Jacob Schiff facts for kids
Quick facts for kids
Jacob Schiff
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Portrait by Aime Dupont
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| Senior Partner, Kuhn Loeb & Co | |
| In office 1885 – September 25, 1920 |
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| Succeeded by | Mortimer Leo Schiff |
| Personal details | |
| Born |
Jakob Heinrich Schiff
January 10, 1847 Frankfurt, Germany |
| Died | September 25, 1920 (aged 73) Manhattan, New York City, New York, U.S. |
| Citizenship | German (1847–1870) American (1870–1920) |
| Spouse |
Therese Loeb
(m. 1875) |
| Children | Frieda Schiff (1876–1958) Mortimer L. Schiff (1877–1931) |
| Occupation | Banker and businessman |
Jacob Henry Schiff (born Jakob Heinrich Schiff; January 10, 1847 – September 25, 1920) was a very important German-born American banker, businessman, and philanthropist. A banker helps manage money for people and businesses. A philanthropist is someone who gives a lot of money to good causes.
Jacob Schiff helped fund the growth of American railroads. He also supported Japan's military during the Russo-Japanese War against Russia.
Schiff was born in Frankfurt, Germany. After the American Civil War, he moved to the United States. He joined a famous banking company called Kuhn, Loeb & Co.. From his office on Wall Street, he became a leading figure for Jewish people from 1880 to 1920. This time is sometimes called the "Schiff era."
He worked on many important issues for Jewish people. These included helping Russian Jews who were suffering and fighting against anti-Jewish hatred. He also helped Jewish immigrants who needed support and was involved in the rise of Zionism.
Schiff also served on the boards of many big companies. These included the National City Bank of New York, Equitable Life Assurance Society, Wells Fargo & Company, and the Union Pacific Railroad. He often worked with another important businessman, E. H. Harriman.
Contents
Early Life and Moving to America
Jacob Schiff was born in 1847 in a Jewish neighborhood in Frankfurt am Main, Germany. His parents were Moses and Clara Schiff. Their family had a long history of important Jewish leaders and scholars in Frankfurt, going back to 1370. Jacob's father, Moses Schiff, worked as a broker for the famous Rothschild family.
Jacob went to school in Frankfurt. In 1861, he started working as an apprentice in banking. After the American Civil War ended in April 1865, Schiff came to New York City on August 6. He became a broker in 1866 and joined a company called Budge, Schiff & Company in 1867. He became a U.S. citizen in September 1870.
In 1872, Budge, Schiff & Company closed. Schiff decided to go back to Germany. In 1873, he managed a bank branch in Hamburg. He returned to Frankfurt later that year when his father passed away.
In 1874, Abraham Kuhn from the banking firm Kuhn, Loeb & Company asked him to come back to New York and join his company. Soon after joining, Schiff was practically running the business.
Schiff's Career and Big Deals
In January 1875, Schiff accepted Kuhn's offer. He brought important connections to Kuhn, Loeb & Company. These included connections with Sir Ernest Cassel from London and other major European bankers. On May 6, 1875, he married Therese Loeb, who was the daughter of Solomon Loeb, one of the company's founders. They had a son, Mortimer L. Schiff, and a daughter, Frieda.
Leading Kuhn, Loeb & Company
In 1885, Jacob Schiff became the head of Kuhn, Loeb & Company. He helped finance many railroads, especially in the Eastern U.S., like the Pennsylvania Railroad. He also helped reorganize the Baltimore & Ohio Railroad between 1896 and 1899. At different times, he supported companies like ASARCO, Westinghouse Electric Company, and Western Union Telegraph Company.
He worked with E. H. Harriman in big competitions against other powerful bankers like James J. Hill and J.P. Morgan & Company. These competitions were about controlling several Western railroads. Schiff also served as a director for many important companies. These included the AXA Equitable Life Insurance Society, National City Bank of New York, and the Union Pacific Railroad. In 1914, he became a director of Wells Fargo & Company.
Helping Nations with Loans
One of Schiff's most famous financial actions happened during the Russo-Japanese War (1904-1905). Schiff met with Takahashi Korekiyo, a Japanese banking official, in Paris in April 1904. Schiff agreed to lend Japan $200 million (which would be billions today) through Kuhn, Loeb & Co. These loans were very important because they provided about half the money Japan needed for its war effort.
Schiff made this loan for a few reasons. He believed that a nation's determination was more important than just gold in winning a war. Also, Japan was seen as the underdog, as a non-Western nation had not yet defeated a European empire in a major war. Schiff also likely saw this loan as a way to respond to the anti-Jewish actions of the Russian Empire, especially the terrible Kishinev pogrom in 1903.
This loan got attention worldwide and had big effects. Japan's military relied on buying many supplies, which Schiff's loan made possible. In 1905, Japan honored Schiff with the Order of the Sacred Treasure. In 1907, he received the Order of the Rising Sun, Gold and Silver Star, which is a very high honor. Schiff was the first foreigner to receive this award directly from Emperor Meiji in Japan. He also had a private meeting with King Edward VII of the United Kingdom in 1904.
