The Money Kings

1. From Peddlers to Pioneers: The Immigrant Drive Shaping Wall Street

Indeed, some of the world’s greatest financial institutions, companies that would dominate Wall Street and power America’s industrial transformation, were born out of rickety wooden carts and bulging canvas rucksacks.

Humble Beginnings. The narrative of "The Money Kings" begins not in opulent boardrooms, but on the dusty roads of America, where Jewish immigrants, often fleeing persecution and poverty in Europe, started as itinerant peddlers. This humble beginning was a common thread among families like the Seligmans, Lehmans, and Goldmans, who would later establish financial empires.

Peddling as Entrepreneurial Training. Peddling served as a rigorous training ground, instilling essential business skills such as salesmanship, resourcefulness, and risk management. These early experiences shaped their future success, providing them with a deep understanding of commerce and the American landscape. It was a Harvard Business School for Jewish boys.

Ambition and Opportunity. The United States, with its promise of religious freedom and economic opportunity, provided a fertile ground for these ambitious immigrants. Their drive to succeed, coupled with their unique skills and experiences, allowed them to overcome prejudice and build lasting institutions that transformed Wall Street and the American economy.

2. Family Ties and Business Acumen: The Foundation of Financial Dynasties

The proximity of these titans and their families in death hints at their intimacy in life.

Kinship and Trust. Strong family bonds were central to the success of these financial dynasties. Brothers, cousins, and in-laws formed partnerships based on trust and shared values, creating a stable foundation for their businesses. This close-knit structure allowed them to pool resources, share expertise, and navigate the complexities of the financial world with a unified front.

Complementary Skills. The most successful partnerships often involved individuals with complementary skills and temperaments. For example, Mayer Lehman's outgoing personality and risk appetite were balanced by Emanuel Lehman's cautious nature and financial acumen, creating a dynamic that fostered both growth and stability.

Intermarriage and Social Cohesion. Marriages within the German-Jewish community further strengthened these family ties, creating a close-knit social network that facilitated business deals and philanthropic endeavors. These unions reinforced their shared cultural and religious heritage, helping to preserve their identity in a new and often challenging environment.

3. Navigating Prejudice: The Delicate Balance of Assimilation and Identity

They were allies (and occasional rivals) in business, partners in philanthropy, friends, and in some cases in-laws.

Antisemitism as a Constant Presence. Despite their wealth and influence, these families faced persistent prejudice and discrimination. They were often excluded from elite social circles and subjected to stereotypes and slurs. This reality forced them to navigate a delicate balance between assimilation and maintaining their Jewish identity.

Philanthropy as a Response. Philanthropy became a crucial tool for these families to combat antisemitism and uplift their community. They established hospitals, orphanages, and educational institutions to support Jewish immigrants and demonstrate their commitment to American society. This philanthropy served both altruistic and strategic purposes, helping to improve the image of Jews and foster greater acceptance.

Internal Divisions. The desire to assimilate sometimes created divisions within the Jewish community, particularly between the established German Jews and the more recent Eastern European immigrants. These tensions reflected differing views on religious practice, cultural identity, and the best way to navigate the challenges of American life.

4. War as a Crucible: Fortunes Forged and Values Tested

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Profiting from Conflict. The Civil War and subsequent conflicts presented both challenges and opportunities for these families. Some, like the Seligmans, profited from government contracts to supply the Union Army, while others, like the Lehmans, engaged in blockade running and traded with the Confederacy. These wartime activities tested their values and forced them to make difficult choices.

Moral Dilemmas. The issue of slavery and the Civil War created deep divisions within the German-Jewish community. While some, like the Seligmans, opposed slavery and supported the Union, others, like the Lehmans, adapted to the Southern culture and even owned slaves themselves. These moral compromises reflected the complex realities of assimilation and the pressures to conform to local norms.

The Civil War's Impact. The Civil War accelerated the nation's industrialization and financial development, creating new opportunities for these families to expand their businesses and solidify their positions on Wall Street. The war also highlighted the importance of government finance and the role of investment banks in supporting national interests.

5. The Rise of Jacob Schiff: Bridging Worlds and Defining an Era

He was a diminutive man—he claimed five feet six on his passport, though he might have been rounding up generously—but a colossus in finance and Jewish life, whom one New York paper described as “the foremost world-representative of his race.”

A New Kind of Leader. Jacob Schiff emerged as a dominant figure in both the financial world and the American Jewish community. Unlike his predecessors, Schiff possessed a unique combination of business acumen, political savvy, and a deep commitment to Jewish causes. He used his wealth and influence to advocate for Jewish rights, support Jewish immigrants, and shape the future of American Jewry.

Balancing Identities. Schiff navigated the complexities of his dual identity as an American and a Jew with remarkable skill. He was a staunch patriot who believed in the promise of American democracy, but he also felt a strong responsibility to his religious brethren around the world. This balancing act often required him to make difficult choices and navigate conflicting loyalties.

