World Library  
Flag as Inappropriate
Email this Article

Jacob Schiff

Article Id: WHEBN0001387270
Reproduction Date:

Title: Jacob Schiff  
Author: World Heritage Encyclopedia
Language: English
Subject: Edward Warburg, History of the Technion – Israel Institute of Technology, History of investment banking in the United States, Russo-Japanese War, People by year/Reports/No other categories/2
Collection: 1847 Births, 1920 Deaths, American Bankers, American Financiers, American People of German-Jewish Descent, American Philanthropists, American Reform Jews, Businesspeople from Frankfurt, Businesspeople from New York City, Central Bankers, German Emigrants to the United States, German Reform Jews, Jewish American Philanthropists, Jewish Pacifists, Jewish Philanthropists, Loeb Family, People from Frankfurt, People of the Russo-Japanese War, Progressive Era in the United States, Recipients of the Order of the Rising Sun, 2Nd Class, Recipients of the Order of the Sacred Treasure, Schiff Family, Wells Fargo
Publisher: World Heritage Encyclopedia
Publication
Date:
 

Jacob Schiff

Jacob Schiff
Portrait of Jacob Schiff, by Aime Dupont
Born Jakob Heinrich Schiff
(1847-01-10)January 10, 1847
Frankfurt, Germany
Died September 25, 1920(1920-09-25) (aged 73)
New York City, New York, U.S.
Nationality German
American
Occupation Banker and businessman
Spouse(s) Therese Loeb (m. 1875)
Children Frieda Schiff (1876–1958)
Mortimer L. Schiff (1877–1931)

Jacob Henry Schiff (born Jakob Heinrich Schiff; January 10, 1847 – September 25, 1920) was an American banker, businessman, and philanthropist. He helped finance, among many other things, the Japanese military efforts against Tsarist Russia in the Russo-Japanese War.

Born in Frankfurt, Germany, Schiff migrated to the United States after the American civil war, and joined the firm Kuhn, Loeb & Co.[1] From his base on Wall Street, he was the foremost Jewish leader from 1880 to 1920 in what later became known as the "Schiff era", grappling with all major Jewish issues and problems of the day, including the plight of Russian Jews under the Tsar, American and international anti-semitism, care of needy Jewish immigrants, and the rise of Zionism.[2][3] He also became a director of many important corporations, including the National City Bank of New York, Equitable Life Assurance Society, Wells Fargo & Company, and the Union Pacific Railroad. In many of his interests he was associated with E. H. Harriman.

Contents

  • Early life 1
  • Kuhn, Loeb & Company 2
  • National loans 3
  • Charitable endeavors 4
  • Last years 5
  • Legacy 6
  • Family 7
  • Notes 8
  • References 9
  • External links 10

Early life

Schiff was born in 1847 in Frankfurt am Main, Germany, to Moses and Clara (née Niederhofheim) Schiff, members of a distinguished Ashkenazi Jewish rabbinical family that traced its lineage in Frankfurt back to 1370. His father, Moses Schiff, was a broker for the Rothschilds.[1] Schiff was educated in the schools of Frankfurt and was first employed in the banking and brokerage business as an apprentice in 1861.[4][5] After the American Civil War had ended in April, 1865, Schiff came to the United States, arriving in New York City on August 6. He was licensed as a broker on November 21, 1866, and joined the firm of Budge, Schiff & Company in 1867. He became a naturalized citizen of the United States in September 1870.[5]

Upon the dissolution of Budge, Schiff & Company in 1872, Schiff decided to return to Germany. In 1873 he became manager of the Hamburg branch of the London & Hanseatic Bank. He returned to Frankfurt, however, upon the death of his father later that year. In 1874 Abraham Kuhn of the banking firm of Kuhn, Loeb & Company invited him to return to New York and enter the firm.[5]

Kuhn, Loeb & Company

Schiff accepted Kuhn's invitation in January 1875, bringing to Kuhn, Loeb & Company his connections with Sir Ernest Cassel of London, Robert Fleming of Dundee (later of London), and Edouard Noetzlin of the Banque de Paris et des Pays-Bas.[5] On May 6, 1875, he married Therese Loeb, daughter of Solomon Loeb. The couple were the parents of a son, Mortimer L. Schiff and a daughter, Frieda.[4][5][6]

In 1885 Schiff became head of Kuhn, Loeb & Company. Besides financing such Eastern railroads as the Metropolitan Street Railway of New York.[5]

