Paul M. Warburg

Paul M. Warburg
•Vice Governor, Board of Governors, 1916–1918
•Member, Board of Governors, 1914–1916
•Born: August 10, 1868
•Died: January 24, 1932

Paul M. Warburg was sworn in as a member of the first Federal Reserve Board on August 10, 1914. He was appointed vice chairman (called “vice governor” before 1935) on August 10, 1916. He resigned from the Board on August 9, 1918.

Warburg was born in Hamburg, Germany, in 1868. He graduated from high school in Hamburg in 1886 and began working for an exporting firm there. He then moved on to positions at shipping and banking companies in London and Paris. He returned to Hamburg in 1895 and became a partner in the banking firm M.M. Warburg and Company, founded by his great-grandfather.

Warburg was a partner in the family firm until 1907. However, in 1902, he moved to New York City and joined his father-in-law’s company as a partner overseeing international loans to several governments. In 1911, he became a naturalized US citizen.

Warburg was considered one of the top authorities on central banking both in Europe and the United States and was active in the monetary reform movement taking place in the United States in the early 1900s. He gave speeches, published several articles advocating the establishment of a US central bank, and was an unofficial advisor to the National Monetary Commission, which was established following the Panic of 1907 to study banking system reform. In 1910, Warburg was one of six men, including Sen. Nelson Aldrich, to participate in a secret meeting on Jekyll Island, Georgia, that resulted in a plan for a National Reserve Association. Although the “Aldrich plan” was rejected by Congress, it laid the foundation for the 1913 Federal Reserve Act, which created the Federal Reserve System. President Woodrow Wilson appointed Warburg to the new entity’s first Board in 1914.

Although Warburg left the Federal Reserve Board in 1918, he continued to serve the Federal Reserve as a member of the Federal Advisory Council (1921–26). He resumed his activities in business and philanthropic circles as well. For example, he founded and was the first chairman of the Executive Committee of the American Acceptance Council in 1919. In 1921, he organized the International Acceptance Bank to promote US government financing of reconstruction in Europe following the war.

Warburg was also a director of the Council on Foreign Relations (1921–32), a trustee of the Institute of Economics (1922–27), and a trustee of the Brookings Institution after it merged with the Institute of Economics in 1927. He also helped establish the Carl Schurz Memorial Foundation in 1930. He served at various times as a director of the Baltimore and Ohio Railroad, Union Pacific Railroad, and Western Union Telegraph Company. Warburg was also a director of the Julliard School of Music and a trustee of Tuskegee College.

Warburg continued to take an active interest in the nation’s monetary affairs and banking system. In March 1929, he warned that the wild stock speculation resulting from stock price increases and improper bank lending practices would have disastrous results if left unchecked. On October 29 of that year, the stock market crashed.

Throughout his career, Warburg was a prolific writer. Most notable among his published works was a two-volume set on the Federal Reserve System published in 1930. The Yale University Library (Manuscripts and Archives) is the repository for Warburg’s papers dating from 1904 to 1932. The collection includes 169 volumes on banking and finance.

Warburg died at his home in New York in 1932. At the time of his death, he was chairman of the Manhattan Company and a director of the Bank of Manhattan Trust Company, Farmers Loan and Trust Company of New York, and First National Bank of Boston.

Written by the Board of Governors of the Federal Reserve System. See disclaimer.

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Warburg family

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The Warburg family is a prominent German and American banking family of German Jewish and originally Venetian Jewish descent, noted for their varied accomplishments in biochemistry, botany, political activism, economics, investment banking, law, physics, classical music, art history, pharmacology, physiology, finance, private equity and philanthropy.[1]

They are thought to have originated as the Venetian Jewish del Banco family, Anselmo and Abraham Ha Levi Kahana de Palenzuela from Spain, one of the wealthiest Sephardic German families in the early 16th century.[2] Following restrictions imposed on banking and the Jewish community, they moved to Bologna, and thence to Warburg, in Germany, in the 16th century, after which they later took their name. The first known ancestor was Simon von Kassel.[3]

The family later established itself in Altona, near Hamburg in the 17th century, after the Thirty Years' War, and it was in Hamburg that M. M. Warburg & Co. was established in 1798, among the oldest still existing investment banks in the world. Other banks created by members of the family include M.M.Warburg & Co.; Warburg Pincus; and S. G. Warburg & Co., renamed UBS Warburg in 1995, following its acquisition by UBS.

