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His attitude of mind caused him in 1912 to become instantly a friend of that reforming politician, Woodrow Wilson. Five years later when Baruch was accused of using that friendship to make his killing in Steel. Congressional questioning showed a new side of him. Reading between the lines of utterances by Germany's von Bethmann-Hollweg and Britain's Lloyd George — reading matter for the whole world —he had almost alone foreseen developments, made his huge profit without inside information from the White House. The dates of his operations confirmed his claim.
Thus, unlike other speculators, he came through with clean skirts. Moreover he did his friend Wilson able service as head of the War Industries Board and, never petty, gave freely of his economic advice when succeeding Republican Presidents asked it. His free advice is still available when Franklin Roosevelt wishes it, but that is not often now, for Baruch opposed abandoning the gold standard ("Make no mistake about it: abandoning the gold standard is cheating."); opposes huge public expenditures ; favors a budget balanced more than in a bookkeeping sense.
At its peak Baruch's fortune may have been about $25,000,000. He laughed openly when people referred to him as the third or fourth richest man in the U. S. What is unique for a speculator, he probably has most of his winnings today. His suite of offices was small; he kept no stock ticker beside his desk and held no directorships. Nor did he employ a large staff of economic analysts. When he bought into companies he relied on personal investigations or investigations by a few men he trusted. Notable among such men was General Hugh S. Johnson whose talents were devoted to Mr. Baruch's private affairs before they were devoted to NRA. In all business Baruch banked heavily on his judgment of men, backing companies whose managers he trusted, instantly abandoning those whose bosses lacked his faith. He carried his likes and dislikes into Democratic politics; Al Smith could have had his last dime if it would have helped the Brown Derby win in 1928 or 1932.
Back of Baruch's success was his own shrewd economic judgment, of which the ultimate triumph was foreseeing the debacle of 1929. He got out in advance—liquidated a large part of his investments. Later, before Franklin Roosevelt was elected President, Baruch put some of his millions into gold. Subsequently that investment became unpatriotic and he had to change it but at the time it showed sound foresight. Other speculators at one time or another may have made bigger fortunes, but in his way Baruch had had few peers. More than most men, he had earned his chance to write his memoirs, give advice to the young and spread his philosophy on paper.