Hubbry Logo
Marcus GoldmanMarcus GoldmanMain
Open search
Marcus Goldman
Community hub
Marcus Goldman
logo
8 pages, 0 posts
0 subscribers
Be the first to start a discussion here.
Be the first to start a discussion here.
Marcus Goldman
Marcus Goldman
Marcus Goldman
View on Wikipedia
from Wikipedia

Marcus Goldman (born Marcus Goldmann; December 9, 1821 – July 20, 1904) was a German American investment banker, businessman, and financier.[1] He was the founder of Goldman Sachs, which has since become one of the world's largest investment banks.[2]

Key Information

Early life

[edit]

Marcus Goldman was born on December 9, 1821, in Trappstadt, Kingdom of Bavaria, to an Ashkenazi Jewish family.[3][4] His father, Wolf Goldmann, was a farmer and cattle dealer.[3] His mother, Bella Katz Oberbrunner, who came from Zeil am Main, was widowed with five children from a former marriage; her first husband was called Samuel Oberbrunner.[3] His paternal grandfather was called Jonathan Marx until he changed his name to Goldmann when Jews were allowed to have surnames in 1811.[3] While attending classes at the synagogue in Würzburg, he met Joseph Sachs, who would become his lifelong friend.[5] In Bavaria, Goldman worked as a schoolteacher.[6]

Goldman immigrated to the United States from Frankfurt am Main, Germany, in 1848 during the first great wave of Jewish immigration to America, resulting from the Revolutions of 1848 in the German states. Upon his arrival in America, his name was changed to Marcus Goldman by US immigration.[7] He married Bertha Goldman (no relation to Goldman's family), who was 19 and also a Jewish immigrant.[8]

Career

[edit]

Goldman worked as a peddler with a horse-drawn cart and later as a shopkeeper in Philadelphia, where he initially rented the room in a boarding-house previously rented by his old friend Joseph Sachs.[7] He later became a shopkeeper, after setting up a clothing store on Market Street.[8] In 1869, Goldman relocated to New York City in search of a more profitable work.[8] He set up a shingle on Pine Street in lower Manhattan, with the legend "Marcus Goldman & Co.", identifying himself as a broker of IOUs.[6]

From his earliest days of his business, Goldman was able to single-handedly transact as much as $5 million worth of commercial paper a year. Successful though he was, Goldman's business was insignificant compared to that of the other Jewish-German bankers of the day. Concerns like J. & W. Seligman & Co., with working capital of $6 million in 1869 (equivalent of $145 million in 2025), were already modern-day investment bankers immersed in underwriting and trading railroad bonds.

In 1882, Goldman invited his son-in-law Samuel Sachs to join him in the business and changed the firm's name to M. Goldman and Sachs.[8] Business boomed—soon the new firm was turning over $30 million worth of paper a year—and the firm's capital was now $100,000 (equivalent of $3.3 million in 2025).

For almost fifty years after its inception, all of Goldman Sachs's partners were members of intermarried families. In 1885, Goldman took his own son Henry and his son-in-law Ludwig Dreyfuss into the business as junior partners and the firm adopted its present name, Goldman Sachs & Co. In 1894, Henry Sachs entered the firm, and in 1896, the firm joined the New York Stock Exchange.

When Goldman retired, he left the firm in the hands of his son Henry Goldman and his son-in-law Samuel Sachs. In 1904, two of Sachs' sons, Arthur and Paul, joined the firm immediately after graduating from Harvard University.

