The House Of Rothschild Part 17

6 In 1812 the princes' debts were rescheduled to include back interest at 225,361, of which the Prince of Wales owed 140,000, the Duke of York 66,667, the Duke of Clarence 20,000. In 1812 the princes' debts were rescheduled to include back interest at 225,361, of which the Prince of Wales owed 140,000, the Duke of York 66,667, the Duke of Clarence 20,000.

7 Nathan had made his first tentative foray into the gilts market in June 1803. Nathan had made his first tentative foray into the gilts market in June 1803.

8 On one occasion the sea captain to whom they had been entrusted threw them overboard when his ship was searched. In the spring of 1812 James was entrusted with collecting five certificates for 189,550 in London. He and Carl, whom he met at Dunkirk, then went to Paris, from whence Carl proceeded to Prague. The Elector did not receive the certificates until May 20. In late 1812 Salomon picked up a further certificate of 250,000. On one occasion the sea captain to whom they had been entrusted threw them overboard when his ship was searched. In the spring of 1812 James was entrusted with collecting five certificates for 189,550 in London. He and Carl, whom he met at Dunkirk, then went to Paris, from whence Carl proceeded to Prague. The Elector did not receive the certificates until May 20. In late 1812 Salomon picked up a further certificate of 250,000.

9 The total a.s.sets of the firm were in excess of 970,000 gulden, 70,000 of which were bonds of various kinds, and 110,000 of which were loans of other sorts, including a loan to William's son of 10,000 gulden and a bill on Prince George-the Prince Regent-of 127,784 gulden. The total a.s.sets of the firm were in excess of 970,000 gulden, 70,000 of which were bonds of various kinds, and 110,000 of which were loans of other sorts, including a loan to William's son of 10,000 gulden and a bill on Prince George-the Prince Regent-of 127,784 gulden.

10 Virtually all the 190,000 gulden (apart from sums reserved for Carl's and James's marriage gifts) went to his wife and daughters however. Virtually all the 190,000 gulden (apart from sums reserved for Carl's and James's marriage gifts) went to his wife and daughters however.

11 According to legend, the school originated when Mayer Amschel heard a poor Jewish boy singing in the street in Marburg: he persuaded Geisenheimer to adopt him as the first pupil in a new school. According to legend, the school originated when Mayer Amschel heard a poor Jewish boy singing in the street in Marburg: he persuaded Geisenheimer to adopt him as the first pupil in a new school.

THREE "The Commanding General" (1813-1815) "The Commanding General" (1813-1815) 1 In the eighteenth century, the guinea was the princ.i.p.al gold coin used in Britain, though the silver shilling (of which sixty-six were coined from the troy pound of silver) was regarded as the monetary standard. In 1717 the mint price was set at 21s. = 1 guinea. However, at this time the Mint switched to a new coin, the pound sterling (= 20s.), and the price of gold was set by Newton at 3 17s. 10 1/2d. This proved to be the first step towards the gold standard: in 1774 silver was effectively demoted when it ceased to be legal tender for sums in excess of 25. In the eighteenth century, the guinea was the princ.i.p.al gold coin used in Britain, though the silver shilling (of which sixty-six were coined from the troy pound of silver) was regarded as the monetary standard. In 1717 the mint price was set at 21s. = 1 guinea. However, at this time the Mint switched to a new coin, the pound sterling (= 20s.), and the price of gold was set by Newton at 3 17s. 10 1/2d. This proved to be the first step towards the gold standard: in 1774 silver was effectively demoted when it ceased to be legal tender for sums in excess of 25.

2 The business was given to the Bethmann Brothers, apparently on worse terms than the Rothschilds had offered-a reflection of the continuing preference in Vienna for established banks. The business was given to the Bethmann Brothers, apparently on worse terms than the Rothschilds had offered-a reflection of the continuing preference in Vienna for established banks.

3 It was this rally which increased the profit margin on the Prussian subsidy deal from zero to a respectable 3 per cent. It was this rally which increased the profit margin on the Prussian subsidy deal from zero to a respectable 3 per cent.

4 Herries later stated that the total sum transferred by "a single and confidential agency" in 1814 and 1815 was 18 million. Herries later stated that the total sum transferred by "a single and confidential agency" in 1814 and 1815 was 18 million.

5 The bulletins Nathan received have not been preserved, though a letter confirming the news from a Dutch source based just six miles from the battlefield survives. The bulletins Nathan received have not been preserved, though a letter confirming the news from a Dutch source based just six miles from the battlefield survives.

6 Characteristically, Nathan, who had intended to float as much as 3 million of these bills, blamed Carl for the Amsterdam market's lack of interest. Characteristically, Nathan, who had intended to float as much as 3 million of these bills, blamed Carl for the Amsterdam market's lack of interest.

7 Nathan was incensed to hear that James had suffered a riding accident; in his view, to be riding at all was a sign of dilettantism. Nathan was incensed to hear that James had suffered a riding accident; in his view, to be riding at all was a sign of dilettantism.

FOUR "A Court Always Leads to Something" (1816-1825) "A Court Always Leads to Something" (1816-1825) 1 Punctuation varies: this is the text in the 1986 Oxford edition. The 1930 Oxford edition has "Jew Rothschild, and his fellow-Christian, Baring" but this seems nonsensical. Byron clearly intended to suggest that the two bankers were on a par, despite their different religions. Punctuation varies: this is the text in the 1986 Oxford edition. The 1930 Oxford edition has "Jew Rothschild, and his fellow-Christian, Baring" but this seems nonsensical. Byron clearly intended to suggest that the two bankers were on a par, despite their different religions.

2 Of the 700 million francs, some 138 million was to be spent on reconstructing strategic fortresses around France's borders. Each of the great powers was to receive between 100 and 139 million to compensate them for the costs of the Hundred Days; smaller sums went to the other states in the anti-French coalition. In addition, France had to pay substantial sums to private claimants; after prolonged wrangles, these amounted to 240 million francs. The peace also returned French borders to those of 1790, as opposed to those of 1792 which the 1814 treaty had set. It should be noted that France had previously imposed indemnities on the Netherlands, Austria, Prussia and Portugal, but the sums involved had been smaller. Of the 700 million francs, some 138 million was to be spent on reconstructing strategic fortresses around France's borders. Each of the great powers was to receive between 100 and 139 million to compensate them for the costs of the Hundred Days; smaller sums went to the other states in the anti-French coalition. In addition, France had to pay substantial sums to private claimants; after prolonged wrangles, these amounted to 240 million francs. The peace also returned French borders to those of 1790, as opposed to those of 1792 which the 1814 treaty had set. It should be noted that France had previously imposed indemnities on the Netherlands, Austria, Prussia and Portugal, but the sums involved had been smaller.

