Nelson W. Aldrich
Encyclopedia
Nelson Wilmarth Aldrich (November 6, 1841 – April 16, 1915) was a prominent American
politician
and a leader of the Republican Party in the Senate, where he served from 1881 to 1911.
Because of his impact on national politics and central position on the pivotal Senate Finance Committee, he was referred to by the press and public alike as the "General Manager of the Nation", dominating all tariff
and monetary policies
in the first decade of the 20th century. In a career that spanned three decades, Aldrich helped to create an extensive system of tariffs that protected American factories and farms from foreign competition, while driving the price of consumer goods artificially high—which hurt many workers and farmers. He was a party to the re-structuring of the American financial system through the institution of the federal income tax amendment, which he originally opposed, and the Federal Reserve System
. He stated that he believed these reforms would lead to greater efficiency. Aldrich became wealthy with investments in street railroads, sugar, rubber and banking. His son Richard Steere Aldrich became a U.S. Representative, and his daughter, Abby
, married John D. Rockefeller, Jr.
, the only son of John D. Rockefeller
. Her son and his grandson Nelson Aldrich Rockefeller
, served as Vice President of the United States
under Gerald Ford
.
, William Wickenden
, and Roger Williams
. His branch passed through generations of declining circumstances. His mother was Abby Burgess and his father was Anan E. Aldrich, an industrial mill hand. The first of the American Aldrich ancestors was the immigrant George Aldrich, who settled in Mendon, Massachusetts
in the 17th century. Today, the Aldrich Family Association, and the family cemetery, is located in the neighboring community of Uxbridge, Massachusetts
on the Rhode Island
border. It was in Rhode Island
that Nelson Aldrich grew up and prospered. He attended the East Greenwich Academy
. The Aldrich family has grown to become a political dynasty on the American landscape, with senators, a vice president, and various political figures in a number of states.
Aldrich's first job was clerking for the largest wholesale grocer in the state, where he worked his way up to become a partner in the firm. On October 9, 1866 he married Abigail "Abby" Pearce Truman Chapman, a wealthy woman with impressive antecedents. By 1877, Nelson had a major effect on state politics, even before his election to the United States Congress
. He served as the president of the Providence city council and Speaker of the Rhode Island House of Representatives
.
In 1878 the Republican bosses of Rhode Island endorsed him for the US House of Representatives; in 1881 he was elected to the Senate. He served in the Senate from 1881 to 1911 as an influential Republican, becoming chairman of the Senate Finance Committee.
In 1906 Aldrich sold his interest in the Rhode Island street railway system to the New York, New Haven and Hartford Railroad
, whose president was J. P. Morgan
's loyal ally, Charles Sanger Mellen
. Also in 1906 Aldrich and other American financiers invested heavily in mines and rubber in the Belgian Congo. They supported Belgium's King Leopold II
, who had imposed slave labor conditions in the colony.
In 1907, J.P. Morgan published rumors that the Knickerbocker Trust Company
was insolvent
. Some later historians believe this was a deliberate act of market manipulation
which precipitated the Panic of 1907
, and consolidated the preeminence of the banks controlled by Morgan. The panic itself led to the passage of the Aldrich–Vreeland Act in 1908, which established the National Monetary Commission
, sponsored and headed by Aldrich. After issuing a series of 30 reports, this commission drew up the Aldrich Plan, forming the basis for the Federal Reserve system.
As co-author of the Payne-Aldrich Tariff Act
of 1909, Aldrich removed restrictive import duties on fine art, which enabled Americans to bring in very expensive European artworks that became the foundation of many leading museums.
In 1909, Aldrich introduced a constitutional amendment to establish an income tax
, although he had declared a similar measure "communistic
" a decade earlier.
He also served as chairman of the Senate Republican Conference. During his Senate tenure he chaired the committees on Finance
, Transportation Routes to the Seaboard
, Rules, and the Select Committee on Corporations Organized in the District of Columbia.
A deep believer in the progressive
themes of efficiency
and scientific expertise, Aldrich led a team of experts to study the European national banks. After his trip, he came to believe that Britain, Germany and France had a much superior central banking system. He worked with several key bankers and economists, including Paul Warburg
, Abram Andrew
and Henry Davison, to design a plan for an American central bank
in 1911. In 1913 Woodrow Wilson
signed into law the Federal Reserve Act
, which was patterned after Aldrich's vision.
Because of his control of the Senate (and his daughter Abby Greene Aldrich's marriage to John D. Rockefeller, Jr.
