This exhibit explores the impact of Jesse H. Jones on the city of Houston and the United States as a whole through Jones's lifelong work as an entrepreneur, politician, and philanthropist. Jones rose from humble beginnings to build a significant portion of downtown Houston in the first half of the twentieth century, then took his talents to Washington, D.C. to help rescue the nation’s finances. In his role as chairman of the Reconstruction Finance Committee, Jones became known as the second most powerful man in Washington behind President Roosevelt himself and was responsible for stabilizing the nation’s banks and mobilizing the country for World War II.

Introduction

Jesse Holman Jones was a prominent figure in the early 20^th century, with his name on seemingly every corner of American life. Though born on a tobacco farm in Robertson County, Tennessee, Jones moved at a young age to Texas, where he would hone his business acumen and build his entrepreneurial reputation. He made his first mark on the local Houston community, where he earned acclaim as a publisher, hotelier, banker, philanthropist, and dependable leader. Jones’ prowess would help transform Houston from a small town on the Gulf into a major commercial and transportation hub for the entire American South.

Jones, always willing to lend a hand, also utilized his many talents to serve the nation as a whole, working with the American Red Cross during WWI and playing an unprecedented role in the nation’s fiscal affairs as head of the Reconstruction Finance Corporation and Secretary of Commerce. In these governmental positions, he was uniquely responsible for bailing out banks and American businesses during the Great Depression, helping to rebuild and mobilize the nation for WWII. 

Regarded as the most powerful person in the nation during this era, second only to President Roosevelt, Jesse H. Jones cemented his reputation as an innovative leader, using his talents for the advancement of the American people. As head of the Reconstruction Finance Committee he had direct control over $50 billion in discretionary funds, earning his reputation in Washington as the “fourth branch of government.”

Jones used his business acumen, popularity, and genuine compassion as a force for good, transforming Houston into a global city and keeping the nation afloat in the face of financial crisis and war. After his tenure in Washington, Jones returned to Houston to give back to his community, establishing the Houston Endowment with his wife, Mary Gibbs Jones. He was an active force in the Houston community until his death on June 1, 1956, at the age of 82. 

Early Life

Born April 5, 1874, Jones was the son of tobacco farmer and merchant William Hasque Jones and Laura Anna Holman. His mother died in 1880, when he was just six years old. His first exposure to the business world was at age 14, after his father sent him to manage a tobacco factory. Five years later, after the death of his uncle, M. T. Jones, Jones moved to Houston to manage his uncle's estate and opened a lumberyard company, which grew quickly. Despite possessing only an elementary education, Jones proved he had an innate knack for business.

Houston

During the nationwide economic panic of 1907, Jesse H. Jones shocked Houston with the news that he would construct the city's three tallest buildings: the ten-story Texas Company Building housing Texaco Petroleum, the ten-story Chronicle Building that would provide Jones with partial ownership of the Houston Chronicle newspaper, and the nine-story Bristol Hotel that provided visitors to Houston with luxury accommodations.

Jones’s impact is best seen in the Houston skyline, which became a visual testament to his leadership in the city. In 1912, he organized the Houston Hotel Association and a year later opened the famed Rice Hotel. His association would become the builder, owner, and operator of several luxury hotels in the city, including the Lamar, Texas State, and San Jacinto Hotels. In addition to his foray into the hotel world, Jones developed several modern major office buildings, stores, theatres, and both residential and commercial structures. Overall, 35 downtown structures belonged to him, earning him the appropriate nickname of “Mr. Houston."

Houston

Notsuoh Festival

The Houston community’s love for Jones is reflected in his election as King during the city’s annual Notsuoh Festival in 1902. The festival was a Mardi-Gras style carnival celebrating the city and its commerce, focusing on agribusiness in the formative years and later pivoting to celebrate the city’s commercial and financial success. The Notsuoh Festival, given its moniker when spelling words backwards was in vogue, always commenced in a parade celebrating the crowning of a prominent local businessman as King Nottoc (cotton) in the early years or King Retaw (water) after the Houston Ship Channel was finished in 1914. 

Houston

Businesses

The Jesse H. Jones Lumber Company was the first building Jones built in the downtown area, erected in 1903 and demolished in 1926, located at 1000 Main Street at McKinney. Over the next fifty years, Jones would build 25 buildings, the majority of which would be located on Main Street. Some of his buildings, like Commerce Building at 914 Main Street or the Texas State Hotel at 720 Fannin Street are still standing today.

Public Service

Jones was adept at multitasking, and always approached problems with a multifaceted plan. Though a businessman above all, he was also conscious of the individual and sought to enhance the common good through his tenacity and entreprenueurial spirit. This combination of capitalism and public service propelled him into the national spotlight, beginning with his efforts working with the American Red Cross during World War I. 

Houston

Houston Ship Channel

Concurrent to his ventures into real estate, Jones began his banking career by investing in local banks and becoming chairman of the National Bank of Commerce, known today as the Chase Bank of Texas. However, Jones and his fellow business leaders realized that without access to the sea, Houston's growth would be limited. City leaders went to Washington and convinced Congress to pay half the cost of building the Houston Ship Channel, enlarging Buffalo Bayou to be accessible to larger vessels. Jones personally rallied his friends for funding and gathered the other half himself.

The Houston Ship Channel revolutionized the city almost overnight, providing new access to the port of Houston and significantly impacting commerce in the region. The ship channel provided new job opportunities and improved the economy of the largely industrial South, officially putting Houston on the map. His efforts to transform Houston garnered Jones national attention, as President Franklin Roosevelt would persuade him to use his talents at the national level.

Public Service

American Red Cross

President Wilson had offered Jones two ambassadorships and a post in his cabinet as Secretary of Commerce, but Jones turned him down so he could continue to build his various businesses and support his city. When Wilson approached him again at the start of World War I, he felt compelled to help the nation. Jones became Director General of Military Relief for the American Red Cross.

