Joseph Seligman facts for kids
Quick facts for kids
Joseph Seligman
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| Personal details | |
| Born | November 22, 1819 Baiersdorf, Bavaria, Germany |
| Died | April 25, 1880 (aged 60) New Orleans, Louisiana, U.S. |
| Political party | Republican |
| Spouse | Babet Steinhardt |
| Children | 9, including Edwin and Isaac |
| Education | University of Erlangen |
Joseph Seligman (born November 22, 1819 – died April 25, 1880) was an important American banker and businessman. He started a famous company called J. & W. Seligman & Co.. Joseph was the head of the Seligman family in the USA. Later, his family became connected to the wealthy Guggenheim family through marriage.
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Joseph Seligman's Early Life
Joseph Seligman was born in Baiersdorf, Germany, and was from a Jewish family. As a young child, he helped his mother in her dry goods shop. In the early 1800s, Germany was made of many small states. Each state had its own money. Young Joseph earned money by changing coins for travelers at his mother's store.
Joseph's father wanted him to work in the family wool business. But it was hard because many farmers, who were their customers, were moving to cities. This meant fewer jobs and less money in Baiersdorf. At age 14, Joseph went to the University of Erlangen. When he was 17, he sailed from Bremen to America.
Coming to America
Joseph arrived in the United States at age 18. He first settled in Mauch Chunk, Pennsylvania. There, he worked as a cashier for Asa Packer, who later became a US congressman. Joseph earned $400 a year.
Using his savings, Joseph started selling goods door-to-door in rural Pennsylvania. He sold things like jewelry and knives. This saved farmers the trip to town. After saving $500, Joseph sent for his brothers, William and James, from Germany. They joined him in selling goods.
The Seligman brothers sometimes faced unfair treatment because they were Jewish. But this did not stop them from working hard.
Joseph and his brothers opened several stores in Alabama. However, they did not like the system of slavery in the South. Also, the rest of their family had moved to New York. So, the brothers moved north and started a new business called J. Seligman and Brothers. Jesse Seligman managed the store in San Francisco, while Joseph ran the New York City store. Their business did well even during tough economic times in the 1850s and 1860s.
During the American Civil War, Joseph was the president of Temple Emanu-El in New York City. Later, he became the first president of the Society for Ethical Culture. In 1870, he also helped start the Continental Bank of New York.
Joseph Seligman and the Civil War
During the American Civil War, Joseph Seligman helped the Union (the North). He helped sell $200,000,000 worth of government bonds. Bonds are like loans to the government. This was a huge amount of money at the time. Some historians said this was as important as winning a major battle.
However, later historians have said that Joseph's role might have been a bit exaggerated. For example, his company had to accept these bonds as payment for army uniforms they made. It was hard to sell these bonds because the Union was losing battles. Also, the interest rate on the bonds seemed very high, which made people nervous.
After the Civil War, during a time called the Gilded Age, J. & W. Seligman & Co. invested a lot in railroads. They helped finance many railroad projects. They also invested in other industries like steel, oil, and shipbuilding. In 1876, the Seligmans worked with the Vanderbilt family to create public services in New York.
Seligman's Railroad Investments
Joseph Seligman's company invested in many railroads. These included the Missouri Pacific Railroad, the Atlantic and Pacific Railroad (A&P), and the Missouri–Kansas–Texas Railroad. They also helped pay for New York's first elevated train system.
After the Civil War, railroads were a very exciting new business. The Seligmans were among the top financiers in the country. Joseph started by selling railroad bonds. But to protect their investments, they ended up owning and running some railroads. Joseph was a director for the A&P and other railroads. By 1872, he said they had made a lot of money from new railroads.
However, Joseph was never fully comfortable with railroad investments. He worried they had put too much money into them. After a financial crisis in 1873, he promised never to sell another railroad bond. But by 1874, he was selling A&P bonds again. The A&P railroad failed in 1875. Joseph died five years before the railroad he invested in reached Los Angeles.
The Seligmans often lost money on their direct investments in railroad companies. For example, they bought land in Arizona for cattle grazing. The idea was to transport the cattle on the A&P railroad. But the desert land was too dry for this plan. Still, there is a town in Arizona named Seligman, Arizona today.
