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To discover the importance of Norman, men had to study his actions as Governor. Under his leadership Britain floated the first loans to Austria, strongly influenced central banking institutions throughout Eastern Europe. In 1925 Britain herself returned to the gold standard at the old prewar rate of $4.86 to the pound.
Few decisions have been more bitterly criticized. In fact, England's return to gold resulted in widespread unemployment and suffering at home. But Norman knew that England's life-blood—her revenues from banking, foreign investments and insurance—depended on the integrity of the pound sterling. He also knew that a banker's reputation is fragile—he can only welsh once on an obligation.
Norman the Legend. Norman nearly succeeded. A different policy on the part of the U.S. as regards tariffs, war debts, and the maintenance of world order, might have made his dream come true.
But in the crash of 1929 his world came unstuck. In May 1931 followed the failure of the Credit Anstalt in Austria. In September 1931 Britain herself was driven off gold. Desperately Norman tried to glue his world together. He worked with New York. He journeyed to Berlin to see Hjalmar Schacht. And steadily Montagu Norman the man became Montagu Norman the legend.
Norman worked, not at a desk, but at a big table, writing longhand clearly in a remarkably concise style. Said he: "I learned not to waste words when I worked in Brown, Shipley; in those days a short telegram often meant the difference between profit & loss." He always wore a soft felt hat at a rakish angle; usually traveled by subway with his ticket stuck in his hatband. He played the piano gently, walked a lot, carpentered very well. He is devoted to the gardens of his London house, Thorpe Lodge, where he occasionally gives long lectures to his servants.
On his great country estate, St. Clere, in Kent (now a nursery), he was always known as Captain. One of his tenants thought he could always tell whether the financial news was good or bad according to whether Norman sported a red or blue beret. His devotion to the Bank was fanatical. Looking out over his garden, Norman once said: "I wish they would let me stay here." Said an old servant: "Surely you can if you wish." Replied Norman: "No, it is impossible" — and left at once for the Bank.
New Blood, New Brains. By last week 'it was apparent that devotion to duty was not enough. Norman, weak after a bout with pneumococcal meningitis, left for his gardens. What would the newcomer, Lord Catto, put in place of that devotion? By inheritance and training Lord Catto, 5 ft. 1 in. tall, is a very different figure. Where as Norman was Old School Tie, Catto is a native of Aberdeenshire, was educated at Peterhead Academy, and the provincial Rutherford College at Newcastle. At 16 he got his first job in a shipping office. He was at first refused. Wall telephones were the style then and sawed-off Catto couldn't answer the phone, which was part of his job. In true Alger-boy fashion he demonstrated by piling books on the floor, answered the first incoming call, got the job.