August Belmont

August Belmont Sr.
Born	Template:Birth date Alzey, Grand Duchy of Hesse
Died	November 24, 1890(1890-11-24) (aged 76)
Occupation(s)	Financier, diplomat, political figure
Known for	Democratic National Committee leader (1860–1872), founder of Belmont Stakes

August Belmont Sr. (originally named Aron Belmont; December 8, 1813–November 24, 1890) was a financier, diplomat, and political figure of German-American descent. He led the Democratic National Committee from 1860 until 1872. Belmont was also a prominent thoroughbred racehorse owner and established the Belmont Stakes, which constitutes the third event in the American Triple Crown of Thoroughbred Racing series.

Early life

Born as Aron Belmont in 1813 into a Jewish family in Alzey, then within the Grand Duchy of Hesse, his father Simon Belmont held a notable position as a community leader and synagogue president. The family traced its roots to Spanish Jews who fled the Iberian Peninsula during the era of Ferdinand and Isabella. Early in life, he adopted the name August. His mother, Frederika Elsass Belmont, passed away when he was seven years old.

Following this loss, he resided with relatives in Frankfurt and attended the Philanthropin school, an institution founded by Mayer Amschel Rothschild designed to foster integration between Jewish and Christian populations. At age fifteen, financial hardships compelled him to leave formal education; however, his family's ties to the Rothschilds secured him an apprenticeship within their banking enterprise. There, he was trained in languages and commercial expertise, advancing to the role of confidential clerk by 1832. Two years later, he became secretary and traveling aide to one of the firm's partners, accompanying him on journeys to Paris, Naples, and the Vatican.

Business career

In 1837, due to concerns from Rothschild offices in Paris and London about their investments in the unstable Spanish Empire amid the Carlist War, Belmont was dispatched to sail for Cuba via New York City. Upon arrival during the Panic of 1837, he discovered that their American agents, J.L. and S.I. Joseph & Co., had collapsed with liabilities amounting to $7 million. Acting on his own initiative, Belmont delayed his voyage to Cuba and assumed control over Rothschild interests in New York by founding August Belmont & Co. at 78 Wall Street. The Rothschild family later ratified his actions by appointing him their official U.S. representative.

August Belmont & Company

From 1837 through 1842, Belmont swiftly developed August Belmont & Company into a vital financial intermediary for both the Rothschilds and their clientele. The firm dealt in foreign exchange transactions, commercial and private lending, commercial paper issuance, and deposit management. Utilizing European connections, Belmont attracted private capital from corporations, railroad enterprises, and governments. Capitalizing on Rothschild credit following the Panic of 1837, he purchased distressed banknotes, securities, commodities, and real estate at significant discounts—sometimes as low as ten cents per dollar. Employing early forms of securitization, he innovated sophisticated international credit operations on Wall Street. Recognized as an expert arbitrageur and nicknamed "King of the Money Changers," Belmont accumulated a personal wealth of $100,000 within three years—establishing himself among New York’s wealthiest individuals and a leading private banker by age twenty-six.

During the late 1840s, Belmont’s autonomy from the Rothschilds grew even as their relationship became more distant. In 1847, his firm received authorization from the U.S. government to transfer $3 million to Mexico for war reparations without charging any commission as a gesture of goodwill. However, when competing for a subsequent $5 million government loan alongside Corcoran & Riggs, Belmont secured only half that amount. He also extended a loan of five million pesos to the California Territory; although the Rothschilds considered publicly dissociating from this transaction, they ultimately refrained. In 1849, while mentoring Alphonse James de Rothschild during his visit to America, Belmont privately feared replacement; Alphonse returned to manage family interests in Paris.

While Belmont fulfilled diplomatic duties in the Netherlands, Charles Christmas and Erhard A. Matthiessen oversaw business operations through Christmas, Matthiessen & Company.

Diplomatic and Early Political Involvement

A steadfast Democratic Party supporter throughout his life, Belmont initiated his political activities in 1844 by campaigning for James K. Polk during the presidential race—the very year he obtained American citizenship. He was appointed as consul general representing the Austrian Empire in New York City, acting on behalf of the Habsburg family throughout the Mid-Atlantic States. He stepped down from this role in 1850, driven by his disapproval of Austrian policies toward Hungary and an increasing dedication to U.S. political affairs.