Contents [hide]
1 Family organization 1.1 Alsterufer and Mittelweg lines
1.2 American and German Warburgs
1.3 Venetian origins

2 Noteworthy members
3 See also
4 References
5 Further reading
6 External links

Family organization[edit]

Alsterufer and Mittelweg lines[edit]

The family is traditionally divided into two prominent lines, the Alsterufer Warburgs and the Mittelweg Warburgs. The Alsterufer Warburgs descended from Siegmund Warburg (1835–1889) and the Mittelweg Warburgs descended from his brother Moritz M. Warburg (1838–1910). They took their nicknames from the brothers' respective addresses in Hamburg's Rotherbaum neighborhood. The brothers were grandsons of Moses Marcus Warburg.[1]

Siegmund George Warburg was of the Alsterufer lines; the five brothers Abraham (Aby) M., Max M., Paul M., Felix M. and Fritz Moritz Warburg were of the Mittelweg line.

The brothers Moses Marcus Warburg (1763–1830) and Gerson Warburg (1765–1826) founded the M. M. Warburg & Co. banking company in 1798. Moses Warburg's great-great grandson, Siegmund George Warburg, founded the investment bank S. G. Warburg & Co in London in 1946. Siegmund's second cousin, Eric Warburg, founded Warburg Pincus in New York in 1938. Eric Warburg's son Max Warburg Jr. (not to be confused with Eric's father Max Warburg) is currently one of the three partners of M.M.Warburg & Co., Warburg. Max Warburg's elder brother Aby Warburg used family resources to establish the Kulturwissenschaftliche Bibliothek Warburg in Hamburg, since 1934 The Warburg Institute in London.[4] Paul Warburg is most famous as an architect[5] of the US Federal Reserve System, established in 1913, as a member of the first Federal Reserve Board, and its Vice Chairman until his resignation in August 1918.[6][7][8][9]

American and German Warburgs[edit]

A former townhouse of Felix Warburg's in Manhattan, New York City.
Felix and Paul Warburg emigrated to the United States. Felix Warburg married Frieda Schiff, only daughter of Jacob H. Schiff, a banker who grew up in Frankfurt, and had ties to the German Warburgs. Schiff financed parts of the American rail system through his investment bank of Kuhn, Loeb & Co. and interacted with newly American Warburgs as all three worked for and married into the investment baking firm of Kuhn, Loeb & Co. Beginning with the marriage of Jacob Schiff in 1875 to Therese Loeb, a daughter of Solomon Loeb, becoming a full partner in the business firm. In 1895 Paul Warburg married Nina Loeb, daughter of Solomon Loeb of Kuhn, Loeb & Co.,having met her at the wedding of brother Felix Warburg who had married Jacob Schiff's daughter, Frieda. Originally it was Abraham Kuhn who concentrated his family wealth and business relations with newly immigrated distant cousin Solomon Loeb, by his marriage to Kuhn's sister. Shortly thereafter the two became full partners in their newly established New York banking investment firm of Kuhn, Loeb & Co.[10] In more recent times Schiff's great-great grandson Drew, previously was married to Al Gore's daughter, Karenna. Having ties to America and Germany like many other prominent Jewish financial families, the Warburgs abroad maintained close ties to their Jewish roots. Felix Warburg's house in New York City is now the Jewish Museum, and Kfar Warburg in Israel is named for him. Otto Warburg, a cousin of the German-based Warburgs was a wealthy botanist who was elected head of the World Zionist Organization in 1911. Felix's brother, Paul Warburg was one of the original founders of the board[11] of the U.S. Federal Reserve System, a collection of 12 regional Reserve Banks headed by a Board of Governors which regulates and oversees private commercial banks.[12] As one of the most prominent bankers of his time, his brother Max Warburg attended the Paris Peace Conference of 1919 at Versailles, as part of the German delegation.[13][14]

During the Weimar Republic, Max Warburg served on the board ('Generalrat') of the Reichsbank from 1924 to 1933, under two successive chairmen, Hjalmar Schacht, (until 1930), and Hans Luther (1930-1933); until 1934, he was also on the Board of the Bankenverband.[15] Max Warburg emigrated in 1938. In the 1920s and 1930s, until the end of the Weimar Republic in 1933, Max Warburg also served on several Supervisory Boards ("Aufsichtsrat") in industry, notably HAPAG, Blohm &Voss, Beiersdorf, and, until his resignation in 1932, as a member of the Supervisory Board ("Aufsichtsrat") [16] of the German conglomerate/ chemical firm known as I.G. Farben (Interessen Gemeinschaft Farben). His brother Paul Warburg, who died in January 1932 - a year before Hitler was elected Chancellor - also served on numerous Supervisory Boards ("Aufsichtsrat") including allegedly that of an I.G. Farben wholly owned US subsidiary.

