REIGN OF ROTHSCHILDS - 1. Weathering the Crises of 1830: Rothschilds’ Triumph Over the Paris Revolution of 1830 - SECRETS OF POWER: Masters of Politics, Strategy & War

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Speaker 1 (00:00):
The Reign of the House of Rothchild by Count Egan
Caesar Courty forward. This volume carries on the history of
the House of Rothchild as revealed by the relevant documents
up to the peace that concluded the Franco German War
in eighteen seventy one. In the writing of this volume,
as in the case of the Rise of the House
of Rothchild, the Rothchild family have brought no influence of

(00:24):
any kind to bear. My aim has been to portray,
without prejudice or partiality, the positively fabulous part which the
House played in the events of the nineteenth century. Original
documents and letters that had been intercepted have occasionally afforded
particularly illuminating revelations, although in the case of extracts from

(00:44):
some of the letters, it is necessary to bear in
mind that the originals were probably carefully altered by the
Rothchilds themselves, with the deliberate intention of making upon persons
like Metanik a definite impression such as would assist them
in carrying out their plans. Seen in this light, they
are no less instructive and characteristic of the methods of

(01:05):
the House than the more ingenuous documents, which undoubtedly constitute
a large proportion of those used in this work. I
must again point out that I cannot claim to have
dealt with the subject exhaustively, but it has perhaps been possible,
by means of the many thousand documents that have been
collected to present a series of varied but relevant pictures

(01:26):
such as may afford a general impression which, in its
surprising and fantastic effect, should give some idea of the
nature the work, the aims, and the power of this
House during the nineteenth century. The epilogue, which appears at
the end of the book, of course, makes no claim
to continue the treatment of the subject on the same lines.

(01:46):
It merely attempts to bring put one or two of
the more striking moves executed by the House of Rothschild
on the political chessboard during the sixty years leading up
to the present day, moves which show how the House,
in spite of growing difficulties, vanishing influence, and the powerful
competition of younger and richer firms, has endeavored until the

(02:08):
most recent times to maintain its position to influence international politics, and,
although with diminishing success, to drive them along the path
which corresponded to the interests of the Bank as in
the case of the first volume, I have to express
my gratitude to a large number of persons who have
assisted me in my work. In addition to those persons

(02:29):
mentioned in the first volume, I am also indebted to
Professor w Allison Phillips, and to the gentlemen of the
Record Office and of the British Museum in London, who
were particularly kind in the assistance they gave to me
a foreigner. Further, I am indebted to doctor von Kurzelbunchner,
to the expert writer on economic subjects Adrappola, to the

(02:52):
legal authority her von Mileianhart of Frankfort, and finally to
Freulein Lily von Werner, the daughter of the painter Anton
von Werner, who have all been most obliging in placing
documents and portraits at my disposal. I can but conclude
by expressing the hope that this volume, which in my
opinion reveals as few others have done, the intricate activities

(03:16):
of high politics, as intimately observed from behind the scenes,
will have a wide appeal. Synopsis of the Rise of
the House of Eerodis Cis c h Eldimier Amshaw Rothschild,
the son of a small Jewish retailer and Whitney Kanger
who lived in the Frankfurt ghetto, was the founder of
the Rothschild Bank, which became an important concern towards the

(03:38):
end of the eighteenth century, especially as the result of
the wars following upon the French Revolution. Maya Amshaw came
into touch with court circles through dealing in old coins
and antiquities, and established a special relationship with the Elector
of Hesse, whose property he looked after to a great
extent during the Napoleonic Wars, where he acquired credit, important

(04:00):
connections and financial profit. He employed his five sons in
the family business. The house, which had become rich, made
itself generally useful to Napoleon's enemies. His most gifted son, Nathan,
who had emigrated to England, played a particularly important part
in these transactions. His second son, James, under the ingenious

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pretext that he was acting in France's interests, ventured to
go to Paris, but remained in constant touch with Nathan,
who was in the enemy country of England. When Napoleon fell,
the Rothchilds showed their hand and openly joined the side
of the victorious Allies during the Napoleonic Wars, they had
become immensely wealthy, particularly through handling the British subsidies to

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the Allies, with the result that they were able, out
of their own resources, to assist with loans the states
that had been impoverished by the war. Austria was one
of the candidates for a loan, and in one hundred
eighty one country ennobled the roth Childs in order to
put them under an obligation, afterwards inducing Solomon, on the
conclusion of a lone operation, to settle in Vienna, in

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which city he resided permanently, becoming the confidential adviser of
the all powerful meth When in eighteen twenty Metinik wished
to suppress the revolution at Naples, which had no money
to deal with the problem itself, Metinik sent the fifth brother,
Karl Rothschild, to Naples, where he carried through ingenious arrangements

(05:30):
whereby that state was herself forced to raise loans to
defray the costs of the invasion. Thus, besides the original
House of Frankfort, there were now four branches in London, Paris,
Vienna and Naples, each of them being managed by one
of the five brothers who worked in complete harmonious Kodash
Operation Dot. Up to the year eighteen thirty, the wealth

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of the Rothchilds had constantly and prodigiously increased, end they
now possessed a virtual man monopoly of state loans, which
they arranged for all the great powers of that period.
The Rothchilds had just underwritten three important loans for France,
Austria and Prussia, and had not completed their flotation when
the July Revolution broke out quite suddenly and unexpectedly in

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eighteen thirty, with the result that Charles the Tenth lost
his throne, and the House of Rothschild, with its large
holdings of Rontz, which had suddenly fallen enormously in value,
was faced with a serious crisis. The Five Brothers, however,
courageously set about the task of saving the existence of
this world house. At this point, the story, as contained

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in the second volume begins The Reign of the House
of Rothschild by Count Egan Caesar Courte Chapter one, weathering
the crises of eighteen thirty, the sudden outbreak of the
Paris Revolution of eighteen thirty, effecting as it did the
whole of Europe, had placed the House of Rothchild in
an exceedingly dangerous position. It required the active intervention of

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the English branch, as being the least affected, to save
the situation. Solomon had hastened to Paris from Vienna, and
he and James were staying together at the actual scene
of action. The most important task, that of endeavoring to
maintain peace, had to be left to them. It was
essential that Austria and France, whose large loans the brother's

(07:27):
Rothschild had just irrevocably committed themselves to taking over Elpai,
should be induced, in spite of the conditions in the
French capital, to maintain peace. In order that the large
quantity of loan certificates still lying in the Rothschild's safes
should rise in value and circulate again amongst the public.
The brothers naturally endeavored, wherever possible to relieve themselves of

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responsibilities which had become onerous in the depressed condition of
the market. A suitable occasion arose in connection with their
business with Prussia, where the last transaction, the conversion of
the Sterling loan of eighteen eighteen, negotiated by the Prussian
financial representative Rotha, was not to be concluded until the

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eighth of October one thousand, eight hundred thirty two. This
was a case where they could set to work to
secure that cancelation of a deal which could only have
been profitable under really favorable conditions, and in the actual circumstances,
was bound to result in loss. Owing to the impossibility
of placing public securities on any of the markets of Europe.