Working with the U.S. Government
President Ulysses S. Grant was a friend of Joseph's brother, Jesse. Grant offered Joseph Seligman the job of United States Secretary of the Treasury. This is a very important job in the government, managing the country's money. Joseph turned down the offer, possibly because he was shy.
In 1877, President Rutherford B. Hayes asked Joseph Seligman and other New York bankers to come to Washington, D.C. They met to plan how to refinance the money the country owed from the Civil War. Each banker gave a plan. The Secretary of the Treasury, John Sherman, chose Seligman's plan. His plan involved keeping enough gold to back up the paper money (called greenbacks) by selling bonds.
The Seligman–Hilton Incident
In 1877, a judge named Henry Hilton owned the Grand Union Hotel in Saratoga Springs, New York. He refused to let Joseph Seligman and his family stay there because they were Jewish. This caused a huge public debate across the country. It was the first time such an unfair act against Jewish people in the U.S. became so widely known.
Why the Incident Happened
In the 1870s, some things made Alexander Turney Stewart, a wealthy businessman, dislike Seligman. Stewart and Seligman had both served on a company board with Judge Henry Hilton.
First, Seligman turned down the job of Secretary of the Treasury. Then, President Grant offered the job to Stewart. But Stewart was connected to Henry Hilton, who was part of a corrupt political group. So, the Senate would not approve Stewart for the job.
Seligman was also asked to join a group of New Yorkers fighting against the corrupt political group. In return, Stewart's company stopped doing business with Seligman.
Stewart died in 1876. He left Hilton in charge of his huge fortune. This included a large share in the Grand Union Hotel. Hilton himself was upset with Seligman because Seligman had not invited him to a dinner for President Grant.
What Happened at the Hotel
After helping with the country's debt in Washington, Seligman planned a vacation with his family. They wanted to stay at the Grand Union Hotel in Saratoga Springs. He had stayed there before. Saratoga was a popular resort for rich New Yorkers, and the Grand Union was the best hotel.
However, by 1877, the hotel was losing business. Stewart, and later Hilton, believed this was because Jewish people were staying there. They thought Christian guests did not want to stay in a hotel that allowed Jewish people. So, Seligman was told he could not stay at the hotel.
Historians are not sure if the Seligman family was physically turned away, told not to come, or just advised they could only stay one last time. But it is clear that the Seligmans were made to feel unwelcome.
After the Incident
The incident caused a lot of anger and discussion. The New York Times newspaper reported it with a big headline on June 19, 1877.
A month later, the New York Times shared a letter from Judge Hilton. In it, he said he believed he had the right to use his property as he pleased.
The case became famous across the country. Seligman and Hilton both received threats. A group of Seligman's friends started to boycott Stewart's department store. This boycott eventually caused the business to fail. Hilton then promised to donate money to Jewish charities. A funny magazine called Puck made fun of his donation.
A famous preacher, Henry Ward Beecher, also criticized Hilton in a sermon. Beecher praised Seligman's good character. He said he felt the unfairness deeply when he heard what happened to Mr. Seligman.
It is not known if Seligman planned for the hotel to turn him away to highlight unfairness. But the event did make other hotel owners feel brave enough to also exclude Jewish people. They even put up signs saying "Hebrews need not apply."
Death
Joseph Seligman died on April 25, 1880, in New Orleans, Louisiana. His body was brought back to New York City. He was buried in Salem Fields Cemetery on May 4, 1880.
Family Life
Joseph Seligman had many brothers and sisters. His siblings included William, James, Jesse, Henry, Leopold, Abraham, Isaac, Babette, Rosalie, and Sarah.
In 1848, Joseph married his cousin, Babet Steinhardt, in Germany. They had five sons: David, George Washington, Edwin Robert Anderson, Isaac Newton Seligman, and Alfred Lincoln. They also had four daughters: Frances, Helen, Sophia, and Isabella.
Honors After His Death
On September 27, 1880, a town in Missouri was renamed Seligman. This was done to honor Joseph Seligman and thank him for the benefits the railroad brought to the town. In return, Babet Seligman donated land and money to build a church in the town. This church still stands today.
See also
In Spanish: Joseph Seligman para niños
