Alexander Stieglitz
Continuing the theme of pre-revolutionary Jewish multimillionaires in Russia, we cannot fail to recall the famous Stieglitz family of bankers. In modern Russian mass media, for some reason, they were labeled exclusively as Germans with a persistence worthy of better application, intentionally or through ignorance, ignoring their Jewish origin. And only recently they have finally been recognized as Jews. And although the members of this family, having found themselves in Russia at a certain point in their lives, converted to Orthodoxy, thereby separating themselves from their own Jewishness, but, however, even having made this step, they still did not become “famous Germans”.
The story begins as follows: Loeb Stieglitz, born around 1690, one of the most respected citizens of Laasfe, a town in the Grand Duchy of Hesse-Darmstadt, became the head of the Jewish community at the beginning of the next century. By that time the witch-hunt was already over in Laasfe, and even the famous accused Lucia Reichmann, who had endured all three degrees of torture and never confessed to witchcraft in order not to be burned, had already committed suicide. (By the way, you have to give credit to the people of this city: after only some four hundred years, the Laasfe City Council passed a resolution on June 26, 2015, to rehabilitate the burned women.)
But let’s return to Loeb Stieglitz. He managed to be related to the wealthy Marcus family. His daughter Julia married Yehuda Markus, and his sons Hirsch and Lazarus married Yehuda’s sisters. As a result, the entire Loeib Stieglitz family moved to the town of Arolsen in this manner. These marriage arrangements were remarkably successful – for Jehuda Markus was the gofactor of Prince Friedrich Anton Ulrich, the owner of Arolsen. The title of Hofjude (Hoffaktor) or Court Jew at that time was given to a Jewish banker who lent money to European royal and other noble families or handled their finances.
Gradually both Stieglitz brothers acquired the status of gof-factors. The eldest of them Hirsch, married to Edel Marcus, had four children, and his brother Lazarus, married to Frederica Marcus, had six. The latter are of interest to us. We have little to say about the two daughters of Lazarus, except that Emily lived in St. Petersburg and never married, and Caroline, together with her husband, Court Physician and Counselor Herr Schmidt went to the city of Celle. We are much more concerned with the fate of their brothers. The eldest of whom, Israel, went to study philosophy in Berlin, and then medicine in Göttingen, and having been baptized and changed his name to Johann, made a brilliant career far from home, in Hanover, becoming a senior medical adviser and director of the General Medical School. The fortune of the other brothers took them to distant Russia, where each of them found his destiny.
So, at the end of the 18th century, a young man, born in 1772, came to Russia from the town of Arolsen, located in the principality of Waldeck, by the name of Nikolaus or Nikolai (as he would be called later in Russian) with the ringing surname of Stieglitz (which means dandy in German) and energetically began to settle down in a new place. Having made the necessary connections with local Russian Jews, in particular with Mogilevsky, and then with the capital merchant, the famous Abram Peretz, and started a successful career as a merchant, young Stieglitz was extremely successful. Thanks, apparently, to the connections of Abram Peretz, Stieglitz drew the attention of the Russian government. Soon Stieglitz received Russian citizenship and, being a Kherson merchant of the second guild, opened an office in Odessa. He became a companion of Peretz in the Crimea to take on the buyout of salt production. At the same time, Nikolai began to engage in wine buy-backs.
He gets acquainted with Prince Potemkin and soon, on December 10, 1801, he, a former Waldeck Jew, was granted the rank of collegiate assessor “for his being at the auction ο wine buyback”. And then suddenly there comes a break in his happiest of careers – the authorities remember (or rather, they never forgot it) that the successful merchant and collegiate assessor is only a Jew. They reminded Nicholas of this in 1802, when he acquires the estate of Princess Vyazemskaya, which numbered more than two thousand souls and consisted of 9640 tithes. The legal mishap consisted in the fact that the bill of sale made by the St. Petersburg civil chamber was not approved by the local (Ekaterinoslav) provincial administration, which was in charge of the estate of Princess Vyazemskaya. According to the Jewish Encyclopedia of Brockhaus and Efron, “at that time merchants and those “granted rank” were not allowed to buy inhabited lands”, and the main thing, perhaps, was that “non-Christians were forbidden to own Christians”. Not to mention the fact that in the Code of Laws of the Russian Empire in Article 780 it was clearly stated “Jews in the limits of their general settlement, as well as everywhere where they are allowed to stay permanently, can acquire real estate of any kind, except for inhabited estates, the possession of which is prohibited to Jews.
