"Gold Is Money And Nothing Else" - JP Morgan's Full December 1912 Testimony To Congress

Tyler Durden's picture

In December 1912, no lessor man than J.P.Morgan testified to Congress to "justify Wall Street," during investigations over alleged manipulation and collusion. The transcript reads like it could have been given yesterday (as nothing ever changes) but at its heart the banker laid out 33 "Morgan Epigrams" which appear - in the ensuing 102 years - have been lost to greed and arrogance... The irony is wondrous: "Securities do not always prove good", "Money is gold, and nothing else", "I think manipulation is always bad."


J.P.Morgan's 33 Epigrams:

1. I have absolute faith in the patriotism and public spirit of the Stock Exchange.

2. The moral responsibility has to be defended as long as you live.

3. Securities do not always prove good.

4. It is difficult to get stockholders to take active interest in their companies.

5. I do not believe I could carry any question through any board against the views of the other directors.

5. I like a little competition, but I should rather have co-operation. Without actual control, you can do nothing.

6. I want to control nothing.

7. There is nothing in the world by which you can make a money trust.

8. I do not feel that I have vast power.

9. I do not think I have power in any department of industry; I am not seeking it, either.

10. All the money and all the banks in Christendom cannot control credit.

11. My firm is not run by me; I am not the final authority.

12. I believe in divided as against concentrated responsibility.

13. I do not compete for deposits.

14. I do not care whether they ever come, but they do come.

15. A bank, if it transacts its business right, will get its share of the business.

16. Nobody wants to put money into a new railroad in these times.

17. I always assist young men.

18. If it is good business for the interests of the country, I do it.

19. If I should attempt to tell where the money is in every transaction I make, I should have a hard time of it.

20. I did it because I thought it was the thing to do.

21. I should not allow a man to be associated with me that I thought was a fraud, simply because he owned a bank which at that moment was solvent.

22. Money is gold, and nothing else.

23. If a man had the credit, and I had the money, his customer would be badly off.

24. I have given a man a check for a million when I knew he had not a cent in the world.

25. The first thing is character, before money or property or any- thing else.

26. A man I do not trust could not get money from me on all the bonds in Christendom.

27. I never heard of a bank being controlled by anybody who gave it business.

28. The first thing is to get the business, and the next thing is the way you transact your business.

29. I think manipulation is always bad.

30. I never sold short in my life that I know of, but I do not see how you will get along without it. It is a principle of life, I think.

31. I would not favor legislation that would reduce the volume of speculation. You cannot prevent the public buying a thing that they think is low, or selling a thing that they think is high

32. You cannot in a bank in which you are a director, not in any first-class bank, at any rate, go and find out how much I have got in that bank.

33. You can get combinations that can control business, but you cannot control money.

*  *  *

Quite stunning! But as the transcript below shows, nothing ever changes!!

JPMorgan Testmony 1912

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BaBaBouy's picture

"Truth, like gold, is to be obtained not by its growth, but by washing away from it all that is not gold." - Leo Tolstoy quotes

"Gold is a treasure, and he who possesses it does all he wishes to in this world, and succeeds in helping souls into paradise." - Christopher Columbus quotes

SoberOne's picture

Whomever tried to correct me the other day, there you have it. Money is gold, nothing else.

Sheikh_Speare's picture

Ignore them, only over educated, and usualy broke employees  will tell you gold isn't money

ACP's picture

True irony that JPM is now the biggest criminal metals manipulator.

ZerOhead's picture

Barry says only terrorists like ISIS use precious metals like gold and silver (and solid copper) as money.

Maybe Congress can pass some kind of anti-terrorist metals law...

outamyeffinway's picture

I piss on your grave you fuck! You and your descendents.

Four chan's picture

you know it's bad when you yern for the good old days of the robber barron.

SilverIsMoney's picture

That's because C.S. Lewis was right...

“Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience."


Skateboarder's picture

"For our own good" is the advertised reality; "For their own good" is the actual reality.

p.s. the overlords don't have consciences.

FinalEvent's picture

33 nothing special with that number people, please move along. lmao.

StychoKiller's picture

"The objection to Puritans is not that they try to make us think as they do,
but that they try to make us do as they think." -- H.L. Mencken

cnmcdee's picture

super tits - got to have it lol

cnmcdee's picture

Too funny an ad for passed out hot celebrities by Boeings ad for their new rocket launch platform.

You can' make this sh*t up..

cnmcdee's picture

You better go cut the head off a kitty cat or something you sound frustrated..

nuke ISIS now's picture

piss haus of Morgan


In the words of Richard Crenna in Rambo...

"ya done a lot a damage Johnny...." 


The9thDoctor's picture

Money is gold, and nothing else.

I find it odd that the goldbugs cling on to a JP Morgan quote of all things.  Money is a medium of exchange what the transacting parties agree upon.

You offer a gold coin to anybody on the street and no one wants it.  See as those Mark Dice Gold Coins videos on youtube.  That to me, and even my own personal experience, gold isn't a very good medium of exchange.  The only people interested in giving me full market value for it (as measured in FRNs that 99% of the populace uses) is a coin shop, and there's only a couple of them in my metro area.

