Background
Astor was born in Waldorf, Germany, on July 17, 1763, the youngest son of Johann Jakob Astor, a poor but convivial butcher, and Maria Magdalena Vorfelder. His three elder brothers were George, Henry, and Melchior.
Astor was born in Waldorf, Germany, on July 17, 1763, the youngest son of Johann Jakob Astor, a poor but convivial butcher, and Maria Magdalena Vorfelder. His three elder brothers were George, Henry, and Melchior.
In spite of the family's poverty, Astor was sent to the local schoolmaster, who provided him with an exceptional education, considering the times. In London he learned English.
When Astor reached the age of 14, his father decided that his son should work with him. The boy assisted for 2 years before, in 1779, he struck out on his own. He joined a brother in London, where he worked to earn passage money to America.
In 1783, after the peace treaty ending the American Revolution had been signed, he sailed for the United States to join another brother who had emigrated earlier. Astor landed at Baltimore in March 1784. He soon joined his brother in New York and began to demonstrate his talent for business. He received a shipment of flutes from England, which he offered for sale, while working for several furriers. He later began buying furs on his own. In 1784 and 1785 Astor made fur-buying trips to western New York for his employers, purchasing furs for himself at the same time. He acquired enough to make a trip to England profitable. In London he established connections with a reputable trading house, signed an agreement to act as the New York agent for a musical instrument firm, and used his profits from the furs to buy merchandise suitable for trade with the Native Americans.
Not yet 22, Astor had already proved himself a shrewd and competent businessman. His initial success convinced him that a fortune could be made in the fur trade. He began to spend more time managing and expanding his business. Between 1790 and 1808 his agents collected furs from as far west as Mackinaw, Michigan. The Jay Treaty and the British evacuation of forts in the Old Northwest worked to Astor's advantage, and he expanded his operations in the Great Lakes region. Through an arrangement with the British Northwest Company, he purchased furs directly from Montreal. By about 1809 he was recognized as one of the leading fur traders in the United States. Following the Louisiana Purchase, Astor turned his attention to the fur trade in the Pacific Northwest. Through shrewd political maneuvers he obtained a charter for the American Fur Company.
After the War of 1812 Astor renewed his efforts to gain control of the fur trade in North America. Through influence in Congress he secured legislation that prohibited foreigners from engaging in the trade except as employees and that eliminated the government's trading post serving independent traders. By the late 1820's he monopolized the fur trade in the Great Lakes region and most of the Mississippi Valley. This monopoly put him into direct competition with the Rocky Mountain Fur Company and British fur interests in the Pacific Northwest. However, by 1830 Astor's interest in the company had begun to decline. Through his dealings in the fur trade he became involved in general merchandising.
Astor retired from the American Fur Company and withdrew from both domestic and foreign trade in 1834. He turned to other investments, including real estate, money-lending, insurance companies, banking, railroads and canals, public securities, and the hotel business. The most important was real estate. He had invested some capital in land early in his career. After 1800 he concentrated on real estate in New York City. He profited not only from the sale of lands and rents but from the increasing value of lands within the city. During the last decade of his life his income from rents alone exceeded $1,250,000. A reliable estimate placed his total wealth at $20-30 million (the greatest source being his land holdings on Manhattan Island) at his death on March 29, 1848, at the age of 84.
Astor remained a member of the local German Reformed congregation to his death.
On September 19, 1785, Astor married Sarah Cox Todd (1762-1842), the daughter of Scottish immigrants Adam Todd and Sarah Cox. They had eight children.