, and son Winthrop Aldrich
's later chairmanship of the Chase National Bank
), Aldrich, who represented the smallest state in the Union, was regarded as one of the most powerful politicians of his time. His grandson and namesake Nelson Aldrich Rockefeller
was Governor of New York, unsuccessfully attempted the Republican presidential nomination in 1960, 1964, and 1968, and was Vice President of the United States
under President
Gerald Ford
.
Aldrich was very active in the Freemasons and was the Treasurer of the Grand Lodge of Rhode Island. He died on April 16, 1915, in New York, New York, and was buried in Swan Point Cemetery in Providence, Rhode Island. The Nelson W. Aldrich House
on 110 Benevolent Street in Providence is open as a museum run by the Rhode Island Historical Society
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
politician
Politician
A politician, political leader, or political figure is an individual who is involved in influencing public policy and decision making...
and a leader of the Republican Party in the Senate, where he served from 1881 to 1911.
Because of his impact on national politics and central position on the pivotal Senate Finance Committee, he was referred to by the press and public alike as the "General Manager of the Nation", dominating all tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
and monetary policies
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
in the first decade of the 20th century. In a career that spanned three decades, Aldrich helped to create an extensive system of tariffs that protected American factories and farms from foreign competition, while driving the price of consumer goods artificially high—which hurt many workers and farmers. He was a party to the re-structuring of the American financial system through the institution of the federal income tax amendment, which he originally opposed, and the Federal Reserve System
Federal Reserve System
The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907...
. He stated that he believed these reforms would lead to greater efficiency. Aldrich became wealthy with investments in street railroads, sugar, rubber and banking. His son Richard Steere Aldrich became a U.S. Representative, and his daughter, Abby
Abby Aldrich Rockefeller
Abby Aldrich Rockefeller, , was a prominent socialite and philanthropist and the second-generation matriarch of the renowned Rockefeller family...
, married John D. Rockefeller, Jr.
John D. Rockefeller, Jr.
John Davison Rockefeller, Jr. was a major philanthropist and a pivotal member of the prominent Rockefeller family. He was the sole son among the five children of businessman and Standard Oil industrialist John D. Rockefeller and the father of the five famous Rockefeller brothers...
, the only son of John D. Rockefeller
John D. Rockefeller
John Davison Rockefeller was an American oil industrialist, investor, and philanthropist. He was the founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Rockefeller revolutionized the petroleum industry and defined the structure of...
. Her son and his grandson Nelson Aldrich Rockefeller
Nelson Rockefeller
Nelson Aldrich Rockefeller was the 41st Vice President of the United States , serving under President Gerald Ford, and the 49th Governor of New York , as well as serving the Roosevelt, Truman and Eisenhower administrations in a variety of positions...
, served as Vice President of the United States
Vice President of the United States
The Vice President of the United States is the holder of a public office created by the United States Constitution. The Vice President, together with the President of the United States, is indirectly elected by the people, through the Electoral College, to a four-year term...
under Gerald Ford
Gerald Ford
Gerald Rudolph "Jerry" Ford, Jr. was the 38th President of the United States, serving from 1974 to 1977, and the 40th Vice President of the United States serving from 1973 to 1974...
.
Family background
Aldrich was born into a family descended from John WinthropJohn Winthrop
John Winthrop was a wealthy English Puritan lawyer, and one of the leading figures in the founding of the Massachusetts Bay Colony, the first major settlement in New England after Plymouth Colony. Winthrop led the first large wave of migrants from England in 1630, and served as governor for 12 of...
, William Wickenden
William Wickenden
William Wickenden was an early Anglo-American Baptist minister, co-founder Providence, Rhode Island, and signer of the Providence Compact. Wickenden Street in Providence marks where he originally settled in the seventeenth century and is named in his honor.-Immigration to New England:Wickenden...
, and Roger Williams
Roger Williams (theologian)
Roger Williams was an English Protestant theologian who was an early proponent of religious freedom and the separation of church and state. In 1636, he began the colony of Providence Plantation, which provided a refuge for religious minorities. Williams started the first Baptist church in America,...