3 James arranged to invest 20,000 for Dalberg in British stocks at around this time. A short time later he and Salomon joined Dalberg in a small speculation in French rentes. James arranged to invest 20,000 for Dalberg in British stocks at around this time. A short time later he and Salomon joined Dalberg in a small speculation in French rentes.

4 The Amsterdam bank of Hope & Co. had been founded by the Boston-born Henry Hope and the Cor nishman John Williams in the 1760s. Laid low by the French occupation of Holland, it had effectively been taken over by Baring Brothers. Labouchere was a Hope employee who married a Baring and later became a Hope partner. The Amsterdam bank of Hope & Co. had been founded by the Boston-born Henry Hope and the Cor nishman John Williams in the 1760s. Laid low by the French occupation of Holland, it had effectively been taken over by Baring Brothers. Labouchere was a Hope employee who married a Baring and later became a Hope partner.

5 Adolphe d'Eichthal was the grandson of the Bavarian court banker Aron Elias Seligmann; he changed his religion and name and moved to Paris with his son Louis. Adolphe d'Eichthal was the grandson of the Bavarian court banker Aron Elias Seligmann; he changed his religion and name and moved to Paris with his son Louis.

6 It was at this time that the Ka.s.sel Jewish community took Amschel to court for alleged non-payment of residence dues. It was at this time that the Ka.s.sel Jewish community took Amschel to court for alleged non-payment of residence dues.

7 Baring had already agreed to advance 165 million francs to the Allies in return for 246 million of rentes at 67; the problem was the decision by the Allies at Aix to accept a final payment of 100 million in the form of 132 million of rentes which Baring rashly agreed to buy at the higher price of 74. Baring had already agreed to advance 165 million francs to the Allies in return for 246 million of rentes at 67; the problem was the decision by the Allies at Aix to accept a final payment of 100 million in the form of 132 million of rentes which Baring rashly agreed to buy at the higher price of 74.

8 The price of gold was 4 0s 6d in 1819 compared with the bullionists" pre-war target of 3 17s 101/2 d. The price of gold was 4 0s 6d in 1819 compared with the bullionists" pre-war target of 3 17s 101/2 d.

9 The final terms were that 5 per cent bonds totalling 5 million would be sold in three successive tranches with the price rising from 70 (2.5 million) to 72.5 (1.25 million) and then to 75 (1.25 million). 1 million of the first tranche was taken by the Prussian government itself at Rother's suggestion. Repayment was to take place over twenty-five years. Officially, as Ehrenberg says, there was no additional commission; in fact, Nathan got his 4 per cent, though this was "kept secret" to defuse criticism in Berlin. In addition, the Rothschilds kept at least 1.5 million for themselves, netting a large profit when the price rose to a peak of 83 in September. This explains why the brothers wrote in such affectionate terms to Rother after the contract was concluded: Salomon a.s.sured him that he and Nathan were his "heartfelt, eternal and faithful good friends"; it is unlikely that he would have expressed such sentiments if he had been forced to forgo a commission. The final terms were that 5 per cent bonds totalling 5 million would be sold in three successive tranches with the price rising from 70 (2.5 million) to 72.5 (1.25 million) and then to 75 (1.25 million). 1 million of the first tranche was taken by the Prussian government itself at Rother's suggestion. Repayment was to take place over twenty-five years. Officially, as Ehrenberg says, there was no additional commission; in fact, Nathan got his 4 per cent, though this was "kept secret" to defuse criticism in Berlin. In addition, the Rothschilds kept at least 1.5 million for themselves, netting a large profit when the price rose to a peak of 83 in September. This explains why the brothers wrote in such affectionate terms to Rother after the contract was concluded: Salomon a.s.sured him that he and Nathan were his "heartfelt, eternal and faithful good friends"; it is unlikely that he would have expressed such sentiments if he had been forced to forgo a commission.

10 The Rothschilds had no difficulty in placing the greater part of the loan with the major Paris and Frankfurt banks, though they were less generous to their rivals in Berlin. The bonds rose initially to 83 in Sept. 1818, then slipped back to 73.5 until late 1819, before rising steadily again. Rumours of a new loan in 1820 seem to have prompted the Rothschilds to sell their own holdings, but these proved unfounded. In fact, the bonds reached par (i.e. 100) in 1824. The Rothschilds had no difficulty in placing the greater part of the loan with the major Paris and Frankfurt banks, though they were less generous to their rivals in Berlin. The bonds rose initially to 83 in Sept. 1818, then slipped back to 73.5 until late 1819, before rising steadily again. Rumours of a new loan in 1820 seem to have prompted the Rothschilds to sell their own holdings, but these proved unfounded. In fact, the bonds reached par (i.e. 100) in 1824.

11 Isaac Arnstein and Bernhard Eskeles were descendants of Samson Wertheimer, court banker of Charles VI. Arnstein's son Nathan married f.a.n.n.y Itzig, famed for her Vienna salon. Isaac Arnstein and Bernhard Eskeles were descendants of Samson Wertheimer, court banker of Charles VI. Arnstein's son Nathan married f.a.n.n.y Itzig, famed for her Vienna salon.

12 Ultimately only around 300,000 ducats were repaid. Ultimately only around 300,000 ducats were repaid.

13 The problem was that neither her son by Napoleon, the Duke of Reichstadt, nor her two children by her second husband, Count von Neipperg, stood to inherit her Italian duchies, which were to pa.s.s to the Duke of Lucca after her death. The problem was that neither her son by Napoleon, the Duke of Reichstadt, nor her two children by her second husband, Count von Neipperg, stood to inherit her Italian duchies, which were to pa.s.s to the Duke of Lucca after her death.

