John Jacob Astor (1763–1848) fur trader, real estate developer, and financier

Astor was born in Waldorf, Baden (today Germany). He arrived in the United States at age 21, landing in Baltimore in 1784. On the voyage to New York, his ship was frozen in Chesapeake Bay for part of the winter. While on board, he met someone who told him stories of fur trading in the Pacific Northwest, and he became determined to enter the business. Although often thought to have arrived in America as a penniless youth, within two years he had established a musical instrument business, suggesting at least some moderate means.

With the Treaty of Paris in 1763 and then the American War of Independence, many of the existing business structures in North America were changing. Understanding the changing market conditions as a result of the Revolution, Astor moved into the fur business, selling furs and purchasing trade goods in New York, Albany, and Montreal, then transporting them to New York for direct sale in Europe.

By 1790, Astor also became involved in the China trade, along with Montreal merchants. He held a small but guaranteed share in China ships along with Alexander Henry, and McTavish, Frobisher and Company. With the profits from these ventures, Astor began to buy land both in Lower Canada and in the Mohawk Valley. The business pattern that emerged by 1794 of trading furs, the China trade, and land, would continue into the future and earn Astor a large fortune.

The implementation of Jay’s Treaty in 1794 between the United States and Canada led to a further reorganization of trade and a break with the North West Company. In the next 20 years, Astor began profitably to expand his involvement in the China trade and to expand his fur trading activities. These activities in many ways mirrored the westward movement of the new republic. In 1808, the American Fur Company was chartered in New York and by the end of 1811 had established Astoria at the headwaters of the Columbia River. In that same year, Astor became a partner in the South West Company. Throughout this period, Astor used some of his profits to buy land in New York City. His purchases made him one of the city’s largest landowners, and parts of the city were eventually named after him, especially in the borough of Queens.

The War of 1812 led to a number of changes. Although the American Fur Company would continue to operate for decades, Astoria was sold to the North West Company in 1813. In New York, Astor became involved in war financing, buying and selling government bonds profitably, along with Stephen GIRARD and the American representative of BARING BROTHERS, the British bank. He subsequently became involved in the Second BANK OF THE UNITED STATES and its branch in New York.

With the death of his grandson in 1819, Astor’s direct involvement in his business affairs was reduced. Leaving them in the hands of his son, William, he sailed to Europe, where he stayed on and off for much of the remainder of his life. He became known as the wealthiest American of his day, and his fortune was one of the first significant ones to be accumulated in the 19th century. He was reputed to be the first American millionaire. When he died in 1848, John Jacob Astor had a net worth of $20 million. In his will, he bequeathed $400,000 for the establishment of a reference library in New York City.

Astor also began a family dynasty that continues to this day. Astors have become prominent in publishing, real estate, and British politics as well.

Further reading

Haeger, John Dennis. John Jacob Astor: Business and Finance in the Early Republic. Detroit: Wayne State University Press, 1991.
Smith, Arthur D. Howden. John Jacob Astor, Landlord of New York. New York: Blue Ribbon Books, 1929.
Madsen, Axel. John Jacob Astor: America’s First Millionaire. New York: John Wiley & Sons, 2001.

Ann M. Carlos and Frank D. Lewis