Paul Warburg (1868–1932)
Who They Were
Paul Warburg (1868-1932) was a German-born banker who became one of the most influential advocates for the creation of an American central bank. Steeped in the traditions of European central banking, he brought to the United States a firsthand understanding of how such institutions operated abroad, and he argued forcefully that the country needed a comparable system to bring stability to its recurrent financial panics. He was among the participants at the secret 1910 meeting on Jekyll Island, Georgia, where a draft plan for a central bank was hammered out. After the Federal Reserve Act became law, he went on to serve on the first Federal Reserve Board, helping to launch the institution he had done so much to promote.
Key Contributions
Warburg is remembered as one of the intellectual founders of the Federal Reserve.
- Drawing on his deep familiarity with European central banking, he was among the most influential advocates for establishing an American central bank in the years before 1913.
- He attended the secret 1910 gathering on Jekyll Island where a draft blueprint for such an institution was worked out, a plan that helped shape the legislation creating the Federal Reserve.
- He then served on the first Federal Reserve Board, putting into practice the system he had championed.
His European perspective and persistent advocacy made him a key bridge between old-world central-banking experience and the design of the new American system.
On EconRecall
German-born banker and leading advocate for an American central bank who helped design the Fed and served on its first Board. Play the games that feature Paul Warburg: