- Steinway & Sons exceeds the yearly production of 1,000 pianos, second in numbers only to Chickering & Sons factory.
- The 91 Mercer factory is expanded to include 87, 89, 90 and 109 Mercer Street.
- The key-making department of Steinway moves from 85 Varick Street to a new place at 83 Walker Street.
- The design of the Fourth Avenue factory is modified from L-shaped to U-shaped, allowing to add 75,000 more square feet to the building. Approximately around the same time the Steinways decide to add the fifth floor to the entire building.
- Steinway & Sons builds its first overstrung grand piano, #2,522.
- Albert Steinway becomes an American citizen.
- C.F. Theodor Steinweg begins his attempts to persuade his father brothers to produce mostly upright pianos in New York, believing that the upright piano production would lead to a great increase in profit. By this time he had constructed an upright piano with brilliant tone, surpassing most square pianos on the market.
- At the demand of the “United Pianoforte Makers”, Steinway & Sons grants a general wage increase to its workers, ranging from 7% to 12%, depending on the job.