14 Salomon initially offered to underwrite a loan of 42.8 million gulden at an effective price of just 67. When this was refused he proposed a smaller loan of just 12 million gulden, offering to pay "1.5 per cent more for the amount decided than is offered by any other firm." The same tactic was repeated when the loan was put out to tender; now Salomon simply offered to pay 0.5 per cent more than the highest bidder. The Austrian government wisely waited, and in April 1823 was able to secure significantly improved terms from a Rothschild-led consortium: a loan of 36 million gulden was issued at an underwriting price of 82. Salomon initially offered to underwrite a loan of 42.8 million gulden at an effective price of just 67. When this was refused he proposed a smaller loan of just 12 million gulden, offering to pay "1.5 per cent more for the amount decided than is offered by any other firm." The same tactic was repeated when the loan was put out to tender; now Salomon simply offered to pay 0.5 per cent more than the highest bidder. The Austrian government wisely waited, and in April 1823 was able to secure significantly improved terms from a Rothschild-led consortium: a loan of 36 million gulden was issued at an underwriting price of 82.

15 Metternich suspected that this initiative had the backing of the French government, or at least that part of it which was against intervention, but British observers believed that the Rothschilds were "pacific" for reasons of their own. Metternich suspected that this initiative had the backing of the French government, or at least that part of it which was against intervention, but British observers believed that the Rothschilds were "pacific" for reasons of their own.

16 As Finance Minister and then premier, Villele had succeeded in establishing a modic.u.m of order in the French financial system, but was disliked by the less "circ.u.mspect" Ultras, especially Chateaubriand. As Finance Minister and then premier, Villele had succeeded in establishing a modic.u.m of order in the French financial system, but was disliked by the less "circ.u.mspect" Ultras, especially Chateaubriand.

17 Significantly, no Rothschild was sent to Madrid and the negotiations there were entrusted to agents, first Belin and then Renevier. Significantly, no Rothschild was sent to Madrid and the negotiations there were entrusted to agents, first Belin and then Renevier.

18 In 1807 the Portuguese Crown Prince Joao had gone to Brazil at the time of the French invasion. In 1812, when the French were driven out, he refused to leave Brazil and elevated it "to the dignity, prominence and denomination of a Kingdom" equal with Portugal following his mother's death in 1816. Six years later, when Joao VI returned to Portugal, his son Pedro became Emperor and he remained as such when Brazil's independence was recognised in August 1825. When Joo died the following year, Pedro in turn pa.s.sed the Portuguese throne to his daughter Maria, though this arrangement was subsequently challenged by Pedro's brother Miguel. In 1807 the Portuguese Crown Prince Joao had gone to Brazil at the time of the French invasion. In 1812, when the French were driven out, he refused to leave Brazil and elevated it "to the dignity, prominence and denomination of a Kingdom" equal with Portugal following his mother's death in 1816. Six years later, when Joao VI returned to Portugal, his son Pedro became Emperor and he remained as such when Brazil's independence was recognised in August 1825. When Joo died the following year, Pedro in turn pa.s.sed the Portuguese throne to his daughter Maria, though this arrangement was subsequently challenged by Pedro's brother Miguel.

19 Put simply, the plan drawn up by Nathan was that the Rothschilds, Barings and Laffitte together would undertake the conversion in return for the first year's saving which resulted from it (28 million francs). To make the conversion attractive, Nathan insisted that the Banque de France must set its discount rate at 3 per cent. Put simply, the plan drawn up by Nathan was that the Rothschilds, Barings and Laffitte together would undertake the conversion in return for the first year's saving which resulted from it (28 million francs). To make the conversion attractive, Nathan insisted that the Banque de France must set its discount rate at 3 per cent.

20 See e.g. James, Paris, to Nathan, London, Jan. 28, 1825: "The Minister said to me today, 'Mr Rothschild, you have the reputation of a man who has been selling large numbers of rentes.' I must therefore be careful not to antagonise the Government. However, I think that on Monday or Tuesday when the King is due to make his speech I will be able to sell [rentes] at a better rate than today and I will profit from the situation because I don't foresee any sizeable rise." See e.g. James, Paris, to Nathan, London, Jan. 28, 1825: "The Minister said to me today, 'Mr Rothschild, you have the reputation of a man who has been selling large numbers of rentes.' I must therefore be careful not to antagonise the Government. However, I think that on Monday or Tuesday when the King is due to make his speech I will be able to sell [rentes] at a better rate than today and I will profit from the situation because I don't foresee any sizeable rise."

21 In fact, Nathan intervened to support the rente after the rejection of the conversion bill, which unleashed a wave of selling in Paris and London. In fact, Nathan intervened to support the rente after the rejection of the conversion bill, which unleashed a wave of selling in Paris and London.

22 Of twenty-six foreign government loans totalling 52.4 million which had been made between 1823 and 1826, sixteen were in default within a few years. Of twenty-six foreign government loans totalling 52.4 million which had been made between 1823 and 1826, sixteen were in default within a few years.

FIVE "Hue and Cry" (1826-1829) "Hue and Cry" (1826-1829) 1 It is surprising that the Rothschilds could still fear that bills endorsed by them might not be accepted. It is surprising that the Rothschilds could still fear that bills endorsed by them might not be accepted.

2 See ill.u.s.tration 10.vii below. The t.i.tle is a pun: "Exemplary Knight" literally, but also "Knight with Samples." See ill.u.s.tration 10.vii below. The t.i.tle is a pun: "Exemplary Knight" literally, but also "Knight with Samples."

3 See ill.u.s.tration 7.i below. See ill.u.s.tration 7.i below.

4 The origin of the word "Hep" is variously explained: as an acronym of "Hierosolyma est perdita," or as the sound of bleating goats, alluding to the Jews' traditional beards. There was a similar backlash against emanc.i.p.ation in many German towns. The origin of the word "Hep" is variously explained: as an acronym of "Hierosolyma est perdita," or as the sound of bleating goats, alluding to the Jews' traditional beards. There was a similar backlash against emanc.i.p.ation in many German towns.

5 His "Political Georgics," a pastiche of Dryden's Georgics, appeared in His "Political Georgics," a pastiche of Dryden's Georgics, appeared in The Times The Times, March 18, 1828: Macaulay later repeated the lines in a letter to his sister: " . . . Oh mysterious two, Lords of our fate, the Doctor and the Jew, If by your care preferred th'aspiring clerk [Herries]

Quits the close alley for the breezy park, . . . And you, great pair, through Windsor's shades who rove, The Faun and Dryad of the conscious grove, All, all, inspire me;-for of all I sing Doctor and Jew and Marchioness and King . . .