Personal life and death

[edit]

Goldman married eighteen-year-old Bertha Goldman, who had also immigrated from Germany. They had five children. Goldman's youngest daughter, Louisa, married Samuel Sachs, the son of close friends and fellow Lower Franconia, Bavaria immigrants.[1] Louisa's older sister and Sam's older brother had already married. His older son, Julius Goldman, married Sarah Adler, daughter of Samuel Adler.[9]

Goldman died in Elberon, New Jersey, in the summer of 1904.[10]

See also

[edit]

References

[edit]

Further reading

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Marcus Goldman

View on Grokipedia
from Grokipedia
Marcus Goldman (December 9, 1821 – July 20, 1904) was a German-American banker and financier who founded , a global investment bank that grew from a small commercial paper business into one of the world's most influential financial institutions. Born in Trappstadt, , as the eldest of five children to Wolf Goldmann and Ella Katz Oberbrunner, Goldman immigrated to the in at age 26, arriving amid the wave of German-Jewish migration following the failed revolutions of . Initially settling in , he worked as an itinerant peddler and shopkeeper before becoming a in 1853; in 1869, he moved to with his wife, Bertha Goldmann (whom he married around 1856), and their five children, including sons Julius and Henry. In 1869, at age 48, Goldman established his banking firm in a one-room basement office at 30 Pine Street in , initially focusing on purchasing promissory notes from merchants and reselling them to banks, thereby pioneering a forerunner to the modern market that facilitated short-term financing for businesses. The business expanded rapidly; in 1882, he brought in his son-in-law as a partner, followed by his son Henry in 1885, renaming the firm Goldman, Sachs & Co. By 1896, the firm had joined the , marking its entry into broader securities trading, and Goldman retired in 1900, leaving the partnership to family members, and died four years later at his summer home in .

Early Life and Immigration

Family Background and Childhood

Marcus Goldman was born Mark Goldmann on December 9, 1821, in the small village of Trappstadt in the Kingdom of , to an Ashkenazi Jewish family. His father, Wolf Goldmann, worked as a dealer and , managing a modest that formed the backbone of the family's livelihood in the rural region. His mother, Bella Katz Oberbrunner (also known as Ella), hailed from the nearby town of Zeil am Main and entered the as a ; Bavarian laws restricting Jewish property ownership and had left her unable to manage her inherited without a male guardian, leading Wolf to propose in 1820 to care for the . As the eldest of five children—siblings included Samuel (who died in infancy), Simon, Bella, and Regina—Goldman grew up in a blended household incorporating her children from her previous . Goldman's childhood unfolded in the close-knit Jewish community of Trappstadt, where he received a limited formal at a local school attended by both Christian and Jewish students. He excelled particularly in and began learning English, skills that hinted at his future aptitude for , though opportunities for advanced remained constrained in the rural setting. Later, he pursued additional studies with the at the Würzburg synagogue, where he honed his intellectual interests and first encountered Joseph Sachs, a connection that would prove significant years later. From an early age, Goldman assisted in the family trade, accompanying his father to cattle markets in and mastering the art of bartering, which instilled in him practical entrepreneurial instincts amid the daily challenges of rural life. The socio-economic hardships of 1840s profoundly shaped Goldman's upbringing, as the region grappled with famine, job scarcity for , and rising anti-Jewish sentiments fueled by restrictive laws and anti-monarchist uprisings. These conditions, compounded by the threat of mandatory military , created an environment of instability for Jewish families like the Goldmanns, limiting social mobility and exposing young Marcus to the precariousness of their existence. Despite these adversities, the family's livestock dealings provided a foundational exposure to , fostering resilience and a drive for self-reliance that would define his later pursuits.

Arrival in America and Early Occupations

Marcus Goldman immigrated to the from , , in 1848 at the age of 26, arriving in amid the and the promise of economic opportunities for Jewish immigrants fleeing and political unrest in . He traveled with his brother Simon aboard the ship Margaret Evans, which departed from and docked in Philadelphia on September 4, where they were greeted by a family friend, Joseph Sachs. Upon arrival, Goldman's name was anglicized from Mark Goldmann to Marcus Goldman, a change formalized during his in 1853 due to both a and his efforts to assimilate into American society. Upon settling in Philadelphia, Goldman began his economic survival as an itinerant , traveling rural areas of and with a horse-drawn cart to sell and to German-American communities and farmers. This occupation, common among Jewish immigrants lacking capital or connections, involved enduring long journeys on unpaved roads while hawking notions, fabrics, and ready-made apparel , often in exchange for , , or . He persisted in this role for about three years, navigating seasonal demands and building a modest reputation for reliability among customers in isolated regions. By the mid-1850s, Goldman transitioned from peddling to shopkeeping in , opening a small tailoring and store on with initial capital from his savings and a $5 for a . This retail venture allowed him to establish a fixed base, expanding his inventory to include wholesale that catered to the growing immigrant population and local laborers, gradually accumulating savings through steady trade in the city's bustling markets. His business relocated to larger premises on Market Street, reflecting incremental success in a competitive urban environment. As a Jewish immigrant, Goldman faced significant challenges, including language barriers that hindered communication in English-dominant settings and pervasive that limited access to , , and social networks in Protestant-majority Philadelphia. The (1861–1865) further disrupted his operations through shortages and economic uncertainty in the North. Despite these obstacles, his resilience in adapting to wartime demands for uniforms and textiles helped sustain his modest enterprise.

