REIGN OF ROTHSCHILDS - 4. Difference between the Five Brothers with regard to Spain: Power Plays in a Troubled Spain - SECRETS OF POWER: Masters of Politics, Strategy & War

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Speaker 1 (00:00):
Chapter four difference between the five brothers with regard to Spain.
The Rothchild wealth had been preserved intact throughout the disturbances
of the July Revolution. Indeed, the credit of the firm
was more firmly established than ever, and it was seeking
investment for the enormous capital sums it had accumulated. While
his brothers in France and Austria were engaged in big

(00:22):
railway schemes, Nathan was looking out for further extensive loan
operations that would be in harmony with the main lines
of British policy. Prominent amongst the states that seated financial
assistance was Spain, which was at this time involved in
most difficult political complications Since the year eighteen twenty three,
when a bourbon and reactionary France had intervened in Spain

(00:44):
in order to re establish the absolute rule of King
Ferdinand seven, who had been overwhelmed by the revolution. Conditions
in the two countries had completely changed when after the
July Revolution, Charles the tenth was exiled and the constitutional
King Louis Philippe was placed upon the throne of France.
Ferdinand seven found himself deprived of French support. A further

(01:08):
difficulty was the dispute that developed in the royal family
at the beginning of the thirties about the succession. King
Ferdinand seven had no children by his first three wives.
His fourth wife, Marie Christine, the Beautiful Neapolitan, presented him
with two daughters. In Spain, however, succession was only recognized
through the male line, so that Don Carlos, an absolutist

(01:30):
with views as conservative as those of Metternich, was the
heir apparent. The queen persuaded her husband to promulgate a
pragmatic sanction declaring women and consequently their daughters entitled to succeed.
Don Carlos, however, did not recognize this measure as valid,
thus starting the long dispute about the succession. As Don

(01:51):
Carlos the pretender was a declared adherent of the old regime,
the young queen proceeded to look to the Liberal party
for support. On the death of her husband in Soaneptember
eighteen thirty three, the whole of Europe took sides in
the dispute. In accordance with their general policy. The more
liberal Western powers aligned themselves on the side of the queen.

(02:12):
They showed considerable reserve, however, and little inclination to intervene directly,
the absolutest Eastern powers, and especially Austria under Metternich, took
the side of Don Carlos. At the beginning of the
year eighteen thirty five, things did not look too well
for Queen Christine. The Carlists had made progress, and in

(02:33):
January there had actually been a revolution. So great was
the indignation in the capital at Austria's attitude that the
court did not even go into mourning when the Emperor
Francis died on April eleventh. Ministries constantly changed and the
struggle continued. Both sides engaged in this internase in struggle
needed troops and money. The latter was generously forthcoming from

(02:56):
various powers, but it was also wasted in a most
lavish manas since eighteen twenty three loans to the extent
of nearly three thousand million rails had been issued. Soon,
official sources no longer sufficed, and private banks had to intervene.
They endeavored, however, to hinder the granting of credits according

(03:17):
to the political tendencies of their various governments, to the
party whose cause they did not favor. Both sides approached
the House of Rothschild for money, and it was particularly
difficult for the Rothschilds to come to a decision, since
their activities ranged over both the Western and Eastern Powers,
and the countries where their banks operated were in both
political camps. It is true that the fact that the

(03:39):
brothers were simultaneously settled in the principal capitals of Europe
and were able to take concerted action on any matter, was,
as we have seen, one of the principal reasons for
the rise of the House. As one brother always kept
the other informed of what was happening, they were all
in a strong position to obtain reliable information, as they
were able, in the course of the business of administering

(04:00):
the property of influential persons in the various countries, to
establish connections, whereby they were always able to obtain the
most recent and reliable information without any suspicion of bribery. Sometimes, however,
this cosmopolitanism also involved them in difficulties, and in this
particular ease, there was a natural difference of opinion between

(04:21):
the five brothers. Nathan was in a particularly awkward position
since England was most inclined to intervene actively all haff
France had joined the so called Triple Alliance concluded on
April twenty second, eighteen thirty four, between England, France, Spain
and Portugal. The Austrian ambassador in Paris had received the

(04:41):
first news of its conclusion from James Rothschild, to whom
Nathan had sent a courier. Louis Philippe had no desire
to pull the chestnuts out of the fire and to
intervene actively in Spain on behalf of the liberal Queen Christine,
as Louis the fifteenth had done on behalf of the
absolutist King Ferdinand seven. The liberal policy forced upon Lewis

