When Washington Shut Down Wall Street

"In his fascinating work of financial history, When Washington Shut Down Wall Street, William L. Silber recounts the heroics of Treasury Secretary William McAdoo, who closed the New York Stock Exchange for more than four months--four months!--in 1914 to avert a larger economic crisis. . . . It was, as Silber explains, a brilliant exercise of arbitrary power that helped propel the United States toward global financial supremacy."

— Carlos Lozada, Washington Post

"This lively new book by New York University economist William Silber, When Washington Shut Down Wall Street, makes a convincing plea for the inclusion of William McAdoo in the Dollar Pantheon."

— Daniel Gross, Slate.com

"When I first picked up this book, I wondered whether it described events so long ago that they were irrelevant today and whether it would be written in such an academic fashion as to be turgid and unreadable for the ordinary mortal interested in business and a good read. Well, I was wrong on both counts."

— Richard Keatinge, Irish Times

"This short volume tells the intriguing tale of how the financial crisis wrought by Europe's plunge into World War I opened the door to America's emergence as the world's dominant financial and economic power. Few writers have paid much attention to the closing of the Exchange, except as a curiosity exemplifying the shock experienced by Americans when the War came. Silber has done historians a favor by placing that event in a context that reveals its broader significance."

— Maury Klein, Business History Review

"Economist William L. Silber has written a fascinating account . . . that may appeal to students of banking and finance interested in leadership and crisis control."

— Alfred E. Eckes, International History Review

"Silber tells a compelling tale proving the power of the law of unintended consequences. The financial crisis of 1914 was a major turning point in American economic history, an outcome nobody could have predicted as massive amounts of gold sailed to Europe, banks shook at their foundations, and the nascent Federal Reserve System was only just going into operation. What a story!"

— Peter L. Bernstein, author of The Power of Gold

"A fascinating story that mixes first-rate economic theory with telling observations about U.S. financial and monetary policy decisions taken in the midst of an international finance crisis that were permanently to reshape the international financial landscape. The book is full of insights about the ideas and the personalities of the founders of the Federal Reserve System and other anchors of our financial system today."

— Thomas Sargent, Hoover Institution, coauthor of The Big Problem of Small Change

"A wonderful book of financial history."

— Christopher Farrell, Marketplace

"Silber's book weaves a fascinating historical story about the shaping of U.S. financial policy during the chaotic years surrounding World War I. The story centers on William McAdoo, who as Senator, Treasury Secretary, and first Chairman of the Federal Reserve System, displayed courage and principles which paved the way for the success of financial institutions that we take for granted today. The story of McAdoo's role in securing the dominance of the U.S. in the world's financial markets will inform a new generation of students of financial markets."

— Robert Shiller, Yale University, author of Irrational Exuberance

"Reading Silber's tale of unintended consequences is as close as one gets to a historical 'thriller.' At the same time, one can't help but reflect on the challenges ahead. A 'rebalancing' of the world economy in today's environment will be much more complex than was the case in 1914. As then, the outcomes are unlikely to follow popular predictions. In this respect, as well as in providing a fascinating historical account of a major financial and political drama, Silber does any reader great service."

— Edward Waitzer, Financial Regulator