The Pursuit of Wealth - The Incredible Story of Money Throughout The Ages

367 Pages·1999·6.44 MB·English

by  Robert Sobel

"BUY W H EN T H E RE IS B L O OD IN T HE
STREETS." B A R ON V ON R O T H S C H I LD
-•»
T HE I N C R E D I B LE S T O RY
M O N EY
T H R O U G H O UT T HE A G ES
ROBERT SDBEL
MONEY HOW IT HAS BUILT NATIONS,
DESTROYED DYNASTIES,
AND SHAPED EVERY FACET
OF HUMAN HISTORY
/l/^esopotamian farmers used it to irrigate their crops ... Roman armies to expand
/ v I Caesar's reach throughout Europe and Africa ... Incan rulers to build temples and
civilizations ... U.S. industrialists to push the frontiers of corporate achievement.
The Pursuit of Wealth tells the fascinating history of how the desire for money has
fueled humankind's greatest achievements—and produced our most profound tragedies.
Readers from all walks of life—from academics in search of a compelling narrative to
investors and businesspersons looking for time-tested solutions to age-old dilemmas—
will discover how and why money has become inextricably intertwined with every
thread in the fabric of human history. Gripping stories and legacies of great fortunes
won and lost include:
• Historical giants like Alexander the Great and Napoleon—and how their batde-honed
lessons on wealth and conquest still ring true in today's burgeoning economy
• Analyses of twelfth century Venetian financial empires that provide stunning
parallels and insights into today's global business and investment arena
• How modern rules, regulations, and laws of commerce have developed from
5000 B.C. through today's technological battleground—and what to look for next
No single idea has had more impact on the development of human history—and been
less understood—than the drive for money. The Pursuit of Wealth is the first comprehen
sive investigation into this essential topic. Each page will open your eyes to the startling
ways and means of property acquisition throughout history—and provide you with vital
clues that can help you understand today's financial world.
McGraw-Hill g£ Visit us on the World Wide Web at
A Division ofThe McGraw-Hill Companies www.books.mcgraw-hill.com
ISBN D-07-0S1bl3-l
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"THE OBJECT OF THIS BOOK IS TD
EXPLORE AND DISCUSS HDW PEDPLE
HAVE ATTEMPTED TO ACHIEVE
WEALTH THROUGHOUT T HE AGES."
ROBERT SQBEL
From the introduction's opening lines, author
Robert Sobel—a leading expert on the history
of finance and investing—throws down the
gauntlet. His benchmark The Pursuit of Wealth
details the myriad ways that people have
chased after money, business, investing, and
risk since the dawn of time—and will
forever reshape the ways in which you view
money and mankind.
More than a scholarly tome, however,
The Pursuit of Wealth races through history
like a fast-paced novel, revealing the dramatic
human aspects of wealth accumulation. In this
story, powerful individuals shrewdly interact
with governments and churches to create the
first family dynasties. Inside accounts of
Europe's American empires depict how early
opportunists, fueled by bold vision and
unfettered opportunity, built fortunes that live
to this day. Nineteenth century portraits
illustrate how pioneers of capitalism and
industry, including J.P. Morgan, John Jacob
Astor, Andrew Carnegie, and others, forged
the industrial infrastructure that would create
a new definition for wealth—and define the
latter stages of the second millennium.
Robert Sobel draws on his lifetime of study
and research to categorize human financial
endeavor into three natural stages:
• The Age of Merchants, Explorers, and
Bankers—From the Ancient Middle East
to eighteenth century America, this
panoramic introductory section covers the
early stages of wealth building—when
nations and fortunes were built by
discovering methods to take products from
areas of abundance to places where they
were scarce and expensive.
(continued on back flap)
( continued from jrontjlap)
• The Age of Farmers—In this age of
agriculture, when most people struggled
simply to survive day to day, a handful of
creative entrepreneurs built huge fortunes.
Read how some became titans of
agriculture, while others grew rich shipping
crops or manufacturing farm equipment.
• The Age of Industrialization and
Information—With the twentieth century
came big business and—for the first time in
history—a large middle class with money
to spend. The growth of industry is
examined, along with the birth of wide
spread stock market investment and the
feeling that true wealth was within
everybody's grasp.
The Pursuit of Wealth reveals how, while
wealth accumulation is an intrinsic part of
human nature, its methods have changed
dramatically over 5000 years to meet changing
conditions, circumstances, and opportunities.
On the one hand, this groundbreaking work of
research and analysis stands alone for its ability
to analyze and explain how money has affected
humankind throughout history. On the other, its
lessons and examples will provide invaluable
business and investment assistance as we enter
the third millennium A.D.
About the Author
Robert Sobel, Ph.D. (1931-1999), was a
noted financial historian, Senior Fellow at the
Milken Institute, and the Lawrence Stessin
Distinguished Professor Emeritus of Business
History at Hofstra University. Dr. Sobel
authored many noteworthy books, including
Dangerous Dreamers: The Financial
Innovators from Charles Merrill to Michael
Milken and Coolidge: An American Enigma.
He wrote a popular column on financial
history for Barron's, and his articles
and reviews appeared in numerous
publications, including The New York Times,
Thfi Wall Street Journal, The Washington
Post, The Institutional Investor, and others.
Cover Design: 12E Design
Cover Art/Photo: Erich Lessing/Art Resource, NY
The Pursuit of
WEALTH

The Pursuit of
WEALTH
The Incredible Story of Money
Throughout the Ages
ROBERT SOBEL
MCGRAW-HILL
New York San Francisco Washington, D.C. Auckland Bogota
Caracas Lisbon London Madrid Mexico City Milan
Montreal New Delhi San Juan Singapore
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Library of Congress Cataloging-in-Publication Data
Sobel, Robert
The pursuit of wealth : the incredible story of money throughout
the ages / Robert Sobel.
p. cm.
Includes bibliographical references.
ISBN 0-07-059613-1
1. Money—History. I. Title.
HG220.A2S63 1999
332.4'9-dc21 99-23274
CIP
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Contents
Introduction vii
Acknowledgments XI
CHAPTER 1. The Ancient World 1
CHAPTER 2. The Imperial Age of Alexander and Rome 17
CHAPTER 3. The European Middle Ages: The Birth of a New Economic Age 29
CHAPTER 4. The Italian Bankers and their Clients 41
CHAPTER 5. The Atlantic Age 57
CHAPTER 6. Europe's American Empires 69
CHAPTER 7. The English Advantage 85
CHAPTER 8. The American Paths to Wealth 101
CHAPTER 9. Industrial Wealth 121
CHAPTER 10. The Mechanization of Agriculture 135
CHAPTER 11. Infrastructure and Wealth 151
CHAPTER 12. Emperor Wheat and King Cotton 165
CHAPTER 13. Gold, Silver, and the Civil War 183
CHAPTER 14. The Impact of the Transcontinentals 199
CHAPTER 15. The Arrival of Big Business 219
CHAPTER 16. The Government-Industrial Complex, 1914-1929 241
CHAPTER 17. The Great Bull Market of the 1920s 257
CHAPTER 18. The Old and the New in Post-World War II America 275
CHAPTER 19. The Revival of the Securities Markets 293
CHAPTER 20. Creating Wealth During the Great Inflation 311
CHAPTER 21. The Democratization of Wealth 323
Index 339