks in mind?”
“For now, I would like to invest 100,000 pounds each into Mr. Rockefeller’s Standard Oil and Mr. Carnegie’s steel company.”
“Hmm, those two companies are among the most valuable investment targets in the United States. Your insight is truly remarkable. Very well, I will do whatever it takes to make the investment into those two companies happen.”
“And one more thing. This is a request unrelated to the investment, but would it be possible for me to acquire American citizenship?”
At those words, Junius Morgan shook his head instantly.
“That is impossible even for me. It might have been possible ten years ago, but now the nationality laws have become extremely strict, and racism in Washington DC has intensified. It has become impossible for an East Asian like yourself to acquire American citizenship.”
Puzzled, I asked.
“Aren’t there quite a lot of Chinese coolies working in the United States?”
“That is exactly why the nationality law was revised. To avoid giving American citizenship to those Chinese coolies, the law was changed to never grant citizenship to East Asians. You would have found it easier to gain citizenship if you were a Black person from Africa.”
This was something even I hadn’t known.
I had thought American citizenship would be best for my future activities, but if it was fundamentally impossible for someone like me, an East Asian, there was nothing to be done.
I didn’t know how it would go if I poured money into the Washington political scene, but why would I be so desperate to cling to the American government?
“I understand. Then let’s pretend the matter of American citizenship never happened. The United States has lost a great benefit because of that racism.”
Junius Morgan nodded at my words.
“It feels like this racism has become even stronger since the American Civil War. Whether they’re Southern Dixies or Northern Yankees, they all seem to think exactly the same about this part.”
“Are you perhaps refusing the investment because it’s East Asian money?”
“Money has no nationality. Especially when it’s gold, that goes without saying.”
“Good. Then I will send a ship to the St. Katharine Docks. It’s a bit heavy, so please prepare five carriages and wait for me. Of course, you’ll need to prepare porters and security personnel to move the gold as well.”
Junius Morgan looked like he didn’t immediately understand why five carriages were needed for 200,000 pounds worth of gold, but he agreed to prepare the carriages as I asked.
At this time, the Thames River in London was bustling with ships coming up from the sea, and there were many docks along the river.
After parting with Morgan, I immediately ran to a pier on the outskirts of London and rented a ship.
I then asked Bittu and Chitt to load eighty large leather bags onto the ship.
Though the two of them were confused, they did as I said and loaded the eighty leather bags.
Upon arriving at St. Katharine Docks, I asked Bittu and Chitt to return to the hotel first and waited for the people from the JS Morgan Company.
A short while later, Junius Morgan himself arrived at St. Katharine Docks leading his men, and I had them take the bags out of the ship.
Naturally, each bag contained 40kg of gold.
The sailors looked puzzled as they watched the men struggle to carry out the bags that Bittu and Chitt had easily carried one in each hand earlier, but they just assumed Bittu and Chitt were exceptionally strong because they were such giants.
Junius Morgan had brought five carriages, just as I requested.
I loaded twenty bags into four of the carriages and rode in the fifth one with Junius Morgan as we headed to the JS Morgan Company.
Arriving at the JS Morgan Company, Junius Morgan opened the bags and said.
“How much gold is this in total?”
“It’s 3.2 tons, using the metric tons used on the continent.”
Since the United Kingdom and the United States did not use the metric system, the conversion took a bit of time.
“It’s nearly 440,000 pounds. In US dollars, that’s over 2 million dollars.”
“I will deposit the remaining money into JS Morgan after investing in Mr. Rockefeller and Mr. Carnegie.”
We summoned a lawyer and drafted a somewhat complex contract.
The conditions were to purchase $500,000 worth of shares each in Rockefeller’s oil company and Carnegie’s steel company, and to deposit the remaining money into the JS Morgan Company at a 5% compound annual interest rate.
The gold, whose purity was verified at the JS Morgan Company, was transported somewhere under heavy guard, and I received the contract and deposit certificate.
Before leaving the JS Morgan Company, I asked Junius Morgan.
“You mentioned that acquiring American citizenship is impossible, but what about British citizenship?”
“That is much simpler. Originally, anyone from a British colony is granted the status of a British subject, but since you are a foreigner, you can acquire citizenship immediately by making an oath of allegiance to the Queen before a Home Office official with a guarantor. Normally, five years of proof of residence or proof of contribution to the nation is required, but we can easily substitute that with our guarantee. The British government is not so foolish as to deny citizenship to a man with 440,000 pounds. Only the American government is such a narrow-minded blockhead.”
At this time, the concept of nationality was just beginning to emerge, so the United Kingdom used the term ‘subject’ (allegiance) instead of ‘citizen’ (citizenship).
Furthermore, since the concept of nationality itself was not yet seen as a major right, there were no significant issues in acquiring it.
Junius Morgan immediately found a guarantor, and I took the oath of allegiance to Queen Victoria before a dispatched Home Office official and acquired British citizenship.
After obtaining British citizenship, I returned to the hotel in a carriage provided by Junius Morgan, where Bittu and Chitt were waiting in front.
“It took a bit of time. Let’s stay in London for today and head to Singapore tomorrow once we receive the saplings.”
Yuli Briner had been busy buying goods to sell in Russia.
I had hoped he would get involved with Jane Spencer, but that did not happen.
When we went to William Turner’s house where the Spencer father and daughter were staying to say our goodbyes, Jane Spencer said.
“I think I’ll probably get married in London. Make sure to visit my house the next time you come to London.”
“By then, I won’t be as young as I am now, and Jane’s husband might dislike me. Will that be okay?”
“That much will be fine, so please come see me.”
After promising to meet Jane Spencer again, we boarded the ship loaded with Rubber Tree Saplings and headed for Singapore.
***