TRAGEDY AND HOPE
must be the autocrat who dictates the terms upon which alone the
Government can obtain borrowed money."
In addition to their power over government based on government
financing and_pgrsonal influence, bankers could steer governments in
ways They Wished them to go by other pressures.
ment officials felt ignorant of finance, they sought advice from bankgs
whom they considered to be experts in the field. The history of the
last century shows, as we shall see later, that the advice given to govern-
ments by bankers, like the advice they gave to industrialists, was con-
sistently good for bankers, but was often disastrous for governments,
businessmen, and the people generally. Such advice
by manipulation of exchanges, gold flows, discount rates,
and even levels of business activity, Thus Morgan dominated Cleveland's