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The Broker of Independence 1776


Broker of Independence
Haym Salomon

The markets are closed this fourth of July, but we can still reflect on some of the financiers that paved the way for this Country’s establishment.

Since you’ve probably already heard of Alexander Hamilton, let’s talk about another patriotic, immigrant financier that changed the tide of the American revolution.


Haym Salomon.


Without him it is possible the American Revolution would have failed in its 11th hour. He provided supplies and resources to George Washington’s troops, possibly preventing a coup and the unraveling of the revolution. The victory of the battle of Yorktown is largely ascribed to funds George Washington procured from Salomon to buy new boots, blankets, munitions, and scotch for the soldiers.


Haym Salomon is regarded as one of the most important financial figures in American history. His legacy is little known compared to the weight he carried in founding this nation. He came to the aid of George Washington, worked to raise money for John Morris, and brokered loans from France, Spain, and across Europe often at his own estates risk and credit. He was a member of the Son’s of liberty, arrested by the British army for espionage, condemned to death, and escaped his imprisonment to build an immensely profitable commerce business in Philadelphia.


While working as a broker for the infant US financial system, Salomon expeditated the loans from the French, Spanish and Dutch by lending out his personal money at zero percent interest. A process that would have taken two to three months as ships traveled across the Atlantic, was turned into a matter of days. However, his loans did not go without risk. Ships were often victims of piracy, blockades, and even mutiny. Even after the Revolution had been won the new Nation faced a series of economic crises that led to several failed banks and municipalities.


At the end of his life in 1785 Haym Salomon is said to have advanced over $650,000 in credit to George Washington and the war effort with not one dollar being paid back. He died at the age of 44 during a period of immense economic uncertainty. The debts leveraged against his estate ultimately did get paid out of his estate and leaving his wife and children nearly penniless. His heirs petitioned congress for indemnity but could not gain enough favor to pass any legislation.


Over the past century his sacrifice has been commemorated with medals, statues, stamps, and the undeniable impact on this nation’s legacy. Haym Salomon may not have been the only financier of the founding fathers but certainly played a significant role in establishing the nation’s financial system, and might even be worth a sequel to Lynn Manuel’s Hamilton.


Further Reading:


Securities offered through International Assets Advisory, LLC (“IAA”) – Member FINRA/SIPC. Advisory services offered through International Assets Investment Management, LLC (“IAIM”) –SEC RIA.

Blacor Investments is unaffiliated with IAA and IAIM. The information provided is based on carefully selected sources, believed to be reliable, but whose accuracy or completeness cannot be guaranteed. All information and expressions of opinions are subject to change without notice and are those of Blacor Investments.

Past performance may not be indicative of future results.

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