Most members of the German Warburg family had fled to the United States or Great Britain by the end of 1938. However, Max Warburg's brother, Fritz Warburg, who was preparing his exile in Sweden, was arrested by the Gestapo in Hamburg in early November 1938 and spent some months in prison before he could leave for Stockholm in May 1939.[17] His daughter Eva came to organize the emigration for 500 German Jewish children from Germany and Austria to Sweden in 1938 and 1939.[18] Also, three cousins, mother, Gerta and daughters Betty and Helene Julie (Burchard) Warburg, stayed in Altona. Gerta and Betty died in the Sobibor extermination camp in 1940 and Helena Julie in Auschwitz in 1942.[19][20][21] A life size portrait of Helene Julie by the Norwegian artist Edvard Munch today hangs in the Kunsthaus in Zurich (The Lady in White).[22][23] Eric Warburg, son of Max Warburg, returned to Germany as an officer (colonel) in the American Air Force[24] and was influential in restoring German-Jewish relations[25][26] and rebuilding Germany's economic ties after the Second World War through his international business associations.[27][28] Eric's son, also called Max, is currently a partner in M.M. Warburg & Co. in Hamburg.

Venetian origins[edit]

The Warburg family is thought to have originated from Venice, at which point they bore the surname del-Banco. The historical documents describe Anselmo del Banco as Jewish and as having been one of the wealthiest residents of Venice in the early 16th century. In 1513, del Banco was granted a charter by the Venetian government permitting the lending of money with interest. Del Banco left with his family after new restrictions were placed upon the Jewish community coinciding with the establishment of a Ghetto. The family settled in Bologna, and from there to the German town of Warburg, and adopted that town's name as their own surname, after having moved to Hamburg after the Thirty Years' War.[29][30]

Noteworthy members[edit]

Aby Warburg

Otto Heinrich Warburg, 1931
Moses Marcus Warburg (1763–1830), founder, with his brother Gerson Warburg (1765–1825), of M. M. Warburg & Co. in 1798. Sara Warburg (1805–1884) married to Abraham Samuel Warburg (1798–1856), her cousin[31] Rosa Warburg (1833–1908), married to Paul Schiff, director of the Creditanstalt of Vienna
Siegmund Warburg (1835–1889), married to Théophilie Rosenberg Abraham Samuel Warburg (1864–1933)
Georg Gabriel Warburg (1871–1923) Siegmund George Warburg (1902–1982), founder of S. G. Warburg & Co, London

Moritz M. Warburg (1838–1910), married to Charlotte Oppenheim Abraham M. Warburg (1866–1929), German art historian
Max M. Warburg (1867–1946), banker Eric M. Warburg (1900–1990), founder of Warburg Pincus, married to Dorothea Thorsch (1912–2003) Max Warburg (b.1948)
Marie Warburg, married to Michael Naumann (b.1941), journalist

Paul M. Warburg (1868–1932), father of the Federal Reserve, married Nina Loeb (1863–1912) in 1895, the daughter of Solomon Loeb James Warburg (1897–1969), economist, banker, advisor to Franklin D. Roosevelt, married to Kay Swift (1897–1993) Andrea Swift Warburg, married to Sidney Kaufman. Katharine Kaufman Weber (b.1955), novelist, married to Nicholas Fox Weber.

Bettina Warburg (1900-1990) psychiatrist.

Katharine Warburg (1870–1935), married to Isaac Dorfman (1868–1929), philanthropist, banker.
Felix M. Warburg (1871–1937), New York banker with Kuhn, Loeb & Co., philanthropist, married Frieda Schiff (1876–1958), daughter of Jacob H. Schiff and granddaughter of Solomon Loeb in 1895. Carola Warburg Rothschild (1896–1987), married to Walter N. Rothschild, son of Simon F. Rothschild[32] Walter N. Rothschild Jr.
Phyllis Rothschild Peters Farley
Carol Rothschild Bradford Noyes, married Amory Howe Bradford (d. 1998), son of Arthur Howe Bradford; married 1965 to diplomat Charles P. Noyes David A. Bradford
Carola Bradford Lea
Madhavi Bradford
Deborah Bradford
Peter A. Bradford, married Katherine Bradford Arthur Bradford
Laura Rothschild Bradford Kirkpatrick

Frederick Marcus Warburg (1897–1973), married to Wilma L. Shannon[33]
Gerald Felix Warburg (c.1902–1971), well-known cellist and conductor, married Natica Nast (1905–1987), daughter of Condé Nast[34]
Paul Felix Warburg (c.1904–1965)[35]
Edward Warburg (1908–1992), philanthropist and benefactor of the arts, married to Mary Warburg (1908–2009) David Warburg Ian Warburg, married to Jane Green (1968–) author, philanthropist.