By the way, the famous poet and prosecutor-general Derzhavin played a major role in canceling this deal (remember Pushkin’s “old man Derzhavin noticed us and, going to the coffin, blessed us”). So it was “old man Derzhavin”, who at that time was not an old man at all, but was, perhaps, at the peak of his public career, very much disliked the Jew Stieglitz. In addition to the fact that he managed to cancel this bill of sale, some time later he achieved an even more impressive victory over the rising commercial star of Nicholas. Stieglitz and Peretz, as readers already know, were engaged in mining very expensive for those times, salt. They received permission, as the researcher writes, “to supply the Byelorussian, Minsk, Lithuanian, Podolsk and Volyn provinces with Crimean salt at the established tariff from the lakes that were at their disposal. But here again Derzhavin played his role – at his suggestion this enterprise was suspended, and the Senate “recognized the contracts with Peretz and Stiglitz unprofitable for the Treasury. Their very payoff was recognized as a monopoly, “harmful to the state”. But this is not all. According to the resolution of the Senate, “in order to make salt more accessible, the Senate fixed the Crimean salt lakes in the state management”. That is, simply put, took away from Stieglitz and Peretz their business and recognized it as a matter of state (nationalized).
Ah, how reminiscent of some recent processes. Perhaps in Russian traditions, in any case, nothing has changed in the last two hundred years, except for the change of power. But it is possible that the habits and character of this power remain the same. However, two hundred years ago, the Jewish companions were lucky – their business was merely taken away from them and, in any case, no one thought of imprisoning them or accusing them of murder. As quite objective historians point out, “G. Derzhavin, who played not the least role in this decision, had an extremely negative attitude to Stieglitz and Peretz”. As the researcher I. Druzhkova writes: “in a letter to D. Mertvago in 1803, he demanded radical changes in the organization of the salt trade, referring to the fact that Peretz and Stieglitz “have made such provisions, from which they, having established a large stock of salt in the cities and having for the export of it wagons and oxen ready, will derive their benefits, containing almost a monopoly in their own hands of this trade.
Derzhavin was a statesman, a guardian of laws, and besides that, he simply did not like Jews. And indeed, why would a Russian statesman love them? Here Derzhavin writes in his “Notes” that “Prince G. Potemkin, wishing to attract the Procurator-General of the Senate Prince Vyazemsky (who thanks to the same Potemkin received land in Novorossiya) allowed him, Vyazemsky to sell to Stieglitz part of the lands of the former Zaporozhian Sich (sic!), which numbered 2000 serfs, although the deal was illegal, because according to the decrees of 1784, 1801 and 1813 years. According to the decrees of 1784, 1801 and 1813, “Jews did not own or dispose of villages and landowner’s peasants under any name or appellation”.
However, even with Mr. Derzhavin strange mishaps happened. It would seem that Stieglitz is his enemy. But at the same time Derzhavin, wishing to help the son of his friend V. Kapnist (also a well-known name in Russian classical poetry), whose estate for debts was to “go under the hammer”, wrote to him “Will you not ask your uncle Nikolai Vasilyevich, will he not go into any negotiations with the merchant Stieglitz, that he bought wine and put in the Treasury, deferring to you under a special obligation of your father the amount that is due?…? It is possible to persuade Stieglitz somehow, so that he would twist the wine supply”.
However, what do we care about the conscience of the poet-lawyer, about corrupt officials and political intrigues of two hundred years ago?…? We are interested in Russian Jewish nouveau riche and their incredible careers in the Russian Empire. Although, if we still remember the same Prince Potemkin, it is worth mentioning not only his friendship and business relations with Stieglitz, but also the event, at that time – absolutely incredible. As indicated by historian D. Feldman in 1786 it was Prince Potemkin formed the first squadron formed exclusively from Jews “Israel equestrian His Highness Duke Ferdinand Braunschweig regiment”. As the historian writes: “Apparently, Potemkin, foreseeing the imminent fall of the Ottoman Empire and the liberation of land and sea from the Turks, as well as the possible formation of a Jewish state in the historical homeland, envisioned that in the future, the “Israeli regiment” could become the basis of the Palestinian army. Potemkin’s death also undermined the chances for the existence of his brainchild – the first Jewish military unit in the regular army.”
But, back to our heroes. So, after the incredible success of Stieglitz senior, he calls to himself in 1803 from the city of Arolsen two younger brothers, 29-year-old Bernard and 25-year-old Levi. Business Stieglitzes grows, their connections are expanding, the financial empire becomes on its feet, Stieglitzes at this time known already outside the Russian Empire. Nicholas performs “some special financial assignments of privileged persons”. And, finally, in 1809, the Emperor of Russia Alexander I himself transfers through his mediation abroad a large sum of cash “for expenses known only to him”. The brothers achieved their goal – the highest personage of the Russian state uses their services in matters that do not require publicity. What else can a merchant in Russia dream of?…?