. His branch passed through generations of declining circumstances. His mother was Abby Burgess and his father was Anan E. Aldrich, an industrial mill hand. The first of the American Aldrich ancestors was the immigrant George Aldrich, who settled in Mendon, Massachusetts
Mendon, Massachusetts
Mendon is a town in Worcester County, Massachusetts, United States. The population was 5,839 at the 2010 census.Mendon is very historic and is now part of the Blackstone River Valley National Heritage Corridor, the oldest industrialized region in the United States.- Early history :The Nipmuc people...
in the 17th century. Today, the Aldrich Family Association, and the family cemetery, is located in the neighboring community of Uxbridge, Massachusetts
Uxbridge, Massachusetts
Uxbridge is a town in Worcester County, Massachusetts, in the United States. It was first settled in 1662, incorporated in 1727 at Suffolk County, and named for the Earl of Uxbridge. Uxbridge is south-southeast of Worcester, north-northwest of Providence, and southwest of Boston. It is part of...
on the Rhode Island
Rhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...
border. It was in Rhode Island
Rhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...
that Nelson Aldrich grew up and prospered. He attended the East Greenwich Academy
East Greenwich Academy
The East Greenwich Academy was a private Methodist boarding school in East Greenwich, Rhode Island, USA that was in existence from 1802 until 1943.-History:...
. The Aldrich family has grown to become a political dynasty on the American landscape, with senators, a vice president, and various political figures in a number of states.
Political career
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
. He served as the president of the Providence city council and Speaker of the Rhode Island House of Representatives
Rhode Island House of Representatives
The Rhode Island House of Representatives is the lower house of the Rhode Island General Assembly, the state legislature of the U.S. State of Rhode Island. It is composed of 75 members, elected to two year terms from 75 districts of equal population. The Rhode Island General Assembly does not have...
.
In 1878 the Republican bosses of Rhode Island endorsed him for the US House of Representatives; in 1881 he was elected to the Senate. He served in the Senate from 1881 to 1911 as an influential Republican, becoming chairman of the Senate Finance Committee.
In 1906 Aldrich sold his interest in the Rhode Island street railway system to the New York, New Haven and Hartford Railroad
New York, New Haven and Hartford Railroad
The New York, New Haven and Hartford Railroad , was a railroad that operated in the northeast United States from 1872 to 1968 which served the states of Connecticut, New York, Rhode Island, and Massachusetts...
, whose president was J. P. Morgan
J. P. Morgan
John Pierpont Morgan was an American financier, banker and art collector who dominated corporate finance and industrial consolidation during his time. In 1892 Morgan arranged the merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric...
's loyal ally, Charles Sanger Mellen
Charles Sanger Mellen
Charles Sanger Mellen was an American railroad man whose career culminated in the presidencies of the Northern Pacific Railway 1897-1903 and the New York, New Haven and Hartford Railroad 1903-1913.- Railroad Man :...
. Also in 1906 Aldrich and other American financiers invested heavily in mines and rubber in the Belgian Congo. They supported Belgium's King Leopold II
Leopold II of Belgium
Leopold II was the second king of the Belgians. Born in Brussels the second son of Leopold I and Louise-Marie of Orléans, he succeeded his father to the throne on 17 December 1865 and remained king until his death.Leopold is chiefly remembered as the founder and sole owner of the Congo Free...
, who had imposed slave labor conditions in the colony.
In 1907, J.P. Morgan published rumors that the Knickerbocker Trust Company
Knickerbocker Trust Company
The Knickerbocker Trust, chartered in 1884 by Frederick G. Eldridge, a friend and classmate of financier J.P. Morgan, figured at one time among the largest banks in the United States and a central player in the Panic of 1907. As a trust company, its main business was serving as trustee for...
was insolvent
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
. Some later historians believe this was a deliberate act of market manipulation
Market manipulation
Market manipulation describes a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency...
which precipitated the Panic of 1907
Panic of 1907
The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis that occurred in the United States when the New York Stock Exchange fell almost 50% from its peak the previous year. Panic occurred, as this was during a time of economic recession, and there were numerous runs on...
, and consolidated the preeminence of the banks controlled by Morgan. The panic itself led to the passage of the Aldrich–Vreeland Act in 1908, which established the National Monetary Commission
National Monetary Commission
National Monetary Commission was a study group created by the Aldrich Vreeland Act of 1908. After the Panic of 1907 American bankers turned to Europe for ideas on how to operate a central bank. Senator Nelson Aldrich, Republican leader of the Senate, personally led a team of experts to major...
, sponsored and headed by Aldrich. After issuing a series of 30 reports, this commission drew up the Aldrich Plan, forming the basis for the Federal Reserve system.
As co-author of the Payne-Aldrich Tariff Act
Payne-Aldrich Tariff Act
The Payne-Aldrich Tariff Act of 1909 , named for Representative Sereno E. Payne and Senator Nelson W. Aldrich , began in the United States House of Representatives as a bill lowering certain tariffs on goods entering the United States. It was the first change in tariff laws since the Dingley Act...
of 1909, Aldrich removed restrictive import duties on fine art, which enabled Americans to bring in very expensive European artworks that became the foundation of many leading museums.