In this capacity, he recruited nurses and doctors for the battlefields, organized hospitals, canteens and ambulance networks throughout Europe and established rehabilitation centers for the wounded. At the end of the war, Jones continued to serve by becoming a delegate to the Red Cross meetings in Paris, Cannes and Geneva, helping to establish the organization as a permanent worldwide relief association. 

Public Service

1928 Democratic National Convention

After the war, Jones went back to his many business interests in Houston and married the love of his life, Mary Gibbs Jones, in 1920. He continued to be involved in local development, but did not limit himself to the Houston market, creating successful businesses in Ft. Worth, Dallas, and New York City, too.

 1928 was a pivotal year for Jones, as he was appointed Director of Finance for the Democratic National Committee. Despite the improbability of bringing the convention to Houston, he offered up the city to be the host of the Democratic National Convention that year. To ensure its selection, Jones wrote a $200,000 personal check, using his name and financial backing to lure the lucrative convention to Houston, aware it would bring the city national acclaim and a profitable influx of visitors.

Held in the summer, the convention was plagued by the insufferable hot and humid weather of Houston’s summer, but the convention was a success, further solidifying Houston’s newfound geographical importance. 

Public Service

The Great Depression and the Reconstruction Finance Corporation

In 1929, the country began its steep slide into the depths of the Great Depression. In 1931, when it became apparent that two failing Houston banks were about to bring down all the others in the area, Jones called the city's leading businessmen to his office to work out a plan that would allow the stable banks and several local companies to rescue the two faltering banks. As a result of Jones's leadership and fiscal dexterity, no banks in Houston failed during the Great Depression. This extraordinary accomplishment caught the attention of President Herbert Hoover, who soon appointed Jones to the Reconstruction Finance Corporation (RFC). The RFC was created to provide relief to the nation's banks and get the economy back on track. 

When Franklin D. Roosevelt became president, he expanded the RFC's powers and elevated Jones to chairman. Quickly, the Reconstruction Finance Corporation became a central pillar of Roosevelt's New Deal. As chairman, Jones directed billions of dollars toward needy banks, industries, farmers and citizens. He had almost complete autonomy in deciding where the government's money should go, and viewed these loans as an investment by America to its people. The RFC did not just make grants or loans, it also bought stock in struggling enterprises, giving the government a voice in how those enterprises were run. Jones had $50 billion at his discretion, an extraordinary sum that offered him immense power.

Public Service

Secretary of Commerce

In the summer of 1940, Jones joined the cabinet as Secretary of Commerce. Unwilling to give up his post as Federal Loan Administrator, Congress passed special legislation authorizing Jones to retain two federal posts at once. After a request from Roosevelt to relinquish the post, Jesse Jones resigned as Secretary of Commerce on January 21, 1945. 

His resignation sparked an outcry from business leaders and politicians across the United States, particularly in the South. Jones wrote a particularly poignant letter to FDR in response, questioning the credentials of his successor and chastising what he viewed as an “irresponsible decision,” but willingly stepped down from the position.

Jones’s resignation marked the end of his federal service, but his impact would remain far beyond his tenure in office, as he had revolutionized the relationship between business and government, recognizing the the positive role of government and its capacity for beneficial development. 

Public Service

World War II

Jones retired from the RFC on July 17, 1939, to become Federal Loan Administrator. In this position, Jones helped mobilize and prepare the nation for the onslaught of WWII. As Federal Loan Administrator, Jones authorized the RFC to buy or build anything the President defined as strategic or critical. Roosevelt had called upon the RFC to bring the country out of the depths of the Great Depression. Now, he turned to the agency to stockpile essential materials, build plants, shipyards and pipelines and pay subsidies to hold down prices and obtain other necessities in case of war. More than $20 billion was disbursed for the war effort, including establishing synthetic rubber and magnesium industries. These initiatives could only be executed by Jesse H. Jones, with the approval of the President. 

Legacy

After spending fourteen years as a public servant, Jesse Jones returned to Houston to focus on his philanthropy. In 1937, Jones and his wife, Mary, established the Houston Endowment, dedicated to providing scholarships to needy students. Jones, having never received an extensive education himself, saw immense value in higher education and strove to make it accessible for all students, including women and minorities. By the time he died on June 1, 1956, he had helped more than 4,000 students through scholarship programs in 57 colleges and universities across the United States.

Jones’s name is memorialized throughout Houston, visible still on innumerable academic and recreational facilities around the city. Forever humble, Jones never put his name on any of the buildings he built himself, with these dedications appearing after his death. His official portrait hangs in the state capitol, commemorating his dedication and pride for his state. No one title can accurately reflect the extensity of his contributions to his community, as he will be remembered as an entrepreneur, politician, and philanthropist, but overall a force for progress.

Resources and Acknowledgements

See more digitized items from the Jesse H. Jones family papers.

This exhibit was created using resources from the following sources:

Fenberg, Steven, Unprecedented Power: Jesse Jones, Capitalism, and the Common Good. College Station, TX: Texas A&M University Press, 2013.

Jones, Jesse H., with Edward Angly, Fifty Billion Dollars: My Thirteen Years with the RFC (1932-1945). New York, NY: The Macmillan Company, 1951.

Jesse H. Jones Family and Personal Papers, MS 252, Woodson Research Center, Fondren Library, Rice University

Jones, Jesse H., with Edward Angly, Fifty Billion Dollars: My Thirteen Years with the RFC (1932-1945). New York, NY: The Macmillan Company, 1951.

Corinne Wilkins, '18, created this online exhibit as part of the Fondren Fellows program, summer 2017. It was migrated to this platform in 2024.