Joseph Seligman

Joseph Seligman was a prominent American banker and entrepreneur. He founded the firm J. & W. Seligman & Co. His work helped shape the American economy during the 19th century. Seligman was the patriarch of a large and influential family. This family was even related to the wealthy Guggenheim family through Peggy Guggenheim's mother, Florette. His life serves as a study of immigrant success and the challenges of prejudice.

Seligman's journey began in Baiersdorf, in the Kingdom of Bavaria. As a child, he worked in his mother's dry goods shop. During this time, Germany was made of many independent states. These states issued many different types of coins. Young Joseph earned a profit by changing money for travelers for a small fee. His father hoped he would join the family wool business. However, the migration of peasants to cities reduced the business's economic base. At age seventeen, Seligman sailed from Bremen to America.

Upon arriving in the United States at age eighteen, Seligman settled in Pennsylvania. He worked as a cashier and clerk for Asa Packer. His annual salary was $400. Seligman used his savings to become a peddler. He sold jewelry, knives, and other goods door-to-door to rural farmers. Eventually, he saved $500 to bring his brothers, William and James, to America. The brothers operated stores in Alabama. They moved north to New York City to establish J. Seligman and Brothers. Jesse managed the San Francisco branch, while Joseph managed the New York store.

During the American Civil War, Seligman provided vital financial support to the Union. He was responsible for disposing of $200,000,000 in government bonds. Some observers, like W. E. Dodd, called this feat nearly as important as the Battle of Gettysburg. However, some historians believe his role was exaggerated. The government paid Seligman in "7.30 bonds" for the uniforms his factory delivered. During this era, he also served as president of Temple Emanu-El. He later became the first President of the Society for Ethical Culture.

In the Gilded Age, the Seligman firm became a leader in railroad finance. They acted as brokers for major transactions and underwrote many different securities. Their investments included the steel, wire, and shipbuilding industries. They also participated in the formation of the Standard Oil Company. The firm invested in projects in Russia and Peru. Seligman also helped finance New York's first elevated railway. Despite their success, the firm often lost money on direct equity in railroad ventures. For example, an attempt to use Arizona land for cattle grazing failed due to aridity.

In 1877, Seligman faced a major instance of antisemitism. He attempted to vacation at the Grand Union Hotel in Saratoga Springs, New York. The owner, Henry Hilton, denied entry to Seligman and his family because they were Jewish. This event became a national sensation and a major controversy. The New York Times reported the incident with large headlines. Hilton argued he had the right to use his property as he pleased. In response, Seligman's friends organized a boycott against A. T. Stewart's department store. This protest eventually caused that business to fail.

Seligman's political influence was also significant. In 1877, President Rutherford Hayes asked him to help refinance the war debt in Washington, D.C. Secretary of the Treasury Sherman accepted Seligman's plan as the most practical. This plan involved keeping gold reserves at forty percent of circulating greenbacks. Earlier, President Ulysses S. Grant had offered Seligman the post of Secretary of the Treasury. Seligman declined the offer, possibly because he was shy. His life ended on April 25, 1880, in New Orleans. He was buried in Salem Fields Cemetery in New York City.