A seat on the New York Stock Exchange purchased for 19,000 dollars served as the launching point for a career that bridged speculative finance and wartime economic mobilization. Bernard Mannes Baruch utilized his early market successes to establish a position of influence in Washington, D.C., where he functioned as a central advisor to multiple presidents through two global conflicts.
Early Ventures on Wall Street
Born in 1870 in Camden, South Carolina, Baruch moved to New York City at age 10 and eventually graduated from the City College of New York. He began his career as a broker at A.A. Housman & Company. By speculating on the Hawaiian sugar market, he accumulated substantial capital before turning 30. He later founded the Intercontinental Rubber Company, a dominant player in the U.S. guayule rubber industry. By 1910, he had earned a reputation as the Lone Wolf of Wall Street for his refusal to join established financial houses.
Economic Mobilization During World War I
In 1916, Baruch transitioned from private finance to public service as an advisor to President Woodrow Wilson. He served on the Advisory Commission to the Council of National Defense before being named chairman of the War Industries Board in 1918. In this capacity, he oversaw national economic mobilization and coordinated allied purchases within the United States. His contributions earned him the Army Distinguished Service Medal, and he subsequently advised Wilson during the Paris Peace Conference regarding international cooperation and the League of Nations.
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Following his wartime service, Baruch returned to private investment and realized significant gains during the 1920s bull market. However, growing skepticism regarding economic sustainability led him to divest from stocks in favor of bonds, cash, and gold well before the 1929 market crash. He famously declined to participate in a bull pool intended to prop up declining stock prices in September 1929, having already liquidated much of his market exposure.
Advisory Roles During the Second World War
During World War II, Baruch served as a special advisor to the director of the Office of War Mobilization. Working from 120 Broadway, he advocated for a streamlined industrial response, pushing for the creation of a super-agency to coordinate military requirements with civilian manufacturing. His strategic input is credited with significantly reducing production timelines for tanks and aircraft. Beyond industrial policy, he participated in rehabilitation planning for wounded service members.
Post-War Diplomacy
In 1946, the United States government appointed Baruch as the official representative to the United Nations Atomic Energy Commission. His primary initiative, known as the Baruch Plan, sought to establish international oversight of atomic energy. The proposal encountered opposition and was eventually rejected by the Soviet Union. Baruch, a member of the Phi Beta Kappa Society, remained a notable public figure until his death in New York City in 1965 at age 95, where he was eventually buried at Flushing Cemetery.
Fast facts
- Born: 1870, Camden, South Carolina
- Died: 1965, New York City
- Education: City College of New York
- Key Role: Chairman, War Industries Board
- Financial Reputation: The Lone Wolf of Wall Street
- Awards: Horatio Alger Award
- Major Initiative: Baruch Plan for atomic energy
- Burial: Flushing Cemetery
Questions readers ask
Did Baruch anticipate the 1929 stock market crash?
Yes, he grew skeptical of the market trend in 1927 and shifted his assets into bonds and cash well before the crash occurred.
What was the Baruch Plan?
It was a 1946 proposal for the international control of atomic energy, submitted by Baruch to the United Nations Atomic Energy Commission.
Achievements
- Educated at City College of New York
- Worked as stockbroker, politician and entrepreneur