Daphne Warburg (b. 1949), married to Michael Ramon Langhorne Astor, eldest son of Jakie Astor.

Olga Warburg (1872–1895)
Fritz M. Warburg (1879–1962) living in Stockholm during World War I and II, father of Eva Warburg who organized Kindertransport to Sweden in 1938 and -39.
Louisa Warburg (1879–1973), married to Julius Derenberg (1873–1928) Walter Julius Derenberg (1903–1975), legal scholar

RelativesEmil Warburg, (1846–1931), German physicist
Otto Heinrich Warburg (1883–1970), physiologist and biochemist (Nobel prize in Medicine, 1931)
Otto Warburg (1859–1938), botanist and president of the Zionist Organisation

See also[edit]

iconBanks portal
M. M. Warburg & Co.
Warburg Pincus
S. G. Warburg & Co.
Kuhn, Loeb & Co.
Warburg Institute
Rothschild family


1.^ a b "Warburg family". Encyclopædia Britannica. Retrieved 6 November 2013.
2.^ Our Crowd: The Great Jewish Families of New York, by Stephen Birmingham, Syracuse University Press 1996, page 190
3.^ Aschoff, Diethard (1986). "Simon von Kassel: ein Hessisches Budenschicksal in der Zeit Philipp des Großmütigen". Zeitschrift des Vereins für Hessische Geschichte. 91: 31–49.
4.^ "". Warburg Institute, London. 2016-05-20. External link in |title= (help)
5.^ Warburg, Paul M. (1930). The Federal Reserve System: Its Origin and Growth. New York: Macmillan.
6.^ Broz, J. Lawrence (1997). The International Origins of the Federal Reserve System. Ithaca, London: Cornell University Press. p. 141. ISBN 9780801475955.
7.^ "Federal Reserve History Paul Warburg". Federal Reserve History.
8.^ Whitehouse, Michael A. (May 1989). "Paul Warburg's Crusade to Establish a Central Bank in the United States". The Region (publication of the Federal Reserve Bank of Minneapolis).
9.^ Naclerio, Richard A. (2013). "Paul M. Warburg: Founder of the United States Federal Reserve". History Faculty Publications (99) – via Sacred Heart University.
10.^ Naomi Wiener Cohen, Jacob H. Schiff: a study in American Jewish leadership
11.^ Lowenstein, Roger (2015). America's Bank: The Epic Struggle to Create the Federal Reserve. New York: Penguin Random House. ISBN 9780143109846.
12.^ Fereral Reserve Board (2002). "Board of Governors of the Federal Reserve System Planning Document" (PDF). Federal Reserve Board.
13.^ "Records of American Delegation at United States' National Archives: RECORDS OF THE AMERICAN COMMISSION TO NEGOTIATE PEACE 1918-31". Records of American Delegation at United States' National Archives. 2016-08-15.
14.^ Macmillan, Margaret (2001). Peacemakers: The Paris Peace Conference of 1919 and Its Attempt to End War. London: John Murray. ISBN 978-0719562372.
15.^ Dorothea Hauser and Christoph Kreutzmüller (2007). "Max Warburg", in Hans Pohl (ed.), Deutsche Bankiers des 20. Jahrhunderts. Stuttgart: Steiner. pp. 419–432.
16.^ Chernow, Ron (1993). The Warburgs: The Twentieth Century Odyssey of a Remarkable Jewish Family. New York: Random House. p. 365. ISBN 978-0525431831.
17.^ Hauser, Dorothea, Zwischen Gehen und Bleiben: Das Sekretariat Warburg und sein Netzwerk des Vertrauens, 1938 – 1941, in: Susanne Heim; Beate Meyer; Francis R. Nicosia (eds.), "Wer bleibt, opfert seine Jahre, vielleicht sein Leben". Deutsche Juden 1938-1941. Göttingen: Wallstein Verlag. 2010. pp. 127–128.
18.^ Rudberg, Pontus, The Swedish Jews and the Victims of Nazi Terror, Uppsala 2015, pp. 48-49.
19.^ Yad Vashem and Memorial book. "Victims of the Persecution of Jews under the National Socialist Tyranny in Germany 1933 - 1945" prepared by the German Federal Archives. German Federal Archives.
20.^ "Stolpersteine".
21.^ Wenzel, Gertrud (1981). Broken Star: The Warburgs of Altona. Smithtown, NY: Exposition Press.
22.^ Ron Chernow, The Warburgs (Vantage: 1993)
23.^ "BildArchiv".
24.^ Warburg, Eric M. (1983). Times and Tide. Hamburg: Hans Christians. pp. 173–219.
25.^ Warburg, Eric M. (1983). Times and Tide. Hamburg: Hans Christians. p. 222.
26.^ Adler, Cyrus (1937). "Felix M. Warburg in Memoriam". Bulletin of the American Schools of Oriental Research. 68: 2–4. doi:10.1086/BASOR3218851.
27.^ Bird, Kai (1992). The Chairman: John J. McCloy. The Making of the American Establishment. New York: Simon & Schuster. pp. 324 (Talk with McCloy, 1949).
28.^ Adler, Cyrus (1937). "Felix M. Warburg in Memoriam". Bulletin of the American Schools of Oriental Research (68): 2–4. JSTOR 3218851.
29.^ Chernow, Ron (1993). The Warburgs: The Twentieth Century Odyessy of a Remarkable Jewish Family. New York: Random House. pp. 3–5.
30.^ Aschoff, Diethard (1986). "Simon von Kassel: Ein Judenschicksal in der Zeit Philipps des Großmütigen". Zeitschrift des Vereins für Hessische Geschichte und Landeskunde. 91: 31–48.
31.^ Roeck, Bernd (2005). "Die Warburgs". In Reinhardt, Volker; Lau, Thomas (eds.). Deutsche Familien: Historische Portraits von Bismarck bis Weizsäcker (in German). C. H. Beck. ISBN 978-3406529054.
32.^ "Carola W. Rothschild, Ex-Girl Scout Official". The New York Times. September 1, 1987.
33.^ Whitman, Alden (July 11, 1973). "Frederick M. Warburg, 75, Dies; Investment Banker, Sportsman". The New York Times.
34.^ "Gerald F. Warburg, 69, Is Dead; Cellist and a Patron of the Arts". The New York Times. February 15, 1971.
35.^ "Paul Felix Warburg Dead; Was 61; Funeral Services Tomorrow". Jewish Telegraph Agency. October 11, 1965.

