Part 1 - The Institute Libraries - Institute for Advanced Study

-210-
Stewart was generally xecognized as "the brainsm behind the
highly successful investment counsels of his firm, As a follower of
Mr. J, M. Keynesv use of arbitrage, (although he opposed vigorously
Keynes* general economic theories) he icpressed Mrs. Raymond B. Fosdick,
a client, with his success In handling her account in the adverse cir-
cumstances of the tiws. He ret her husbsnd, and became a friend of
the family. Mr. Fosdfck was so inpressed with Stevartes quiet wisdom
and his financial acumen that he secured his election as a Trustee of
rhe Rockefeller Foundation, despite an inability to get the pxior ep-
proval of John D. Rockefeller, Jr., who u2s travelfng abroad. When HI-.
Rockefeller met Stewart, and observed his success vith the Foundation's
portfolio, he was pleased, and insisted that Stewart become also a mem-
ber of the General Education Board. Later, when the philcnthropfst re-
tired from the chairmanship of the two boards, he insisted that Stewart
take his place, and the economist occupied both posts until he retired
at age sixty-f ive. 2 1
As the new Administration took office in 1933 in Washfngton,
and newspapermen indulged their fancfes as to c;ib3.net muhers and other
officers, Et. Stewart was mentioned as possible Under-secretary of the
Treasury, and Governor of the Federal Reserve Board. But there was
little chance that he mould be asked or would have accepted a post in
the nw Administration.. For it vas soon evfdent tbt the new government
was determined to take from the U m York bankers the dower to control
the nation's mcnetary system which had so long rested in their hands.
The philosophy of Benjamin Strong, Stewart, Romn, and their supporters
was rejected along vith thefr practices; the fnterests of the nation