As they used to say in the empire, it would seem that he had “grabbed God by the beard”. But, alas. In 1812, the war with Napoleon broke out. Nicholas and his brothers could get a huge contract for the army. But, as we know, the Russian government did not really trust any Jews, even despite the personal services they rendered. Remember Galich’s “Ah, don’t sew your livery, Jews, don’t walk in chamberlains, Jews!” And, as the historian points out “in 1812 the Stieglitz brothers, in order to maintain their position as suppliers to the army, were forced to be baptized.” Of course, they were “forced” to get, but they might not have been baptized. Of course, then they probably wouldn’t have received the huge order. I think it is pointless in this case to remember how their ancestors in the same German principalities were subjected to forced baptism, facing the question to live or die, and how many of them chose death. But the Stieglitz brothers, without any coercion (unless by coercion one means the opportunity to make a huge profit), of their own free will, did otherwise. But as P. Hertel and K. Buddenberg-Hertel write in their work “The Jews of Ronnenberg: The City Realizes Its Past”: “Levi Stieglitz came from St. Petersburg to Ronnenberg to be secretly baptized there. The baptism was certified but not entered in the church book because ‘there are reasons preventing a public announcement.’ We do not know why he chose to be baptized secretly. But it is well known that Levi, having turned into Ludwig, made a huge fortune for those times. Once again, history repeats itself. It is worth remembering today’s Jews who are zealously baptized and no less zealously denying the faith of their fathers. Does this help them, as it once did the Stieglitzes, to preserve and increase their fortune?…? Hardly.
But the Stieglitzes did have help at the time. By effortlessly exchanging their Jewishness for capital, they cut themselves and their future descendants out of the Jewish people. They will be judged in Heaven… And in earthly life the following happened. After baptism, the newly baptized Orthodox were not rewarded with anything! Nikolai Stieglitz was finally awarded the long-awaited Russian title of nobility, and his brother Ludwig for “donations during the war” – the Bronze Medal on the Annensky ribbon. The Stieglitz family was recorded in the fifth part of the genealogical book of St. Petersburg province, and the coat of arms was entered in the tenth part of the General Armorial of the State of Russia.
In addition, Nicholas was given the most lucrative position in the Ministry of Finance. He was even appointed director of the State Debt Repayment Commission. The Minister of Finance Count Yegor Frantsevich Kankrin (incidentally, Kankrin himself – the son of a Baptist and grandson of Rabbi Kahn-Krein) personally wrote that “the diligence and labors of N. Stieglitz contributed to the success of our first loans and accelerated the achievement of the government’s goal in one of the most important financial operations. His brother Ludwig did not remain in the shadows. Childless Nicholas submitted a petition to Alexander I to grant both his brothers nobility, as I. Druzhkova points out “so that after his death they could dispose of his estate in the Novorossiysk region”. It is interesting that “the basis for the petition was a donation of N. Stieglitz 100 thousand rubles for the establishment in Odessa Richelievsky Lyceum. However, the nobility was awarded only to Ludwig. Some time later, Ludwig was granted “baronial dignity” “for rendering services to the government and diligence in the spread of trade”.
Ludwig married Amalia Gottschalk from Düsseldorf and they soon had three children. Nicholas died in 1820 and his fortune passed to his younger brother Ludwig, who was already officially in the position of “court banker”. The least of all, by the way, from this deal with Orthodoxy received the middle brother – Bernard. He lived in provincial Kremenchug, was engaged in wine buying and from 1805 was listed as an Odessa merchant of the first guild. And in the 20s of the 19th century he retired from business altogether, entrusting everything to his more energetic and successful relatives.
And the relatives, especially Ludwig, who turned around after Nikolai’s death, were really successful. Ludwig Stieglitz’s office in Odessa was extremely successful. Here is an excerpt from the certificate – “In 1828 the turnover of its foreign trade amounted to 24 million rubles; in 1834 – 32 million rubles; in 1838 – 55 million rubles. At the same time in 1828 trade operations of the firm were carried out mainly in St. Petersburg; in 1834 – in St. Petersburg and Odessa, Radzivilov and Kherson”.
Soon Ludwig finally moves to St. Petersburg, the capital of the Russian Empire. At the request of Count Vorontsov, Ludwig opens a trade credit office in Odessa. This venture was quite risky, but the deal between Vorontsov and Ludwig Stieglitz took place. Ludwig demanded for it the rank of collegiate assessor with the right of nobility, extending to the posterity of his brother Bernard, as well as the right to own land and peasants. However, as we wrote above, Bernard soon withdrew from the business. In 1841, Ludwig managed to get an extremely profitable government loan for the construction of a railroad between Moscow and St. Petersburg. For “work and diligence for the benefit of domestic trade and industry” he was granted the Order of St. Anne, 2nd degree, and the Order of St. Vladimir, 3rd degree. But two years later he died, leaving his son, Alexander a huge, almost fabulous for those times the state of “18 million silver.
