- Albert Steinway and C.F. Theodor Steinweg become partners in Steinway & Sons. Albert Steinway becomes the head all the manufacturing operations. His duties include not only managing the 420 workers and controlling the expansion of the factories, but also finding best wood and bringing it to New York from all over North America. C.F. Theodor takes charge of Steinway & Sons’ research and development (he will become the Steinway with the highest number of patented inventions).
- Due to instability of the United States economy and sudden deflation of the price of gold almost by half, wages of Steinway & Sons workers have to be lowered by 20%. The workers accept the reduction, understanding that it’s the only alternative to closing the factory.
- William Steinway buys ten shares of The Recuperative Caloric Engine Company (one of the failed attempts to create the internal combustion engine) for $100. This is the first indication of his interest in engine-building.