In the New York financial district, Jewish finance makes itself felt through its private banking institu¬ tions. As distinct from the great trust companies and banks of deposit, the private banker utilizes his own capital and that of his partners and associates.
Jewish finance differs radically from non-Jewish finance in the fact that Jewish bankers are essentially money-lenders. They may underwrite great flotations of bond and stock issues for railroad and industrial companies, governments and municipalities, but these securities are immediately sold to the public. There is a quick money turnover. The public carries the bonds ; the Jewish financier gets his money. The Jewish banker himself rarely has a permanent interest in the corporations he finances. Non-Jewish bankers usually feel obligated to retain a connection with the enter¬ prises they have financed, in order to assure the inves¬ tors a proper administration of funds; they feel obligated to contribute to the success of the invest¬ ments which they handle for other people.
The Jewish banker keeps his capital liquid. The cash is always in his coffers. This is essential to his position as one who deals in money. And when the inevitable day of financial stress arrives, he profits greatly by the higher value then placed on liquid capital.
Far and away the leading Jewish banking house in Wall Street is that of Kuhn, Loeb & Company. The head of this great firm was the late Jacob Schiff, whose associates were his son Mortimer, Otto H. Kahn, Paul M. Warburg, and others, who have taken prominent parts both in public life and giant financial operations. Other private Jewish banking houses may be named as follows: Speyer & Company; J. and W. Seligman & Company; Lazard Freres; Ladenburg, Thalmann & Company; Hallgarten & Company; Knauth, Nachod & Kuhne; Goldman, Sachs & Company, as well as others of relatively less prominence. These firms enjoy a high reputation for financial integrity. They are cautious bankers, skillful in their operations, and sometimes brilliant in their financial strategy.