But the black stream beneath runs on the same Still bawls in Wetherell's key, still stinks like Herries['] name."

6 The loan was intended solely to enable Brazil to maintain interest payments on her existing debt. James "admit[ted] quite frankly that in two years" time these people will not pay anything"; but in the short run it boosted the price of Brazilian bonds. The loan was intended solely to enable Brazil to maintain interest payments on her existing debt. James "admit[ted] quite frankly that in two years" time these people will not pay anything"; but in the short run it boosted the price of Brazilian bonds.

7 The loan was apparently never repaid, so Nathan kept the jewels. The loan was apparently never repaid, so Nathan kept the jewels.

8 In fact, Amschel provided a sumptuous lunch, to which a number of leading figures in the Frankfurt diplomatic corps were also invited. The In fact, Amschel provided a sumptuous lunch, to which a number of leading figures in the Frankfurt diplomatic corps were also invited. The Augsburger Zeitung Augsburger Zeitung reported that "the stairs leading to the ban quetting room were laid out with red carpet, and decorated with garlands of flowers and plants . . . Several of the most distinguished emissaries to the German Diet, as well as foreign ministers present here, enjoyed this guest luncheon prepared with no expense spared." reported that "the stairs leading to the ban quetting room were laid out with red carpet, and decorated with garlands of flowers and plants . . . Several of the most distinguished emissaries to the German Diet, as well as foreign ministers present here, enjoyed this guest luncheon prepared with no expense spared."

9 The The Courrier Francais Courrier Francais also reported the dinner, humorously explaining the absence of the British amba.s.sador as follows: "An Englishman was asked how it could be that the amba.s.sador of his nation had not been present at this diplomatic feast. 'Because,' he replied, 'England has no need of money.' " also reported the dinner, humorously explaining the absence of the British amba.s.sador as follows: "An Englishman was asked how it could be that the amba.s.sador of his nation had not been present at this diplomatic feast. 'Because,' he replied, 'England has no need of money.' "

SIX Amschel's Garden Amschel's Garden 1 Of eight German-Jewish merchants in Manchester in 1806, Nathan was the only one who maintained his religious affiliation. Of eight German-Jewish merchants in Manchester in 1806, Nathan was the only one who maintained his religious affiliation.

2 In 1844 Nat was obliged to eat "a kosher lunch and [felt] very sick in consequence. I shall smoke a 14 sou Havana to relieve my stomach." In 1844 Nat was obliged to eat "a kosher lunch and [felt] very sick in consequence. I shall smoke a 14 sou Havana to relieve my stomach."

3 Wilhelm attended the synagogue twice daily and studied the Talmud in the evening. On the Orthodox revival in Frankfurt. Wilhelm attended the synagogue twice daily and studied the Talmud in the evening. On the Orthodox revival in Frankfurt.

4 The most common The most common Schnorrer Schnorrer joke has Rothschild complaining about the joke has Rothschild complaining about the Schnorrer Schnorrer's tactics only to be asked, "Are you trying to teach me schnorring?" Another favourite has the Schnorrer Schnorrer regarding his relative's regular hand-out as inheritable property. Sometimes the regarding his relative's regular hand-out as inheritable property. Sometimes the Schnorrer Schnorrer is caught out: he claims to play the ba.s.soon, but Rothschild has one in a cupboard and asks him to play; or he sees Rothschild's daughters playing a duet and decides not to bother schnorring: the Baron has clearly fallen on hard times if they have to share a piano. is caught out: he claims to play the ba.s.soon, but Rothschild has one in a cupboard and asks him to play; or he sees Rothschild's daughters playing a duet and decides not to bother schnorring: the Baron has clearly fallen on hard times if they have to share a piano.

5 "So young-and already a Rothschild," says one "So young-and already a Rothschild," says one Schnorrer Schnorrer to another as a child is wheeled past in a sumptuous perambulator or carriage. Contemplating a lavish Rothschild gravestone, the to another as a child is wheeled past in a sumptuous perambulator or carriage. Contemplating a lavish Rothschild gravestone, the Schnorrer Schnorrer can only marvel: "They sure know how to live." There are numerous jokes in this vein. can only marvel: "They sure know how to live." There are numerous jokes in this vein.

6 An important element in the Jewish case, stressed by the Rothschilds, was that a payment had been made by the Jewish community for their rights, to finance which bonds had been issued. To revoke the 1811 agreement would therefore require this money to be refunded. An important element in the Jewish case, stressed by the Rothschilds, was that a payment had been made by the Jewish community for their rights, to finance which bonds had been issued. To revoke the 1811 agreement would therefore require this money to be refunded.

7 The economic restrictions extended the duration of Jewish apprenticeships and prohibited Jews from the trading in food and firewood. The economic restrictions extended the duration of Jewish apprenticeships and prohibited Jews from the trading in food and firewood.

8 Montefiore had retired from business to concentrate on philanthropy and Jewish communal matters. Montefiore had retired from business to concentrate on philanthropy and Jewish communal matters.

9 Caroline's few surviving letters to Salomon suggest above all an impatience with his over-eagerness to please Nathan and others. Their son Anselm became the main focus for her affections; that may explain the relatively cool relationship he had with his father. Caroline's few surviving letters to Salomon suggest above all an impatience with his over-eagerness to please Nathan and others. Their son Anselm became the main focus for her affections; that may explain the relatively cool relationship he had with his father.

10 Hannah was supposed to be there in attendance at the birth of her first grandchild; but she was irresistibly attracted by the wild fluctuations of the bourse caused by the revolution. Despite a number of "specs," however, she had to confess to her husband: "You will see me back without having made a great deal of money." Three years later her son wrote expressing the hope that she had been "a great Bull" during the "enormous rise in all the funds." Hannah was supposed to be there in attendance at the birth of her first grandchild; but she was irresistibly attracted by the wild fluctuations of the bourse caused by the revolution. Despite a number of "specs," however, she had to confess to her husband: "You will see me back without having made a great deal of money." Three years later her son wrote expressing the hope that she had been "a great Bull" during the "enormous rise in all the funds."