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Nathan accordingly decided that it was essential that he should
recover his freedom of action in that quarter. With this
end in view, he determined, without letting Berlin know what
was in his mind, to secure the good will of
the Prussian treasury officials by meeting them in an important
matter as a special mark of his confidence. In connection

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with the loans concluded in eighteen eighteen and eighteen twenty
two with the House of Rothschild, Prussia had deposited securities
with the London Bank in the form of mortgage deeds
and the benchers, which Nathan was not required to return
until many years later, when the amate of the debt
had proceeded according to plan. Nathan returned these in September

(09:15):
eighteen thirty, perfectly realizing that at a time when nobody
would accept them. The certificates did not constitute a particularly
valuable security. While Berlin would be favorably impressed by Nathan's
returning them so soon and long before he was obliged
to do so, his action produced the desired effect. Rother

(09:35):
who was president of the Sea Handling Bank, wrote to
his king in great enthusiasm, saying, it is only the
great confidence which Rothschild feels in the institute which your
Prussian Majesty has intrusted to me, that has led the
banker to take this step. Rotha did not miss this
opportunity of indicating to his sovereign that he had himself

(09:56):
rendered a valuable service. He emphasized the fact that Nathan's
action was all the more praiseworthy as showing a special
desire to be accommodating, having regard to the critical nature
of the general situation. But Rothera was soon to perceive
why Nathan had been so friendly and obliging. For Towards
the end of November eighteen thirty, Solomon's son, Anselm, came

(10:20):
to Berlin on Nathan's behalf, in order, if possible, to
secure the complete cancelation or at any rate, the substantial
modification of the conversion agreement concluded with the Prussian government
on the twenty fifth of February one thousand, eight hundred thirty.
Although the ground had been well prepared, it was impossible
for Rotha, after taking so much credit with his sovereign

(10:43):
for the satisfactory conclusion of the agreement, suddenly to suggest
that it should be canceled. For weeks, he discussed the
matter with Anselm, who brought all his powers of persuasion
to bear to induce Rotha to accept the Rothchild's proposal.
In mid January, Rotha reported on the matter to his sovereign,
pointing out that the banking firm of Nathan Rothschild in

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London had been placed in an unfavorable position through recent
political events with regard to the agreement, which had been
concluded in much more auspicious circumstances in consequence of the
financial stringency from which the whole of Europe is suffering,
wrote Rotha, Baron Anselm, who is still here with full
powers to act on behalf of the firm, has been

(11:28):
putting forward with growing insistence, various proposals for the partial
cancelation or modification of the terms of the agreement made
here on the twenty fifth of February one thousand, eight
hundred thirty. In view of the circumstances, however, there can
be no question of the complete or partial cancelation of
the contract, such as the firm desires. And I believe that,

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in the course of our written and verbal negotiations of
the last month, I have succeeded in persuading Baron von
Rothschild that such a procedure would not be consonant with
the honour of his house. These were fine words, but
in his heart Rotha had already accepted the Rothschild's point
of view and their proposals, which amounted to leaving a
balance of one million, eight hundred fifty thousand pounds of

(12:15):
five percent securities unredeemed and postponing to a later date
their conversion to a four per cent basis. Rotha followed
this symphatic statement with an entirely contrary recommendation, contriving so
to gild the pill for his sovereign as to make
it seem a positive advantage for Eprush not to take
her stand upon the letter of the contract is desirable.

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Rotha further reported to his Royal Master that these proposals should,
if possible, be accepted, since, in view of such future
financial transactions as are under present conditions inevitable, it appears
to me to be of the utmost importance to Your
Royal Majesty's finances that the Rothschild business Firm should be
granted every possible assistance that is consistent with the credit

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of the state, and the conversion operation under discussion would
obviously involve the firm in such heavy loss as to
produce a state of acute tension. If Nathan Meyer von
Rothschild's firm were to be compelled strictly to observe the
dates laid down in the contract in spite of the
unfavorable conditions now obtaining, it would necessarily endeavor to sell

(13:24):
the new for percent bonds at any price in all markets,
and thereby deal a severe blow to our public credit.
Our experience has taught us that financial transactions in which
the von Rothschild Firm do not act as intermediaries, but
as opponents are apt to fall through, and schemes entered
into with men of no substance, such as we unfortunately

(13:46):
find on our bores here, result in nothing. According to
an approximate and certainly not exaggerated estimate, the House of
Rothschild has failed to place one million, nine hundred thirty
four thousand, four hundred pounds of the new four percent loan.
This is now quoted at seventy nine point five as
against the contract price of ninety eight point five, so

(14:09):
that the firm stands to lose nineteen percent, or about
two million, five hundred seventy two thousand, seven hundred fifty two, writes.
This does not take into account the fact that some
of the joint underwriters of these four percent de benchers
here and abroad, having suffered bankruptcy, are unable to take
them up, whilst others, including business men of substance, are

(14:31):
refusing to accept them now that they have fallen so
much in value, thus involving a further loss of at
least five hundred thousand Reichstaller to the von Rothschilds, so
that the family will have to reconcile themselves to a
diminution of their wealth by three million toller on this
one transaction alone. Unless business in public securities revives a

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possibility which appears to be exceedingly remote in view of
the growing general uncertainty. The House of Rothschild, or rather
its principal negotiator, Baron Solomon von Rothschild of Vienna, really
did regard this business at the time simply as a
matter of honor, as even if things had gone as
well as they possibly could, there was no profit to

(15:15):
be made out of them. I cannot but regret that,
as a result of the concessions which he made, this
excellent man should now have to suffer the reproaches of
most of the members of his family. Thus, in spite
of his opening words, Rotha supported the Rothchild's request, as
he feared a damaging breach with the firm. King Frederick William,

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who had unqualified confidence in Rother and understood nothing about
financial matters, concurred in his recommendation, and some Rothschild perceived
that there was reason to hope for far reaching concessions,
and suddenly increased his demands. Accordingly, he was now unwilling
to accept any of the restrictions to which Rotha had

(15:57):
wished to subject his proposals, and he he actually began
to modify some of his first proposals in his own favor,
this being attributable to the influence of Nathan, who had
not entirely approved of the matter being left to the
youthful Anselm, who was then only twenty seven years old,
and at the beginning of March he sent Carl Rothschild,

(16:17):
who was staying at Frankfort, to his assistance in Berlin.
Rother was now exposed to the joint attack of a
senior and a junior Rothschild, and their persistence was gradually
reducing the fortress to a state where it was ready
to capitulate. At the same time, in order to support
his brother and his nephew in their arduous struggles in

(16:38):
the interests of the firm, Maya Amshaal wrote from Frankfort
to the Prussian finance minister, Count Lottom. I hope that
Finance Minister von Motts of blessed memory, who knew me,
gave your Honor an not wholly unfavorable impression of me.
And I hope that, never having had the opportunity of
direct personal communication with your Honor, correspondence with my firm

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here and your other relations with them, will have afforded
adequate proof of my true manner of thinking. Your Excellency
will be aware that since we have enjoyed the privilege
and good portune of entering into honorable business relationship with
the Prussian Government. Our efforts have been tirelessly directed to
devoting to it our best services and our whole possessions,

(17:23):
uninfluenced by any private considerations. Though the most recent transaction has,
by reason of the violent events that have shattered peace
and order in many parts of Europe to their foundations,
failed as yet to lead to a successful issue, so
that we have to suffer not merely the disappointment of
failing to carry through an operation, but also have to

(17:44):
bear a considerable loss. Yet we are able to rest
in the firm conviction that we can face God and
the world as honorable people as far as our business
methods are concerned. The decision in this our just cause,
which is been exhaustively discussed by my brother and nephew, is,

(18:04):
according to their letters, soon to be taken dot In
taking the liberty to submit my request that the settlement
of this matter may be expedited, I would excuse myself
to your excellency on the ground of the prevailing unsettled
conditions which involve me in innumerable tasks to attend to all
of which is difficult and almost impossible to me in

(18:26):
view of my age and failing health. I am therefore
exceedingly desirous for the speedy return of my brother Karl,
who has obeyed the urgent s millions to go to Berlin.
I regard him as my right hand man and find
it hard to be without him. I would therefore submissively
beg your excellency, so far as in your power lies