Career in Finance

Founding of the Firm

In 1869, at the age of 47, Marcus Goldman relocated from to with his family, seeking greater opportunities in the bustling financial center of the . He rented a modest one-room basement office at 30 Pine Street in , adjacent to a coal chute, to establish his new venture amid the city's thriving commercial hub. This move capitalized on New York’s role as a for and , drawing merchants from across the region. That same year, Goldman founded M. Goldman & Co. as a one-man operation, with only a part-time bookkeeper for support, funded entirely from his personal savings accumulated during prior years as a and . The firm specialized in brokering short-term loans by purchasing promissory notes—essentially IOUs from merchants—at a discount of 8 to 9 percent and reselling them to larger commercial banks for a profit. This model addressed the needs of small businesses unable to secure traditional bank financing due to strict lending practices post-Civil War. From the outset, Goldman targeted underserved clients such as wholesale jewelers on Maiden Lane and dealers, along with tanners in the nearby "Swamp" district along Beekman Street, who required quick, flexible funding for inventory and operations. By the end of his first year, the firm had transacted approximately $5 million in , equivalent to about $86 million in 2010 dollars, demonstrating rapid success in this niche. These early efforts laid the groundwork for Goldman's reputation in trading, building on the resilience honed from his peddling days.

Innovations in Commercial Paper Trading

Marcus Goldman pioneered a specialized niche in the discounting and reselling of , which consisted of short-term promissory notes issued by small merchants as IOUs for . He acquired these notes, typically valued between $2,500 and $5,000 (equivalent to approximately $43,000 to $86,000 in 2010 dollars), at an 8-9% discount from clients in industries like jewelry and tanning, then resold them to uptown commercial banks for a modest 0.5% commission. This practice effectively created an early for short-term debt instruments, allowing merchants access to quick without relying solely on traditional bank loans. To mitigate risk and scale operations, Goldman cultivated a network of relationships with reputable New York banks, securing their endorsements—often in the form of acceptances—that guaranteed the notes' repayment and enhanced their appeal to investors. This risk-reduction strategy enabled the firm to handle larger volumes of transactions while maintaining low default rates, as Goldman focused exclusively on vetted, small-scale borrowers rather than extending long-term credit. By the late 1870s, these innovations had driven the firm's annual turnover to $30 million (equivalent to about $660 million in 2010 dollars), underscoring the viability of his model in fostering a more fluid market for . Goldman's approach emphasized high-volume, low-margin trades tailored to small businesses, prioritizing steady profits over high-risk, high-reward deals. He avoided long-term loans, instead conducting rapid turnovers of notes that matured in 60 to 90 days, and built client loyalty through meticulous accuracy—personally walking and New York neighborhoods to verify merchants' creditworthiness. This reputation for reliability attracted repeat business from a growing roster of clients, differentiating his firm in a competitive landscape dominated by larger banks. During the , a severe economic downturn that triggered widespread bank failures and credit contraction, Goldman's firm not only survived but thrived due to its conservative practices and niche focus. As investors shifted capital toward tangible assets like jewelry— a key sector for his clients—demand for his discounted notes surged, allowing the business to expand and relocate uptown, further solidifying its stability amid the chaos.

