REIGN OF ROTHSCHILDS - 2. Rothschild Loans in Relation to Home & Foreign Politics: The Rise of Global Finance, 1832–1835 - SECRETS OF POWER: Masters of Politics, Strategy & War

Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Chapter two, The Rothschild Loans in relation to Home and
Foreign Politics eighteen thirty two to eighteen thirty five. The
avoidance of a first class European crisis and the relief
afforded by the gradual recovery of Wronks made it possible
for the House of Rothschild again gradually to enter into
loan transactions with states and private individuals, subject it is

(00:23):
true to special precautions and limitations. As early as the
middle of May eighteen thirty one, Solomon and Carl Rothschild
proceeded to put into effect the arrangement for making advances
to Prussia which had been promised when times should improve.
On the cancelation of the old agreement, a contract was
entered into for gradually providing an advance of three million

(00:47):
Toller and five hundred thousand were immediately paid to the
Sea Handling Bank on account at that time Prussia was
as sadly in need of money as Austria, for although
war did not result, both states had embarked upon expensive
military preparations. This was especially true of Austria as early

(01:07):
as February eighteen thirty one. That country, instead of realizing
an expected surplus had already incurred a deficit of twenty
two million gulden as the result of extra military expenditure,
and in the course of the year this sum increased
to roughly eighty five million gulden in consequence of the

(01:28):
additional expenditure on armaments that Mettinik kept demanding. As Kuebec,
who sharply criticized Metinik's action, put it, there was no
way out except by the road to the king of financiers.
The four banks, under the leadership of the House of Rothchild,
gave Austria a loan of thirty million gulden at a

(01:48):
discount of twenty percent, but made it an express condition
that they should be relieved of any responsibility in the
event of war. The Rothchilds thereby achieved a double object.
On the wad one hand, they secured a piece of
business which would be profitable under peace conditions, and on
the other hand, made wise by their former experiences, they

(02:10):
obtained an insurance against the war policy of Mettinek, which
they disliked, for this clause would on a declaration of war,
immediately deprive the Chancellor of the advantages of the loan. This, however,
did not satisfy Medinik, and he racked his brains for
a means of obtaining ready money. He remembered the twenty

(02:30):
million francs which in eighteen fifteen had been set aside
out of the French War indemnity for the purpose of
building a German federal fortress, and which had been left
on deposit with the brothers Rothschild at three to one
half per cent interest. The money, however, belonged to the
whole German Federation, and not merely to its leading members

(02:51):
Austria and Prussia. But Rothschild was a confidential banker of
these two states, and they both had an interest in
obtaining cash. They soon came to an arrangement for taking
the money into their own control, on the pretext that,
in spite of repeated demands, the Rothchilds had not provided
any security for the considerable amount involved. It suddenly became

(03:14):
apparent that general conditions were such that the credit, even
of the most firmly established businesses, could be easily undermined,
and that the Rothchilds could provide security only in paper
and not intangible effects, as they were not possessed of
any The two administering states therefore felt that they had
no alternative but to take the money into their own control.

(03:37):
There was one serious difficulty about this. They did not
wish to say anything to the Federal Diet about it,
as objections might be raised. It was therefore arranged that
the Rothchilds should apparently keep control of the money as hit.
The Rothchilds understood the position perfectly and exploited it for
obtaining favorable counter conditions. The transaction was concluded. Austria and

(04:01):
Prussia each received half the money, while the Rothchilds remained
debtors to the Confederation, and Austria and Prussia guaranteed the
payment to Rothschild only if the necessity should arise. In
actual fact, it was not until the year eighteen forty
six that they repaid these moneies to the Federal Treasury.
In addition to their transactions with governments, the House of

(04:23):
Rothchild was receiving numerous requests for loans from private persons,
especially the Vienna and Frankfurt branches, which received applications from
the higher German and Austrian nobility, so many of whom
were heavily in debt and living beyond their means. Prominent
amongst these were the requests of Prince Paul Anton von Estahazi,

(04:44):
Austrian ambassador in London who was a great grandson of
Hayden's famous patron and notorious for his extravagant manner of lift.
He had inherited the expensive and magnificent passions of his
equally extravagant father, but he was the special favorite of
the ch Chancellor met As a result of his enormous expenditure,
which was the talk of the whole of London, he

(05:06):
fell more and more heavily into debt and had to
have recourse to loans, which in the end seriously imperiled
Von his colossal inheritance. In June eighteen thirty one, Mettinik
decided in approach Solomon Rothschild and begged him for advice
regarding the financial settlement of Estahazi's affairs. He naturally meant

(05:27):
that Rothchild should grant a further loan, and remarked that
the Prince's brother in law, the Prince of Thurn and Taxis,
might stand security. Rothschild replied to Methanek that he felt
that having regard to the discredited state of the Estahazi family,
properly it would be exceedingly difficult to negotiate a mortgage
on it in spite of the guarantee of the Prince

(05:48):
of Thurn and Taxis. My humble advice would be, Solomon
wrote that as the Prince of Thurn and Taxis seems
to have the noble desire to lend a helping hand
to his brother in law, he should decide to make
the loan himself. My firm at Frankfort, Maine, which for
many years has had the honour of having dealings with

(06:09):
the House of Thurn and Taxis, would carry through this
business with all the more enthusiasm if his Highness should
request us to do so, because it is particularly devoted
to all the parties interested. Although the Rothchilds always endeavored
to be of service to important families, this reply shows
what caution they exercised. They contrived, however, so to treat

(06:32):
those who applied to them that they felt under an
obligation to the house, even when it did not fully
meet their wishes. This is well illustrated by the introductory
words in a letter written about this time by Prince
Estahazi to Solomon Rothschild asterisk asterisk as your friendly feelings
to my house. Are well known to me the letter ran,

(06:53):
and as you have accepted my invitation to come and
see me, and have shown your sympathy in my financial affairs,
and have also assured me of your readiness to assist
me and my son with your advice and help, I
cannot but feel grateful to you. You are well known
for your exceptional qualities, and your only pleasure is to
do good and be helpful, so that I cannot but

(07:15):
hope for the best. Rothschild dealt with this letter as
far as Mettinich was concerned, by assuring the writer that
nothing would give him greater pleasure than to collaborate in
the settlement of the Prince Esterhozzy's affairs with the approval
of Prince Medinik. Rothschild hardly ever did anything of this
kind without first obtaining a definite statement from Mettinich, as

(07:38):
in that way he had a kind of additional insurance
if anything went wrong. As a general rule, proposals sponsored
by Mettinik were always favorably considered by the Rothchilds, for
while they were rarely losers by any accommodation they granted,
they nearly always followed it up by asking a favor
for themselves. The Rothchilds had long been handicapped by the

(07:59):
fact that while as foreign Jews they were tolerated at
viennand in the monarchy's territories, and through their riches and ingenuity,
they had one access even to the highest circles. Yet
they were subject to certain hampering restrictions imposed upon the Jews.
The most serious of these was that Jews were not
allowed to acquire any real property within Austria Asterisk Solomon

(08:23):
Rothschild was still living in the Hotel zamre Kaiser, although
it is true that he and his clerks had taken
over the whole hotel resides during the crises of the
July Revolution. They had been seriously embarrassed by the fact
that their enormous property consisted almost entirely of paper securities,
the value of which was far too dependent upon the

(08:45):
vagaries of the burse and upon war and rumours of war.
Solomon pondered on a way out of this difficulty, and
it was not long before he approached Metinik with another request.
As was his practice in such cases, Solomon began by
enumerting the services which his house had performed for the
State of Austria, most Gracious Chancellor, when His Majesty the Emperor,

(09:09):
by his letters patent of the year eighteen twenty two,
was pleased to elevate me and my brothers to the
state of hereditary barons, we felt that we could flatter
ourselves that we must, situated as we were, then, have
given some proof of our devotion to the sacred person
of His Majesty and the most noble House of Austria,

(09:29):
in order to have deserved his gracious notice. As we
look back upon the time that has since elapsed, and
called to mind the various services which in the intervening
period we have had the good fortune to be called
upon to render to the government, we feel that, without
being immodest, we may ourselves bear witness to the fact
that we have not merely continued to be worthy of

(09:51):
the favours so graciously conferred upon us in the past,
but have perhaps also earned some further claim upon the
grace of His Majesty, the Emperor, Your Highness, under whose
benevolent auspices it has mainly been our good fortune to
exercise our activities in His Majesty's service, has had a
special opportunity of appreciating the value of any services we

(10:13):
may have rendered. I shall therefore refrain from wearing you
with a lengthy repetition of facts, but shall confine myself
to the simple statement that, in all major operations undertaken
by the Treasury during this period for establishing the credit
of the State, by measures that were both wisely and
boldly conceived by the Treasury, the part played by us