(18:47):
most kindly, to assist in carrying out the wishes which
I have expressed. I cherish the firm conviction that the
settlement of our business will be effected in such a
manner as is to be expected of the just and
loyal nature of the Prussian government dot dot dot. In
consequence of this letter and the constant efforts made by
the two Rothschilds at Berlin, Rotha finally decided to report

(19:11):
to his Sovereign that the alleviations previously granted by the
King at his suggestion did not appear to be adequate.
They make such a point, wrote Rotha, of the risks
to which they would be exposed in carrying out the
contract of the twenty fifth of February one thousand eight
hundred thirty and of the loss which they would probably
suffer even under the modified terms, and they find that

(19:33):
they are so hampered in all their financial dealings by
the prejudicial reactions resulting from it, that they are aiming
at securing complete relief from the contract and the definite
fixing of the sum which they shall be called upon
to sacrifice in return. The brothers were offering to pay
a fixed sum of money as compensation, provided that they

(19:55):
could be entirely liberated from the obligations of the contract,
though on the understand that they should be permitted immediately
to take up the business again if circumstances should take
a sufficiently favorable turn to make such a course of
action appear desirable to them. Rother advised the King to
accept these further demands of the Rothschilds. It is only just,

(20:16):
he wrote, not to demand greater sacrifices from this firm
than is absolutely necessary in order to achieve the advantages
which the state expected to achieve through the conversion transaction.
He also suggested that it would not be an easy
matter to force the House of Rothschild to carry out
their obligations under the contract if they should obstinately refuse

(20:38):
to do so, notwithstanding the damage to their business prestige. Moreover,
such a struggle would last a long time and would
bring discredit upon the country's financial administration. He therefore recommended
that all the Rothschild's demands should be agreed to, but
suggested that it should be made a condition of any
new agreement that their offer should be accepted did only

(21:01):
if they undertook to participate in a further loan transaction,
subject to conditions which should be discussed and which should
be adjusted to the prevailing state of affairs. It is
true that Rotha fully realized that such a loan transaction
could be carried through only under entirely different conditions. Recent
political events, he wrote to the King, and the financial

(21:23):
stringency prevailing in all great European states, make it almost
impossible at present to obtain substantial sums on loan by
the methods adopted hitherto dot dot dot, through the recent
French loan of January eighteen thirty and the conversion from
five to four percent of the Prussian debt contracted in
eighteen eighteen, in which latter transaction they associated a number

(21:47):
of other banking firms with themselves, involving them in enormous losses.
The von Rothschild Banks have entirely lost their credit in
transactions of this kind. They could not now find anybody
to associate themselves with them in such a transaction, and
although their wealth, even after losses, estimated at seventeen million gulden,

(22:08):
is still very considerable, they lack the cash necessary for
transactions of this kind, since their property, which consists of
bonds of all the European states, cannot at present be
turned into money on any bourse. The Rothschild banks are
therefore now refusing to take over any large loans direct,
seeking as in the case of Austria, to deal with

(22:31):
them on a commission basis, and while they will make
advances on account, they proceed to sell the newly created
bonds at exceedingly low prices, thus damaging the states concerned. Nevertheless,
Rotham meant to try to carry through a new transaction
with the Rothchild Bank involving an amount of several million
Toller in return for bills on the Prussian treasury running

(22:53):
over a period of years. As he himself states, he wished,
in spite of all his misgiving again to deal exclusively
with the Rothchild Banks, since, in his opinion, the Berlin
banks were not strong enough to carry through such big transactions.
This solution pleased the Rothchilds exceedingly, Whilst they were yet

(23:14):
unable definitely to bind themselves to such an obligation. As
they realized that their business was suffering from temporary embarrassment,
they did not say no. In order to keep the
matter secret. They referred Rotha to one of the other brothers,
namely Solomon in Vienna. They said that he would have
the final decision in this new transaction. There was the

(23:36):
possibility that conditions might improve in the meantime, in which
case it would be exceedingly pleasant carry through an important
deal with the State of Prussia. They were genuinely grateful
to Rotha through his decisive influence with the King. He
was worth his weight in gold to them. Without the
Rothchilds having to bind themselves definitely to parry out the

(23:58):
new transaction, the King agreed to everything. The contract of
the twenty fifth of February eighteen thirty was canceled on
the payment of the penalty mentioned above, and Rotha was
given a free hand and pie in pouvoir to conclude
a new agreement for advances with the Rothchilds. When it
should be judged that a suitable time had come. Thanks

(24:19):
to Rotha's powerful support, Nathan's plan of relieving the firm
in that direction had succeeded. This relief was very substantial,
and with regard to the Prussian government's wish for further transactions,
the Rothchilds really did mean as soon as they saw
their way clear to apply any free cash to that purpose,

(24:39):
they would appear to be showing their gratitude in a
practical way, and would at the same time be a
blatto do a profitable bit of business asterisk. The news
of these events came as a great relief also to
James Rothschild, who was struggling in Paris to maintain peace.
He was at the storm Center and the Ronx, which

(25:01):
had fallen so sharply after the July Revolution, and of
which his firm held such a large quantity, was still
suffering from the internal and external political dangers that threatened
the new thrown. Up to the present, things had gone
quite well. Practically all countries, including Austria, had acquiesced in
recognizing the new king. The Czar had held aloof longest,

(25:25):
but the danger of military intervention by Europe openly directed
against Philippe's usurpation of the throne had been averted. Baron
von Prakash wrote in his diary on the seventeenth of
December one thousand, eight hundred thirty it is all now
a question of ways and means, and what Rothschild says goes,

(25:46):
but her won't give any money for war. When Ronks
began again to rise a little, the political situation again
became disturbed, as the Paris Revolution had affected Italy. In
the papal states and in the small states of central Italy,
popular indignation broke out against the intolerant and inquisitorial suppression

(26:07):
of all liberal sentiment. Early in February, the Duke of
Modena was driven from his country. The end of the
temporal power of the pope was proclaimed at Bologna, and
even Marie Louise was forced to flee from her pleasant
retreat at Parma. The exiled monarchs successfully begged Mettinik for
military assistance from Austria, while the rebels looked to France

(26:31):
for help. They failed, however, to secure more than platonic
support in that quarter. Although France indulged in emphatic diplomatic threats,
Louis Felipe was secretly exceedingly averse from entering upon hostilities
which would have brought him into conflict with one of
the great powers which had only just recognized him. James

(26:52):
Rothschild supported him to the utmost of his powers. In
his efforts to avoid such a controtten He remained on
guard in Paris, filling the pulses of the King and
his ministers, and sent his brothers and nephews in all
quarters of the globe. His terse, characteristic reports of the
political condition of affairs Ronks stood at fifty nine point

(27:13):
twenty five. He wrote on the fourteenth of February eighteen
thirty one, just after news of the risings at Modona
and Bolognia had reached Paris. I am satisfied since I
find ministers all for peace, and I hope that matters
will come right. The King wants peace dot dot dot.
I know that when trouble broke out in Italy, Marshal

(27:35):
Salt wanted to take up a position on the frontier,
but the King was so much opposed to this that
he never mentioned the matter again. Even if Austria had
intervened in the Modena affair, nothing would have happened, for
it is realized that Austria would have been perfectly right
in doing so, as he Louis Felipe is too weak.
No one wants anything but peace, whatever they say. We

(27:58):
are tensely awaiting news use from Italy as we have none.
That was what James always hungered afternoons, and to get
it earlier than anybody else. This was particularly important just now,
when one had to estimate the influence upon the borse
of any possible military intervention by Austria in Italy. We
are free from worry just now, James wrote two days

