Phelps was descended from the early American colonial governors of Connecticut, Thomas Dudley, John Haynes and George Wyllys.

[2] Such cotton trade was highly important to England and contributed to its considering support for the Confederacy during the American Civil War.

Fellow businessman Sheldon Smith persuaded Phelps to invest in the growing town of Derby, Connecticut, in an area that came to be known as Birmingham.

Unable to grow his business farther north, Phelps selected a location on the east bank of the Naugatuck River in what is now downtown Ansonia.

Caroline Phelps eventually married James Boulter Stokes, brother of the dead Josiah.

Phelps' business interests included banking, property, mining, ironworks, shipping, railroads and timber.

Among his other philanthropic activities was the creation of the Anson G. Phelps lecture series on early American history at New York University.

In 1835 Phelps purchased the house of Henry A. Coster and added land to extend the property from Third Avenue to the East River, and from Twenty-ninth to half-way between Thirty-third and Thirty-fourth streets.

Due to a technical issue with the wording of the will, one large bequest of $50,000 to the Liberia College was declared void by the courts.

[7] He was eulogized by a Mrs. Sigourney in writing: The cares of commerce and the rush of wealth Swept not away his meekness, nor the time To cultivate all household charities; Nor the answering, conscientious zeal To consecrate a portion of his gains To man's relief and the Redeemer's cause.

[citation needed] In his will, Phelps left instructions to his heirs in terms that characterized his life: I give and bequeath to each of my grand-children, living at my decease, the sum of $5,000, to be paid them as they severally attain the age of 21 years.

This latter bequest I direct to be accompanied by my executors with this injunction:-That each of my said grand-children shall consider the said bequest as a sacred deposit, committed to their trust, to be invested by each grand-child, and the income derived therefrom to be devoted to spread the gospel, and to promote the Redeemer's kingdom oil earth, hoping and trusting that the God of Heaven will give to each of that wisdom which is from above, and incline them to be faithful stewards, and transmit the same to their descendants, to be sacredly devoted to the same object.

I know this bequest is absolute and places the amount so given beyond my control; but my earnest hope is that my wish may be regarded as I leave it, an obligation binding simply on their integrity and honor.His funeral was at the Presbyterian Church, Mercer Street, New York, where he had been a ruling elder.