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PHOTO by Kurz & Allison circa 1871 |
In 1877, Charles Dana’s New York Sun reported: “
He taught New Yorkers how to eat,
how to drink, how to dress, how to drive four-in-hands, how to furnish their houses, how
to live generally according to the rules of the possibly somewhat effete, but
unquestionably refined, society of the Old World.”
August Belmont, the subject of Dana’s story, was a
man who ended up in the U. S. by accident, not by
design, fell in love with the country, amassed a
great fortune, and changed New York forever.
Born in Germany, Belmont attended a Jewish
school, where he was considered untidy,
ungovernable, rowdy, and as bullheaded as he was
bright. When his father stopped paying for his
tuition, Belmont landed a job with the Rothschilds,
sweeping floors and polishing furniture. At night he
studied French, English, and honed his writing and
math skills. Ultimately Belmont became Amschel
von Rothschild’s private secretary.
The Rothschilds had major interests in Cuba and
sent Belmont to Havana in 1837 to analyze the
impact of the Spanish civil war on the island’s
economy and on their investments. En route,
Belmont stopped in New York City which was in
the grip of the Panic of 1837. Belmont decided to
visit Rothschilds’ American agents, but discovered
they had ceased to exist.
Without consulting the Rothschilds, Belmont remained in New York and took over their
American interests. He began to acquire banks and bank notes at depressed prices and
made a fortune for the Rothschilds. They rewarded him with a bonus, a $10,000-a-year
salary, and a permanent position in the U.S.
Hot tempered, aloof, and at times disdainful, Belmont fought a duel over an insult, the
bullet shattering his hip bone. The newspapers accused him of being a roué, but since
duels were only fought by gentlemen, Belmont became a “gentleman” in the eyes of
Knickerbocker society. The bluebloods began to crave invitations to his extravagant
soirées.
In 1844 he became a naturalized American citizen and five years later married
Commodore Matthew Perry’s daughter. Having accumulated a fortune, he turned to
politics, working for James K. Polk’s presidential campaign and developing strong ties
with the Democratic Party. Subsequently he ran Buchanan’s campaign in New York for
the Democratic presidential nomination, but supported Franklin Pierce after he won the
nomination. A grateful President Pierce reciprocated by naming Belmont chargé
d’affaires at The Hague.
Belmont’s rapid rise to power—by 1860 he was the chairman of the Democratic National
Committee—brought about insulting attacks from the Republican press, especially
Horace Greeley’s Tribune. Carl Sandburg applauded Belmont’s “anger and courage” in
the face of such caustic assaults.
During the Civil War Belmont raised millions for the Union and became an adviser to
President Lincoln.
Belmont sponsored a new horse race, the Belmont Stakes. The first running took place in
1867, making it the oldest of the three Triple Crown events. Belmont Park is named after
him and his imprint is intertwined with the history of the Kentucky Derby.
Belmont died in 1890, leaving a fortune in excess of $50 million.
© 2008 by
Daniel Alef, syndicated columnist and award-winning author of “Pale Truth,”
an American historical novel. Mr. Alef can be reached at dalef@titansoffortune.com.
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