You offer anybody on the street a $100 bill and they'll give you a day of their time and provide labor.

Try it for yourself.  You'll be shocked.  The outside world is a lot different than the confines of a room in the academia world.  Models and definitions are a bit different out there, then what it says in your research papers.

As for "peasants" being "too stupid" to accept gold.  That just shows the Mises crowd's elitist attitude.  Most Mises followers and goldbugs tend to be elitest, and are envious of the Rothchild's successes.  Not all goldbugs, but most. You know what I am talking about if you read enough of these debates.

I am not anti-gold per se.  If someone offered me gold for payment, I would accept because I know it's perceived worth based on the spot chart manipulation figures; but to turn that gold around, I already know its a tough sell to my fellow man, because most aren't interested.

As for "shitcoin" (as the goldbugs call it), if enough people accept bitcoin as money... it's money.

SilverIsMoney's picture

Dice's point in that video was that Gold was obviously not in a bubble in 2011 because 99% of people still don't even know what it is...

I understand your point but gold could be transacted to the microgram electronically and the masses could still use their debit cards without issue.

Again... all we're asking for is allowing currencies to compete so that we can introduce our own gold and silver backed currency.

saveandsound's picture

Why can't I vote on "The9thDoctor"?

cnmcdee's picture

Sure - because the common folk have been weaned on credit / plastic and debit cards.. Who is even carrying cash anymore?

Gold is not efficient for buying hamburgers at McDonalds.

However it is it's own storehouse of wealth *outside* of society and it's normal transactions. 

Everything in the US economy pretty much is trapped under a deflating worthless currency - the United States dollar.  Gold is not!  It is an escape vehicle.  It has no value to common poor folks (like all of us.) It has incredible value to the elite and wealthy.  Central banks are buying it like crazy around the world. Everything is going to fall heavily in value, but Gold will rise once the physical decouples from the certificate fiat market.

When you see the futures price on gold on all the CNBC channels  it is TRAINING people that it is worthless - and their certificates that are not actually transferable to Gold are worthless..

Gold is a once in a lifetime opportunity sitting here right now - buy it, watch it go to $2500 / ounce in 2015 and watch everything else collapse in prices in comparison.


walküre's picture

Music to my ears!

Gold is a once in a lifetime opportunity sitting here right now - buy it, watch it go to $2500 / ounce in 2015 and watch everything else collapse in prices in comparison.

I'm not as bold in my predictions but I sure appreciate when someone else dares to speak like that!

The9thDoctor's picture

Gold is a once in a lifetime opportunity sitting here right now - buy it, watch it go to $2500 / ounce in 2015 and watch everything else collapse in prices in comparison.

Didn't that prediction come and go back in 2010, 2011, 2012, oh it'll bounce back in 2013, 2014, now your prediction is 2015?

Where did you get that prediction from?  KingWorldNews?  Those chicken little predictions get really old, really fast.

I find it funny that the metalbugs are the same guys that "never buy a new car" (because they can't afford one), and they live in a trailer out in the woods with expired cans of beans and a $120 mosin nagant they picked up at a gun show.  That's their "wealth"!

Then yesterday I saw that ZH Article with those Chinese students with their new whips, and they are having FUN customizing their rides, that the metalbugs can not afford.  The envy in the comments section was so epic.

I'm sure those Chinese (enemies you guys call them) stack gold next to their SKS and expired Spaghettios in their trailer.  No, they are out doing cool stuff, having a blast, getting girls, and the stacker prepper is having an anxiety attack because doom didn't show up on cue.

I just shake my head and laugh.  Keep stacking metal that hardly anybody wants.  If you don't believe me, go SELL one ounce at this "cheap price" without using a coin shop and see how easy it is.

Oh yeah, that's right, your fellow man is "too dumb" to realize the value of metals.  Silly me.  Even if your SHTF fantasy comes true, do you think people will cash out $2,500 to buy a gold coin, or do you think they might be loading up on supplies to weather the storm instead?

These are all things to consider.

Chupacabra-322's picture

A whole 11 weeks & 8 hrs Trolling on Zero. You should congratulate yourself in a very exclusive league along with MDB.

saveandsound's picture

Why can't I vote on "The9thDoctor"?

StychoKiller's picture

At one time, everyone "thought" that the Sun revolved around the Earth.  I recognize the Truth in Au/Ag/Pt/Pd


What difference does it make if the price was never realized in those years, if its been shown that the metals are being manipulated? Most people who understand the markets and the historical role of gold as money (meaning it meets all  6 characteristics, medium of exchange, store of value, unit of count,fungible, durable, portable) know that an eventual decoupling will occur after the suppression ends. I don't count my holdings as an investment but rather as insurance that will retain its purchasing power (store of wealth) when the fiat system dies.  Using the $ exchange rate isn't a meaure of wealth accumulation or gain in dollars but simply a conversion exchange rate. Obviously if you fixate on the dollar conversion or what price it will be at a future date then you miss the whole concept of what gold is

FinalEvent's picture

>> and watch everything else collapse in prices in comparison.