(28:22):
later to his brother Solomon, who had returned to Vienna.
But it is not easy to judge what things will
look like this evening. Although everything seems settling down, and
it is to be hoped that we shall be at
peace again. It seems that things are not so bad
in Italy. I beg you, my dear Solomon, if Austria
should decide to intervene with regard to the papacy, to

(28:44):
let me know at once, as such action is certain
to react unfavorably upon wrongths The war Minister told me
yesterday that it would be very serious if that were
to happen. Such an event might have grave consequences. Solomon
carefully extracted these sentences from his brother's letter to show
them to Mettinek, so that in considering the question of

(29:06):
intervention in Italy, the Chancellor should realize that such action
would produce a menacing reaction in France. The Rothschild's interests
were bound up with those of the burs in the
elimination of any new inflammable material, so that it was
natural that they should view with dismay the appearance of
a new bone of contention in Italy that appeared likely

(29:27):
to endanger the piece hitherto maintained, contrary to Metanik's expectations.
Yet they could not fail to appreciate the fact that
Medinick's inveterate hatred of everything that was revolutionary or opposed
to the principle of legitimacy was a more powerful factor
than their influence. Disregarding France's threats, Mettinek sent Austrian troops

(29:50):
across the Poe to march against the rebels. This naturally
produced a panic in London, and Paris. Nathan and England,
who had latterly been constantly so suffering from illness, took
a much more serious view of the situation. He had
no regard for the Paris ministers, least of all for
the Prime Minister le Fit, the ruined banker who had

(30:11):
the hardihood to guide the financial destinies of a kingdom
like France. After having signally failed to manage his own affairs,
he expressed himself freely in a letter to his brother,
quotations have weakened because of a rumor on the stock
exchange that France has declared war on Austria. I was
with name Illegible this evening and he said, who can

(30:33):
trust the French? They change every day? Then I went
to Bolo and he said, rothchild, I believe your brother
in Paris is being misled. For the king and his
ministers never keep their word. They change every day. They
write to Talleyrand here Prussia and Russia write in a
friendly way and do not want war. The French, however,

(30:57):
must decide for war. They write this under pleasant letter
to taliurand who is afraid to show it, and says
he hasn't had a letter in Fine. They will probably
carry on with intrigues until they are ready to declare war.
I maintain that it is almost impossible to keep the
peace unless these people destroy one another in their own country,

(31:18):
and Lefitte, who no longer has influence, falls from power
over it, has had considerable purchases made on his account.
We shall probably have better news from Paris tomorrow. Harries
here says that Pele will certainly be asked to join
the ministry, that Wellington will become Foreign Minister, and that
unless France gives way, he is convinced that the British

(31:40):
army will go to Germany. It would be as well
for you to tell the King that he must hold
himself aloof and not trifle with England, for she is
not to be trifled with. I shall go and see
Talleyrand tomorrow. England has no faith in your ministers, who
want nothing but revolutions in which old Lafayette, and I
know not who else assists Your King and his ministers

(32:03):
have only to show that they don't want war. They
must not change their tone from day to day. Go
to the King and tell him that Pelee, Palmeston and
Wellington are coming into power By these last words, Nathan
wished to convey to his brother that the Tories would
probably take the helm again in England, and that that
country therefore was also unlikely to tolerate the support of

(32:26):
revolutionaries in Italy or elsewhere. James, however, had received an
exactly contrary report regarding developments in England from an influential
French quarter. He was assured that, on the contrary, the
Liberal Prime Minister gray Wood remain in office with his
ministry and carry his reform bill. This view of the

(32:47):
situation naturally gave the government in Paris more confidence and
caused it to harden in its attitude towards the conservative
powers such as Austria. The Buss, sensitive as it was
to any suggestion of war, immediately reacted to the chilly atmosphere.
Wrongs have fallen a lot today, James reported to Vienna,

(33:07):
because there was a rumor that there would be a
reform in England and that a revolution would break out there,
and that Austria had declared war. As a matter of fact,
I believe that the fact that eighty thousand more troops
have been or are to be called up, and that
France adopts a milder tone with Austria indicates that Austria's
intervention will not matter. England, being in the position I

(33:31):
have described, people will say here all the more emphatically,
we trust Austria will not intervene. Saint Allah left today
with most Pacific instructions. He is to tell the revolutionaries
that France is absolutely determined that Italy shall remain as
she is, and Sebastiani and Lafette are as friendly as

(33:52):
they can possibly be. But what is the good of
talking if people act the opposite? Sent for me together
with Peria human Aguado and the treasury officials to see
whether an operation could be arranged. Lai speaks confidently of peace.
If he wanted war, he would not have called us together.
Lafit's ministry was, however, already at its last gasp. The

(34:15):
financiers had been called in to discuss the idea of
saving the French treasury at the last moment by the
sale of state forests. Louis philipad however, already withdrawn his
confidence from the Prime minister and secretly offered his portfolio
to another financier, Casimir p Via the news which had
leaked out to those who were in the know, had

(34:36):
produced a favorable reaction on the Burse, as it had
long lost confidence in Lafitte. The name of Peria was
as music to the ears of James Rothschild. It meant
the control of affairs in France by a man who
was both his personal acquaintance and his intimate business friend,
and with whom he had for years discussed everything affecting
business or politics. Delighted at the excellent prospects for the future,

(35:01):
he hastened to let his family know the good news
by a special courier. My dear brothers, he wrote, I
am sending a courier because Ronks have risen the three
percents here closed at fifty three point two O. Because
it is generally stated that Paria will enter the ministry.
I was talking to Peria this morning and he says

(35:21):
he will accept office only on condition that he and
not the King, is really first minister. He does not
want war. I said to him, I am convinced in
my heart that the foreign powers are not thinking of
attacking France and that our good Prince is doing all
he can for peace. Now, my dear Solomon, you must
see that if my friend perier Lake's office his ministry

(35:45):
is supported for thirty two million. People making a revolution
are a danger to all countries. And Parier said to me,
if people want to do something for the king, they
should try to give France a piece of Belgium that
would really strengthen the king's position. But he does not
press for it. He said to me, if the others
will do something, we will keep peace forever. And now,

(36:08):
my dear Solomon, I have been seeing Perrier daily for
six months, and he said to me to day, you
are not making efforts for France alone, but for the
whole of Europe. And you can count on my never
telling you a lie. He is a very excellent fellow.
Dot dot dot dot double quotes. Now, I tell you
that when Perier is in the saddle, it depends on

(36:28):
the powers whether they have war or not. I tell
the whole world that the powers only want peace. The
business men are all in agreement about the loan here,
and I shall go with them because I don't want
to be out of it. We can't say yet what
will happen, but I am confident because of Perier, as
if we have war, he will suffer losses on his

(36:48):
properties and factories. For that reason, I believe in peace
dot dot dot dot. I have had a long conversation
with sult today. He two says, we ask for nothing
better than to disarm. As soon as all the armies
cease from threatening us. When we are certain of peace abroad,
we shall have peace at home. Parria told me that

(37:08):
he would keep the present chamber and not dissolve it,
for he can count on this chamber. It's not certain
yet about Paria, for until I see a thing in
the monitor, I don't believe it. In Austria, things certainly
did not look like peace. The revolutionary risings throughout the
world so terrified Metinik that in spite of Austria's financial difficulties,

(37:30):
he pressed more and more obstinately for extensive military preparations.
Count Choleret the most powerful man in the state after Mettinek,
and in many respects his rival, had but a slight
hope of maintaining peace. It had been decided to raise
three powerful armies in Bohemia, Italy and Inner Austria. For this,