1852 Presidential Campaign

By 1849, Belmont had established a connection with Louisiana Democrat John Slidell through the Union Club of New York. Encouraged by Slidell’s influence, Belmont ventured into politics despite the majority of his business contacts being aligned with the Whigs.

Together, they supported former Secretary of State James Buchanan for the presidency in 1852, with the goal of uniting New York Democrats alongside Southern interests. To mitigate concerns about Southern interference, Slidell appointed Belmont to oversee the campaign efforts in New York. During this period, New York’s Democratic Party was deeply divided over slavery issues; anti-slavery "Barnburners" had broken away in 1848 to back the Free Soil Party’s Martin Van Buren. Throughout 1851 and early 1852, Belmont and Slidell endeavored to rally factions behind Buchanan, which included acquiring control of the New York Morning Star newspaper, yet they were unable to surpass support for favorite candidates William L. Marcy or Lewis Cass. Attempts to endorse Marcy or Stephen A. Douglas at the 1852 Democratic National Convention also faltered; instead, Franklin Pierce emerged as a surprise nominee.

Belmont contributed financially to Pierce’s campaign but encountered criticism from Whig newspapers accusing him of using foreign "Jew gold" and maintaining divided loyalties between the Habsburg dynasty and Rothschild banking interests. After New-York Tribune editor Horace Greeley refused to retract these allegations, Belmont sought backing from Democratic outlets such as the New York Herald and Evening Post to defend his reputation. This media dispute became known as the "Belmont affair."

Minister to the Netherlands (1853–1857)

Following Pierce’s decisive victory in 1852, he appointed Buchanan and Belmont to diplomatic positions in the United Kingdom and the Netherlands respectively. Belmont served as Chargé d'Affaires at The Hague beginning October 11, 1853; his title was elevated to Minister Resident on September 26, 1854. He maintained this post until September 22, 1857. During his service, Belmont successfully negotiated two significant treaties with Dutch authorities: a commercial agreement in 1855 granting American access to the Dutch East Indies and an extradition treaty finalized in 1857.

Ostend Manifesto

Soon after Pierce assumed office, Belmont proposed a plan to Buchanan aimed at acquiring Cuba by applying military pressure and diplomatic leverage on Spain, utilizing financial influence from European banking houses holding Spanish bonds. In their correspondence, Belmont suggested that Pierce’s envoys in London, Paris, and Naples cultivate a diplomatic climate conducive to Spain’s surrender. He expressed interest in serving as minister in Naples; although Buchanan endorsed the strategy, he omitted Belmont’s name when presenting it to Pierce. Belmont later petitioned Secretary of State William Marcy for the Naples appointment but was instead assigned to The Hague.

While traveling to The Hague, Belmont met with Buchanan and Lionel de Rothschild in London as well as influential contacts in Madrid. He reported Spain’s precarious financial condition and proposed fomenting rebellion in Cuba should Spain resist selling the island. In October 1853, he requested a confidential fund of $40,000–$50,000 from Marcy intended for bribing Spanish officials sympathetic to Cuban independence and initiated secret negotiations with a pro-sale Spanish minister stationed in The Netherlands. However, worsening relations between Spain and the U.S.—aggravated by U.S. Minister Pierre Soulé’s confrontational approach—and Spain’s internal revolution of 1854 diminished chances for a sale.

Under pressure from expansionist advocates including Belmont, President Pierce commissioned Buchanan, Soulé, and John Y. Mason to draft a report on this initiative. Although Slidell recommended involving Belmont due to his Rothschild connections, he was excluded from their October 9, 1854 meeting in Ostend, Belgium. Their report endorsed seizing Cuba by force if Spain declined to sell; this document became known as the Ostend Manifesto. The scheme ultimately unraveled after its exposure by the New York Herald and opposition gains during the 1854 elections.

Gibson incident

During his tenure as chargé d'affaires, Belmont was assigned the task of negotiating a trade accord to permit American vessels access to the Dutch East Indies. However, his mission was disrupted by an international controversy surrounding the detention of American adventurer Walter M. Gibson, accused of inciting rebellion in the region. In 1851, Gibson was apprehended for collaborating with the Sultan of Djambi in a plot to challenge Dutch control over Sumatra. Although initially acquitted on a procedural issue, the Dutch Minister of Justice overturned this verdict and imposed a twelve-year prison sentence. Gibson escaped to Washington in 1853, seeking protection from the Pierce administration and compensation for his arrest and the loss of his ship. Both Secretary Marcy and public opinion in America were sympathetic to Gibson.