(10:33):
was always of relatively great importance, since we applied all
our resources to ensuring their success. The Treasury is also
well aware that at the most difficult times, I have
always been ready to devote my best efforts to His
Majesty's service. Finally, Your Highness is alone in a position
graciously to estimate the extent to which my house may,

(10:56):
apart from its commercial activities, through its oerher cones, actions,
have been in the fortunate positmu to render useful services
to the Imperial Government. The request that I am now
venturing to make on behalf of myself and my brothers
is that we should be most graciously permitted to purchase
estates and other real property within the boundaries of the

(11:17):
Austrian Monarchy. I am well aware that this request is
contrary to the provisions of the law. His Majesty may, however,
of his grace, make exceptions in individual cases. And I
feel that if Your Highness will represent to His Majesty
in a favorable light such circumstances as may speak in
our favor, your kind intercession should not fail to prevail

(11:40):
upon the most benevolent and most just of monarchs to
grant our humble petition. Our hope that this request may
be granted is strengthened by the fact that, in putting
it forward, we are not influenced by the ambition of
achieving greater prestige, our sole object being one that His
Majesty must regard as being perfectly legit jitimate, namely, to

(12:01):
convert part of the wealth with which a kind providence
has blessed us into a form in which it will
be remunerative, whatever vicissitudes may befall us, and whatever may
be the fate of the rest of our property, so
that we may be able to leave at least a
part of it firmly secured to our successes. We further
desire if His Majesty should grant our request to be

(12:24):
permitted to create estates in respect of the properties to
be purchased, these to be heritable only in the direct
male line of each of the five brothers of the
Rothschild family. We feel we should not altogether refrain from
pointing out that the government will find the granting of
our humble request to be not wholly inconsistent with its
own advantage, since it cannot regard with indifference the possibility

(12:48):
of attracting considerable capital sums to the country which will
become subject to taxation, and it must be keenly interested
to see landed property passing into the hands of owners
who command the means through the control of greater capital resources,
of producing beneficial effects upon trade and industry. This request

(13:08):
was entirely opposed to the current law. It involved the
making of another exception, which was bound to provoke considerable
dissatisfaction amongst other Jews, for it was certainly not proposed
to grant this to them all. Metinik was strongly in
favor of granting it, as the Rothchilds proposed to acquire
property in Austria to the value of several million, and

(13:30):
he felt that they would be more under his control
if they had such considerable real property in the country.
But it was necessary first to consult several other departments.
As was so often the case, this request was pigeonholed,
and in the end it fell into the background, owing
to the cholera epidemic which reached Vienna at the beginning

(13:51):
of summer and spread in an alarming way. This disease,
which was a particularly serious menace in the condition of
medical science at the time, had approached the city from
the north. The first cases occurred in the middle of
August and produced a positive panic among the ruling classes
at Vienna, especially as the Emperor's personal physician Stift, was

(14:13):
the supreme authority in health matters in the monarchy, had
given an assurance that the illness would never reach Vienna
and did not admit that it was infectious. The helplessness
and ignorance of the doctors was absolutely indescribable. All doctors
in the government service were compelled against their convictions to
accept Stifft's view. But when to the discomfiture of the

(14:37):
Emperor's physician, the first cases occurred at Vienna, the imperial
family were thrown into a state of complete panic. Most
of the imperial princes fled to the provinces while the
Emperor and the rest of the court cut themselves off
completely at Schonbrun from the rest of the world, Count Cholerat,
Medinick's rival, took refuge at Issual intimate relations with the

(15:00):
Sothchilds had lately developed into the habit of a daily conversation, when, however,
on the fourteenth of August, after a visit to his
beloved Fanny Elsla, he called on Solomon Rothschild at the
Romischi Kaiser, as his custom was, to discuss politics and business.
He was told that the baron had left Vienna the
day before on account of the cholera, and had left

(15:22):
his manager Goldschmidt in charge. Mettenik alone showed on this occasion,
as usual, that he was not affected by panic and
that he was a man of personal courage. He remained
quietly in Vienna and availed himself of the opportunity of
getting everything into his own hands and stealing a march
on Chlorat. Colorat's flight had provoked the emperor's displeasure, but

(15:46):
it required an official letter from the Emperor to bring
him back to ship. He immediately opposed Metinek's policy, again,
asserting that the political unrest and financial difficulties which Mettinek
occasioned by his eternal military expenditure, worked together with the
cholera proving the ruin of Austria. Under these conditions, it
would have been untimely to have put forward the Rothchild petition,

(16:09):
and it therefore remained in its pigeonhole asterisk. During the
next few months, business was more or less at a
standstill at Vienna. Carl Rothschild at Naples, however, was engaged
in carrying through a lone transaction which was completely in
harmony with Mettenik's political system, and which is specially noteworthy

(16:30):
having regard to the position of the borrower, the spiritual
head of the Church. The Pope was to follow the
example of so many monarchs and princes of Christendom and
contract alone with the Jewish House of Rothschild on behalf
of the papal states. The various risings in the Papal States,
which had followed upon the July Revolution and had necessitated

(16:51):
the intervention of Austrian troops in order to re establish
the temporal power of the Church, compelled the Holy See
to take precautions against the repetition of such occurrences. This
too called for military expenditure, and Medenik advised it. But
a great deal of money was required, and the papal
finances were at that time completely disorganized. It was impossible

(17:16):
further to increase the burdens of taxation upon a discontented people.
The only way was to have recourse to a loone,
and this was not an easy matter. Various quarters were sounded,
but always without success. Thereupon, two ladies of the high nobility,
who were devoted to the Holy Father, were commissioned to

(17:36):
find means of obtaining such a loan. They were the
Duchess Basano in Paris and the Countess Stefanor in Rome.
On her list of financiers to be called upon, the
Duchess in Paris found the name of James Rothschild, while
the Countess in Rome found that of Carl Rothschild of Naples,
who at that time was constantly traveling between Frankfort and Naples.

(17:58):
The Countess wrote to ask him to come to Rome
to discuss a financial matter of the highest importance. Karl
guessed what it was about. He wanted first to discuss
the matter with his brother in Paris, and he also
preferred to conduct the first negotiations, if any, by letter,
in order to prepare the ground in advance. He therefore

(18:18):
put off his journey to Rome. The Austrian minister at Naples,
Count Lebsalton, who was in constant personal touch with Carl Rothschild,
reported to Vienna that the Pope was obviously in great
financial difficulties, and that Carl Rothschild did not show any
keen desire to lend his money to the Pope. He
had therefore been thinking of a way out by which

(18:39):
the business could be carried through by substituting for the
pupil states Naples, as being a more reliable debtor. The
kingdom of the two Sicilies had long wished to acquire
the principalities of Benevento and Ponte Corvo, which belonged to
the papal states. Carl Rothschild proposed that Naples should purchase
these from the Pope, and that he should advance the

(19:01):
purchase price to the State of Naples. The Holy See, however,
would not agree to this, on the ground that it
could not surrender any portion of the territory of the
Patrimonium Petrie without breaking its oaths there followed a period
of intensive negotiations between Carl Rothschild, Naples and the Papal States,
but it was easy to see that Carl Rothschild was

(19:23):
playing for time and waiting for the political situation in
Europe to clear up and for the return of generally
peaceful conditions asterisk. He shows, observed Count lebsbutern little inclination
to make his firm solely responsible for a business of
such importance and one that, in view of prevailing conditions,
involves so much risk. Metinik was dismayed by this report.

(19:47):
He was exceedingly anxious to provide the Pope with the
means necessary to re establish in the rebellious provinces what
Mettinik called authority, order and peace. The Chancellor therefore or
decided to make a personal appeal. He invited Solomon to
his house and explained to him the importance which Austria

(20:08):
attached to the conclusion of the papal loan. Metannic begged
the banker to use his influence with his brothers, especially
with the one at Naples, so that they might make
every possible effort to carry the matter through. He also
instructed Count a Pony in Paris to take similar steps
with regard to Fames. James was at the moment negotiating

(20:30):
with the Roman banker to Polonia, who had traveled to
Paris Nod, who had offered to take up half the loan.
Since the House of Rothschild would not deal with the
whole amount, Pangaea went to the two bankers and made
proposals in accordance with Metani's instructions. The final result was
that the Pope received his loan from the two bankers jointly.

(20:51):
James reported this to a Pony with great delight. From
the start, he wrote, we were exceedingly anxious to see
our name associated with us the flotation abroad of a
loan for the Roman state. The fact that your Excellency
sponsored it, and that we were informed that Austria was
interested in its conclusion, merely served as a strong additional
spur to us in our efforts to carry the matter through.