He became associated with Equitable Life Assurance Society, National City Bank of New York, Central Trust Company, Western Union Telegraph Company, Union Pacific Railroad, Bond & Mortgage Guarantee Company, and Wells Fargo & Company. He was elected a director of Wells Fargo in September 1914 to succeed his brother-in-law, Paul Warburg, who had resigned to accept appointment to the original Federal Reserve Board.[4][5][7][8]

National loans

What was perhaps Schiff's most famous financial action was during the Russo-Japanese War, in 1904 and 1905. Schiff met Takahashi Korekiyo, deputy governor of the Bank of Japan, in Paris in April 1904. He subsequently extended loans to the Empire of Japan in the amount of $200 million, through Kuhn, Loeb & Co.[5] These loans were the first major flotation of Japanese bonds on Wall Street, and provided approximately half the funds needed for Japan's war effort.[9] Schiff made this loan partly because he believed that gold was not as important as national effort and desire in winning a war, and due to the apparent underdog status of Japan at the time; no European nation had yet been defeated by a non-European nation in a modern, full-scale war. It is quite likely Schiff also saw this loan as a means of answering, on behalf of the Jewish people, the anti-Semitic actions of the Russian Empire, specifically the then-recent Kishinev pogrom.

This loan attracted worldwide attention, and had major consequences. Japan won the war, thanks in large part to the purchase of munitions made possible by Schiff's loan. Some of the Japanese leadership saw this as evidence of the power of Jews all around the world, raised the issue of Jewish loyalties in the Diaspora and as proof of the truth of the Protocols of the Elders of Zion. In 1905, Japan awarded Schiff the Order of the Sacred Treasure;[10] and in 1907, the Order of the Rising Sun, Gold and Silver Star, the second highest of the eight classes of that Order.[11] Schiff was the first foreigner to receive the Order in person from Emperor Meiji in the Imperial Palace.[12] Schiff also had a private audience with King Edward VII of the United Kingdom in 1904.

In addition to his famous loan to Japan, Schiff financed loans to many other nations, including those that would come to comprise the Central Powers. During World War I, Schiff urged U.S. President Woodrow Wilson and other Allied statesmen to end the war as quickly as possible, even without an Allied victory. He feared for the lives of his family, back in Germany, but also for the future of his adopted land. He arranged loans to France and other nations for humanitarian purposes, and spoke out against submarine warfare.

Schiff made sure none of the funds from his loans ever went to the Russian Empire, which he felt oppressed Jewish people. When the Russian Empire fell in 1917, Schiff believed that the oppression of Jews would end. He formally repealed the impediments within his firm against lending to Russia.

Charitable endeavors

Schiff always felt strongly about his connection to the Jewish people, and demonstrated this through his philanthropy. He supported relief efforts for the victims of pogroms in Russia, and helped establish and develop Hebrew Union College, the Jewish Theological Seminary, the Jewish Division in the New York Public Library, and the American Jewish Committee.

Schiff grew to be one of American Jewry's top philanthropists and leaders, donating to nearly every major Jewish cause, New York examples being the Montefiore Home for Chronic Invalids, of which he was president, the A practitioner of

The Action Française movement and its leader, Charles Maurras, claimed that Schiff was thoroughly pro-German and had worked to prevent American entry into World War I. Maurras went so far as to suggest that a telegram from Schiff and other prominent American Jewish leaders convinced President Wilson to give in to certain German arguments at the post-war peace negotiations – including allowing Upper Silesia to have a plebiscite rather than being ceded to Poland.[16] The telegram is not known to have actually existed. Moreover, it has been argued that Schiff stopped financing transactions for Germany or the Central Powers as of 1914, stopped speaking German in public and was eager to demonstrate his moral and financial commitment to the Allied cause.[17]

Last years

[15].Tweed Ring which resulted in the overthrow of the Committee of 70, and a member of the New York Chamber of Commerce Schiff was actively concerned with the improvement of civic conditions in New York. He was a vice president of the [14] noted that Schiff helped finance revolutionary propaganda during the Russo-Japanese war and revolution of 1905.[19] The Jewish Communal Register of New York City stated that "Mr. Schiff has always used his wealth and his influence in the best interests of his people. He financed the enemies of autocratic Russia and used his financial influence to keep Russia from the money markets of the United States."[20]

Schiff died in New York City on September 25, 1920. His estate was estimated at about $50,000,000 ($620,000,000 in 2015). He bequeathed $1,350,000 to various institutions, most of which had received benefactions during his life. The largest bequests were $500,000 to the Federation for the support of Jewish Philanthropic Societies of New York City and $300,000 to the Montefiore Home.[14] He was succeeded as head of Kuhn, Loeb & Company by his son, Mortimer Leo Schiff (1877–1931).[5]

Legacy

Schiff was inducted into the Junior Achievement U.S. Business Hall of Fame in 1982.