(37:51):
of course, the necessary money had to be raised, and
although it went against the grain with Solomon Rothschild to
provide the means for military preppera rations. He was not
prepared to remain outside when the Austrian treasury proceeded to
conclude an agreement with the state bankers, of whom he
too was one, as well as Escales, Sina and Geimklefort,

(38:13):
raising thirty six million Gulden through the gradual sale of
five percent metaliks. In any case, the possible gain on
exchange and the two percent commission on such a substantial
amount were not to be despised dot thanged. Things certainly
did not look like peace. For when Austria began to arm,
France naturally followed suit. It would have been difficult to

(38:36):
say which was in the worst condition financially, but they
spent money lavishly on their military preparations. In these circumstances,
it was particularly important to learn what kind of ministry
was to be finally constituted in France. James in Paris
was still anxious about his friend Paria, whose ministry was
not yet assured. My dear brother James wrote to Solomon

(39:00):
in fear and trembling on the eleventh March one thousand,
eight hundred thirty one. As the French government is sending
a courier I am letting him take these lines to
you to let you know that we have every hope
of obtaining a peace ministry. Now. I saw Peria at
seven o'clock this morning. He said to me, nothing is
settled yet, because I must have a talk with the

(39:21):
King and explain to him that I will not take
office as a war minister, but as a peace minister,
so that we can get the question of intervention properly settled.
For if Austria intervenes in the Rome affair, I will
not go to war. On news arriving that Medina had
been occupied by the Austrians on the sixth Sebastiani said
to me, we shall certainly maintain peace now if their

(39:45):
intervention had matted, he could not have said this to me.
I must mention that eighty thousand men have been called up,
but this is more to keep the country quiet than
in order to make war. I must admit that Perier
gives me confidence, for he he has much to lose,
and is not like Lafette, a ruined man. A lot
will depend upon the kind of attitude taken by Russia.

(40:08):
My fine dreams of tranquility, peace and everything else are vanishing.
For Peria has just informed me that sult will not
agree to his becoming premier, so that the ministry cannot
be formed. If this is a fact, the alarmists will
turn it to account and make demonstrations in the streets,
and the whole world will believe in war. The position

(40:29):
is dreadful. I shall probably send you a courier if
anything new occurs, yours, James. James determined to throw all
his influence into the scales to place Perrier in the saddle.
He spared no effort. He went to the King himself
and urged him to ask Perrier to join the ministry.
He pointed out that he was exceptionally competent and industrious,

(40:53):
that he had pacific views, was well versed in financial matters,
and was devoted to his country Dot Cassimie. Perier was
actually called upon to form a ministry on the thirteenth
of March one thousand, eight hundred thirty one, and James
had the satisfaction of seeing his efforts crowned with success.
In the interests of his house. He had to fight

(41:14):
for peace in Paris, as Solomon had to at Vienna,
and the appointment of Perrier, if it did not imply
final victory, at any rate, constituted a considerable success. He
immediately reported the good news to his brothers and then
turned his attention to the markets. Observing their reaction to
this event. My dear brother James reported in this connection,

(41:38):
prices are, thank God, beginning to rise, and we closed
at fifty three point seven. Oh. I am of the
opinion that the advance will continue, for we have a
peace ministry which will make every effort to maintain peace.
They will not interfere in Italy. I hope that is
to say, we must contrive with the government here. The

(41:58):
mob does not get excite and say that we have
sacrificed the Italian people. If the powers wish to maintain peace,
they must strengthen the hands of this peaceful ministry and
prove that they do not mean to attack France. If
it were only possible for Russia and Austria to make
a declaration that Belgium shall remain independent and that France
will not be attacked, in order to allay anxiety for

(42:22):
people here still believe that as soon as Russia has
finished with Poland, France will be attacked. Now, my dear Solomon,
you are in a better position to judge, and I
beg you to get this matter cleared up. I went
to the King and said to him, my family and
all my property are in France, so that I am
not likely to mislead your Majesty or to lull you

(42:44):
into a false sense of security, inducing you to believe
that foreign powers want peace when they really intend warrand
on whose account I am convinced that the powers wish
to restore order in Italy and feel that they cannot
stand by and do nothing when the house is being
fired under them sick. If your Majesty will take Perier

(43:05):
into the Ministry, your credit will rise and everything will
now you sec the changes have been made. The King
is going to the twillery and the Ministry is to
make a speech proclaiming its principles. What impression this will
make I do not know, but I believe it can
only be a good one if they have the strength
of mind to go through with it. And I see

(43:26):
that they are calling enough troops to Paris to frighten
people dot dot dot. Everything now depends upon the foreign powers,
and that is where you must bring your influence to bear,
for if we do not preserve peace, no power will
be able to maintain its credit, and Wronks will not
remain as firm as I hope. Casseus and natural son
of Uvrod is selling the big book Wronks, which are

(43:49):
entered in the big Book of the state, and is
frightening every one off speculating on a rise, while any
small drop makes a most lamentable impression on people's spirits.
I confess that I have great hope and confidence in
the present ministry, for they have strength and they want peace.
Nathan also wrote from England to say that that country,

(44:10):
in spite of the ministry, which was liberal and favored reform,
would not merely refuse to encourage France in warlike undertakings,
but would actually take drastic action if she did. Our government,
Nathan wrote to Solomon, who in turn hastened to pass
it on to Metinek has taken very strong measures against France,
and these should make a very good impression throughout Europe.

(44:33):
That is to say, if France does not remain quiet
but takes action against the other three powers, we shall
join the three powers. But if the other three powers
take action against France, we shall join France. It appeared
therefore that England too, wished to maintain peace. The name
of the new French Prime Minister was a guarantee for

(44:56):
the maintenance of peace throughout the world, and his first
publica his statements in the Chamber showed that he stood
for tin principle of James sent a further enthusiastic report
to his brother about these statements in the chamber. A
French loan was again being discussed. James wanted to take
part in it again, and the prospects of the loan

(45:17):
were essentially dependent on the general political situation. My dear brother,
he wrote, on the nineteenth of March eighteen thirty one,
I am sending you a courier, not for business reasons,
but merely in order to send to you for Prince
Medinek's information the speeches of ministers here, which must create
a profound impression both in England and in Germany. You

(45:41):
will see that their principle is peace and nothing but peace. Now,
if Prince Medinek is really candid, they will do what
he wishes here. And I beg of you carefully to
consider with the Prince how important it is to give
the government the strength it needs. We are expecting a
drop in prices here because as the bankers with the

(46:01):
former president do consail at their head, are selling because
each of them wants to take part in the new loan.
And I believe that as soon as the loan has
been floated, we shall see a sharp rise. For we
have a friendly prime minister. And it cannot be said
that the minister is deceiving you, for then lie would
be deceiving the whole French nation and would have to

(46:22):
offend the great majority of Frenchmen dot dot dot. I
have spoken to Werther and upon each to day. They
are exceedingly pleased with Perier's speech, and believe that their
governments will certainly make every effort to strengthen the new cabinet.
And Werther, who always looks on the worse side, is
now quite optimistic. I therefore ask only one question, shall

(46:44):
we maintain peace or not? If France carries out what
she says, And having regard to Perrier's character, I am
sure she will. I do not see why we should
not soon be disarming and revert again to peaceful conditions astoris.
I would therefore urgently beg you, my dear Solomon, not
to leave Prince Medinik any peace as to the importance