(21:15):
We are happy that we have succeeded in settling this matter,
and we doubly congratulate ourselves as we are simultaneously carrying
out the intentions of His Holiness's government and the wishes
of the Austrian government. Nevertheless, James had misgivings. He feared
that the Papal states would not punctually carry out their
obligations with regard to interest payments, and urged Austria to

(21:38):
exert pressure upon the Papal government in this direction. When
we undertook this loan, thereby assuming a very heavy responsibility
to the public who will associate our name with this business,
we naturally counted upon the fact that the Holy See
would appreciate the implications of the responsibility we have undertaken,

(21:58):
and the extent of its response abilities, and the degree
to which its credit would depend upon a strict and
punctual performance of its obligations. It would be absolutely impossible
for it to obtain any further credits or any further
assistance whatever abroad, if it were to fail in any
way in carrying out its obligations with the utmost punctuality.

(22:20):
The reason why James was worried was because there were
rumors current that, in the case of former loans, the
PayPal government had on occasion suspended interest payments. James emphasized
the fact that punctual payments were the lifeblood of credit
and that they alone would make it possible in future
in a case of necessity to obtain new money. Janus

(22:42):
further turned the situation to account by calling attention to
the condition of his Jewish carillogionists in Roman territory, expressing
a hope that their conditions would be improved as a
result of the loan. He stated in conclusion that the
fact that Austria had given his house a kind of
moral guarantee that the papal government would conscientiously observe their

(23:03):
obligations had given him the confidence necessary to invite other
capitalists to take part in the scheme, and he did
not omit to convey the usual impression that an arrangement,
which after all involved a substantial profit for his firm,
constituted a political favor for which the Rothchilds were entitled
to the gratitude of the states concerned. Solomon, who was

(23:26):
still staying at Munich, which had not yet been visited
by the cholera, expressed his satisfaction to Mettinik at the
conclusion of the arrangement. As your Highness, he wrote to
the Chancellor has shown so much interest in the welfare
of the Roman state, and has seen fit to concern yourself,
particularly for the loan. It will give me a special

(23:47):
satisfaction if the arrangements work smoothly now that the matter
has been settled, so that confidence, contentment, peace and tranquility
may be firmly established in the Roman state. The loane
enabled the papal government to raise a small army of
a few thousand men for the better security of its
temporal power. But the affair aroused considerable comment in the

(24:09):
Christian world, especially when Pope Gregory the sixteenth received Carl
Rothschild in audience on the tenth of January one thousand,
eight hundred thirty two, conferred upon him the ribbon and
star of the newly founded Order of Saint George, and
permitted him to kiss his hand instead of his toe,
And yet Rothschild did not even have himself baptized. In return.

(24:31):
Baron von Kenbeck noted these occurrences in his diary with
some extremely malicious comments. The much dreaded wit critic and
journalist MG. Sophia might well have exercised his sharp tongue
upon them. Sophia had made his position impossible in most
of the places where he had lived and written. At
pesth Berlin, and Munich. He made so many enemies by

(24:54):
his pointed and satirical style of writing that he was forced,
as a result of assaults and unpleasantness of various kinds,
to leave one town after another, and consequently soon found
himself in material difficulties. He was an ugly little man
with sharp features. His bald head had but one wisp
of flaming red hair, which gave him a fawn like appearance.

(25:18):
He wrote with extraordinary facility, and his output was considerable.
He was insanely vain and violently persecuted anyone who showed
him ill will. When he had money, he spent it
recklessly in giving most magnificent parties. Rothchild and Sena often
footed the bill for such entertainments for the very good

(25:38):
reason that it paid better to have him as a
dear friend than as a cheap enemy. The drain, however,
grew irksome as time went on, and Solomon Rothschild began
to wonder how the fellow who was always short of
money could be provided for and at the same time muzzled.
He decided to try and secure Sophia the revolutionary satirist

(26:00):
for Metanek's cause, and to get a substantial income provided
for him as a publicist writing in Metinick's interest. When
towards the end of eighteen eighty one Saphia again came
to the banker and complained of his lack of funds,
Rothchild put this proposition to him and asked him to
state definitely whether he would agree to the condition that

(26:22):
he should devote his talents to the good cause. I
em Safia asked for a short time for consideration, and
next day sent a letter to Rothschild clearly outlining his position.
With reference to our conversation of yesterday. He wrote, there
may be a certain advantage in my putting my ideas
into writing, as some of them, if put verbally, might

(26:45):
convey the suggestion of flattery. You wash me to put
forward a proposition. My reply is that your general European
reputation for justice and fair dealing is such that I
feel that I can leave the whole matter and the
settlement of all all the conditions, with full confidence in
your hands. My literary efforts have always been directed to

(27:06):
the service of the good cause. Possibly I was always
right in my judgment as to what was the better cause.
It will naturally be a satisfaction to me to have
more scope for serving my country in accordance with my feelings,
and it will suit me perfectly to be pleaciden a
position in which I need no longer worry about considerations

(27:26):
with which a man writing for his living has so
often to concern himself, so that I can give free
play to the weapons of my wit and imagination, since
wit and satire are often effective where arguments fail. Asterisk,
the eminent gentleman and subtle observer of our times and manners,
on whose behalf you are speaking Metdenek, will with his

(27:48):
profound knowledge of men and affairs, appreciate this point. I
am therefore prepared entirely to devote myself with all my
energy and will the enthusiasm of a man of honor,
to the interests of the better cause. You are well
able to judge of the value to be attached to
an established writer, and to give an opinion as to

(28:08):
the money which his services may justly command. Asterisk Rothschild
reported the result of these negotiations to Mettinek, and the
latter was quite sympathetic to the idea of securing for
his own ends. The man whose clever and witty pen
had so often been dipped in malice and hatred. Your Highness,
Solomon Rothschild reported, can make of this man what you please,

(28:31):
and in my opinion, his youth and the grim necessity
of earning a living have been more responsible for his
past faults than malice itself. He was moved to tears
when he heard Your Highness's kind opinion. I feel I
must say that the request in Heir Sofia's letter that
the arrangement should be made to apply over a certain
period is not unreasonable. In my opinion, two to three

(28:54):
years should be sufficient to try the experiment, and at
the end of that time one could old furl Her
consider how he could best be made use of. If
Your Highness should be pleased to grant him a couple
of thousand gulden a year, so that he could draw
five hundred gulden quarterly. As he has no means and
his business involves a certain amount of expenditure, I believe

(29:16):
that he would not have been acquired at too high
a price, and he himself would be satisfied. If Your
Highness is prepared favorably to consider this suggestion, I should
be glad to have your decision at an early date,
as owing to the cholera, I cannot foresee how long
I shall still remain here in Munich. Mettinik agreed to
take Safiir into his service and proposed first to offer

(29:40):
him fifteen hundred to two thousand gulden for a year
on probation. Safia asked that the period should be extended
to three years, and Rothschild successfully supported his request. Thus,
Sophia secretly entered the service of the Austrian government, for
the matter was at first kept a secret between the
three persons concerned. His readers were certainly much astonished by

(30:04):
the changed note in Sophia's writings, but Rothchild was highly
pleased with what he had done. Asterisk asterisk. He had
achieved a triple object. First, he had secured a substantial
salary for a period of some years for a fellow
Jew with dangerous gifts, who had been a constant drain
on his purse. Secondly, he could show Metinik that he

(30:25):
had gained a redoubtable writer for his cause. And thirdly,
he had secured himself against possible attacks in that quarter,
as he could reasonably count on Sophia's gratitude. About this time,
Rothschild succeeded in rendering another important service, a personal one.
In eighteen thirty one, the Chancellor had married his third wife,

(30:48):
the beautiful and vivacious Countess Melanie ze Ferraris, whose family
were often embarrassed owing to their extravagance. Flew Emperor Nicholas
of Russia, who had known the Zychis since the Congress
of Vienna, lent here four hundred thousand francs, which he
converted into a present on Metineck's marriage. However, a special
arrangement had had to be made, which was carried through

(31:10):
jointly by Rothschild and eskals Solomon. Rothschild thereby earned the
gratitude of the Chancellor's wife, and b also loaded her
with points and flowers on every possible occasion. It was
through her chat the Jewish baron achieved his unique position
in exclusive Viennese society. It was not only at Vienna

(31:30):
that the social rise of the Rothchilds was so marked.
Nathan was invited to the best houses throughout England, and
James's quite exceptional position at the court of the new King,
Louis Felipe was most clearly marked by the conferring upon
him of the Grand Cross of the Legion of Honour,
the Knight's Cross of which he had held since eighteen

(31:50):
twenty three. The magnificent balls and banquets which he gave
to the leaders of society at his splendid palace in Paris,
helped him to consolidate him position. On one of these occasions,
an unpleasant incident occurred which caused the heir to the throne,
the Duke of Orleans, to be quite unjustly annoyed with
James Rothschild. Whilst, with the help of England, Louis Felipe

(32:14):
was consolidating his position abroad, he was far from being
so successful with society in Paris, amongst whom the legitimate
nobility had a great deal of influence. As Baron Higgle,
who was in Mettenick's confidence, wrote from Paris, there was
a kind of opposition of the salons, and those families
who had remained loyal to the exiled d King went

(32:36):
so far as to carry on secret correspondence with their
natives who had left the country with Charles the tenth.
These emigres intrigued throughout the world and made special efforts
to induce the Eastern powers to make war on Louis
Felipe in order to place Charles the Tenth on the
throne once more. The legitimists in Paris made satirical remarks

(32:57):
about the people who swarmed about the new king and
the heir to the throne with a view to securing
good jobs, and the opposition paper La Mode published a
drama dela comedic dela courd oiscua, in which all these
adventurers were represented as hens in a farmyard flocking round
the Grand Pullet, as the Duke of Orleans was called.