SEVEN Barons Barons 1 In 1836, Betty told a guest who admired her house: "If you had seen the hotel of M. Solomon Rothschild (which is next door), you would think our house was only the stables attached to it." In 1836, Betty told a guest who admired her house: "If you had seen the hotel of M. Solomon Rothschild (which is next door), you would think our house was only the stables attached to it."

2 Interestingly, the Rothschild pa.s.sion for horses appears to have begun with the brothers' wives. With the exception of James, the brothers regarded horses exclusively as a means of getting from A to B, and were baffled when James began riding for pleasure. Interestingly, the Rothschild pa.s.sion for horses appears to have begun with the brothers' wives. With the exception of James, the brothers regarded horses exclusively as a means of getting from A to B, and were baffled when James began riding for pleasure.

3 On the coat of arms Salomon initially requested the following arms: "First quarter, or, an eagle sable surcharged in dexter by a field gules; second quarter, gules, a leopard pa.s.sant proper; third quarter, a lion rampant; fourth quarter, azure, an arm bearing five arrows. In the centre of the coat a shield gules. Right hand supporter, a greyhound, a symbol of loyalty; left supporter, a stork, a symbol of piety and content." This was to be surmounted by a seven-point crown and a lion rampant. This design was substantially modified by the Vienna heralds: the final version featured only the eagle and the hand grasping On the coat of arms Salomon initially requested the following arms: "First quarter, or, an eagle sable surcharged in dexter by a field gules; second quarter, gules, a leopard pa.s.sant proper; third quarter, a lion rampant; fourth quarter, azure, an arm bearing five arrows. In the centre of the coat a shield gules. Right hand supporter, a greyhound, a symbol of loyalty; left supporter, a stork, a symbol of piety and content." This was to be surmounted by a seven-point crown and a lion rampant. This design was substantially modified by the Vienna heralds: the final version featured only the eagle and the hand grasping four four arrows; there were no supporters, and the shield was surmounted by a helmet, a three-pointed crown and another eagle. The version registered by Nathan in 1818 was slightly different: the arms consisted of "Azure a lion pa.s.sant guardant erminois grasping with the dexter forepaw five arrows the pheons downwards or; And for the crest on a wreath of the colours out of a crown vallery gules a demi lion erminois holding between the paws five arrows as in the arms." The motto, "Concordia, integritas, industria," was incorporated later. arrows; there were no supporters, and the shield was surmounted by a helmet, a three-pointed crown and another eagle. The version registered by Nathan in 1818 was slightly different: the arms consisted of "Azure a lion pa.s.sant guardant erminois grasping with the dexter forepaw five arrows the pheons downwards or; And for the crest on a wreath of the colours out of a crown vallery gules a demi lion erminois holding between the paws five arrows as in the arms." The motto, "Concordia, integritas, industria," was incorporated later.

4 In "The Baths of Lucca," a ball at Salomon's house is described: "Such stars and orders! The Order of the Falcon, the Order of the Golden Fleece, the Order of the Lion, the Order of the Eagle-and there was even a child, I a.s.sure you, a tiny tot, that wore the Order of the Elephant." When Macaulay dined with "the Jew" (i.e. Nathan) he "did not see one Peer, or one star, except a foreign order or two, which I generally consider as an intimation to look to my pockets." In "The Baths of Lucca," a ball at Salomon's house is described: "Such stars and orders! The Order of the Falcon, the Order of the Golden Fleece, the Order of the Lion, the Order of the Eagle-and there was even a child, I a.s.sure you, a tiny tot, that wore the Order of the Elephant." When Macaulay dined with "the Jew" (i.e. Nathan) he "did not see one Peer, or one star, except a foreign order or two, which I generally consider as an intimation to look to my pockets."

5 It is worth noting that Nathan's grandson dropped the "de" on receiving a British peerage, a usage followed by his descendants-hence the fact that there are "Rothschilds" as well as "de Rothschilds" today. It is worth noting that Nathan's grandson dropped the "de" on receiving a British peerage, a usage followed by his descendants-hence the fact that there are "Rothschilds" as well as "de Rothschilds" today.

6 Other paintings in Nathan's possession were gifts from government clients, like the portraits of Francis I of Austria, Frederick William III of Prussia, William I of Holland, John VI of Portugal and the Empress Alexandra of Russia seen by Prince Puckler. Other paintings in Nathan's possession were gifts from government clients, like the portraits of Francis I of Austria, Frederick William III of Prussia, William I of Holland, John VI of Portugal and the Empress Alexandra of Russia seen by Prince Puckler.

7 The Family of W. N. [sic] Rothschild, Consul General of his Austrian Majesty at the British Court The Family of W. N. [sic] Rothschild, Consul General of his Austrian Majesty at the British Court was commissioned to mark Nathan's appointment as Austrian consul general. Hobday was paid 1,000 for the work, which was shown at the Royal Academy in 1821 and then hung for a time at Austrian Consulate, before being moved to Gunnersbury. It can now be seen in the main hall of N. M. Rothschild & Sons at New Court. was commissioned to mark Nathan's appointment as Austrian consul general. Hobday was paid 1,000 for the work, which was shown at the Royal Academy in 1821 and then hung for a time at Austrian Consulate, before being moved to Gunnersbury. It can now be seen in the main hall of N. M. Rothschild & Sons at New Court.

8 Hannah also found the atmosphere less tolerant when she went there in 1841: "[T]he Place is too orthodox to be an agreeable residence for any other sect beside Protestant. Bibles and other religious Books are placed in the different apartments of the Hotel we are in but the Inhabitants are civil and attentive." Hannah also found the atmosphere less tolerant when she went there in 1841: "[T]he Place is too orthodox to be an agreeable residence for any other sect beside Protestant. Bibles and other religious Books are placed in the different apartments of the Hotel we are in but the Inhabitants are civil and attentive."

EIGHT Sudden Revolutions (1830-1833) Sudden Revolutions (1830-1833) 1 The utopian socialist Owen had known the Rothschilds since at least 1818. The utopian socialist Owen had known the Rothschilds since at least 1818.

2 "Above all fill his purse, O king, "Above all fill his purse, O king, With ample funds for travelling, And give him a letter of credit to greet The Rothschild brothers in Rue Lafitte.