Further reading[edit]
Attali, Jacques (1985). A Man of Influence: The Extraordinary Career of S.G. Warburg. Bethesda, MD: Adler & Adler. ISBN 978-0-917561-36-8.
Chernow, Ron (1993). The Warburgs: The Twentieth-century Odyssey of a Remarkable Jewish Family. New York: Random House. ISBN 978-0-679-41823-8.
Farrer, David (1974). The Warburgs: The Story of a Family. New York: Stein and Day. ISBN 978-0-8128-1733-1.
Ferguson, Niall (2010). High Financier: The Lives and Time of Siegmund Warburg. New York: Penguin Press. ISBN 978-1-59420-246-9.
Klessmann, Eckart (2004). M.M.Warburg & CO 1798–1998: Die Geschichte des Bankhauses. Hamburg.
Ratto, Pietro (2019). Rockefeller e Warburg. Le famiglie più potenti della terra. Bologna: Arianna Editrice [it]. ISBN 978-88-6588-209-2.
Rosenbaum, Eduard (1962). M.M.Warburg & CO, Merchant Bankers of Hamburg; A Survey of the First 140 years, 1798 to 1938. London.
Rudberg, Pontus (2015). The Swedish Jews and the Victims of Nazi terror. Uppsala: Uppsala University. ISBN 978-91-554-9358-5.
Rudberg, Pontus (2017). The Swedish Jews and the Holocaust. Abingdon & New York: Routledge. ISBN 9781138045880.
Slovin, Francesca Cernia (1995). Aby Warburg. Un banchiere prestato all'arte. Biografia di una passione. Venezia: Marsilio [it]. ISBN 978-88-317-6088-1.

External links[edit]
This article incorporates text from a publication now in the public domain: Singer, Isidore; et al., eds. (1901–1906). "Warburg". The Jewish Encyclopedia. New York: Funk & Wagnalls.
Irving Katz's review of The Warburgs: The Twentieth-Century Odyssey of a Remarkable Jewish Family by Ron Chernow

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