Alexander was perhaps the most famous member of this family. He was born in 1814 and, if I may say so, he was lucky at birth – he was born into the family of a court banker and founder of the Stieglitz & Co. banking house. Here is a short note on his life and work. “Graduated from the University of Dorpat. In 1840 he entered the civil service in the Ministry of Finance as a member of the Manufactures Council. In 1843, after the death of his father, A.L. Stieglitz took possession of his fortune and assumed the position of court banker. In 1840-1850 he successfully realized abroad six 4 percent loans for the construction of the Nikolayevskaya railroad. Significant foreign loans were obtained with his participation during the Crimean War. He founded a cloth and flax spinning factory in Narva, and owned the Ekaterinhof paper spinning mill. In 1846 he was elected chairman of the Exchange Committee by the stock exchange merchants of St. Petersburg. He held this position for 13 years. He took part in all major operations of the Russian government on domestic and foreign markets. Through the banking house of Baron Stieglitz the Russian government maintained relations with the banking houses of Amsterdam, London and Paris. In 1857, A.L. Stieglitz co-founded the Main Society of Russian Railroads, which was created to build and operate railroad lines that were to connect the agricultural regions of Russia with St. Petersburg, Moscow, Warsaw, and the coast of the Baltic and Black Seas. In 1848 he was appointed a member of the Commercial Council of the Ministry of Finance. In 1854, “for his special diligence for the benefit of the common good” he was promoted to State Councillor, and in 1855 – to full State Councillor. In 1860 A.L. Stieglitz liquidated all his private banking business and was dismissed from the post of Chairman of the Exchange Committee at his own will. On June 10, 1860 A.L. Stieglitz was appointed Manager of the State Bank. In 1866 he was dismissed from this position and remained under the Ministry of Finance in the credit part and as an honorary member of the Council of Trade and Manufactures. In 1862 he was promoted to Privy Councillor, and in 1881 he was promoted to full Privy Councillor. He was awarded the orders of St. Stanislaus III degree, St. Vladimir IV degree, St. Anna II degree, St. Anna II degree, decorated with the imperial crown, St. Vladimir III degree, St. Stanislaus I degree, St. Anna I degree, St. Anna I degree, decorated with the imperial crown. He was awarded a diamond snuffbox with the monogram of Nicholas I. He was announced the highest gratitude for “zealous performance of the position of deputy from the St. Petersburg stock exchange merchants in the transportation of coins and bullion from the storerooms of the Expedition of credit tickets to the reserve storeroom in the fortress and inspection of it. And in addition, he became the owner of a third of all the Ural mines, Nevskaya paper-spinning manufactory, founded in 1876 School of Technical Drawing with a famous museum (later known as the “Mukhinskoe School”), for the maintenance of which bequeathed to release 11 million rubles annually. And built at his own expense Peterhof railroad. The magazine “Herald of Industry” wrote: “His name enjoys the same worldwide fame as the name of the Rothschilds. With his promissory notes, as with pure money, you could travel all over Europe, visit America and Asia. There is no town in Europe, where his bills of exchange would not be accepted”. He was called “the king of the St. Petersburg stock exchange”. As historians write, “Stieglitz kept all his huge fortune only in Russian banks, which few people did at that time. Once, in response to a comment by one of the bankers about the reliability of such an investment, he replied: “My father and I have made our fortune in Russia, and if it turns out to be insolvent, I am ready to lose all my fortune together with it. Alexander died in 1884. So actually ended in Russia the history of the Jewish family of Stieglitzes from the small German town of Arolsen.
In conclusion, it should be said about the other offspring of this family. Bernard Stieglitz’s eldest son Nicholas graduated in the late 1820s in Odessa from the Richelieu Lyceum (the same one to which his uncle, also Nicholas, donated 100,000 rubles), and continued his studies at the Faculty of Law of the University of Dorpat (now the city of Tartu). Besides Alexander, Ludwig had an elder daughter Natalia in 1804 and a son Nikolai in 1807. Natalia married Johann Harder from Revel and gave birth to five children – Emilia, Natalie, Alexander, Ludwig and Johann. Natalie died in Frankfurt am Main in 1882. Most of her children and grandchildren married Germans, Russians and Italians and left Russia. Their graves are scattered all over the world, from Germany to Italy to Argentina. Nicholas, Alexander’s younger brother died in 1833 in St. Petersburg. Alexander’s son died in infancy and Alexander, who married Caroline Ernestina Muller, adopted Nadezhda Mikhailovna Yuneva, to whom he left most of his vast fortune. She married A. A. Polovtsov, the future Secretary of State of the Russian State, and thus the once Jewish family of Lazarus Stieglitz from Arolsen, in the German principality of Waldeck, ceased to exist definitively and forever. The chain was broken…