"Yes a letter of credit for a million or two Of golden ducats should seen him through; And Baron de Rothschild will say of him, then, "This elephant's surely the best of men!" '

3 As James later noted, "regarding Polignac, I had been forewarned on several occasions as far back as six months before. However, I did not want to believe it. I had a gut feeling." As James later noted, "regarding Polignac, I had been forewarned on several occasions as far back as six months before. However, I did not want to believe it. I had a gut feeling."

4 Greville, Greville, Memoirs Memoirs, vol. I, p. 279: "Went to Esterhazy's ball; talked to old Rothschild who was there with his wife and a dandy little Jew son. He . . . offered to give me a letter by his brother, who would give me any information I wanted, squeezed my hand, and looked like what he is."

5 Stendhal, Stendhal, Lucien Leuwen Lucien Leuwen. Leuwen also has no objection to his son leaving the family firm to pursue a military or political career, something James would never have countenanced.

6 Hannah, Paris, to Nathan, London, Aug. 24, 1830: "You must look at it coolly, dear Rothschild. It will blow over. Salomon and James do not like the fall, you may easily suppose, but they are very cool and not frightened. Our attention is so engrossed with the funds that I can dwell upon nothing else." Hannah, Paris, to Nathan, London, Aug. 24, 1830: "You must look at it coolly, dear Rothschild. It will blow over. Salomon and James do not like the fall, you may easily suppose, but they are very cool and not frightened. Our attention is so engrossed with the funds that I can dwell upon nothing else."

7 According to Lionel, Hottinguer said: "Our credit is no more so good, and this last six months we have lost much in the public opinion; we shall not find so many more followers when we wish to make any loans." According to Lionel, Hottinguer said: "Our credit is no more so good, and this last six months we have lost much in the public opinion; we shall not find so many more followers when we wish to make any loans."

8 The Times The Times, Aug. 4, 1836: "This contract was more detrimental in proportion to his subscribers than to himself, as the greater part was distributed among them, and it was at the time a matter of severe reproach against him that he did on this occasion leave his friends completely in the lurch. But this was answered by the remark that he had always been in the practice of dealing liberally with his subscribers in sharing his contracts among them, and that the revolution which followed and made this so ruinous an operation was one that could not possibly have been foreseen by him."

9 Frederick William had made a morganatic marriage to Gertrud Falkenstein, the divorced wife of a Prussian lieutenant. In 1831 he elevated her to the rank of Countess von Schaumburg, and later Princess of Hanau. When he was in Frankfurt, the couple and their five children regularly "took their midday meal quite Frederick William had made a morganatic marriage to Gertrud Falkenstein, the divorced wife of a Prussian lieutenant. In 1831 he elevated her to the rank of Countess von Schaumburg, and later Princess of Hanau. When he was in Frankfurt, the couple and their five children regularly "took their midday meal quite en famille en famille with their good business friend." with their good business friend."

10 On July 17, 1832, Thomas Raikes recorded in his journal that a Dutch broker had asked "Rothschild yesterday . . . if he would advance money on stock; the old Jew refused him, saying, 'In these times I shall not advance money to any one On July 17, 1832, Thomas Raikes recorded in his journal that a Dutch broker had asked "Rothschild yesterday . . . if he would advance money on stock; the old Jew refused him, saying, 'In these times I shall not advance money to any one by Got by Got; who knows what may happen? you may be dead tomorrow. ' It so happened that the poor man was seized with the cholera that very evening, and the next morning he was dead."

NINE The Chains of Peace The Chains of Peace 1 The existing links between the House of Saxe-Coburg and the Rothschilds explain why the marriage of "your little Queen" to Albert prompted a message of congratulation from Salomon's son Anselm to his London cousins. The existing links between the House of Saxe-Coburg and the Rothschilds explain why the marriage of "your little Queen" to Albert prompted a message of congratulation from Salomon's son Anselm to his London cousins.

2 Of crucial importance was the French government's unequivocal commitment to the two protocols of January 1831, and its refusal to accept the Belgian offer of the crown to Louis Philippe's son the duc de Nemours, or to support Belgian resistance against the territorial provisions of the protocols. Needless to say, it was good news from a Rothschild standpoint that Leopold of Saxe-Coburg emerged as the successful candidate for the Belgian throne. Of crucial importance was the French government's unequivocal commitment to the two protocols of January 1831, and its refusal to accept the Belgian offer of the crown to Louis Philippe's son the duc de Nemours, or to support Belgian resistance against the territorial provisions of the protocols. Needless to say, it was good news from a Rothschild standpoint that Leopold of Saxe-Coburg emerged as the successful candidate for the Belgian throne.

3 James opposed the use of the brusque phrases "evacuez immediatement Bologne" and "evacuez promptement Bologne." "I shall ensure," he told his brothers, "that the offending phrase is omitted." James's hope that the Austrians would refer the matter to an international conference in Rome was fulfilled, but it was not until July that their troops were withdrawn. The fact that Perier did not make withdrawal a James opposed the use of the brusque phrases "evacuez immediatement Bologne" and "evacuez promptement Bologne." "I shall ensure," he told his brothers, "that the offending phrase is omitted." James's hope that the Austrians would refer the matter to an international conference in Rome was fulfilled, but it was not until July that their troops were withdrawn. The fact that Perier did not make withdrawal a casus belli casus belli was therefore significant. was therefore significant.