(33:18):
From this time onwards, the hay to the throne was
always known by the nickname Grand Pullet. The Duke of
Orleans was present at an informal gathering in James Rothschild's house.
This gave an opportunity to a certain young Monsieur de Bli,
the son of an ardent legitimist who would not go
to court, of saying to a fellow legitimist in a

(33:39):
voice loud enough for the Duke of Orleans to hear,
why here comes the Grand Pullet eye. This apparently harmless
remark was aimed at the close connection between the new
royal house and the jew banker. It was overheard by
adherents of the new regime, and one of them came
forward on behalf of the prince. Heated words ensued, and

(34:00):
the Duke of Orleans at once realized what was happening.
Two of his adjutants went to the young men to
demand an explanation. They assured the adjutants that they had
no wish to offend the Duke and had not thought
that he could overhear their remarks, and the matter was
then dropped. But the heir to the throne never went
to James Rothschild's house again, in spite of all the

(34:22):
efforts that Rothchild made and all the invitations host sent him. Meanwhile,
anxiety was still felt over the Belgian problem, which was
far from being finally settled. The indepense of that state
had not yet been recognized, and there was still reason
to for that warlike complications might arise on account of
the cholera. Solomon Rothschild had not yet returned to Vienna

(34:45):
and his business was being carried on by his confidential manager,
Leopold von Worthemstein. Austria had meanwhile issued a further loan
of fifty million Gulden, in which the Vienna branch of
the House of Rothchild participated. Solomon wanted to travel from
Munich to Paris via Frankfort in order to take general
stock thereof the position and undertakings of the firm. He

(35:09):
wanted to bring his Paris brother some cheerful news. He
therefore wrote to Mettanek from Frankfort. Your Highness is aware
that we have subscribed a quarter of the last loan
of fifty million, and have also purchased securities on the
Bourse in order to maintain the price of metalliks, that
we are carrying through other important financial operations, and that

(35:30):
we are also negotiating new ones, as these are closely
affected by the course of political events, and I would
like to see my brother happy and free from worry.
I would humbly beg your Highness to be pleased to
let my manager Leopold know your opinion as to the
present situation and whether the Austrian government will recognize Belgium

(35:50):
and allow the settlement to be ratified. I would also
regard it as a special mark of your favor if
your Highness would have the kindness to honor me with
a few words in Ritea. They are sure to bring
me great peace and comfort. I am thinking of starting
for Paris in the immediate future, and A am sending
a member of the firm there today, so that we

(36:11):
may get your Highness's gracious news as soon as possible,
and without any fear of letters being tampered with. I
shall have the privilege of submitting to your Highness my
most humble reports from Paris, and trust that they may
be of use to the Austrian government. Meanwhile, Nathan wrote
from London to say that the reform bill would he

(36:32):
passed that it was hoped that the Eastern Powers would
ratify the agreement regarding Belgium, and that, in his opinion,
all public securities would improve in the next three months.
On his arrival in Paris, Solomon had really good news
to report. He had to make use of an amanuensis
as he suffered from severe rheumatism in the region of

(36:53):
the eyes, but this did not prevent him from thoroughly
investigating the situation in Paris. During my stay in Paris,
he wrote to METTINEC have seriously occupied myself with the
study of the internal condition of France and have arrived
at the satisfactory conviction that the government grows stronger every day.
In my opinion, the opposition in the country consists only

(37:16):
of certain newspapers, the kind of opposition which is not
to be taken seriously. All decent people are supporting the
present ministry and seeking to maintain tranquility. The former kind
of popular outbreakers out of date, and however much and
however violently the opposition papers may write, they will not
be able to start them again. The spirit of good

(37:38):
will is manifesting itself in the Chamber of Deputies. If
only the great powers would send in their ratifications of
the Belgian affair, Emperia would be able to state publicly
I wanted peace, and I can now show that I
have completed the work that I began. Such a statement
would still further increase the confidence which this man inspires,

(38:00):
and everything would then proceed satisfactorily in the chambers asterisk.
The opposition in the Chamber of Deputies is purely obstructionist
in its tactics, partly because the deputies are afraid of
being blamed when they return to their departments for not
having effected enough economics and partly because there are amongst
them a hundred to one hundred and twenty people who,

(38:23):
having no property themselves, do not wish others to have
any either, and therefore press for economies and reductions. Unless
the government should be disappointed with regard to the Belgian affair,
the chambers can adjourn in two or three months, and
the ministry can then deal with the internal situation for
twelve to fifteen months without any chambers to great advantage.

(38:46):
At the Sanna time, trade will expand in all directions,
and we shall have a firm and settled government, such
as we have been accustomed to in the past. Such
a happy consummation, however, can be achieved only provided that
the speedy set of all points of dispute between Belgium
and Holland is assured there is confidence in the press

(39:06):
at ministry. It is, of course unpleasant to have to
admit that peace is dependent entirely upon a single individual,
but this will adjust itself in time when the necessary
stability has been achieved. It is reassuring in this connection
to note that the King is absolutely devoted to Emperia.
Your Highness's well known judgment is such that on perusing

(39:29):
this letter, you will be able to appreciate how far
the views I have expressed a sound, and it will
be a cause of great satisfaction to me if I
shall prove to have presented the position adequately. Solomon deliberately
painted things in rather rosy colors, for the French cabinet were,
in point of fact, actually considering a counter move to

(39:50):
the further intervention of Austrian troops in the Papal state.
The Papal mercenaries, who had been raised with Rothschild's money,
had failed to control the sporadic rise which had broken
out on the withdrawal of the Austrian troops, and the
Holy Father had been forced again to apply for help
to Count Rodetzki, the Austrian commander in Italy. It was

(40:11):
not in the least gratifying to Mettinik two. He called
upon again to play the role of papal policemen. But
on the twenty eighth of January eighteen thirty two, the
Austrians again occupied Bologna. This was a serious blow to
Paria's peace ministry. All Peria's enemies immediately protested that such
action was an attack upon the honor of France, and

(40:33):
Peria was forced at any rate as a matter of form,
to make a display of armed force in the Papal States,
for after all, the risings following upon the July Revolution
had all counted on the support of liberty loving France.
A French squadron accordingly sailed into Ancona and landed troops
there to occupy the town and the citadel. Mettinik strongly

(40:56):
protested against this action, but there was no serious intens
either in Paris or Vienna of making it a case belly.
French troops were simply to remain at Ancona until the
Austrians had evacuated the Papal States. The powder magazine had
very nearly been fired. But Mettenik was less anxious for
war than usual, as he could not rely with confidence

(41:19):
on Prussia, or count with absolute certainty upon Russia, which
was so distant from a possible theater of war in
the West, he might have been left to make war alone. Nevertheless,
the Rothchilds feared that he might go to war, and
Solomon and James continued their efforts in Paris to eliminate
this danger as far as possible. They again did everything

(41:41):
in their power to stamp out the smoldering embers, as
is indicated by a long and positively poetic effusion of Solomon's,
who was particularly skillful at flattering the Chancellor, most excellent Prince,
How rightly your Highness appreciated my feelings in favoring me
with the letter containing the glad news of the safe

(42:02):
delivery of your most honored lady. No one could have
heard the news of this happy event with more pleasure
than I, who have so often witnessed the family happiness
of your Highness, and who see in this dear child
the confirmation of such tender and happy bonds. May the
dear Princess grow up in the likeness of her gracious mother,
and sweeten the harsh labors of politics for your Highness,

(42:24):
And may you, for a long period of years, continue
to secor your wishes crowned with success, as you continue
in the possession of the most lovable of wives and
the most promising of children. Your Highness knows my loyalty
of heart and my entire devotion to well. To doubt
the sincerity of my feelings, or to regard this letter

(42:45):
as other than the expression of a loyal friend, I
should have liked ere this to have allowed myself the
privilege of sending Your Excellency a few lines from here,
But unfortunately my eyes have been troubling me so much
that I have been forced to get give up even
the most pleasant occupations. With just pride, I number among
them the privilege of being allowed to correspond with Your Highness.