(05:02):
Philippe through the manner in which he had attained power
was really most distasteful to him. He was not a
constitutionalist from conviction, and privately felt that it would be
exceedingly difficult to secure his throne in France against the
wishes of the Eastern powers and without their support. Moreover,
in the strictest secrecy of his own heart, he cherished
the hope of marrying the heir to the throne, the

(05:24):
Duke of Orleans, to an Austrian archduchess James Rothschild, who
was in constant touch with the monarch and his most
intimate advisers, knew the King's attitude and therefore wished as
far as possible to keep himself financially out of the
Spanish hornet's nest. It is unnecessary to observe that the Vienna,
Frankfort and Naples brothers, who were further from the scene

(05:46):
of action and entirely under the influence of Metternich, wished
to have nothing whatever to do with Spain. At that time,
the five brothers constituted a single firm. The action of
any one of them affected all the and herein lay
the possibility of conflict. In spite of all considerations against
such action, Nathan had two very good reasons for wishing

(06:09):
to make a loan to Spain, i e. To the
Queen Regent Marie Christine. He would be acting in accordance
with the wishes of the British government, and it would
work inconveniently as part of a large scheme he was planning,
which promised to be an excellent piece of business. There
were only two places on the continent of Europe where
quicksilver was produced, while overseas sources were practically negligible. The

(06:32):
two sources were the quicksilver mines of Adria, which the
House of Rothschild had purchased from the Austrian government and worked,
and the quicksilver mines of Almada in Spain, the products
of which constituted an important revenue for Spain. A concern
possessing both quicksilver mines would establish a monopoly and would
be able to control the price of the metal. Such

(06:53):
was Nathan's scheme, and he was now endeavoring to obtain
the concession of the Almada mines from Spain in return
for the financial assistance she was always needing, with a
view to working them intensively. These mines had been owned
by the Fugers in the sixteenth century, and the idea
appealed to Nathan of further emphasizing the similarity between the
position and influence exercised by that house and by his own.

(07:17):
Nathan sent his son Lionel to Madrid to carry out
his plans. In agreement with the Queen Regent, the Spanish
government had decided to auction the right of working the
Almada mines, which at that time yielded only sixteen thousand
to eighteen thousand c wts of quicksilver at thirty seven
piseetas per cwt, offering a lease of about five years

(07:39):
in order that the productivity of the minds might be
increased by the expenditure of foreign capital. Offers were to
be sent into the Finance Minister under seal and then examined.
The House of Rothschild employed their old tactics. They offered
five rails more than any other offer, which should not
exceed fifty four piastres the hundredweight. The Spanish government was

(08:02):
especially inclined to give the least to the House of
Rothschild because Lionel had come with an offer from Nathan
to lend the government fifteen million francs at a low
rate of interest, and this offer had been gratefully accepted. Moreover,
the Spanish government much preferred dealing with the powerful firm
of Rothschild, with its world wide connection, than with the
small native banks, which were financially weak. The Rothchilds had

(08:26):
shown an uncanny instinct in hitting on the figure fifty four.
For the highest offer, which was made by the Spanish
Bank of Zuluida, was exactly fifty four piastres, and the Rothschilds,
having offered five rails more, were indicated as the persons
who should get the contract. A solemn agreement was accordingly
signed on February twenty first, eighteen thirty five, by Lionel

(08:49):
Rothschild and the Spanish finance minister, Count Jose Maria Torino,
and the agreement also bore the signature of the Queen
Regent Marie Christine. To mark the occasion, Lionel was made
a member of the Order of Isabella. The Catholic. Torino
had passed an adventurous life. At the time of the

(09:09):
First Napoleon in eighteen o eight, he had carried through
the memorable alliance between Spain and England against the mighty Corsican.
He was a man of liberal leanings and advocated freedom
of the press, the abolition of the Inquisition, and the
dissolution of the innumerable spiritual orders scattered over Spain. He
was therefore forced to leave Spain when the reactionary King

(09:32):
Ferdinand seven returned, and lived for a long time in Paris,
where he made the acquaintance of James Rothschild, but fell
out with him, probably owing to the refusal to grant
alone on the death of King Ferdinand seven. He was
recalled to office by the Queen Regent and had been
made Finance Minister on June fifteenth, eighteen thirty four, thus