(47:06):
of strengthening the ministry here and pester him to maintain peace,
which is so necessary to Europe. The Prince alone having
the power to maintain it. He knows you and realizes
that you are a candid and honorable fellow who always
acts above board, and that all the reports which I
have sent you for his information have proved to be
well founded. Yesterday morning, Sebastiani was in a rage and

(47:30):
would not permit the Austrian intervention. Today, however, he is
like a lamb because the British ambassador made him give
a categorical explanation of his warlike speech of yesterday. Believe me,
my dear Solomon, your Prince Medinek, who has already achieved
such worldwide fame, can still further immortalize himself if he

(47:51):
maintains peace. Now, for all the Chancellor is act in
accordance with his decisions. Write and tell me what the
Prince's present opinion is, and if you can let me
have anything to communicate from him to Casimir Peria, so
much the better, since that greatly increases and strengthens confidence.
This all sounded very fine, But meanwhile the Austrian troops

(48:14):
had advanced in Italy. They were not content to occupy
Modena and Palma, but marched on Bologna in pursuit of
the provisional government of Modina. Beloni had also revolted and
shaken off the papal yoke. Everyone hoped for assistance from France,
but this was not forthcoming. The Austrian troops entered Bologna

(48:36):
and the papal rule was restored. This was naturally very unpleasant,
both for the Paris Peace Ministry, which stood for the
principle of non intervention, and for James. James did everything
to allay the indignation which was flaming up in Paris,
and to prevent any hasty action being taken. As I
have already written, James reported to his brother at Vienna,

(48:59):
people here were furious when the Austrians entered Bologna. It
was not so much the occupation itself as Mezong's statements.
He has reported his conversations with the Prince, which it
would appear, were exceedingly heated. It seems that the Prince
definitely said to him that they would not occupy Bologna
until they had learned the result of the negotiations. That

(49:21):
is what at first made Sebastiani so furious. However, now,
thank God, everything is much better. Yesterday the note was
drafted which is to be sent to Austria. It contained
the phrase evacuate Beloni. Immediately, Pazo, Granville and your humble
servant spoke to Paria, suggesting that Austria would be offended

(49:42):
and regard the note as too strong. It was read
to the cabinet, and they were all opposed to that draft.
A fresh draft was made, which is very mild and excellent.
But I heard that it contained the words evacuate. Promptly
I saw Peria about it. Note hasn't been handed in yet.
I shall see that this is left out. If the

(50:04):
Prince will consider the position of the government here, I
am confident that we shall have peace. For the cabinet
here is making every effort to that end. Now, my
dear Solomon, do what you can to help. The Prince
will see that I have truly described Cassimir Perrier's character.
If that excellent man remains in sound health, he will
act like villel and entirely follow out his methods. But

(50:29):
he must have the Prince's support. I hope that his
Highness will be so gracious as to give you more
favorable instructions, such as I can use with reference both
to Cassimir Peria and also to the King. Everything now depends,
my dear brother, upon ascertaining whether Austria is prepared to
say things are quiet in Italy. Now we are evacuating

(50:51):
Roman territory, and shall arrange a conference in Rome, to
which all ministers will be invited, with a view to
re establishing Italy's position. This will decide the question of
peace or war. I beg of you to answer me
on all these points, for in eighteen days the loan
comes up, and I want to know where I stand.
France continued to be platonically indignant about the invasion of Italy.

(51:15):
Now that the rebels had been everywhere suppressed, James felt
that if only Solomon succeeded in persuading Mettinik to exercise
greater moderation, to withdraw his troops and to settle the
questions in dispute, more particularly in the Papal states, by
means of a conference of ambassadors, much would have been achieved.
They would then have reason to hope that the peace

(51:37):
of Europe would not be disturbed at any rate through
the Italian trouble. But Italy was unfortunately not the only
center of disturbance. Belgium, who after the July Revolution had
freed herself from her unnatural union with Holland, was also
struggling to maintain her independence and hoping for French assistance.

(51:58):
The Eastern Powers, led by Austria and Russia, looked askance
upon this revolutionary movement. To Medinik would dearly have liked
to send troops into Belgium and Poland, as he had
done into Italy, but this would have made war with
France inevitable. England, who was not prepared to see a
country so close to her islands under the rule of

(52:19):
France or anybody else, proved a determining factor in this matter.
The Conference of London, which dealt with the question of
Belgium's independence and her king, induced France to modify her
demands with regard to Belgium, and the Parian ministry were
more ready to agree to these concessions. The French gave

(52:39):
up their suggestion of placing the son of Louis Philippe
on the throne of Belgium and proceeded seriously to consider
Prince Leopold of Coburg, the candidate proposed by England. However,
Belgium would not concur in the boundaries which had been
fixed for her or on the question of Luxembourg. Medinik
was pleased by France's moderation, and James and Solomon were

(53:02):
no less so. The government in Paris had sent a
note to Austria which, as James put it, was happily phrased.
He expected that when it reached Vienna, Metinik would be
pleased with it. James hoped that the confidence which Mettenik
had in Casimir Paria would be further justified, and that
the Belgian affair would pass over without seriously endangering peace.

(53:24):
Tilings certainly did not look well in Belgium. The news
from that country sent the three percent French rungs down
to forty six point seven oh on the first of
April one thousand, eight hundred thirty one, a fact which
James sadly reported to his brother Solomon. Paris wanted the
Austrians to evacuate papal territory as speedily as possible. The

(53:47):
prospects of peace varied from day to day, and James
was anxiously watching the political barometer and the reactions of
the sensitive burths. At the beginning of April, reassuring news
was received from Italy and Belgium, although it was not
justified by the facts. French wrongs immediately rose in value.

(54:08):
I have just been with Perrier, James wrote to his
brother in Vienna on the ninth of April eighteen thirty one,
and he said to me, I am sorry to see
wrongs rising so much, because things are still very unsettled.
Ponies dispatches could not be more satisfactory, but one cannot
help wishing that the Austrian forces would evacuate Italian territory

(54:30):
as speedily as possible. Yes, my dear rothschild, we must
show that there is confidence in US abroad. Two. Come
and see me tomorrow morning at nine o'clock, and we
will discuss the matter at length. We desire and intend peace.
Do reassure Prince Medinek on this point. The news from
Belgium is not too good. They are unwilling to accept

(54:53):
the protocol of the twentieth and would rather go to war.
I will not stand aloof but will act with the allies.
This question, which may be an occasion for war must
be settled, and we are doing our best now. My
dear Solomon, I believe that wrons may rise to sixty,
but they might fall again because the situation is absurd.

(55:14):
The signatures for underwriding wrongs at one hundred percent are
coming in strong, but how can the total of one
hundred twenty millions be reached. Mettinich did in fact give
way in Italy because he did not, after all, want
to endanger Perryer's peace ministry, which might have been succeeded
by a chauvinistic one. There was a powerful anti war

(55:35):
party within Austria too. It enjoyed the support of the
Archduke khal as well as that of Metenik's opponent, Count Cholerat,
Minister of the Interior, and of Baron von Conbeck, who
kept pointing out the acute financial distress resulting from this
continued military expenditure. The Austrian troops slowly evacuated the Papal states,

(55:58):
retiring on the po and only left small detachments in
occupation of Ancona and Beloni. Mettinik also was not uninflved
by the fact that the considerable hopes which he had
had of Russia were not being realized. The Russians, against
whom the Poles were putting up a stiff fight, made
hints to Prussia and Austria in April eighteen thirty one

(56:20):
that they should join in the campaign against the Poles,
and such was Metinik's affection for the conservative czar that
he was for a time inclined to lend a sympathetic
ear to these suggestions. He tried to adumbrate this idea
at a ministerial conference at which Count Kolerat was present,
but Solomon Rothschild had already heard of this scheme and