Schiff also loaned money to other countries. During World War I, he asked U.S. President Woodrow Wilson and other Allied leaders to end the war quickly. He was worried about his family in Germany and the future of the United States. He arranged loans for humanitarian reasons and spoke out against submarine warfare.
Schiff refused to let any of his loans go to the Russian Empire. This was because of the Russian government's harsh treatment of Jewish people. When the Russian Tsar was overthrown in 1917, Schiff believed the oppression would end. He then allowed his firm to lend money to Russia.
Giving Back: Charitable Work
Schiff strongly believed in the Jewish principle of Zedakah, which means giving to charity. He remembered from his childhood that "Kindness was the keynote of the household." He was taught to set aside one-tenth of his money for charity, following an old Jewish tradition.
Schiff always felt a strong connection to the Jewish people. He showed this through his many acts of charity. He started the Jewish Industrial Removal Office, which helped Jewish immigrants in New York move to the western United States. He also helped create another entry point for immigrants in Galveston, Texas.
He supported efforts to help victims of attacks against Jews in Russia. He also helped establish and develop important Jewish institutions. These included Hebrew Union College, the Jewish Theological Seminary, the Jewish Division in the New York Public Library, and the American Jewish Committee.
Schiff became one of the most important Jewish philanthropists and leaders in America. He gave money to almost every major Jewish cause. In New York, he supported places like the Montefiore Home for Chronic Invalids, where he was president. He also helped fund the Young Men's Hebrew Association building and the Jewish Theological Seminary.
He was also involved in many non-religious American causes. He served on the board of the New York Zoological Society. He gave money to organizations like the Boy Scouts of America, the Harvard Semitic Museum, the American Museum of Natural History, and the Metropolitan Museum of Art. He also supported groups working for civil rights and helping people in need, such as the American Red Cross and Tuskegee Institute.
Schiff cared deeply about improving New York City. He was a vice president of the New York Chamber of Commerce. He was also part of the Committee of 70, which helped remove a corrupt political group called the Tweed Ring.
On his 70th birthday, he gave $700,000 to various charities and public institutions.
Schiff believed in the Talmudic idea that "twice blessed is he who gives in secret." He did not allow buildings he funded to be named after him, except for the Schiff Pavilion at his Montefiore Hospital. He also never talked about how much he gave. Because he was so private, it's hard to know the exact amount of his donations, but it's thought to be between $50 million and $100 million.
Later Years and Legacy
Schiff was a follower of Reform Judaism. He supported Zionism, which is the movement for a Jewish homeland. Even though he didn't fully agree with all the ideas of Theodor Herzl, the founder of modern Zionism, he gave money to many Jewish projects in Palestine. This included the Technical Institute of Haifa.
As the situation for Jews in Eastern Europe became worse, especially after the Russian Revolution and the Russian Civil War, Schiff gave more to the Zionist effort. He even offered to join the Zionist organization, but his offer was not accepted.
Historian George F. Kennan noted that Schiff helped fund revolutionary ideas during the Russo-Japanese War and the 1905 Russian Revolution. He did this through a group called the Society of Friends of Russian Freedom.
The Jewish Communal Register of New York City said that "Mr. Schiff always used his wealth and influence for the good of his people. He helped the enemies of Russia's autocratic government and used his financial power to keep Russia from getting money from the United States."
Jacob Schiff passed away at his home in Manhattan, New York City, on September 25, 1920. His funeral was held three days later at Temple Emanu-El.
His estate was worth about $50,000,000. He left $1,350,000 to various institutions, many of which he had supported during his life. The largest gifts were $500,000 to the Federation for the support of Jewish Philanthropic Societies of New York City and $300,000 to the Montefiore Home.
Schiff's Impact and Recognition
His son, Mortimer Leo Schiff (1877–1931), took over as the head of Kuhn, Loeb & Company.
In 1982, Jacob Schiff was honored by being inducted into the Junior Achievement U.S. Business Hall of Fame.
The Jacob Schiff Center, named after him, was an important Jewish cultural center and synagogue in the Bronx from the 1930s to at least the 1960s.
New York City public school number 192 in West Harlem is also named after him. It serves students from pre-kindergarten to 5th grade.
A street in Frankfurt, Germany, Jacob-Schiff-Straße, is named after him. This was to honor the charitable donations he made to the city. When the Nazi Party came to power in 1933, the street's name was changed. But after World War II ended, the name was changed back to honor him again.
Family Members
- Wife: Therese (née Loeb)
- Children: Mortimer Schiff; Frieda Warburg, née Schiff.
- Father: Moses Schiff
- Mother: Clara Schiff, née Niederhofheim
- Granddaughter: Dorothy Schiff
- Grandson: John M. Schiff
- Son-in-Law: Felix Warburg
- Brother-in-Law: Paul Warburg
See also
In Spanish: Jacob Schiff para niños