In 1909, Aldrich introduced a constitutional amendment to establish an income tax
Sixteenth Amendment to the United States Constitution
The Sixteenth Amendment to the United States Constitution allows the Congress to levy an income tax without apportioning it among the states or basing it on Census results...
, although he had declared a similar measure "communistic
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...
" a decade earlier.
United States Senate Committee on Finance
The U.S. Senate Committee on Finance is a standing committee of the United States Senate. The Committee concerns itself with matters relating to taxation and other revenue measures generally, and those relating to the insular possessions; bonded debt of the United States; customs, collection...
, Transportation Routes to the Seaboard
United States Senate Committee on Transportation Routes to the Seaboard
The United States Senate Committee on Transportation Routes to the Seaboard, was a Senate committee, initially authorized by Senate resolution as a select committee on December 16, 1872...
, Rules, and the Select Committee on Corporations Organized in the District of Columbia.
A deep believer in the progressive
Progressive Era
The Progressive Era in the United States was a period of social activism and political reform that flourished from the 1890s to the 1920s. One main goal of the Progressive movement was purification of government, as Progressives tried to eliminate corruption by exposing and undercutting political...
themes of efficiency
Efficiency Movement
The Efficiency Movement was a major movement in the United States, Britain and other industrial nations in the early 20th century that sought to identify and eliminate waste in all areas of the economy and society, and to develop and implement best practices. The concept covered mechanical,...
and scientific expertise, Aldrich led a team of experts to study the European national banks. After his trip, he came to believe that Britain, Germany and France had a much superior central banking system. He worked with several key bankers and economists, including Paul Warburg
Paul Warburg
Paul Moritz Warburg was a German-born American banker and early advocate of the U.S. Federal Reserve system.- Early life :...
, Abram Andrew
Abram Andrew
Abram Piatt Andrew Jr. was a United States Representative from Massachusetts.-Biography:Born in La Porte, Indiana, he attended the public schools and the Lawrenceville School...
and Henry Davison, to design a plan for an American central bank
History of central banking in the United States
This article is about the history of central banking in the United States, from the 1790s to the present.-Bank of North America:Some Founding Fathers were strongly opposed to the formation of a central banking system; the fact that England tried to place the colonies under the monetary control of...
in 1911. In 1913 Woodrow Wilson
Woodrow Wilson
Thomas Woodrow Wilson was the 28th President of the United States, from 1913 to 1921. A leader of the Progressive Movement, he served as President of Princeton University from 1902 to 1910, and then as the Governor of New Jersey from 1911 to 1913...
signed into law the Federal Reserve Act
Federal Reserve Act
The Federal Reserve Act is an Act of Congress that created and set up the Federal Reserve System, the central banking system of the United States of America, and granted it the legal authority to issue Federal Reserve Notes and Federal Reserve Bank Notes as legal tender...
, which was patterned after Aldrich's vision.
Because of his control of the Senate (and his daughter Abby Greene Aldrich's marriage to John D. Rockefeller, Jr.
John D. Rockefeller, Jr.
John Davison Rockefeller, Jr. was a major philanthropist and a pivotal member of the prominent Rockefeller family. He was the sole son among the five children of businessman and Standard Oil industrialist John D. Rockefeller and the father of the five famous Rockefeller brothers...
, and son Winthrop Aldrich
Winthrop W. Aldrich
Winthrop Williams Aldrich GBE was an American banker and financier, scion of a prominent political family, and US Ambassador to the United Kingdom.-Early years:...
's later chairmanship of the Chase National Bank
Chase Manhattan Bank
JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...
), Aldrich, who represented the smallest state in the Union, was regarded as one of the most powerful politicians of his time. His grandson and namesake Nelson Aldrich Rockefeller
Nelson Rockefeller
Nelson Aldrich Rockefeller was the 41st Vice President of the United States , serving under President Gerald Ford, and the 49th Governor of New York , as well as serving the Roosevelt, Truman and Eisenhower administrations in a variety of positions...
was Governor of New York, unsuccessfully attempted the Republican presidential nomination in 1960, 1964, and 1968, and was Vice President of the United States
Vice President of the United States
The Vice President of the United States is the holder of a public office created by the United States Constitution. The Vice President, together with the President of the United States, is indirectly elected by the people, through the Electoral College, to a four-year term...
under President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
Gerald Ford
Gerald Ford
Gerald Rudolph "Jerry" Ford, Jr. was the 38th President of the United States, serving from 1974 to 1977, and the 40th Vice President of the United States serving from 1973 to 1974...