A Vision for the Future. Schiff envisioned a vibrant and thriving American Jewish community that was both integrated into American society and proud of its heritage. He supported initiatives that promoted education, social welfare, and cultural preservation, laying the foundation for the modern American Jewish community.

6. The Power of Alliances: Collaboration and Competition on Wall Street

He was one of the small but powerful group who have made the higher commercial life of New York City what it is today.

Cooperation and Competition. While these financial dynasties often competed for business, they also recognized the importance of collaboration. They formed alliances to undertake large-scale projects, share expertise, and navigate the complexities of the financial world. This combination of cooperation and competition fueled innovation and growth on Wall Street.

The Rise of Investment Banking. These families played a pivotal role in the evolution of modern finance, transforming Wall Street from a collection of small mercantile firms into a global financial center. They pioneered new financial instruments, developed innovative business models, and helped to create some of the nation's most iconic companies.

The "Money Kings." Their influence extended beyond the financial realm, shaping American politics, culture, and society. They advised presidents, influenced legislation, and supported the arts, leaving an indelible mark on the nation's development.

7. Philanthropy as a Moral Imperative: Beyond Wealth, a Legacy of Service

Schiff used his fortune unreservedly to ensure a future for the Jews, at a time when their long-term existence seemed very much in doubt.

A Sense of Responsibility. These families viewed philanthropy not merely as an act of charity, but as a moral imperative. They felt a deep sense of responsibility to use their wealth and influence to improve the lives of others, particularly those who were less fortunate.

Building Institutions. Their philanthropic efforts extended beyond individual acts of generosity to the creation of lasting institutions. They founded hospitals, orphanages, settlement houses, and educational institutions that continue to serve communities today. These institutions became cornerstones of American society, providing essential services and promoting social progress.

A Lasting Impact. Their commitment to philanthropy shaped the cultural landscape of the United States, fostering a tradition of giving back and supporting the arts, education, and social welfare. Their legacy continues to inspire generations of philanthropists and community leaders.

8. The Perils of Power: Scandals, Anti-Semitism, and the Limits of Influence

Wealth and power, and the myriad ways these German-Jewish dynasties left their mark on the modern world by expending both, are themes that run throughout this book—one that I initially hesitated to write.

Ethical Lapses. The pursuit of wealth and power sometimes led to ethical lapses and questionable business practices. The Panama Canal scandal, the Black Friday gold corner, and the overcapitalization of railroads tarnished the reputations of some of these families and exposed the dark side of Gilded Age capitalism.

Antisemitism as a Weapon. Their wealth and influence also made them targets of antisemitism. Conspiracy theories and hateful rhetoric often targeted Jewish bankers, accusing them of manipulating the financial system and controlling the world's resources. These attacks highlighted the vulnerability of even the most powerful Jews and the persistence of prejudice in American society.

Limits of Power. Despite their wealth and influence, these families could not always control events or protect themselves from criticism. The scandals and antisemitic attacks demonstrated the limits of their power and the challenges of navigating a society that often viewed them with suspicion.

9. The Shifting Sands of Loyalty: Navigating War and National Identity

I am an American, I am a German, and I am a Jew.

Divided Loyalties. World War I tested the loyalties of these families, many of whom had strong ties to both Germany and the United States. The conflict forced them to grapple with their dual identities and make difficult choices about where their allegiances lay.

Patriotism and Principle. While some, like Otto Kahn, became ardent supporters of the Allied cause, others, like Jacob Schiff, struggled to reconcile their love for their adopted country with their sympathy for their homeland. These internal conflicts reflected the broader divisions within American society and the challenges of maintaining neutrality in a world at war.

The End of an Era. The war marked the end of an era for these families, as the old social order crumbled and new forces reshaped the financial landscape. The conflict also exposed the fragility of their position and the enduring power of prejudice.

10. The Legacy of the Money Kings: A Foundation for Modern Finance and a Cautionary Tale

The title of this book comes from the term that newspapers often used to describe Jacob Schiff and his fellow financial heavyweights.

Shaping Modern Finance. The "Money Kings" played a crucial role in shaping modern finance, pioneering new investment strategies, building towering institutions, and fueling America's industrial transformation. Their legacy continues to influence the financial world today.

Philanthropic Footprints. Their philanthropy laid the foundation for American Jewish life, supporting education, social welfare, and cultural institutions that continue to thrive. Their contributions to the arts, sciences, and humanities enriched American society and left an indelible mark on the nation's cultural landscape.

A Complex Legacy. Their story serves as a cautionary tale about the perils of unchecked power, the persistence of prejudice, and the importance of ethical leadership. Their lives remind us that wealth and influence come with great responsibility and that even the most successful individuals are not immune to the forces of history.

Last updated: March 3, 2025