Morgan Bank Bombing

On a bright September afternoon in 1920, the heart of American finance was suddenly torn apart by a mysterious and devastating act of violence. The site was the corner of Wall and Broad Streets, where the headquarters of J.P. Morgan & Co., symbol of Wall Street power and capitalism, stood like a beacon to the world's financiers. But on September 16, 1920, that beacon flickered in a haze of smoke and shattered glass, as one of the first major terrorist attacks on American soil rocked New York City.

The bomb left a 10-foot-wide crater on Wall Street that was visible for months afterward. 

The Stage is Set: The Red Scare and Anti-Immigrant Fervor

To understand this bombing, we need to take a brief jaunt through the chaotic years that led to it. The early 20th century was a time of immense social upheaval and unrest. The First World War had ended in 1918, leaving many nations—and their economies—crippled. The political landscape had shifted dramatically too, as the Bolshevik Revolution in 1917 saw the rise of the Soviet Union, the first communist state, which sent shockwaves across the globe. For many Americans, especially the rich and powerful, communism represented an existential threat to the capitalist system they held dear.

Back home, the end of the war had not brought peace. Instead, it ushered in a period of fear and paranoia known as the First Red Scare (1919–1920). Labor strikes, rising inequality, and a surge of immigrants, particularly from Eastern Europe, were stirring up anxieties about radicalism. Newspapers were filled with stories of anarchists and socialists, portrayed as foreign agitators who tried to destroy the American way of life. Add to this the influx of poor immigrants fleeing war-torn Europe, and you had a perfect storm of xenophobia and anti-immigrant sentiment.

In the months leading to the attack, a series of bombings by anarchists shook the nation. One of the most prominent targets had been U.S. Attorney General A. Mitchell Palmer, whose home was bombed in June 1919. This led to the infamous Palmer Raids, a sweeping series of government crackdowns on suspected radicals, anarchists, and communists, often targeting immigrants. J. Edgar Hoover, a young and ambitious Justice Department official, emerged as a key figure in these raids, honing the tactics that later defined his lengthy career at the FBI.

It was against this backdrop of fear, suspicion, and outright panic that the bombing at J.P. Morgan unfolded.

The Bombing: Chaos on Wall Street

At 12:01 PM on September 16, 1920, a peaceful lunch hour in the Financial District was shattered by an explosion. A horse-drawn wagon, parked directly in front of the J.P. Morgan building, suddenly detonated with an ear-splitting bang. The wagon had been filled with one hundred pounds of dynamite and five hundred pounds of heavy cast-iron sash weights, which turned into deadly shrapnel, shooting out in every direction.

The explosion was catastrophic. In an instant, bodies were flung through the air, windows shattered, and the streets were littered with debris and twisted metal. Thirty-eight people were killed instantly, while hundreds more were injured, many of them seriously. Clerks, secretaries, brokers, and tourists—the victims were ordinary New Yorkers caught in the blast. The damage to the J.P. Morgan building was severe, with the façade marred by pockmarks that can still be seen today.

J.P. Morgan himself was out of the country but several of his partners and staff were among the casualties. The financial district was plunged into chaos, with the iconic statue of George Washington at Federal Hall gazing out over the carnage. Within moments, the New York City Police Department was on the scene, but the attackers had vanished into thin air, leaving behind a broken horse and a wagon's worth of destruction.

The Investigation: Palmer, Hoover, and the Hunt for the Bombers

After the bombing, the question on everyone’s mind was: Who did this? Theories abounded, and many fingers pointed toward the Bolsheviks or anarchists, who had been responsible for earlier bombings. Attorney General A. Mitchell Palmer, already knee-deep in his anti-radical crusade, quickly linked the attack to the wave of anarchist bombings that had targeted high-profile figures in 1919. His protégé, J. Edgar Hoover, was tasked with leading the investigation.

Despite the urgency, the investigation yielded few concrete leads. Investigators found leaflets scattered near the scene that read: “Remember, we will not tolerate any longer. Free the political prisoners or it will be sure death for all of you.” This cryptic message suggested a link to the anarchist movement, but beyond that, little else was discovered. The bombers had been cunning, leaving few clues behind.

The New York City Police Department and the Bureau of Investigation (precursor to the FBI) threw everything they had at the case. Detectives questioned witnesses, sifted through the rubble, and tracked down anarchist cells, but no arrests were made. The Palmer Raids, which were already in full swing, intensified after the bombing, as authorities rounded up suspected radicals, many of them immigrants, without justifies or due process.

The public, meanwhile, was gripped by fear. Newspapers speculated wildly, fanning the flames of anti-immigrant sentiment and calling for tougher measures against “foreign-born agitators.” The bombing reinforced the belief, held by many, that immigrants—particularly from Eastern Europe and Italy—were to blame for the unrest. The Red Scare escalated, and civil liberties were often trampled in the name of national security.

J.P. Morgan and Wall Street Soldier On

Despite the carnage and terror, Wall Street refused to be cowed. The next day, trading resumed as if nothing had happened. The financial district was back in business, a symbolic middle finger to whoever had tried to undermine American capitalism. The damage to the J.P. Morgan building was never fully repaired, and to this day, the pockmarks left by the blast can still be seen on its limestone walls—silent witnesses to the violence of that day.

Ramifications and Legacy

The Wall Street bombing had far-reaching consequences, for the financial community and for the broader American psyche. It cemented the idea that Wall Street—capitalism’s beating heart—was a target for radicals and enemies of the state. The attack also played a significant role in the growing anti-immigrant sentiment of the era. In the 1920s, the U.S. government would pass strict immigration quotas, particularly targeting Southern and Eastern Europeans, seen as the source of anarchism and radicalism.

European financial markets were rattled by the news, fearing anarchist attacks on their own banks. 

Though the bombing was never officially solved, it is widely believed that Italian anarchists—followers of the infamous anarchists Nicola Sacco and Bartolomeo Vanzetti—were responsible. Both Sacco and Vanzetti were involved in radical activities, and their controversial trial for murder in 1921 became a flashpoint for debates over immigration, justice, and the death penalty.

As for the bombing itself, it remains one of the most significant unsolved mysteries in American history. Despite the best efforts of Hoover, Palmer, and countless detectives, the perpetrators of the Wall Street bombing were never caught. The investigation eventually went cold, though the echoes of that explosion continue to resonate through the annals of American history.

A City, and a Nation, Moves On

While the bombing at J.P. Morgan & Co. was a harrowing and deadly attack, it did not cripple the financial district or stop the rise of New York as the financial capital of the world. It steeled the resolve of the financiers who worked there. Over the decades, Wall Street would face other threats, but the September 1920 bombing would remain a symbol of the era’s fears and uncertainties.

And yet, differently, this bombing—though horrific—was also an early testament to the resilience of New York City and Wall Street. Terrorism would come again, most notably in 2001, but like in 1920, the city would rise again, scarred but unbroken.

Today, the story of the Wall Street bombing has faded into the background, overshadowed by more recent events, but the marks on the J.P. Morgan building remain. They stand as quiet reminders of a time when radicals and financiers, immigrants and natives, revolutionaries and capitalists collided violently in the streets of New York. It is a story of fear and resilience, paranoia, and perseverance—a fitting chapter in the tumultuous saga of Wall Street.