7. The Rise of the Rothschilds 

No Comments

{Length 5:35 minutes}

The chapter from “The Rise of the Rothschilds” covers the origins and rise of the Rothschild family in the financial world. It starts in Frankfurt, Germany, where Amshel Moses Bower opened a coin shop in 1743, marked by a sign with a Roman Eagle on a red shield, which became known as the “Red Shield Firm” or “Rothschild” in German. His son, Amshel Meyer Bower, changed his name to Rothschild and realized that lending money to governments was more profitable than lending to individuals.

Meyer Rothschild had five sons, whom he trained in banking and sent to major European capitals to establish branches: Amshel stayed in Frankfurt, Solomon went to Vienna, Nathan, the most clever, was sent to London, Carl went to Naples, and Jacob to Paris. The family moved to a larger house shared with the Schiff family, both of whom would play significant roles in European and American finance.

The Rothschilds expanded their dealings with European royalty, including Prince William of Hesse-Kassel. During Napoleon’s campaigns, Prince William entrusted Nathan Rothschild in London with a large sum of money to invest in British government bonds, but Nathan used the funds for other investments. When William demanded his money back, the Rothschilds returned it with interest, keeping profits made from the investments.

Nathan Rothschild bragged about increasing his initial stake by 2,500 times in 17 years. The family’s cooperation and strategy led them to dominate European banking by the mid-1800s, becoming the wealthiest family in the world. They financed major ventures, including Cecil Rhodes’ monopolies in South Africa, American railroads, and steel industries.

By 1850, James Rothschild of the French branch was immensely wealthy, owning properties like the Château de Ferrières. The chapter concludes by noting the Rothschilds’ significant influence on European and global finance, setting the stage for examining the Bank of England’s impact on the British economy and its connection to the American Revolution.

The embedded video will merely start at the right time;
but the videos in the index below will also end correctly.

Leave a Reply

Your email address will not be published. Required fields are marked *