Impact Of Jp Morgan

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J.P. Morgan also greatly impacted investment through his firms and banks. According to “John Pierpont Morgan”, “John Pierpont Morgan (1837-1913) was probably the most important and powerful business investment banker in U.S. history.” J.P. Morgan, at age 23, he founded his own company J. Pierpont Morgan and Co. (John Pierpont Morgan). After consolidating many railroads, he began to gain respect in the banking community which led him to even more business ventures (John Pierpont Morgan). In the coming years after the founding of J. Pierpont Morgan and Co. he invested in General Electric and would make the largest deal of his life which was the creation of the world’s largest steel company (John Pierpont Morgan). J.P. Morgan additionally impacted the economy by helping the government to ease panics and recessions. In 1907, the last of many …show more content…

Morgan’s investments were the creation of some of America’s first big businesses, which shaped the economy of the Progressive era and beyond. The major two were the reorganization of the U.S. railroad into a big business and U.S. Steel. According to “United States Steel”, Carnegie Steel was purchased by J.P. Morgan for $480 million. U.S. Steel was not just one company it was formed from ten steel companies, including Carnegie Steel (“United States Steel”). The company contained many coal reserves in Western Pennsylvania and controlled the largest shipping line on the Great Lakes with 80 blast furnaces and 149 steel mills and plants producing steel (“United States Steel”). During the best years of U.S. Steel, it produced slightly over 50% of all the United States’ finished steel goods (“United States Steel”). The formation of another big business, the U.S. railroad, was helped by J.P. Morgan. His method of creating a massive railroad corporation was to stunt the competition (John Pierpont Morgan). By the beginning of the twentieth century, Morgan had made U.S. railways into an empire (John Pierpont

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