Tensions intensified in the summer of 1854 when Gibson appeared in The Hague, falsely presenting himself to Belmont as a special envoy appointed by Marcy. His unauthorized presence disrupted Belmont's diplomatic efforts and stirred public demand in the Netherlands for Gibson’s arrest. Belmont’s standing weakened further when he took leave for Bohemia due to rheumatism. During this period, Gibson absconded with Belmont’s case files and traveled to Paris, where he falsely claimed affiliation with American diplomats and leaked damaging reports to the New York Tribune. These articles criticized Pierce’s foreign policy and accused Belmont of exploiting his diplomatic position for banking interests linked to the Crimean War.

Although Marcy ultimately dismissed Gibson’s allegations and commended Belmont’s conduct, the episode tarnished Belmont’s reputation within the United States. Both the Tribune and the Democratic New York Herald launched persistent attacks against him, employing anti-Semitic and xenophobic language.

Buchanan administration (1857–60)

While stationed at The Hague, Belmont cultivated a close relationship with James Buchanan through frequent correspondence. As Pierce’s administration faltered amid the Kansas crisis, Belmont anticipated Buchanan’s emergence as the Democratic Party’s presidential candidate. John Slidell spearheaded support for Buchanan’s 1856 nomination; after resigning his diplomatic post in March 1856 and visiting Belmont in The Hague, Buchanan returned to secure both nomination and election. Although some narratives suggest Belmont played a significant financial and strategic role in Buchanan’s campaign, biographer Irving Katz notes that Belmont did not return to America until late 1857; nonetheless, he did provide monetary support. Media outlets attempted to undermine Buchanan by linking him unfavorably with Belmont.

Expecting an elevation within the diplomatic ranks under Buchanan’s presidency, Belmont was instead offered only another four-year term at The Hague, which he declined, opting to resign. Upon returning to the U.S., he encountered factional disputes within the Democratic Party between Buchanan and Senator Stephen Douglas over Kansas's Lecompton Constitution. Despite his personal sympathies toward Douglas, Belmont publicly endorsed Buchanan’s proslavery position in 1858 by organizing petitions advocating for Kansas's admission as a slave state and defending Buchanan’s policies against Republican criticism at Tammany Hall gatherings.

In 1858, Belmont pursued appointment as Minister to Spain but was overlooked—partly due to Buchanan favoring John Slidell as Minister to France and also because of Belmont's controversial involvement in the Ostend Manifesto. This rejection prompted Belmont to sever ties definitively with both Buchanan’s administration and Slidell after refusing to transmit an irate letter from Slidell to Buchanan. Shifting his allegiance from Buchanan to Douglas, Belmont aligned himself with New York Democrats’ moderate "Softshell" faction that supported a pluralistic approach on slavery through popular sovereignty. In October 1859, he played a role in establishing the Democratic Vigilant Association—a commercial coalition backing trade with the South—to counteract disunionist abolitionist factions.

1860 conventions and election

Belmont served as a delegate at the 1860 Democratic National Convention, where he emerged as the leader of the Douglas faction within the New York delegation. Despite facing criticism for his associations with Buchanan and Slidell, he played a pivotal role. Accompanied by Salomon James de Rothschild as a guest, Belmont attended the tumultuous Charleston convention. Following its disintegration, he advised Douglas on campaign tactics and financed rallies in New York aimed at consolidating Northern Democrats. Although Douglas secured the nomination at the Baltimore convention, he lacked Southern backing. Belmont was appointed to represent New York on the Democratic National Committee and quickly ascended to its chairmanship, a role he maintained for more than ten years. His leadership is credited with elevating the position into a significant national political office, strengthening party organization and fundraising efforts.

American Civil War

As a dedicated "War Democrat," Belmont actively supported the Union during the conflict. He collaborated with Representative Francis P. Blair Jr. to raise the Union Army’s first predominantly German-American regiment. Utilizing his European connections, Belmont sought to dissuade financial aid for the Confederacy by engaging with British and French officials, although some sources indicate that European financiers did provide support to the South. In New York, he played a role in establishing the Democratic Vigilant Association, which aimed to defend Southern interests while preserving party cohesion.

