The Gilded Age, defined as the late 1870’s to early 1900’s, was the United States’ first era of excess. Following the Civil War, the technological advancements made during the early Industrial Revolution were now becoming commercialized, most notably electricity, oil, and steel production. Along with this rapid expansion came unprecedented levels of wealth best memorialized by the litany of preserved architectural masterpieces such as the Biltmore Estate, Metropolitan Museum of Art, Breakers Mansion, and Philadelphia Museum of Art (pictured above). We’ll refer to these structures as “White Houses” and begin our story about the Nine Financiers.
The Story of the Nine Financiers
The story begins in 1923 at the Edgewater Beach Hotel in Chicago. In one of the rooms a meeting was held between nine men:
Charles Schwab: President of Bethlehem Steel
Samuel Insull: Founder/President of Commonwealth Edison Company, Middle West Utilities
Howard Hopson: Founder/President of Associated Gas and Electric
Richard Whitney: President of New York Stock Exchange
Leon Fraser: President of First National Bank of New York
Arthur Cutten: Famous Commodity Trader
Ivan Kreuger: Known as the “Match King”, his holding company controlled ~400 businesses
Albert Fall: Former US Secretary of the Interior
Jesse Lauriston Livermore: Famous Stock Trader
The intent of their meeting was to discuss the current state of their respective empires along with their future business plans. However, the story then depicts their lives 25 years after the meeting. In 1948, their resumes became the following:
Charles Schwab: Died broke in 1939 following the 1929 Stock Market Crash
Samuel Insull: Died broke in 1938 following the 1929 Stock Market Crash
Howard Hopson: Died in 1949 after six years inside Brooklea Sanitarium (Insane Asylum)
Richard Whitney: Released from prison in 1941, operating a dairy farm in Far Hills, NJ
Leon Fraser: Committed suicide in 1945
Arthur Cutten: Died broke in 1936 following the 1929 Stock Market Crash
Ivan Kreuger: Committed suicide in 1932
Albert Fall: Died in 1944 as the only American Cabinet Officer to commit a felony while in office
Jesse Lauriston Livermore: Committed suicide in 1940
Symbolism of the White House
The financiers, though none constructed or owned the aforementioned entities, each possessed their own White House: a lavish monument enjoyed by everybody except themselves. Scaling this symbol, we all know of a neighborhood full of White Houses near us. Ask yourself: how often is the owner visible? How often have you witnessed their children outside? Is the garage door ever open? The answer is universally “not often”.
The owners of these homes are too preoccupied by their business(es) to enjoy their supposed home. Certainly the nine financiers would be categorized in this manner. Therefore, the symbolism of White Houses is not of material wealth, but of absent immaterial wealth. Further evidence can be derived from the dramatic manner in which eight of the nine financiers died, the only exception being Richard Whitney who passed away in 1974 at 86 on his dairy farm.
Endearment of Immaterial Wealth
There are infinitely more symbols of material wealth in today’s society compared to that of the Gilded Age. Given modern media, it is also far more publicized. We can’t escape the message material wealth will bring with it immaterial wealth. Try as we might, we are all presupposed to shiny object syndrome. At a biological level, we see material wealth as an indicator of strength.
Like many biological impulses, however, we have the capacity to demystify and reinterpret their meaning. Take our White Houses. Yes, they are undeniably impressive. Yes, they are desirable, but with ownership of them comes with it a loss of balance as evidenced by our financiers. What we actually desire is possession of the house without change to our responsibilities. It’s a delicate tightrope, and more often than not the house becomes a gilded cage.
This realization shouldn’t deter you from pursuing White Houses, but should serve as a warning to separate material wealth from immaterial wealth. Symbols of material wealth change with each iteration of technology and with each change in societal preference. I don’t believe John D. Rockefeller would envy a smart phone, nor do I believe Elon Musk would desire to live in the Biltmore Estate.
Symbols of immaterial wealth – community, legacy, respect – do not change. They endure through time and do not lose relevance with each generation. The individuals who ultimately value immaterial wealth over material wealth are those who are idolized in history. Those who do not, like our nine financiers, serve as warnings to the human race.
Be More.
Become Polymathic.
Quote of the Week: “If we command our wealth, we shall be rich and free; if our wealth commands us, we are poor indeed.” – Edmund Burke