(56:41):
realized all the diplomatic complications involved. He was on good
terms with Count Cholerat too. Now that his intimate friend
Mettinik was contemplating a line of action that did not
fit in with his plans, he went straight to Colerat
to warn him against the Russian adventure and to beg
him to y use all his influence against it at

(57:01):
the conference, with the result that Cholerat, who welcomed any
opportunity of opposing Metonik, spoke emphatically against it. Metanick's attitude
at this time led Baron von Kuebek to make the
following remark about him, Prince Metinik is an absolute weathercock,
constantly veering between tatistev Russian Ambassador at Vienna and war

(57:22):
and Solomon and peace. Belgium continued to be a center
of unrest. The Belgian Congress refused to have anything to
do with the Luxembourg question or any of the other
provisions of the Protocol of the twentieth of January one thousand,
eight hundred thirty one. A few hot blooded orators were
for throwing down the gauntlet to the rest of Europe,

(57:44):
and the Dutch collected a menacing army on the northern
frontier of Belgium. Louis Philippe was represented at the Belgian
regency by a special envoy, General Belliard, and the reports
which he sent were disturbing. The effect was soon felt
in power Marri Wrongs James wrote to Vienna on the
eleventh of April eighteen thirty one, had risen the three

(58:06):
per cents two fifty nine and the five per cents
two eighty nine. Now they have suddenly dropped, and the
three per cents stand at fifty five point five oh
and the five per cents at eighty four. This is
all due to Belgium and General Belliard, who has returned
from Brussels, having reported that the Belgians are determined to

(58:27):
march into Luxembourg, to go to war with the whole world,
and not to give way on any point, their heads
having been turned largely by Poland's attitude to Russia. Peria
and Sebastiani both tell me that they mean to stick
to the Allies and will not let the Belgians force
them info war. But people here are afraid that the
government may not be strong enough to restrain the nation,

(58:50):
and that war may be the result. I must tell you,
my dear Solomon, that I immediately read out your letters
to Peria lest it should be said that Austria with
das drew her troops from Italy on receiving a note
from France, and he was very pleased. The Belgian problem
was still a difficulty and was to lead to further

(59:10):
dangerous crises and complications. The French ministry, however, felt that
it was much more secure and it had the best
possible reason for satisfaction for the one hundred twenty million loan,
which had scarcely seemed a practical proposition at seventy was
actually being issued at eighty one point five oh The

(59:30):
company reported James Poachard yesterday took over the loan at
eighty four. This means eighty one point five oh four.
The public at the repeated requests of the government. Most
of the bankers find they can't make a profit because
they bear it in advance at very low prices. But
what does that matter to us? It all increases the

(59:50):
power and popularity of this present ministry, especially of Cassimir Paria,
who wants to keep the peace, and that is our
primary aim and object. The public did not consider the
King's speech to the Chamber forceful enough, although it is
good as far as it goes. More is expected of
a royal speech. He would not use the speech written

(01:00:12):
by Perrier, but delivered one of his own compositions. He
appears to set great store by making his own speeches.
The outlook seems to be improving, as I have reason
to hope that the Belgians will give way, and with
God's help, everything will go through. James continued to write
in an optimistic vein in their foreign policy, I find

(01:00:33):
that peace is the one aim of the government. Unfortunately,
the Polish affair is somewhat going to the heads of
the French, but it does not affect Perrier, whom I
saw early today, and who was absolutely delighted after yesterday's
meeting of the Chamber in which he carried his electoral
law by a majority of three hundred. The session is

(01:00:54):
now closing and we shall have a general election. Nathan
was not so happy. I was troubled about Belgium, about Portugal,
where Don Miguel was giving trouble, and about Gray's reform bill.
He too was of opinion that everything would turn out
all right, but he said at the end of his report, unfortunately,

(01:01:15):
every trivial political occurrence upsets the business community. Nevertheless, the
Belgian problem seemed to be on the verge of settling
itself through the choice of that clever Prince Leopold of Coburg.
He was the candidate favored by England and was looked
on with more favor by France since he had become
the suitor of the French King's daughter. I am very pleased.

(01:01:38):
James wrote to Vienna on the second of June eighteen
thirty one, that we can now have the satisfaction of
sending you better news. On receipt of the good news
from England, Ronks opened at sixty point seven oh and
stood at about this figure until the boors closed. There
were several buyers at the end of the day, and
we were informed that the government had received news by

(01:02:01):
telegraph that Prince Leopold had been elected king at one
o'clock by the same majority as before. We had it
put in the Thames. And the article is so well
written that it really has done a great deal of good.
It is generally believed on the Bourse that the Belgian
problem is settled, but from our own letters this is
not quite clear. The Eastern powers, however, Astria, Prussia and

(01:02:25):
russiastill adhered to the King of Holland, who refused to
recognize the new Belgian Kingdom of the Coburgs, simply treating
it as non existent. Herein lay the seeds of a
first class European complication. Sebastiani, the French Minister for Foreign Affairs,
said to Rothschild at this time, try to prevent Austria

(01:02:46):
from arming so openly and intensively. Everything seems to be
happening at once, as I have just had news that
the Emperor of Brazil has arrived at Scherburg with his family,
having abdicated in favor of his son. His Empress is
following on a French frigate. The next item will be
to conquer Portugal and give her a constitution. The Brussels

(01:03:08):
deputies had traveled to London in order to discuss the
detailed conditions regarding the co assumption of the government by
their newly elected king. They were still unwilling to recognize
the decision of the Conference in accordance with which Luxembourg
and Limburg were to be allotted to Holland. Nathan Rothschild
immediately called on the delegates in London and learnt from

(01:03:31):
them that they had instructions to offer to Holland a
monetary indemnity for leaving these two territories to Belgium. For
on this point the Belgians refused to yield. Dot James
in Paris took a wholly favorable view of the situation.
His view was that the Coburger was not a partisan
either of England or of France, who would gladly have

(01:03:51):
Belgium in her pocket. The most important thing, after all,
was that the three percent wrong stood at sixty point seven. Oh,
and the fire five percents at eighty nine I e
somewhat higher. His only anxiety was that the reinstated Duke
of Modena, who was carrying out an extreme policy of
revenge and reaction, should again become a source of trouble.

(01:04:15):
In any case, everything is very uncertain, wrote James. Wrongs
arising and falling five points at a time, and we
must keep our heads. The Almighty will turn everything to
a good purpose dot dot dot. Sebastiani said to me,
Belgium is as good as settled, and the world is
furious with me because I mean to keep peace. Whoever

(01:04:38):
else may lose their heads, We will keep peace. I
am a man of honor, and I stick to what
I say. You may count on peace if only Prince
Medinek will back us up and prevent the Duke of
Modena from acting so stupidly and exposing us to a
tax in the chamber. You see, my dear brother, he
is absolutely devoted to the cause of peace. What I

(01:05:00):
told you yesterday I heard in strict confidence from the
Minister of Marine. In the end, the Luxembourg question was
shelved and the Belgian delegates were persuaded to accept the
conditions proposed by Prince Leopold for taking over the government.
He proceeded to Brussels in accordance with his promise. Although
he could only count on England and France, and was

(01:05:22):
assured of the hostility of the Eastern Powers and the
King of Holland. The course of events, which appeared to
be converging on a satisfactory conclusion, was gratifying to James
as establishing the success of the Conservative Ministry. My ministry,
as he called it when writing confidentially to his brothers.
The Chamber had just been dissolved and the country had