(43:08):
For when one has had the privilege as I have,
of living so long in the neighborhood of the wisest
and most lovable of statesmen, when one has, as I
have been, in a position to appreciate Your Highness's paternal disposition,
one cannot but be acutely sensible of the loss occasioned
by being deprived of this daily pleasure. And I must

(43:30):
therefore seek such compensation as I can in the epistolary
correspondence which Your Highness has so graciously permitted. Politics here
are proceeding on the same lines, as ever as your
Highness has so rightly observed. Parrier made a great mistake
in his action, and this is attributable not so much
to a lack of honor as to weakness. He felt

(43:52):
that he had to conciliate the opposition, and expected his
action to win some of them over to his side,
But as is always the case with such half measures,
he has gained nothing with the one party, and has
lost standing to a certain extent with men of good will.
His intentions, however, are honorable, and he is concerned only
for the maintenance of peace in which his own position

(44:15):
is so closely involved. He hopes that he may continue
to enjoy Your highnessis friendly and powerful support in his endeavors.
You occupy a great position, my dear Prince, a position
entirely worthy of your noble character and of your benevolent intentions.
For it is only through the exercise of your judgment

(44:35):
that stability can be maintained in Europe, as it has
hitherto been maintained thanks only to your Highness. Continue therefore,
in your peaceful endeavors, my dear Prince, and do not
allow yourself to be led astray by a mistake of
parriers from the path of high and noble endeavor which
you have hitherto pursued. To your Highness alone, is it

(44:57):
granted to prevent the outbreak of all destroying war and
to extend the beneficent influence of peace over the whole
of Europe. Continue to carry out this lofty mission, for
in your hands lies the destiny of the world. You
would not, my dear Prince, consider me capable of unworthy flattery,
And you may regard what I say as the expression

(45:19):
of an honorable man who has grown gray in business.
You are the one and only competent statesman of our time.
He more and more of a guide to Perigia. Let
him have the benefit of your judgment and experience. You
know how to appreciate the possession of real power. Paria
really has a hard row to hoe here. It is

(45:39):
hard for a minister to stand up against this unrestraint
of the press, to find his most secret plans published
before they are matured, and his most carefully thought out
measures maliciously attacked by poisonous pens. Nevertheless, we comfort ourselves
with the hope that this nuisance will bring about its
own destruction, for it has already lost its influence with

(46:01):
the more decent portion of the nation. I have taken
the liberty of having some small things, such as are
so tastefully produced in this country of fashion and frivolity,
made for our gracious Lady and her dear little Princess,
as a small token of my affectionate feelings. May I
venture to ask that Your Highness will be my gracious intermediary,

(46:22):
so that I may hope to be forgiven by your
most gracious lady for my liberty. Asterisk the specter of
cholera appreciably spoilt the pleasure of Solomon's stay in Paris.
He had fled to Munich from Vienna on its account,
and the mysterious disease had now pursued him to Paris.
During the beginning of April eighteen thirty two, about thirty

(46:43):
thousand people developed cholera in the French capital, and about
half of these died of the disease. Those elements which
were hostile to the government and to the king exploited
the excitement produced by the outbreak to cause fresh disturbances.
During the night. All the street corners were placarded with
the following notice, which the astonished Parisians read next day.

(47:05):
How to conquer the cholera epidemic. Take three hundred heads
of members of the Paris chamber, particularly including those of
Casimir Peria Sebastiani, Dargat, Louis Philippe and his son, roll
them over the place. Dulla Revolution and the heir of
France will be cleansed a July soldier. The royal family

(47:26):
and the ministry, however, displayed heroic courage on this occasion.
The Duke of Orleans and the Prime Minister even visited
the cholera victims in the hospital. This was to prove
fatal to Peria, who contracted the disease a few days
after his visit to the hospital and died. James and
Solomon Rothschild were affected not merely by the personal loss,

(47:48):
for the event was of profound importance to their political
and financial schemes. The brothers were overwhelmed with terror of
the frightful plague. Solomon took refuge in one of his
brother country houses near Paris, a fact which seriously limited
his political activities and the scope of reports to metinik Asterisk.

(48:08):
While Solomon and James were adjusting themselves to the new
position resulting from Parrier's death, Nathan in England was also
experiencing a time of internal political stress. Since March eighteen
thirty two, the reform Bill, which was so widely to
extend the franchise and to abolish ancient abuses, had been
the center of interest. Lord Gray was determined to carry

(48:32):
it in spite of the bitter opposition of the Upper House.
This could only be done through a mass creation of
new peers, to which the King refused to agree, with
the result that the Prime Minister resigned on the ninth
of May. The Conservative Duke of Wellington, who was opposed
to reform, was indicated as the man to form the
new ministry, but the country was passionately aroused in favor

(48:56):
of the measure. At this critical juncture we find Nathan
Rothschild again coming to the foe. On the twelfth of
May eighteen thirty two, when Wellington's candidature was the burning
subject of the hour, he went to a friend of
the Duke's, mister Arbuthnet, and poured out his heart to him.
Nathan feared that on the fall of Gray's liberal ministry,

(49:17):
which in foreign affairs had always supported France against the
Eastern Powers, a conservative ministry under Wellington would act with
the latter and possibly give them a free hand against France.
This would have meant the outbreak of the much dreaded
Continental War. Nathan therefore made every effort to bring mister
Arbuthnet to his point of view and to persuade him

(49:38):
to use his influence with Wellington in the interests of peace.
My dear Duke, mister Arbuthnet wrote, Rothschild has been with me.
He came to tell me that if you let it
be known as soon as you meet Parliament, that whatever
may be your own opinion of reform, you are resolved
not to disappoint expectations which are so greatly raised, and

(50:00):
that your determination also is to do your utmost to
preserve the peace of the world, you will surmount all
your difficulties. He says that among the moneyed men there
is an alarm lest there should be such an opposition
to all reform as would cause commotions. And he adds
that the foreign ministers he instanced Talleyrand, Weissenberg and below

(50:21):
are in great anxiety lest the King of Holland should
be led to expect such support from the new government
as would lead to war. He assured me that the
general feeling was that you would surmount your difficulties if
men's minds were tranquilist, as above stated, and if having
the reins in your hand, you were resolved to keep them.
He is determined, he said, to keep up the funds

(50:44):
to his utmost, and he is confident he will succeed.
It was, however, a false alarm, and Nathan's intervention became
unnecessary for the masses. The name of Wellington stood for
the collapse of reform ideas, and the result was that
a storm broke out throughout the whole country, such as Pudimi.
Possibility of a Wellington ministry out of the question. King

(51:06):
William the fourth was made personally aware of the bitter
feelings of his people, for mud was thrown at his
carriage in the streets of London. Reluctantly, he was forced
to yield to the will of the people, and Gray's
Ministry was recalled to office, whereby the passage of the
reform Bill was assured. As the ministry remained in office,

(51:26):
all fear of a change in the trend of Britain's
foreign policy vanished, and the danger of war was averted.
Nathan could again devote himself to his business, and he
had once more shown himself capable of dealing with a
critical situation. The Reform Bill was finally passed by the
British Parliament on the fourth of June, a fact which
made a profound impression throughout the world. Austria too had

(51:50):
been anxiously following the vicissitudes of Western politics, and Mettinek,
whose sentiments were very different from those of the Rothchilds,
felt the passage of the Reform Hill as a personal defeat,
but internal problems soon diverted his attention, especially the eternal
financial embarrassments of the state. The last metallik loan of

(52:12):
fifty million, the interest of which was payable on a
metallic basis, had scarcely been issued. When a further loan
was contemplated, Mettinek sorely missed Solomon Rothschild. It was impossible
to discuss politics and finance as comfortably with Leopold von
Werthemstein as with his sympathetic, supple and experienced friend. Solomon

(52:34):
Werthemstein faithfully reported to his master in Paris what was
happening at Vienna. He told him that Sena and Goemulah
had latterly been selling metalliks to an alarming extent, and
that he had misgivings as to their maintaining their price,
and was also thinking of selling. He also reported to
Solomon regarding Medinek's wishes for a further similar loan. Solomon

(52:56):
replied at length. His words constituted practice a rebuke to
Austria's leading statesman. That Sena and Gimmeler are constantly selling,
he wrote, is a matter of indifference to me. It
is better that these gentlemen should sell out now that
we are still in the month of June, so that
the Metaleiks will come to be held more and more
by solid people. What I do not regard with indifference, however,

(53:20):
is that Austria should issue a further Metaleik's loan during
the year eighteen thirty two, which God forbid. You know that,
taking the sum of our holdings of meta leaks at Frankfort, Paris,
London and Vienna, that is the holdings of the four
banks which really constitute one bank, the total amounts to
several millions. Now you cannot ride two horses at once.

