You’ve probably heard the name Astor. It’s plastered all over New York City—Astor Place, the Waldorf-Astoria, the neighborhood of Astoria in Queens. Most history books will tell you flat out that John Jacob Astor was the first millionaire in the United States.
But history is rarely that tidy.
If we’re being technical, Astor was actually the first multi-millionaire. He died in 1848 with a staggering $20 million, which is essentially billion-dollar money in today’s world. However, if you look back a few decades earlier, there’s a guy named Elias Hasket Derby who likely hit that seven-figure mark first.
It’s a bit of a toss-up depending on which historian you ask and how they value old-school assets. Was it the fur-trading mogul from Germany or the shipping king from Salem? Let’s get into what really happened.
The Man Who Sold Everything: Elias Hasket Derby
Long before Astor was a household name, Elias Hasket Derby was the richest man in post-Revolutionary America. Based out of Salem, Massachusetts, Derby didn't just sail ships; he owned a whole fleet of them.
Honestly, he was a bit of a pioneer in the "risk it all" department.
When the Revolutionary War broke out, Derby turned his merchant ships into "privateers." Basically, he got a legal license from the government to hunt down and rob British ships. It was high-stakes legalized piracy. By the time the war ended, Derby had amassed a fortune from captured cargo and was ready to go global.
He was the first American to send a ship to the East Indies. He opened up trade routes to China, Mauritius, and India. While everyone else was focused on local trade, Derby was bringing back tea, porcelain, and silk.
When he died in 1799—nearly fifty years before Astor—his estate was valued at over $1 million. In an era where a skilled laborer might earn a few hundred dollars a year, having a million in the bank was unthinkable. It made him arguably the first true American millionaire.
The Rise of John Jacob Astor
While Derby was the "old money" of the late 1700s, John Jacob Astor was the ultimate 19th-century hustler. He arrived in Baltimore in 1784 with nothing but a few flutes and a dream. No, seriously—he actually sold musical instruments first.
He eventually realized that there was way more money in dead animals. Specifically, beaver pelts.
Astor built a massive monopoly called the American Fur Company. He was ruthless. He didn't just trade furs; he controlled the entire supply chain. He even founded "Astoria" in the Oregon Territory to secure a foothold on the Pacific coast.
But here’s the kicker: fur didn't make him the first multi-millionaire. Real estate did.
Manhattan's Landlord
Astor had this uncanny ability to see where New York City was going. He’d take his profits from the fur trade and buy "worthless" swampy land in Manhattan. Then he’d just sit on it.
He didn't build much. He just waited for the city to grow.
As the population boomed, that land became the most valuable dirt on the planet. By the time he passed away, he owned massive chunks of what is now Midtown and the Upper East Side. He wasn't just a millionaire; he was a titan who fundamentally changed the map of New York.
The "Dark Side" of the First Fortunes
It wasn't all just tea and beaver pelts, though. We have to be real about where some of this money came from.
John Jacob Astor, for instance, made a massive portion of his wealth—especially the capital he used for real estate—by smuggling opium into China. This was illegal even back then, but the profits were too high to ignore. It’s one of those parts of history that gets glossed over in the "self-made man" narrative.
Similarly, Robert Morris—another name often thrown around as the "Financier of the Revolution"—was incredibly wealthy but eventually went broke. He spent time in a debtor's prison after his land speculation deals went south. He might have been a millionaire on paper at one point, but he died with almost nothing.
Who Actually Wins the Title?
If we are looking for the very first person to cross the $1,000,000 threshold, the evidence points toward Elias Hasket Derby in the late 1790s.
If we are looking for the person who defined what it meant to be an American "millionaire" in the public eye—the first person to build a generational empire—it’s John Jacob Astor.
The difference is really about staying power. Derby’s wealth was spread among his heirs and slowly faded from the national spotlight. Astor’s wealth was consolidated, grown, and used to build landmarks that still stand today.
Actionable Takeaways from the First Millionaires
What can we actually learn from these guys today? Besides the fact that 18th-century shipping was terrifying?
- Diversification is King: Astor didn't stay in the fur trade. He pivoted to real estate when he saw the "next big thing" coming.
- Asset Appreciation vs. Cash Flow: Derby had the ships (cash flow), but Astor had the land (appreciation). The land is what created the multi-generational wealth.
- Identifying Trends Early: Both men succeeded by looking toward Asia and the Western frontier before their competitors did.
If you want to understand the history of wealth in this country, you have to look at the transition from merchant shipping to land ownership. That’s where the real millionaires were made.
Next Steps to Deepen Your Knowledge:
- Read "Astoria" by Peter Stark if you want a wild, detailed account of Astor's attempt to settle the Pacific Northwest.
- Visit the Peabody Essex Museum in Salem to see the actual artifacts and logs from Elias Hasket Derby’s fleet.
- Research the Panic of 1837 to see how these early fortunes survived (or didn't) during the first major American economic depressions.