(01:05:44):
been asked to express its opinion through an election. The
result was an unqualified success, and the new Chamber contained
a large majority in support of the ministry. This result
is all the more remarkable, counter Pony wrote to Mettenik
from Paris. Since the government refrained from making any attempt
to influence the electors. Baron Rothschild, qualified elector in the

(01:06:08):
department sent Tooise, who controls fifteen to twenty votes in
respect of his property at Ferrieres, told the ministers that
he was prepared to use his influence with his people
against the election. Of General Lafayette. They thanked him for
his offer, but asked him to refrain from doing so.
To act thus at a highly critical moment implies no

(01:06:28):
small faith in one's lucky star. I have the satisfaction,
my dear brother, James wrote to Solomon, of being able
to regard the course of events much more calmly according
to all the information I receive, and I have every
reason to hope that the horizon, which is still dark,
will shortly brighten. James spoke in terms of the highest

(01:06:50):
praise of Perrier's ministry, although he fully realised that the
ministry had to contend with bitter foes at home and
had to deal with passions, ambitions and vanities. Up to
the present, however, he said that it had fought loyally
and worthily for general peace and harmony amongst the powers
which constituted the main interests of the French nation and

(01:07:11):
the whole of Europe. Our ministry, James wrote, will derive
great strength from the satisfactory solution of the Belgian problem.
Anarchy in Belgium provided our anarchists with a field of
operations from which they could prepare the ruin of France,
and now we sect Belgium settling down and organizing herself
dot dot dot. Prince Leopold will soon arrive to take

(01:07:34):
possession of his throne. Peace will be established in Belgium,
and disorderly elements will be firmly dealt with. At the
same time, we have to reckon with the fact that
there will be an opposition of one hundred fifty members,
some of them clever and eloquent, others full of ambition
and cunning. They will be bold and enterprising, and having

(01:07:56):
the benefit of unlimited freedom of the press, will be
supported by their insolent and perfidious journal. They will give
the ministry no quarter, and we shall have to wait
and see how events will develop. James had every reason
not to feel entirely reassured. In spite of all the
promising indications. The main crisis in Belgium was still to

(01:08:17):
come and involved the danger of a mighty conflict between
the Eastern and Western powers. King Leopold's arrival at Brussels
was more than the Dutch could stand, and on the
second of August eighteen thirty one, they gave notice that
the armistice was at an end and marched on Belgium
with a strong force. Leopold, who had only a small

(01:08:38):
force at his disposal, appealed to France and England for help,
and French troops did actually enter Belgium. This news naturally
produced a panic in Paris. There were wild movements on
the Bourse. To day, James reported three percent wrongs closed
at fifty three point two oh and the five per
cents at eighty four. The French ministry was to be reconstructed,

(01:09:02):
and James was of opinion that the new ministry would
be still stronger as the Chamber feared the ultra liberal.
I haven't quite got the courage, James wrote to his brother,
and I don't want to run any risks or I
would buy dot dot dot. Goodbye, my dear brother. Don't worry.
The world is not going under. I feel satisfied that
the Chamber will get over its foolishness. To James's great satisfaction,

(01:09:26):
the rumors of a change of ministry came to nothing.
Peria remained in office and succeeded skillfully in allaying the
indignation of Austria and Prussia, from whom immediate military intervention
was generally feared. By the declaration that the troops would
be recalled home as speedily as possible. The Conference of
London also intervened at once and with energy on behalf

(01:09:49):
of peace. As early as the fifth of August, James
wrote to say that the whole world believed that the
difficulties in Belgium would speedily be ended by the strong
and prompt measures that had been taken. Yesterday's alarm on
the burse, he continued that Prussia would send troops to
the assistance of the Dutch has entirely passed, and on

(01:10:11):
calm reflection one cannot but realize that Prussia is, of
all powers, least in a position to demand war, and
has done most to avoid it. The King of Holland
is much blamed, and people find it almost impossible to
believe that he would take such a step without previously
having secured the promise of assistance from other powers. It is, however,

(01:10:34):
to be hoped that when the King of Holland sees
the British fleet and the French army, he will give way.
We have had no letter from London today, but we
do not doubt that the British fleet has already sailed,
because the Ministry has written again from here asking that
it should dot dot dot. In a few days, we
shall see whether all the powers desire peace as keenly

(01:10:57):
as they have all the time been saying. BELI believe
that Russia does not want peace, although fortunately her government
is not in a position to make war alone. When
this matter is peacefully over, we can hope for quiet
for some time, as the ministry will be strengthened, and
we must hope that we shall have peace for a
long time. In point of fact, the Belgian problem did

(01:11:19):
not give rise to a European war. Prussia decided against intervention,
and Mettinik was restrained from military adventures by the elements
in his own country, which were opposed to such distant
expeditions by an outbreak of cholera at Vienna in August,
and last but not least, by Solomon Rothschild's constant admonitions

(01:11:39):
against military intervention. Joint action by France and England had
effectively checked the King of Holland, and the final solution
of the Luxembourg and other territorial problems had been deferred
to a later date. For many more years. These constituted
a bone of contention between Belgium and Holland and resulted
in a crisis some years yes later, to which further

(01:12:01):
reference will be made. The most important filing for the
House of Rothschild was that the general European War was avoided.
In spite of these and any subsequent revolutionary disturbances, dot
the two states whose loans the brother's Rothschild carried in
their portfolios did not become involved in any warlike adventures
on a large scale, and the small military operations they

(01:12:24):
undertook were soon over. A beneficent tranquility subtravened, which allowed
rons and other securities on the various European books to recover. Thereby,
the principal danger to the House of Rothschild was averted.
Relieved of their responsibilities in Prussia, holding a large mass
of appreciating securities in Vienna and Paris, and feeling reassured

(01:12:46):
as to the political future at any rate as to
the next few years, they proceeded to look out for
profitable financial transactions, such as they had not been venturing
upon recently. Owing to their straightened financial resources and the
general uncertainty of the political situation of the five brothers.
James had especially distinguished himself in the campaign after the

(01:13:08):
July Revolution. Even at the most critical moments, he did
not lose his head, and, as his letters prove, always
contrived to maintain a fairly optimistic outlook. Lie had always
done what Lie could to assist in maintaining peace, his
methods displaying the most consummate ingenuity. James had been positively everywhere.

(01:13:31):
He was to be seen in the rooms of the
King and of the ministers, in the political salons of
the capital, as veil as on the bourse, and at
the meetings of industrialists and business men who controlled the
economic life. He was always the advocate of peace and discretion.
The House of Rothschild as a whole had really reason
to be thankful to him at that time. It was

(01:13:53):
largely due to his efforts that the House was able
to meet all the due claims made upon it, even
at this difficult period. At the beginning of the year
eighteen thirty two, the crisis in the firm's fortunes which
began with the July Revolution might be regarded as weathered.
An important asset contributing to this result had been the

(01:14:13):
unique position which James had so rapidly achieved at the
court of the French King and amongst those whom he
had called in to assist in the government. The French
Prime Minister often told James before anyone else of important
measures of the French government, and for instance repeatedly informed
him of the substance of a royal speech to the

(01:14:34):
Chamber the day before it was delivered. The credit of
the House of Rothschild had suffered only temporarily. The difficult
times were now over, and the reputation which the firm
enjoyed for solidity and financial power even under the most
adverse conditions, was again secured throughout Europe.

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REIGN OF ROTHSCHILDS - 1. Weathering the Crises of 1830: Rothschilds’ Triumph Over the Paris Revolution of 1830

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.css-14f5ked{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:2;overflow:hidden;}REIGN OF ROTHSCHILDS - 1. Weathering the Crises of 1830: Rothschilds’ Triumph Over the Paris Revolution of 1830