- Steinway & Sons’ net loss is $201,225.
- Theodore E. Steinway mortgages Steinway Hall for $900,000, to obtain the money needed for keeping Steinway & Sons in business.
- Steinway & Sons makes $2,185,072 in piano sales.
- Steinway & Sons introduces the Steinway 40 – a new 40-inch-tall model of the upright piano, sold for $495. “Hepplewhite with flute legs” will become the most popular among several styles available for the Steinway 40.
- To better market the new upright model, Theodore E. Steinway reintroduces the word “Pianino”, coined originally by his uncle C.F. Theodor Steinweg 80 years ago.
- Steinway & Sons builds 4,088 pianos, of which 2,175 are upright pianos, only 19 are Model D grands, and almost all the rest are Model S baby grands.
- Theodore D. “Teed” Steinway suffers a nervous breakdown, and has to spend several months in Silverhill Rest Home (a psychiatric hospital). After being discharged from the hospital, he joins a volunteer cavalry lodge (Squadron A). There he will spend the next several years, followed by WWII military service.
- Fortune magazine reports: “more children are learning to play piano than at any time in history”.