>Music to my ears!

You are not much better than JPM to wish everything will crash.

samcontrol's picture

would you buy Sprot products?

Tinky's picture

I don't mean to be harsh, but look up the word "myopic".

There are 320m people in the U.S., and a combined 2.6 billion in India and China. Now, how do you imagine that the average person in those countries would react to an offer of a gold coin?

The9thDoctor's picture

I don't mean to be harsh, but look up the word "myopic".

I don't find you harsh at all.  You actually bring up a good point.  I know there are some very well traveled people on here who conduct business in India and China.  Hey if tolas have a lot of value over there and its the medium of exchange, then obviously go for it.

The world I deal with on a day to day business here in the States couldn't give two hoots about gold coins, and they assume they are fake and some sort of a scam.  Is it myopic, probably, but at the same time I'm not going to goof around with gold when the commerce I personally deal with daily mainly deals in cash and credit cards.

StychoKiller's picture

What choo gonna do when everyone is Burning FRNs to keep warm?

walküre's picture

+1 for the alternative viewpoint

I'm a die hard goldbug

Gold raised eyebrows and got people excited much longer than you or I have been around.

This age we live in is defined by massive propaganda efforts to control people into being complacent and uneducated. People are misinformed consuming zombies who will shop when they're told and live how they're told. That's how we got suburbs and big box stores or malls.

It is not sustainable however, because eventually the zombies will need to actually fight for their food again. For as long as paper money is feeding and housing them, they will behave like sheep. The paper gets diluted each and every day more and more despite the lack of growth to offset that dilution.

Sheep get shorn or butchered. It has never been any different. Of course, I could be wrong and we are truly entering a new phase of humanity where sheep are allowed to be sheep and graze for eternity...

Winston Churchill's picture

Black's Legal definition of money=a store of value.

I think you mean currency is the medium of exchange.

A subtle but important difference.

Everyone thought my grandfather a nutcase in the 1920's because he refused to participate

in the markets and invested and saved in gold.

Boy, did he have the last laugh  in the 1930's.

Chris88's picture

You apparently aren't very in tune with Mises and Rothbard followers.  I like Rothbard better, but that's besides the point here.  Neither of them advocated a gold standard, they advocated a free market in money.  You could use goat shit if people took it, but over thousands of yeasrs of history we could reasonably expect it to be gold and silver.  Those of us who appreciate and respect their contribution to economics are not automatically goldbugs and they sure as hell aren't envious of wealth and success.  They (we) are the most pro-capitalist people around.  The class warfare nonsense finds its way here in all the people blaming everything on "banksters" and "Wall Street" when most have not worked on WS and couldn't even tell the difference between the various front office roles.  These suckers have been duped into this crap by envy and even more so a complete misdirection by government.  

The9thDoctor's picture

Neither of them advocated a gold standard, they advocated a free market in money.  You could use goat shit if people took it, but over thousands of yeasrs of history we could reasonably expect it to be gold and silver.

I agree with you.

Abitdodgie's picture

The 9 doctor , cannot up you as the arrows are not going up.

saveandsound's picture

And what does that tell us about ZH?

gbresnahan's picture

you could say the same about 1000 EUR, 1000 GBP, or 1000 USD and most "peasants" would want the 1000 USD because they can spend it readily and easily and have no clue that EUR and GBP have more value than USD.

BlackVoid's picture

Yeah, most people in the US are STUPID.

That is the only thing those videos prove.The rest of the world likes gold just fine, especially Asia.

5% in the US - soon to be irrelevant in world affairs. Cannot come soon enough.

Zero Point's picture

Under Shariah law, use of gold and silver as money is Halal.

Charging interest is Haram.


Manthong's picture

I do not have all f’n day to repudiate this old, dead vile POS  thief, but I will jump on this one for fun…..


11. My firm is not run by me; I am not the final authority.


..so.. it is not the employee’s fault.. and it is not the manager’s fault.. and it is not executive’s fault .. and it is not the board’s fault…  so it is obviously it is the shareholder’s fault… and nowadays.. JPM’s fault is on the taxpayer   HA.. HA.. HA..  

so how do you spell TBTF or TBTJ  ?????????????


metastar's picture

It's the shareholder's fault kind of in the same way as ...

it is the voter's fault for electing criminals to positions of power.

nopalito's picture

He did indeed say "money is gold", yet all the comments, not to mention the title of this article, turn that around to say "gold is money". There is a difference.

cfsiii's picture

I don't think there is a difference - tis the grammer of it - but would be interested in why you think there is a difference.

The9thDoctor's picture

"money is gold"

Nice catch ;)

SoberOne's picture

He said it like that intentionally.  Think about it for a bit and it all makes sense. At least to me it does. 

G in FLA's picture

I thought the J P Morgan quote was
"Only gold is money,everything else is credit"