Following the war, Belmont confronted what he described as "the most disastrous epoch" for Democrats during his tenure as DNC chairman. Together with Samuel Tilden, he invested in the New York World to create a prominent Democratic media platform. Reports from 1864 suggested Belmont had purchased Southern bonds on behalf of the Rothschilds, indicating possible Southern sympathies. Exploiting divisions within the Republican Party in the postwar period, he organized party conventions and promoted Salmon Chase as a presidential candidate in 1868, viewing him as least susceptible to accusations of disloyalty linked to the Lincoln-Johnson administrations.

1868 and 1872 elections

The electoral defeat of Horatio Seymour in 1868 was soon eclipsed by the catastrophic 1872 presidential bid of Liberal Republican Horace Greeley. By 1870, Democrats faced internal turmoil with the rise of the Committee of Seventy, which sought to eradicate government corruption. After a riot at Tammany Hall, efforts intensified to remove William M. Tweed, yet Belmont remained steadfastly loyal to his party.

Although Belmont initially backed Charles Francis Adams for the nomination, Greeley’s eventual selection—despite his previous harsh denunciations of Democrats as "slaveholders" and corrupt—effectively signaled party endorsement. Following the 1872 election, Belmont stepped down from his role as chairman of the Democratic National Committee but continued his political engagement by supporting Senator Thomas F. Bayard’s presidential aspirations, opposing the contested 1876 election results favoring Rutherford B. Hayes, and advocating for "hard money" fiscal policies.

Personal life

As a young Jewish immigrant in New York, Belmont encountered social obstacles from both the established English-Dutch Protestant aristocracy and the predominantly Sephardic Jewish community, from which he deliberately distanced himself. His social network primarily consisted of young men from wealthy families, through whom he helped introduce a European cosmopolitan lifestyle to America. His early personal life was marked by controversy, including an unsuccessful attempt to court ballerina Fanny Elssler in 1840 and a public duel in 1841 following allegations of an affair.

On November 7, 1849, Belmont wed Caroline Slidell Perry (1829–1892), daughter of naval officer Matthew Calbraith Perry, famed for opening Japan’s ports in 1853. The marriage took place in an Episcopal ceremony; following this, Belmont distanced himself from his Jewish roots without formally converting.

The couple had six children, with three sons notably active in political and public spheres:

• Perry Belmont (1851–1947), served as U.S. Representative from New York (1881–88) and Minister to Spain (1888–89)
• August Belmont Jr. (1853–1924), financier and sports enthusiast
• Oliver Hazard Perry Belmont (1858–1908), U.S. Representative from New York (1901–03)

Their other children included Jane Pauline "Jennie" Belmont (1856–1875), Fredericka Belmont (1856–1902), who married Samuel Shaw Howland, and Raymond Rodgers Belmont (1863–1887), a distinguished polo champion.

Belmont passed away in Manhattan on November 24, 1890, due to pneumonia. His funeral was conducted at the Church of the Ascension in New York City. That same year saw the publication of Letters, Speeches and Addresses of August Belmont. At his death, his estate was valued at over ten million dollars (equivalent to approximately $ million today). He was laid to rest in an elaborate sarcophagus within the family plot at Island Cemetery in Newport, Rhode Island. His widow died two years later, in 1892.

The family’s Newport mansion, By-the-Sea, was demolished in 1946.

Sportsman

Belmont was deeply passionate about sports, with the prestigious thoroughbred horse race Belmont Stakes named in his honor. The race was first held at Jerome Park Racetrack, owned by his associate Leonard Jerome, and is currently hosted at Belmont Park near New York City. The Belmont Stakes serves as a pivotal event in thoroughbred racing’s Triple Crown series. Belmont presided over the National Jockey Club from 1866 until 1887 and owned the Nursery Stud horse-breeding farm, initially located near Babylon, New York before relocating closer to Lexington, Kentucky.

Legacy

The town of Belmont, New Hampshire carries his name.

The Liberty ship SS August Belmont was also named to honor him.

In 1910, sculptor John Quincy Adams Ward crafted a bronze statue of Belmont originally installed near his gravesite at Island Cemetery. The statue was later relocated to a park in Newport before being loaned to the Metropolitan Museum of Art in 1985. Around 1995, it found a permanent place outside the Preservation Society of Newport County headquarters in Newport.

In popular culture

Author Edith Wharton is said to have modeled the character Julius Beaufort in The Age of Innocence after Belmont.

Additionally, August Belmont appears as a character in Stephen L. Carter's novel The Impeachment of Abraham Lincoln.

External links

• Mr. Lincoln and New York: August Belmont