United States Economic Growth and Demand for Capital

This chapter discusses the economic growth in the United States during the early 1900s, leading to a high demand for capital. The country's booming exports and the emerging market contributed to this demand. The chapter also mentions the consolidation of companies into large corporations, with financing flowing through a small group of financial institutions in New York. The role of Jay Pierpont Morgan, a prominent dealmaker and financier, is highlighted. The chapter further explores the impact of the San Francisco earthquake in 1906 on the global financial system, including the sell-off on stock exchanges and the financial effects on British insurance companies. It concludes with the tightening of capital in both England and New York, as gold reserves were sent to San Francisco for rebuilding efforts and the divergence between debt market conditions and equities in 1907.