4 Salomon a.s.sured the Prussian government that "he had the honour of his House particularly in view, as he attached the greatest value to demonstrating to the Royal Government of Prussia that the consolidation of its public credit, and the fulfilment of the a.s.surances which his House had given in this matter, were of more importance in his eyes than any considerations of private profit." This proved all too true, despite Nathan's decision to send Anselm to Berlin to secure modifications to the deal. In essence, the 3,809,400 of 5 per cent bonds still outstanding from the 1818 loan were to be exchanged for 4 per cents issued to the same amount at 98 in the course of two and a half years from March 1830 until September 1832. As James realised even before the agreement was concluded, the issue price was certainly too high given the growing political uncertainty in France and the commission of 1.5 per cent too low. Interestingly, however, he seems to have regarded it as preferable that the Rothschilds undertake the risk, the extent of which he quite accurately gauged: "The worst, the very worst is that we stand to lose 15 per cent, G.o.d forbid, which amounts to 200,000 which is quite liable to ruin someone [else]." Salomon a.s.sured the Prussian government that "he had the honour of his House particularly in view, as he attached the greatest value to demonstrating to the Royal Government of Prussia that the consolidation of its public credit, and the fulfilment of the a.s.surances which his House had given in this matter, were of more importance in his eyes than any considerations of private profit." This proved all too true, despite Nathan's decision to send Anselm to Berlin to secure modifications to the deal. In essence, the 3,809,400 of 5 per cent bonds still outstanding from the 1818 loan were to be exchanged for 4 per cents issued to the same amount at 98 in the course of two and a half years from March 1830 until September 1832. As James realised even before the agreement was concluded, the issue price was certainly too high given the growing political uncertainty in France and the commission of 1.5 per cent too low. Interestingly, however, he seems to have regarded it as preferable that the Rothschilds undertake the risk, the extent of which he quite accurately gauged: "The worst, the very worst is that we stand to lose 15 per cent, G.o.d forbid, which amounts to 200,000 which is quite liable to ruin someone [else]."

5 The outstanding 850,000 of 5 per cents were finally redeemed in 1834. The outstanding 850,000 of 5 per cents were finally redeemed in 1834.

6 The money was earmarked for the construction of fortresses on the Franco-German border; that was evidently not Metternich's purpose in borrowing it. The money was earmarked for the construction of fortresses on the Franco-German border; that was evidently not Metternich's purpose in borrowing it.

7 The 5 per cent loan was initially issued at 94. Altogether 11 million francs were earmarked for the payment of compensation to Turkey; the parallel with the Belgian-Dutch separation is striking. The 5 per cent loan was initially issued at 94. Altogether 11 million francs were earmarked for the payment of compensation to Turkey; the parallel with the Belgian-Dutch separation is striking.

TEN The World's Bankers The World's Bankers 1 The cartoon is usually dated 1848 or 1849 but the political allusions are to the political events of 1840. The cartoon is usually dated 1848 or 1849 but the political allusions are to the political events of 1840.

2 The Royal Exchange (not to be confused with the Stock Exchange at Capel Court) was essentially a market for commercial bills and foreign exchange, though in Nathan's time bonds began to be traded there too. On the ground floor, the south-east corner was formally allocated to Jewish traders, behind the Spanish and Portuguese. The Royal Exchange (not to be confused with the Stock Exchange at Capel Court) was essentially a market for commercial bills and foreign exchange, though in Nathan's time bonds began to be traded there too. On the ground floor, the south-east corner was formally allocated to Jewish traders, behind the Spanish and Portuguese.

3 Among other things, the brothers resolved to withdraw their deposits at New Court and to sell their holdings of the 1818 Prussian loan. They also agreed to ensure that they had between them sufficient liquid funds to make available the 9 million gulden of French reparations deposited with them by the German Confederation, and to circulate monthly balance sheets for this purpose. It is not clear whether the agreement was acted upon or whether it was simply intended as a shot across Nathan's bows. Among other things, the brothers resolved to withdraw their deposits at New Court and to sell their holdings of the 1818 Prussian loan. They also agreed to ensure that they had between them sufficient liquid funds to make available the 9 million gulden of French reparations deposited with them by the German Confederation, and to circulate monthly balance sheets for this purpose. It is not clear whether the agreement was acted upon or whether it was simply intended as a shot across Nathan's bows.

4 Anselm immediately became ent.i.tled to a fifteenth of the profits, though he did not formally acquire a share of the capital until 1828, when a million gulden was invested in his name in the Paris house. His grandmother Gutle's inheritance from Mayer Amschel was invested in the Frankfurt house, but she had no status as a partner and her share was not included in the total capital for accounting purposes. Anselm immediately became ent.i.tled to a fifteenth of the profits, though he did not formally acquire a share of the capital until 1828, when a million gulden was invested in his name in the Paris house. His grandmother Gutle's inheritance from Mayer Amschel was invested in the Frankfurt house, but she had no status as a partner and her share was not included in the total capital for accounting purposes.

5 A clause was added, however, which stated that if the profits of the Paris, Frankfurt, Naples and Vienna houses exceeded those of the London house to the point that 22.5 per cent of their total profits exceeded 60 per cent of the London house's, then the division of the profits would revert to the old system of equal shares of the whole. A clause was added, however, which stated that if the profits of the Paris, Frankfurt, Naples and Vienna houses exceeded those of the London house to the point that 22.5 per cent of their total profits exceeded 60 per cent of the London house's, then the division of the profits would revert to the old system of equal shares of the whole.

6 There was a threat to give Warburgs priority in 1848, but this seems not to have been carried out. There was a threat to give Warburgs priority in 1848, but this seems not to have been carried out.

7 Another apocryphal anecdote has the roles reversed, with a wily stockbroker bursting into Nathan's house, feigning drunkenness, overhearing sensitive information and rushing back to the exchange to make a killing. Another apocryphal anecdote has the roles reversed, with a wily stockbroker bursting into Nathan's house, feigning drunkenness, overhearing sensitive information and rushing back to the exchange to make a killing.

8 In the 1840s the In the 1840s the Railway Times Railway Times referred to the "notorious fact that in all loan transactions of the late Mr Rothschild, referred to the "notorious fact that in all loan transactions of the late Mr Rothschild, The Times The Times invariably, aye systematically, came in for a share of the pickings." Alsager's career ended disastrously: he left the paper after a large "inconsistency" was discovered in the accounts, and committed suicide shortly afterwards. invariably, aye systematically, came in for a share of the pickings." Alsager's career ended disastrously: he left the paper after a large "inconsistency" was discovered in the accounts, and committed suicide shortly afterwards.

ELEVEN "Il est Mort" (1836) "Il est Mort" (1836) 1 The marriage was apparently unconsummated, for reasons which can easily be inferred. "It appears," commented James crudely, "that the red King would not permit him to spit roast the bird despite the fact that he had caught it in his net." Lionel was more delicate: "Till now there is not much to relate as you well know that the fright has generally such an effect upon the young ladies that they are immediately troubled with some thing that pays them very often a visit. I can only say that she is a most beautiful person in every respect." The different language ill.u.s.trates nicely the difference between the generations; at the same time, the fact that both men saw fit to allude to the subject shows how few secrets there were between members of the family. The marriage was apparently unconsummated, for reasons which can easily be inferred. "It appears," commented James crudely, "that the red King would not permit him to spit roast the bird despite the fact that he had caught it in his net." Lionel was more delicate: "Till now there is not much to relate as you well know that the fright has generally such an effect upon the young ladies that they are immediately troubled with some thing that pays them very often a visit. I can only say that she is a most beautiful person in every respect." The different language ill.u.s.trates nicely the difference between the generations; at the same time, the fact that both men saw fit to allude to the subject shows how few secrets there were between members of the family.

