The remarkable success achieved by self-made men across various industries in this era was generally attributed to the intelligent application of certain fixed principles to their daily affairs, combining genius, industry, foresight, and unyielding perseverance. These individuals became the architects of their own fortunes, often contributing to the increase of national wealth, the development of national resources, and the elevation of national character.
Key characteristics and methods leading to their triumphs included:
Table of Contents
1. Unwavering Industry and Personal Application
Success was rarely due to accident or chance; rather, it was the reward of intense and dedicated work.
- Relentless Work Ethic: Many successful men devoted extraordinary time and energy to their business. For instance, Stephen Girard devoted himself to business with an energy and industry that never failed, scorning no honest labor. He was never idle, believing work was a necessity. Alexander T. Stewart worked from fourteen to eighteen hours each day in his early career, and even as a millionaire, Cornelius Vanderbilt was known for his dedication during business hours.
- Thoroughness and Mastery: Successful individuals insisted on mastering every detail of their chosen field. John Jacob Astor was determined that there should be no detail in the fur trade, however minute, with which he was unfamiliar, viewing this knowledge as a source of power. Girard was a master of his business, able to survey the field of commerce from a high standpoint and understand the intricacies of long voyages. Jonas Chickering applied himself to mastering piano manufacturing, understanding that success was based on intelligence and deep knowledge of the theory of sound.
2. Prudence, Economy, and Financial Integrity
A core principle was rigid honesty, coupled with cautious, systematic management of finances.
- Integrity and Reliability: Strict honesty was a foundational rule. Alexander T. Stewart’s first rule was honesty between seller and buyer, requiring that the truth be told over his counter. Stephen Girard never departed from his plighted word and was prompt and faithful in the execution of every contract. Andrew V. Stout was resolved that if he could not make money honestly, he would remain poor. Jonas Chickering conducted his business with integrity, refuting the theory that cunning and trickery are unavoidable in a successful mercantile career.
- Systematic Management: Many successful men maintained a rigid system. Amos Lawrence, for instance, kept accurate accounts and avoided carrying unsettled business over the Sabbath. Stewart organized a complex system for buying and selling, keeping prices fixed and competitive. Vanderbilt managed his vessels systematically, leading to great success and safety.
- Economy and Prudence: Many maintained simple habits and rigid economy, even after becoming wealthy. Astor practiced rigid economy in his expenditures and simple habits long after they ceased to be necessary. Lawrence adopted a rule to always possess property representing at least forty percent more than he owed, thus avoiding embarrassment. Daniel Drew, in his early years, practiced rigid economy, enabling him to live on small wages.
3. Foresight, Boldness, and Investment Strategy
These men possessed keen sagacity to anticipate future trends and the courage to act decisively on that knowledge.
- Strategic Investment: Astor had a firm faith in the magnificent future of New York, regularly investing his gains in real estate, often purchasing land in what was then the suburb. Stephen Girard, looking beyond temporary business depressions, secured long-term leases that proved enormously profitable. Nicholas Longworth also made immense profits by investing savings in cheap real estate in Cincinnati’s suburbs, trusting in the city’s growth.
- Courageous Ventures: Success often required courage in undertaking bold ventures. Girard, for instance, subscribed for the entire Government loan in 1814 when prospects were at their lowest ebb, restoring public confidence. Stewart showed courage by marking down his entire stock below wholesale price to raise cash for a note during a financial crisis. Andrew V. Stout paid off a crippling debt of $23,000 to maintain his integrity, refusing accommodation from the bank, which established his fame as an honest financier.
- Anticipating Markets: Stewart’s keen sagacity enabled him to see the approach of the crisis of 1837 and prepare for it by selling off goods, while buying up others cheaply at auction. Later, he anticipated the Civil War by making contracts for all manufacturers’ productions, leading to millions in profit. Daniel Drew foresaw that railroads and steamboats would both thrive, reducing his fares to compete but trusting in the trade expansion of the city.
4. Genius and Perseverance in Invention
In the realm of invention, success depended almost entirely on sustained effort, defying widespread skepticism and enduring great personal hardship.
- Persistent Experimentation: Inventors were defined by their refusal to give up despite numerous failures and poverty. Robert Fulton pressed forward with steam navigation despite popular ridicule and the disbelief of scientific men. Charles Goodyear, though frequently reduced to beggary and called a monomaniac, persisted through ten years of experiments until he perfected vulcanized India-rubber, defying the failures of all who preceded him.
- Solving Practical Problems: Elias Howe, Jr., achieved the first perfect sewing machine through his skill in developing the lock stitch and perfecting the apparatus, a feat that revolutionized global industry. Eli Whitney’s mechanical genius solved the problem of cleaning cotton expeditiously, which, though it did not immediately enrich him, transformed the Southern economy.
- Innovation for Efficiency: Chauncey Jerome solved the problem of moisture ruining wooden clocks by inventing machinery to manufacture works from brass cheaply, revolutionizing the clock trade and driving down costs drastically. Richard M. Hoe continually improved the printing press, inventing the double-cylinder press and the “Lightning Press,” drastically increasing printing speed.
In summary, whether in commerce, finance, or invention, success was rooted in a foundational commitment to hard work, integrity, deep professional knowledge, and the unwavering conviction that personal effort, even in the face of widespread doubt, would yield success.