John Jacob Astor incorporates the American Fur Company, that would eventually make him America's first millionaire.
The American Fur Company (AFC) was founded in 1808, by John Jacob Astor, a German immigrant to the United States. During the 18th century, furs had become a major commodity in Europe, and North America became a major supplier. Several British companies, most notably the North West Company and the Hudson's Bay Company, were eventual competitors against Astor and capitalized on the lucrative trade in furs. Astor capitalized on anti-British sentiments and his commercial strategies to become one of the first trusts in American business and a major competitor to the British commercial dominance in North American fur trade. Expanding into many former British fur-trapping regions and trade routes, the company grew to monopolize the fur trade in the United States by 1830, and became one of the largest and wealthiest businesses in the country.
Astor planned for several companies to function across the Great Lakes, the Great Plains and the Oregon Country to gain control of the North American fur trade. Comparatively inexpensive manufactured goods were to be shipped to commercial stations for trade with various Indigenous nations for fur pelts. The sizable number of furs collected were then to be brought to the port of Guangzhou, as pelts were in high demand in the Qing Empire. Chinese products were, in turn, to be purchased for resale throughout Europe and the United States. A beneficial agreement with the Russian-American Company was also planned through the regular supply of provisions for posts in Russian America. This was planned in part to prevent the rival Montreal based North West Company (NWC) to gain a presence along the Pacific Coast, a prospect neither Russian colonial authorities or Astor favored.Demand for furs in Europe began to decline during the early 19th century, leading to the stagnation of the fur trade by the mid-19th century. Astor left his company in 1830, the company declared bankruptcy in 1842, and the American Fur Company ultimately ceased trading in 1847.
John Jacob Astor (born Johann Jakob Astor; July 17, 1763 – March 29, 1848) was a German-American businessman, merchant, real estate mogul, and investor who made his fortune mainly in a fur trade monopoly, by smuggling opium into China, and by investing in real estate in or around New York City. He was the first prominent member of the Astor family and the first multi-millionaire in the United States.
Born in Germany, Astor emigrated to England as a teenager and worked as a musical instrument manufacturer. He moved to the United States after the American Revolutionary War. Seeing the expansion of population to the west, he entered the fur trade and built a monopoly, managing a business empire that extended to the Great Lakes region and Canada, and later expanded into the American West and Pacific coast. Seeing a decline in demand due to changing European tastes, he got out of the fur trade in 1830, diversifying by investing in New York City real estate. Astor was highly wealthy and became a famed patron of the arts. In proportion to GDP, he was one of the richest people in modern history.