(53:44):
If our firm were forced to sell, what price could
we expect to get. We should be forced to realize
our metaaliks, whether we wished to or not. What would
the capitalists and the commercial world say to the issue
of two Metallik's loans in one year, when the pains
in respect of the first loan are not due to
be completed until December. Such action might produce a sharp

(54:06):
fall in metleiks, the government would not be able to
get further loans at a low rate of interest, A
blow would be dealt at the credit of Austria's finances,
and the government would fail of achieving its object. I
therefore repeat that, if it is essential to get money,
it is much better to issue treasury bills and getting

(54:26):
twelve millions of silver for the bank as on the
former occasion, a procedure which costs the government hardly anything
and provides it with money for six to eight months. Moreover,
what would the public say to a new loan? There
will be war. There must be war, as Austria is
issuing another loan. Even if we were not forced to

(54:48):
sell as we should be, prices would fall sharply and
Austria's credit would be severely damaged. I instruct you, my
dear sirs, to submit the whole contents of this letter
to Prince von medh Utnik and Count Cholerat, as it
is my duty to inform them of my opinion and
conviction as to what would happen if there were to
be even a whisper of a suggestion that another loan

(55:11):
should be issued this year. In any case, tell Prince
von Medenik from me that the government here is making
every possible effort to maintain peace and to suppress subversive propaganda.
The Government high s gained in strength as the result
of recent events, but the European powers must endeavor to
establish it more firmly. Still, what are the opposition papers

(55:33):
doing on account of the handful of troops which have
been sent to Tyrol on account of the disturbances They
are daily preaching war between Austria and France in their papers.
The Olgamine and the Augsburger Zeiton are largely to blame
for this. Prince Medinik should wrap the Augsburger Zeiton over
the knuckles and have the other view presented in the Biobacter.

(55:55):
The Austrian embassy here will report on yesterday's review. The
review was a day of rejoicing for Paris. It is
impossible to describe how splendidly the National Guard corperated in
the maneuvers with the troops of the Line, and the
magnificent reception that the King had from the men of
the National Guard and of the Line regiments. Prices on
the Bourse would have risen considerably yesterday if several papers

(56:18):
had not written so definitely on the possibility of war
with Austria. Solomon's warnings were regarded no further Metallique loan
was issued in eighteen thirty two, and it was not
until the following year that the four banks again subscribed
a similar loan. The two secretaries, Worthingstein and Goldschmidt, to
whom Solomon's letters were addressed, were having a difficult time.

(56:41):
All foreign Jews at Vienna had to apply every three
years for the renewal of their toleration. The Rothchilds alone
were not merely exempted from this regulation. Their names did
not even appear in the official list of tolerated Jews.
In the case of Goldschmidt, this regulation had been ignored
by the the authorities, and they had allowed him to

(57:02):
remain with Solomon Rothschild without interference. As, however, Solomon Rothschild's
absence was protracted, the officials began to take up the
question of Goldschmidt. Solomon thereupon submitted a petition to his
Majesty to obtain toleration for his secretary, and especially begged
Mettinich to support his request. Your Highness, the letter ran

(57:24):
is in a good position to judge how far Goldschmidt
may be deserving of his Majesty's favor, for you have
known him over a period of years. I would therefore
regard it as a personal favor to myself if his
Majesty would be graciously pleased to grant the request of
my secretary, since I often have occasion to be absent
from here for some time, and to give my manager

(57:46):
authority to act on my behalf. Solomon also emphasized that
Mettinik would thereby earn the lifelong gratitude of an honest man,
and the Chancellor did actually support the petition. The loss
of the French Prime Minister Perier profoundly affected the political
scheme of the House of Rothschild in Austria. They suffered

(58:07):
the loss of a friend which they felt no less acutely.
Asterisk Friedrich von Jenz died on the ninth of June
one thousand, eight hundred thirty two. It was to him
that the Rothchilds largely owed their position with Metternich and
therefore in Austria generally, since Jens was venal and easily
accepted money from the whole world, including foreign states. They

(58:30):
had found him easy to deal with. Mettenik knew what
was happening, but he turned his blind eye to the situation.
As the master of style, whose writings were as distinguished
for the clarity of their thought as for their moving
pathos was indispensable to him. The older Gents grew, the
more extravagant he became. Rothchild fully appreciated the treasure that

(58:52):
he had in Gents, the Chancellor's right hand man, who
was the first person to deal with any important dispatch.
At the beginning of their association, the Rothchilds allowed him
to win in speculations on the Bourse, but they soon
dispensed with this polite fiction and supplied him with considerable sums,
finally definitely appointing him Agent of the firm with an

(59:14):
annual salary of ten thousand gulden. In return for this,
Gens was required not merely to send them regular political reports.
When Solomon was away from Vienna, he also frequently wrote
long political memoranda, which were circulated to the five brothers.
It was obvious that he used secret and official information
for this purpose. He also often conveyed news to the

(59:37):
Rothchilds which Metarnik wished to become known in this way.
As the years passed, the Gens Rothchild association had grown
more and more intimate, and towards the end of his life,
the Privy Councillor's diary records almost daily that he has
been with Rothchild, dined with him, transacted some profitable business
with him, or sat with him in his box at

(59:59):
the theater. The last years of Gents, who, at the
age of sixty seven, was seized with a violent passion
for Fannie Elsalla, a girl in the early twenties, were
divided between services to the Chancery, the Rothchilds and to
the spirited actress. Any payment that he received was issily spent,

(01:00:19):
as he took to Fannie Elsla everything that he could
possibly spare. We constantly find in his diary passages such
as the following I was with Fanny from seven until eleven.
I brought her substantial presence a hundred ducats and four
hundred Friedrich Dawes, and spent an evening with her that
was worth more than all the gold of oringzab Jens's

(01:00:40):
constant request for cash finally became too much even for Rothschild,
although he was prepared always to help him out and
give him presents. In the course of time, he began
to ask for securities and make conditions, and on one
occasion he purchased from Gents his silver dinner service in
a moment of acute embarrassment. Gens was also constantly compelled

(01:01:03):
to ask the Rothchilds to grant him advances on account
of his salary from the Austrian treasury. In these matters,
Gens showed a supreme contempt for the world in general,
setting himself completely above ordinary morality, and a remark made
by the Emperor Francis about his relations with Fanny made
no impression on him at all, since, as he put it,

(01:01:25):
he did not bother about the sovereign. Specially characteristic is
a letter from Gens to Medinek about an advance of
Rothchild's in respect of a gratuity which he hoped to
receive from the state. After your Highness's recent kindness to me,
the letter ran, I would not venture to trouble you
with further requests if my need were less pressing. I

(01:01:46):
have asked Rothschild to advance me four thousand, five hundred gulden,
being the amount granted to me by his Majesty at
the beginning of eighteen twenty nine, until such time as
your Highness may succeed, by your kind recommendation, in obtaining
for me a similar gratuity in respect of the current year.
Rothschild did not either definitely agree to my request, nor

(01:02:09):
did he refuse it, but he gave me to understand
that he could accede to it only with Your Highness's concurrence,
and therefore asked me to put it to him in writing.
Presumably he intends to submit my letter to you, and
a single word from Your Highness can determine the success
of this step, which I have taken at a time
of extreme pressure, and the failure of which would deprive

(01:02:31):
me of my last hope. Jens admitted that there was
apparently a striking contrast between his manner of life and
his bitter complaints, and that it might be possible to
conclude that he was either unforgivably frivolous, or that he
had less to complain of than he alleged. Gents assured
the Chancellor that the lighter side of his existence was
the result of a deliberate attempt to dull the sorrows

(01:02:54):
of his spirit and to conceal from others how ill
he was faring. Gens begged the Prince not to withhold
a helping hand from him in his difficulties. There is
only one more thing I would ask, he wrote, and
that is that you will not let Rothchild know that
I have prepared your Highness to expect his application. This
might affect his confidence in me, and I shall be

(01:03:16):
delighted for him to have the credit of having successfully
arranged this by his own efforts. The letter is practically
an epitome of gents, revealing the frivolous headedness and extravagant spendthrift,
showing how this highly gifted man, with his supple and
sympathetic nature, who at the age of sixty eight lived
careless as a child and loved like a youth, was