.
Aldrich was very active in the Freemasons and was the Treasurer of the Grand Lodge of Rhode Island. He died on April 16, 1915, in New York, New York, and was buried in Swan Point Cemetery in Providence, Rhode Island. The Nelson W. Aldrich House
Nelson W. Aldrich House
The Nelson W. Aldrich House, also known as the Dr. S. B. Tobey House, is a Federal-style house museum in Providence, Rhode Island that was the home of Nelson W. Aldrich, a U.S. Senator from 1881 to 1911.-History:...
on 110 Benevolent Street in Providence is open as a museum run by the Rhode Island Historical Society
Rhode Island Historical Society
The Rhode Island Historical Society is a privately endowed membership organization, founded in 1822, dedicated to collecting, preserving, and sharing the history of Rhode Island...
.
Congressional committee assignments
| Committee | Congresses | Notes | |
|---|---|---|---|
| House | District of Columbia | 46 | |
| Senate | District of Columbia United States Senate Committee on the District of Columbia The United States Senate Committee on the District of Columbia was one of the first standing committees created in the United States Senate, in 1816. It had jurisdiction over the District of Columbia... |
47-48 | |
| Education and Labor | 47-48 | ||
| Finance United States Senate Committee on Finance The U.S. Senate Committee on Finance is a standing committee of the United States Senate. The Committee concerns itself with matters relating to taxation and other revenue measures generally, and those relating to the insular possessions; bonded debt of the United States; customs, collection... |
47-61 | Chairman (55-61) | |
| Steel Producing Capacity of the United States (Select) | 48-49 | ||
| Transportation Routes to the Seaboard United States Senate Committee on Transportation Routes to the Seaboard The United States Senate Committee on Transportation Routes to the Seaboard, was a Senate committee, initially authorized by Senate resolution as a select committee on December 16, 1872... |
48-55 | Chairman (48-49) | |
| Pensions | 49 | ||
| Examine the Several Branches of the Civil Service | 50-51 | ||
| Rules United States Senate Committee on Rules The United States Senate Committee on Rules is a defunct Congressional committee, replaced by the United States Senate Committee on Rules and Administration.-History:... |
50-61 | Chairman (50-52; 54; 55) | |
| Corporations Organized in the District of Columbia United States Senate Committee on Corporations Organized in the District of Columbia The United States Senate Committee on Corporations Organized in the District of Columbia was formed as a select committee in 1892, and became a standing committee in 1896. In 1921, it was abolished.... |
53-60 | Chairman of the Select Committee, (53) | |
| Revolutionary Claims | 53-54 | ||
| Interstate Commerce | 54-61 | ||
| Cuban Relations United States Senate Committee on Cuban Relations The United States Senate Committee on Cuban Relations was formed following the Spanish-American War, in 1899. The Committee was terminated, along with many others, in 1921.-Chairmen of the Senate Committee on Cuban Relations, 1899-1921:... |
56-60 | ||
| Industrial Expositions United States Senate Committee on Industrial Expositions The Senate Committee on Industrial Expositions was a committee of the United States Senate between 1899 and 1921. It was originally established as a select committee, but became a standing committee in 1909... |
59-60 | ||
| Public Expenditures | 61 | ||
Further reading
- Kert, Bernice. Abby Aldrich Rockefeller: The Woman in the Family. New York: Random House, 1993.
- Phillips, David GrahamDavid Graham PhillipsDavid Graham Phillips was an American journalist of the muckraker tradition and novelist.-Early life and career:Phillips was born in Madison, Indiana...
, "The Treason of the Senate: Aldrich, The Head of It All," CosmopolitanCosmopolitan (magazine)Cosmopolitan is an international magazine for women. It was first published in 1886 in the United States as a family magazine, was later transformed into a literary magazine and eventually became a women's magazine in the late 1960s...
, March 1906. - Steffens, Lincoln, "Rhode Island: A State For Sale," McClure's Magazine, February 1904, 337 - 353.
- Stephenson, Nathaniel W. Nelson W. Aldrich: A Leader In American Politics. 1930.
- Sternstein, Jerome L. "Corruption in the Gilded Age Senate: Nelson W. Aldrich and the Sugar Trust," Capitol Studies 6 (Spring 1978): pp. 13–37.
- Wicker, Elmus. The Great Debate on Banking Reform: Nelson Aldrich and the Origins of the Fed, Ohio State University Press, 2005.