The Jacob Schiff Center, named after him, was a prominent Jewish cultural center and synagogue from the 1930s through at least the 1960s. It was located on Valentine Avenue, near the intersection of Fordham Road and the Grand Concourse in the Fordham section of the Bronx.[21]

Family

Schiff's descendant Andrew Newman Schiff was married to former Vice President Al Gore′s daughter, Karenna.

Notes

  1. ^ a b http://jewishencyclopedia.com/articles/13266-schiff
  2. ^ Naomi Wiener Cohen, Jacob H. Schiff: a study in American Jewish leadership
  3. ^ Glazer, N (1957) American Judaism, UCP.
  4. ^ a b c d The National Cyclopaedia of American Biography, Vol. XIII, p. 533. New York: James T. White & Company, 1906.
  5. ^ a b c d e f g h i j "Schiff, Jacob Henry".  
  6. ^ Their daughter Frieda Schiff-Warburg (February 3, 1876 – September 14, 1958); married Felix M. Warburg in 1895. Both her husband and her brother became partners in Kuhn, Loeb & Co.
  7. ^ Walter Lord, The Good Years. From 1900 to the First World War, pp. 71–79. New York: Harper & Brothers, 1960.
  8. ^ Noel M. Loomis, Wells Fargo, p. 315. New York: Clarkson N. Potter, Inc., 1968.
  9. ^  , p. 344-345.
  10. ^ Cyrus Adler, Jacob Henry Schiff: A Biographical Sketch, p. 12. New York: The American Jewish Committee, 1921
  11. ^ Adler, p. 14.
  12. ^ Pamela Rotner Sakamoto, Japanese Diplomats and Jewish Refugees, p. 17. Westport, Conn.: Praeger Publishers, 1998.
  13. ^ a b  Rines, George Edwin, ed. (1920). "Schiff, Jacob Henry".  
  14. ^ a b  Chisholm, Hugh, ed. (1922). "Schiff, Jacob Henry".  
  15. ^  
  16. ^ Charles Maurras, Dictionnaire Politique et Critique, 1930–32, vol. II, pages 361–3.
  17. ^ Stephen Birmingham, Our Crowd: The Great Jewish Families of New York, at p. 316–7
  18. ^ "Schiff: Jacob Henry schiff". Jewish Encyclopedia.
  19. ^ http://query.nytimes.com/gst/abstract.html?res=F10F15FA3F5E11738DDDAD0A94DB405B878DF1D3
  20. ^ The Jewish Communal Register of New York City, 1917-1918, Second Edition, Kehillah, New York, (1919), p. 1019
  21. ^ Julian Voloj, "On Fordham Road: Signs of the Times". The New York Times. October 22, 2006.

References

  • Cohen, Naomi Wiener. (1999). Jacob H. Schiff: a Study in American Jewish Leadership. Hanover, New Hampshire: University Press of New England. ISBN 978-0-87451-948-8: OCLC 123134648
  • Schiff, Jacob Henry and Cyrus Adler. (1928). Jacob H. Schiff; his Life and Letters. Garden City, New York: Doubleday. OCLC 801997

External links

  • Jewish Encyclopedia
  • , about contribution from Jacob SchiffThe Lady UpstairsExcerpt from the book
This article was sourced from Creative Commons Attribution-ShareAlike License; additional terms may apply. World Heritage Encyclopedia content is assembled from numerous content providers, Open Access Publishing, and in compliance with The Fair Access to Science and Technology Research Act (FASTR), Wikimedia Foundation, Inc., Public Library of Science, The Encyclopedia of Life, Open Book Publishers (OBP), PubMed, U.S. National Library of Medicine, National Center for Biotechnology Information, U.S. National Library of Medicine, National Institutes of Health (NIH), U.S. Department of Health & Human Services, and USA.gov, which sources content from all federal, state, local, tribal, and territorial government publication portals (.gov, .mil, .edu). Funding for USA.gov and content contributors is made possible from the U.S. Congress, E-Government Act of 2002.
 
Crowd sourced content that is contributed to World Heritage Encyclopedia is peer reviewed and edited by our editorial staff to ensure quality scholarly research articles.
 
By using this site, you agree to the Terms of Use and Privacy Policy. World Heritage Encyclopedia™ is a registered trademark of the World Public Library Association, a non-profit organization.
 


Copyright © World Library Foundation. All rights reserved. eBooks from Project Gutenberg are sponsored by the World Library Foundation,
a 501c(4) Member's Support Non-Profit Organization, and is NOT affiliated with any governmental agency or department.