(01:03:39):
indispensable both to the mighty Chancellor and to the acute
and powerful financier. He was dead now, and the Rothchilds
had lost an intimate link with Mettenik and the Foreign Office,
as well as a priceless source of information. Solomon observed
on a later occasion that it was only after Jens's
death that he had been able to appreciate the inestimable

(01:04:02):
services that gents had rendered to him and to the
whole house of Rothschild. Over a long period of years,
the Belgian problem was still unsettled. The King of Holland
continued to resist and maintained the occupation of the citadel
of Antwerp. As no solution was in prospect, England and
France were forced in eighteen thirty two to consider the

(01:04:24):
means by which they could bring pressure to bear upon Holland.
The Eastern powers, however, would not cooperate. The Czar, who
had repeatedly helped to emphasize the opposition between East and
West in the Belgian problem, was ominously inclined to support
the King of Holland. The French finally decided on military
intervention and took possession of Antwerp on behalf of Belgium,

(01:04:48):
while the British sequestered Dutch shipping. It was obvious that
the King of Holland definitely intended, by some means or
other to regain Belgium. His brother in law, the King
of Prussia, did not wish to proceed against him by
force of arms. Bet neither did he wish to be
drawn into a war of indefinite duration. On his account,
the Czar was more inclined to contemplate war. He was

(01:05:11):
unable to forget that Louis Philippe, who ruled only by
grace of the Revolution, was the father in law and
protector of the newly fledged King of Belgium, and besides,
he was much inclined to listen to the supporters of
the exiled King Charles the Tenth at Prague, who did
all they could to urge Petersburg to war. These French

(01:05:32):
legitimists were naturally the most bitter enemies of the House
of Rothschild, which after the July Revolution had at once
gone over with flying colors to the camp of Louis Felipe.
The Duke of Blacus, who was staying with his king
at Prague, received reports from all quarters as to the
state of the legitimist cause. His letters were carefully copied

(01:05:52):
by Metainik's police and thus reached the Chancellor at the
same time as the persons to whom they were addressed.
They often canained bitter words about the Rothchilds, who supported
peace and applied their money to maintain it, whereas the
cause of the emigres could be served only by the
Eastern powers. Deciding to let loose the dogs of war.

(01:06:13):
The British Tories and their bankers, who also favored war
and hoped for Russia's military intervention, sent a representative to
Saint Petersburg to offer Russia alone for this purpose. While
passing through the Hague, the envoy gave a legitimate agent
called Courtier some interesting side lights on the attitude of
the Rothchilds in political matters. They have fallen, he said,

(01:06:37):
to prodigious extent under revolutionary influences, and the bonds with
which they have bound the monarchs are fatal to them.
The Englishman's principal source of information was the Paris banker Uvbrard,
who also had legitimous dealings and who was filled with
concentrated hostility to the Rothchilds. Another emigree simultaneously reported from

(01:06:58):
Frankfort that the Russian Lowe had been concluded with the
firm of Hope. Although England and France and the bankers
that supported them, with the House of Rothchild at their head,
had put every possible obstacle in that firm's way. The
Emigreys report clearly revealed whither the hopes of such circles
were directed the object of this loan. The report ran

(01:07:20):
leaves no doubt at all as to the firm determination
of the Emperor Nicholas to declare war next spring. Also
reported as to this six million pounds loan, and expressed
the hope that Russia would now set things going. It
was true that Rothschild, who had been bought by the
two revolutionary governments, had succeeded in frustrating the earlier negotiations

(01:07:42):
and thereby delaying everything, But in the end their intrigues
had been brought to nought. Courtier stated, indeed that Rothschild
had had the shamelessness to say, quite openly on the
London Stock Exchange, that he knew how to bridle the sovereigns,
as he controlled them all through his purse. In the end,
the legitimates Tory bankers had united against him and carried

(01:08:04):
the loan through in spite of him. This coalition, wrote Courtier,
serves a great political idea, its object being to place
sufficient funds at the disposal of the sovereigns to enable
them to fight the revolutionary movement, which is served by
all the Rothschilds under the leadership of the London one
and of Talleyrand. The French ambassador in London got at

(01:08:27):
that time General Count Pezo, who was in the service
of Russia, was staying in London, and he supported the
Austrian ambassador. Leven. Nathan followed the activities of these two
with grave suspicion and wrote to his brother James in
Paris about them in his comically bad German asterisk. My
dear brother, I hope that you are quite well and happy.

(01:08:50):
I have heard from a trustworthy source that Holland's reply
is not satisfactory, and that it is believed that Russia
is behind the King of Holland. You must write to
our brother Solomon to tell Medinek not to let himself
be bamboozled into war by Russia. For Paso is with
the king and was not well received, and he and
Leven are intriguing to make Austria and Prussia declare war.

(01:09:14):
Have however, been informed in a reliable quarter that Prussia
will not go to war and that they are making
a great mistake because England and France jointly can do
a great deal. We shall keep peace. There won't be war.
Stocks are falling and rising. Write and tell Solomon that newman,
the Austrian representative in London, is always spending a great

(01:09:36):
deal of time with Pazo and believes our government to
be weak. That man is seven eighths mistaken. And now
Pazo has not been well received. The King invited him
to Brighton, and he sat six places from the king.
The king asked him how long he would stay here.
He replied six weeks. And now we know that Russia

(01:09:56):
wants war, and Mettinek is being bamboozled by the those
people Passo and those folk are making themselves ridiculous and
do not understand England. So ask our good brother Solomon
to tell Prince Medinik not to let himself be bamboozled
by Russia. Passo is here simply to spy, and I
am convinced that England is stronger than she was in

(01:10:18):
the time of Wellington. Now, my dear brother, don't let
yourself be bamboozled by anyone. If England and France hold together,
it will be difficult to touch them. Write this to
brother Solomon. The Rothchilds were again on the right side.
The legitimists failed in their object. The money for Russia

(01:10:39):
had been given to no purpose, and war was again avoided,
although the Belgian problem still remained unsolved. In spite of
all this, Solomon had succeeded in maintaining his good relations
with Mettinik, although was in the camp of the opponents
of the world policy of the Western Rothchilds. At times
this was exceedingly difficult, but Solomon was successful in maintaining

(01:11:02):
the close relationship undisturbed, so that it was possible for him,
as before, constantly to approach the Chancellor with petitions. These
generally concerned the protection of his correligionists in the most
various quarters of the world, but he occasionally put forward
quite remarkable and indeed comic requests that thus, on one

(01:11:24):
occasion James and Solomon commended to the Chancellor a certain
m Requerril, who had brought a fine flock of Merino
sheep to Vienna for sale. They asked Medinik to assist
this gentleman as far as he could. I am taking
the liberty, Solomon wrote humbly to request your Highness to
put in a word for this man. When there should

(01:11:44):
be an opportunity for doing so, as there is sure
to be in the salons of your Highness, which are
the meeting place of brilliance and fashion. For I am
convinced that in no other way can emro Quarrel's venture
be attended with real success. This was really asking Rabah
a lot, and it is difficult to understand how Solomon
imagined that Medinik would make propaganda in his salons for

(01:12:07):
the sale of Merino sheep. Meanwhile, monetary conditions throughout the
world had improved, and the Rothchild banks had so far
made good the losses incurred during the July Revolution that
they could proceed not merely to conclude fresh agreements for
advances with Rothera and Prussia, who held full authority from
his king, but could also arrange to take up the

(01:12:29):
loan of which they had asked to be relieved when
they were feeling embarrassed. The whole of the five percent
public debt was converted to a four percent basis. Rotha
was delighted at the way the Rothchilds met him, because
this would help to advance the credit of the Sea
Handling Bank. The brothers gave this bank a blank credit

(01:12:49):
and told Rotha that he could, if occasion should arise,
draw through it five hundred thousand pounds from London, a
million gulden in Frankfort, two to three million francs in Paris,
and one to two million gulden convention currency in Vienna.
Rotha gave Solomon Rothschild the chief credit for all these

(01:13:09):
satisfactory transactions, and as Solomon desired a Prussian order, he
asked his king to grant him one. The court was
glad to take the money, but did not want to
confer an order upon a Jewish business man. Rotha therefore
suggested that as a mark of good will and of
satisfaction with the part played by Solomon in connection with

(01:13:30):
the transactions which had just been concluded, he should be
presented with a handsome porcelain vase with a portrait of
the King on it. I have come to the conclusion,
wrote Rothera to the Finance minister, Count von Layton, that
in view of the fact that all the Rothchild banks
have interested themselves in the matter in question, and that

(01:13:50):
Solomon incurred the reproaches of his partners for the way
in which he met me over my first proposals, which
were prevented by unforeseen and purely extra ternal circumstances from
being brought to a successful conclusion. Any mark of appreciation
shown to him alone would tend to widen the breach
in the family, and that he would not derive the