2 Powers of attorney had to be sent to allow senior clerks to act in the absence of family members-a rare if not unprecedented circ.u.mstance at this time. Powers of attorney had to be sent to allow senior clerks to act in the absence of family members-a rare if not unprecedented circ.u.mstance at this time.

3 "I looked about me. Every minute a small door opened and one Bourse agent after another came in, uttering a number in a loud voice; Rothschild going on reading, muttered without raising his eyes: "Yes-no-good-perhaps-enough-" and the number walked out. There were various gentlemen in the room, rank-and-file capitalists, members of the National a.s.sembly, two or three exhausted tourists with youthful moustaches and elderly cheeks, those everlasting figures who drink-wine-at watering-places and are presented at courts, the feeble, lymphatic suckers that drain the sap from the aristocratic families, and shove their way from the gaming table to the Bourse. They were all talking together in undertones. The Jewish autocrat sat calmly at his table, looking through papers and writing something on them, probably millions, or at least hundreds of thousands." "I looked about me. Every minute a small door opened and one Bourse agent after another came in, uttering a number in a loud voice; Rothschild going on reading, muttered without raising his eyes: "Yes-no-good-perhaps-enough-" and the number walked out. There were various gentlemen in the room, rank-and-file capitalists, members of the National a.s.sembly, two or three exhausted tourists with youthful moustaches and elderly cheeks, those everlasting figures who drink-wine-at watering-places and are presented at courts, the feeble, lymphatic suckers that drain the sap from the aristocratic families, and shove their way from the gaming table to the Bourse. They were all talking together in undertones. The Jewish autocrat sat calmly at his table, looking through papers and writing something on them, probably millions, or at least hundreds of thousands."

TWELVE Love and Debt Love and Debt 1 The house was demolished on Mayer Carl's death in 1886 and the grounds given to the City of Frankfurt. The house was demolished on Mayer Carl's death in 1886 and the grounds given to the City of Frankfurt.

2 There appears to have been some sort of financial constraint imposed on Anselm by his father, who perhaps wished his son to reserve his energies for the Austrian estates he would one day inherit. When Anselm spotted an attractive property at Emmerich near Frankfurt in 1843, he had to ask James to put up the money and sought to justify it as a speculative investment. Revealingly, Amschel was to act as "paymaster" for the new house at Gruneburg. There appears to have been some sort of financial constraint imposed on Anselm by his father, who perhaps wished his son to reserve his energies for the Austrian estates he would one day inherit. When Anselm spotted an attractive property at Emmerich near Frankfurt in 1843, he had to ask James to put up the money and sought to justify it as a speculative investment. Revealingly, Amschel was to act as "paymaster" for the new house at Gruneburg.

3 Despite his confessed "bad opinion" of Jews in general, Thackeray became friendly with Anthony's wife Louisa and Lionel's wife Charlotte after a chance meeting in 1848. Despite his confessed "bad opinion" of Jews in general, Thackeray became friendly with Anthony's wife Louisa and Lionel's wife Charlotte after a chance meeting in 1848.

4 In late 1849 Heine sent her a copy of his post-revolutionary poem which contains a pa.s.sionate denunciation of the powers which had crushed the Hungarian rising. The Rothschilds' support for the Russian-sponsored reaction was well known. In late 1849 Heine sent her a copy of his post-revolutionary poem which contains a pa.s.sionate denunciation of the powers which had crushed the Hungarian rising. The Rothschilds' support for the Russian-sponsored reaction was well known.

5 James may have attended the second, disastrous performance. James may have attended the second, disastrous performance.

THIRTEEN Quicksilver and Hickory (1834-1839) Quicksilver and Hickory (1834-1839) 1 The Rothschilds had lent the Portuguese government 88,688 for four months to pay the interest due on its 3 per cent bonds. As a security, the government handed over "Regency bonds" to the nominal value of 600,000. When the government failed to repay the 88,688, the London house sold these bonds, but the Portuguese government claimed that it had unnecessarily delayed this sale in order to collect more interest. The final judgement went in favour of the Portuguese government on a technicality. The Rothschilds had lent the Portuguese government 88,688 for four months to pay the interest due on its 3 per cent bonds. As a security, the government handed over "Regency bonds" to the nominal value of 600,000. When the government failed to repay the 88,688, the London house sold these bonds, but the Portuguese government claimed that it had unnecessarily delayed this sale in order to collect more interest. The final judgement went in favour of the Portuguese government on a technicality.

2 Interestingly, Metternich made it clear that he had no objection to the Rothschilds covertly partic.i.p.ating in Spanish business in partnership with other firms. His concern was that the name "Rothschild," if publicly a.s.sociated with the Regency of Maria Christina, would strengthen its position. The warnings of Broglie to James are not easy to reconcile with his talk on March 8 of a French-backed loan to integrate Spain "dans l'ensemble des finances de l'Europe, lesquelles forment en ce moment une sorte de Republique, une sorte de federation, qui sont jusqu'a un certain point solidaires les unes des autres et se soutiennent mutuellement dans une certaine mesure." When asked to define the nature of the French backing, he changed his tune. Interestingly, Metternich made it clear that he had no objection to the Rothschilds covertly partic.i.p.ating in Spanish business in partnership with other firms. His concern was that the name "Rothschild," if publicly a.s.sociated with the Regency of Maria Christina, would strengthen its position. The warnings of Broglie to James are not easy to reconcile with his talk on March 8 of a French-backed loan to integrate Spain "dans l'ensemble des finances de l'Europe, lesquelles forment en ce moment une sorte de Republique, une sorte de federation, qui sont jusqu'a un certain point solidaires les unes des autres et se soutiennent mutuellement dans une certaine mesure." When asked to define the nature of the French backing, he changed his tune.