Expansion and Partnerships

In 1882, Marcus Goldman invited his son-in-law to join the firm as a junior partner, forming a that enhanced its operational capabilities and renaming it . Sachs brought expertise in trading and , particularly in , which propelled the firm's expansion into international markets and diversified its activities beyond domestic . This collaboration marked a pivotal step in the firm's growth, with its capital reaching $100,000 by that year—equivalent to approximately $3.3 million in 2024 dollars—reflecting the success of its operations. In 1885, Goldman's son Henry joined the firm, focusing on activities that broadened its scope into securities issuance and helped establish it as a key player in capital markets; the firm was then renamed Goldman, Sachs & Co., solidifying involvement in leadership. Henry's contributions, alongside Sachs's trading acumen, strengthened control over operations and drove further expansion. A significant milestone came in 1896 when gained admission to the as a member firm, with partner Harry Sachs securing the first seat for the company. This membership elevated the firm's visibility and access to equity trading, facilitating growth in client relationships. By the , the firm shifted toward government bonds, notably participating in the U.S. Treasury's $50 million gold reserve bond issue in 1894, and expanded its client base to include larger corporations seeking long-term financing beyond short-term . These developments underscored the firm's evolution into a multifaceted investment house under family stewardship.

Personal Life and Legacy

Marriage, Family, and Community Involvement

Marcus Goldman married Bertha Goldman, an 18-year-old German immigrant from with no familial relation to him, in on July 21, 1850. The couple celebrated their golden wedding anniversary at their summer home in . Together, they had five children: sons Julius, born in 1852, and Henry, born in 1857 and who lived until 1937; and daughters Rebecca, Rosa, born in 1854, and Louisa, born in 1855. Rebecca married Ludwig Dreyfuss, Rosa wed , and Louisa married , forging social and business ties with other prominent German-Jewish families. These intermarriages exemplified the interconnected networks among immigrant Jewish financiers in New York, blending family loyalty with professional alliances. The Goldmans' residences reflected their ascent from modest beginnings to affluence. In , they initially lived in a rowhouse at 13 West North Street before moving to a larger home as Marcus's early ventures succeeded. In 1869, the family relocated to , settling first at 4 West 47th Street in and later at a on West 70th Street by the 1880s, amid the city's burgeoning financial elite. Goldman maintained a peripheral role in the elite circles of German-Jewish-American bankers, known as "Our Crowd," where he socialized with families like the Sachses but did not occupy a central position. His community involvement centered on modest philanthropic contributions to Jewish organizations in New York, including support for immigrant aid efforts, though he avoided prominent leadership in institutions like Temple Emanu-El. The family emphasized education and , sending sons Julius and Henry to —Julius for pre-law studies and Henry briefly before withdrawing due to vision issues—and to the Sachs Collegiate Institute. The children were raised bilingual in English and German, with summer visits to to preserve their heritage while integrating into American society.

Death and Long-Term Impact

In the 1890s, Marcus Goldman began semi-retiring from the day-to-day operations of & Co., gradually handing over management to his sons and son-in-law while maintaining oversight as senior partner. He fully retired in 1900, after which his son Henry assumed a leading role in the firm. Goldman died on July 20, 1904, at his summer home in , at the age of 82, following a prolonged period of declining health. He was buried in Salem Fields Cemetery in Brooklyn, New York. Goldman's will emphasized family unity in the business, designating Henry as senior partner and co-leader, with his estate distributed among his widow and children. Under the leadership of his family, particularly Henry Goldman, the firm evolved from a commercial paper trader into a major investment bank, expanding into underwriting and securities that pioneered access to investment banking for retail clients, such as through innovative deals like the Sears, Roebuck & Co. public offering. Goldman's career exemplified immigrant on , providing a model for German Jewish financiers who built enduring institutions through and . His descendants extended this influence, with Henry playing a key role in World War I-era financing efforts, including support for international bonds amid geopolitical tensions that ultimately led to his departure from the firm in 1917.
Add your contribution
Related Hubs
User Avatar
No comments yet.