(01:14:11):
satisfaction therefrom that his majesty intends. As a result of
Rother's recommendation, Solomon received a vase worth four hundred twenty
six reix stealer, Nathan in London, a porcelain set of
the value of five hundred sixty six reich Steeler, and
amshaw Meyer at Frankfurt porcelain vases to the value of
five hundred fifteen reich Steeler from the Royal Porcelain Factory

(01:14:33):
at Berlin. The three brothers each wrote a separate letter
of thanks to the King, expressing their gratitude for the
high proofs of his most gracious goodwill and the magnificent
presence which they would always treasure and which they would
always keep in their families as previous heirlooms. Solomon expressed
the hope that he would in future be able to

(01:14:54):
furnish fresh proof of his truly disinterested service, and Nathan
wrote that the magnificence at present would be an everlasting
testimony for him and his to the gracious kindness of
his Royal Majesty. Rother also expressed his thanks for these
tributes to his business friends and took the opportunity of
again calling attention to the fact that they had been

(01:15:15):
able to show that they had sustained a loss far
acceeding to million Toller through their efforts to save the
honor of their firm. Shortly afterwards, Roth secured a distinction
for the only son of Nathan, who so far had
no title. The eldest sons of Baron Nathan, Meya von
Rothschild in London, Lionel and Anthony, he wrote to the King,

(01:15:38):
are financial advisers and knights of the Elector of Hesse's
Order of the Lion. Only the youngest son, Nathaniel, who
has also distinguished himself in his business, and has just
returned from a business journey to Constantinople, which he has
carried out to the satisfaction of all the Rothschild Banks,
as yet holds no kind of title. I would beg

(01:15:59):
you to confer where upon Nathaniel the dignity of Privy
commercial Adviser the considerable sacrifices which all the Rothschild partners
have latterly made in the financial interests of Prussia. May
excuse my expressing a wish, the granting of which they
would regard as a special act of grace on the
part of Your Royal Majesty in this matter. Two the

(01:16:21):
wishes of Rotha were carried out, and all parties were satisfied.
The business of the Rothchilds continued to expand. They were
now lending not only to the great powers, but also
to smaller states such as Greece and the government of
the Ionian Islands. These loans, it is true, being guaranteed
by England and France, so that any risk was practically eliminated.

(01:16:45):
The European capitals, however, still provided them with their main
field of operations Asterisk, Petersburg and Berlin being the only
ones from which they were excluded. Vienna continued their main
base of operations in Eastern Europe. Here they were so
closely bound up with the regime of the Emperor Francis
and his leading statesman that any sudden change of personnel

(01:17:09):
seriously affecting the distribution of power might have been a
grave matter. Such a position was threatened when the Emperor Francis,
who was sixty seven years old, suddenly became seriously ill
on the twenty third of February eighteen thirty five. He
was in the best of health and spirits when he
went to the theater to see a new play called

(01:17:30):
A Poor Woman's Will. At a council next day, he
suddenly felt ill and had to take to his bed
at once. The court physician diagnosed a slight inflammation of
the lungs, but so little importance was attached to it
that Mettterinik did not cancel a ball he was giving
that evening. During the night of the twenty sixth of February, however,

(01:17:51):
the Emperor's fever and pain increased, and next day he
asked to be examined. His physician said that this was
quite unnecessary and would ownly worry him, but the Emperor
insisted on it. At ten o'clock in the morning, the
Emperor wrote out his will in pencil in a calm
and settled frame of mind, in the presence of councilor
Hess and his confessor, Bishop Wagner. On the twenty seventh

(01:18:14):
of February, his fever increased and the lung trouble grew worse.
He was bled three times. The Archduke Johann observing in
consternation that the old man would be so weakened by
the letting of blood that he must inevitably succumb. The
emperor's brothers, the Archdukes Joseph, Karl and Ludwig, urged a
general consultation to which the most famous doctors in the

(01:18:38):
capital be called in, but the king's private physician, Baron Stift,
would not hear of it and became quite rude. As
the emperor's condition grew steadily worse, everybody at the Hofburg
absolutely lost their heads. According to the statement of the
Archduke Yell, They wanted to call in doctor Gunpher from
the hospital, but no carriage was to be found, so

(01:19:00):
the emperor's personal attendant went off on foot to fetch
him and returned with him on foot, which took two hours.
On the twenty eighth of February, he was bled for
the fourth time. Metdinich was at first highly perturbed at
the news from the Hofburg, but after a conversation with
Bishop Wagner, he was quite calm. The Archduke Johann noted

(01:19:21):
Medaenik's attitude in his diary, observing that first alarm was
due to the fact that he feared that the Emperor's
will would mean his fall. When, however, the Chancellor heard
that the will had been made with the assistance of
Bishop Wagner, he felt reassured. The Archduke Johann was not certain, however,
whether this view, which was generally held in Vienna, was correct.

(01:19:44):
To day, we know that the Viennese were most probably light.
The Emperor Francis died at a quarter to one on
the morning of the second of March. He left a will,
charging the air Ferdinand, who was physically and intellectually undeveloped,
to rule, but not to make changes in all the
more important matters. He was to take counsel with the

(01:20:07):
youngest brother, the Archduke Ludwig. Finally, and this was the
most important point, he bade him place the same confidence
in Medinek, his most loyal servant and friend, as the
Emperor Francis had placed in him, and to take no
decision affecting public affairs or persons without first consulting him. Asterisk.

(01:20:28):
It is a significant indication of the Chancellor's intentions that
the youngest brother should be recommended as the adviser and
representative of the Emperor Ferdinand, who was incapable of properly
performing his duties himself, when the clever and highly gifted
elder brothers, the Archduke Palatine Joseph, the Archduke Johann and

(01:20:48):
the Archduke Karl the Victor of Osborne, was still alive.
The fact was that, as Medenik stated, the will was
drafted in the Chancellor's office, and the arch Dunce Gludwig
was mentioned because he would do what the Chancellor wished
and was easy to direct. Count Kolerat, who was the
most pronounced opponent of the Chancellor and the most notable

(01:21:10):
man who succeeded him in that office, was unmentioned and
passed over. Mettinik actually had the last paragraph drafted as follows.
I hear by name as the man whom I most
emphatically commend to my son as a loyal counselor worthy
of his fullest confidence. He did not, in fact insert
his own name, for Bishop Wagner was to see that

(01:21:33):
Mettinik's name was written by the Emperor in the blank space,
as was in fact actually done. This meant that, in
view of the new emperor's incapacity to rule and the
insignificant talents possessed by the Archduke Ludwig, through the elimination
by the will of all the other archdukes and statesmen,
Mettinek was fully secured in his position. It is well

(01:21:56):
known Conbeck wrote in his diary on the third March
that the Emperor's illness has made him feeble. He understands
nothing of what is being said to him, and is
prepared to sign anything that is put before him. We
now have an absolute monarchy without a monarch. The confirmation
in power of their patron Metenik under a completely insignificant

(01:22:17):
monarch was the most satisfactory thing that could have happened
to the House of Rothchild. The Emperor's death produced a
panic on the burse which was completely uninformed as to
the course of events, and the Rothchilds well, knowing that
there would be no change in the administration and that
there was therefore no cause for panic, bought heavily. Count

(01:22:38):
Uponi praised the House of Rothchild for their courage and firmness,
praise which was not really deserved. For they were acting
merely in their own interests. I must admit. The ambassador
reported from Paris that the attitude of the House on
this occasion has contributed in no small measure to maintaining
confidence amongst the public and to TiO checking ungrounded and

(01:23:01):
unnecessary panic. The two brothers Rothschild hastened to calm people's
fears by offering to purchase any Austrian securities that anybody
wished to realize at the top price of the day.
And the enormous financial influence which this house exercises on
the Paris market did not fail immediately to allay the

(01:23:22):
panic which had begun to affect hasty and nervous spirits.
This patriotic gesture came easy to the Rothchilds, as they
knew from Mettinek that the death of the Emperor would
not produce any prejudicial change, and that prices would rise
again at once. Things happened as they had foreseen, securities
rose in value, and they prospered more exceedingly than ever.

(01:23:45):
For now things actually ran much more smoothly than under
the Emperor Francis, who in many matters, especially in the
case of new discoveries such as the railway opposed even
advice and wishes with a rigid veto

All Episodes

REIGN OF ROTHSCHILDS - 2. Rothschild Loans in Relation to Home & Foreign Politics: The Rise of Global Finance, 1832–1835

Episode Transcript

Popular Podcasts

Fudd Around And Find Out

Crime Junkie

The Breakfast Club

.css-15opob5{left:0;position:absolute;top:0.8rem;} All Episodes

.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 - 2. Rothschild Loans in Relation to Home & Foreign Politics: The Rise of Global Finance, 1832–1835