(09:52):
attaining a position which was of the very greatest importance
to the House of Rothchild Even though it intervened in
Spanish affairs only through Nathan's brand. This fact did not
at the time prejudice the Quicksilver Mine agreement, because Torino
needed the money for the state. Indeed, Lionel had, on
May twenty seventh, in accordance with the usual custom of

(10:13):
the House, asked for and obtain certain modifications of the
agreement in their favor, the most important of which was
that the Spanish government should renounce a right to terminate
the agreement at the end of three years, in return
for a slight increase in the price per hundred. The
Wrothchilds agreed to pay fifty five piastres per cwt, and
all alterations in the contract were agreed upon on June fourth,

(10:35):
eighteen thirty five. The Wrothchilds, having brought pressure to bear
on various important persons, not neglecting the civil lists of
the Queen, to which they are said to have contributed
five hundred thousand francs, the Queen being in very straightened
circumstances at the time. The transaction was profitable to both parties,
for by virtue of the monopoly which they had achieved,

(10:57):
the Wrothchilds were enabled to sell the mineral, which cast
ust than fifty five piastres per cwt at seventy six
and even at eighty in London. This naturally yielded a
very considerable profit, and everything was done to increase output,
a fact from which the Spanish government also benefited, and
they took advantage of the position constantly to ask the

(11:17):
House of Rothschild for advances on account of the quicksilver royalties. Nevertheless,
Spain's financial position grew steadily worse owing to the interminable
civil war and maladministration. Not content with the advance of
fifteen million francs and the receipts from the quicksilver mines,
Torino again approached the French House I E. James, in

(11:39):
spite of his previous refusal for an advance. James, however,
had no political reasons for lending money to Spain, and
the quicksilver business had been satisfactorily settled Torino's request was
therefore refused, a fact which made him indignant not only
with James, but with the whole house of Rothschild. Meanwhile,

(12:02):
Torino succeeded in arranging the loan with Ourduin, another banker,
but on very unfavorable conditions. The course of the negotiations
had further revealed to the Rothschilds the exceedingly unsatisfactory condition
of Spain's nuances. The for brothers on the continent, who
had anyhow resented Nathan's action in advancing fifteen million, became

(12:26):
anxious about their money and reproached their brother. It was
finally decided to bring every possible pressure to bear on
the Spanish government to repay the money. This aroused to
Reno's hostility to the full, and he made every effort
to put obstacles in the way of the repayment of
the money by the Spanish government. In the end, and
at the cost of much effort, the Rothschild succeeded in

(12:49):
recovering part of their money in cash and part of
it in the very doubtful bonds of the Ardouin loan.
They managed to do this, however, by the simple process
of buying the obstinate a finance minister. The man certainly
proved expensive. He got one million, three hundred thousand francs
as a first installment, and a further three hundred thousand

(13:09):
francs in the course of the negotiations, that is a
total of one million francs. After thus recovering the money
which they had lent to Spain, the brothers had a
discussion in Paris, at which they expressed their rage and
indignation at the attitude of the Spanish government, and particularly
at the contemptible ingratitude and in scrupulous avarice of Torino.

(13:30):
They decided to take exemplary vengeance on him, and they
succeeded only too well by means of a bare operation
to which further reference will be made. In order to
settle these risky Spanish transactions, which had been far from
going through to the satisfaction of all the brothers, James
Rothschild went to see Nathan in London at the end
of May eighteen thirty five, intending to take advantage of

(13:52):
this opportunity for negotiating with a business friend, Don Juan
Alvarez y Mendizibol in matters regarding Portugal's public life finances.
While he was there, they received the alarming news that
Martinez della Rosa's ministry had been forced to resign on
the question of Franco British intervention, and that the new
Prime Minister was none other than the notorious Count Torino.

(14:14):
Nathan was terrified by this appointment, although the bad news
was modified by the fact that Toarino meant to ask Mendisibol,
who was friendly to the Rothschilds, to take office under
him as Finance Minister. The appointment of Torino and the
wretched condition of the public finances, as well as the
unfavorable military position with regard to the pretender Don Carlos,

(14:36):
made Nathan nervous about all his commitments in Spain, including
the highly profitable quicksilver mines. If Don Carlos were to
come into power, it would be the death blow to
all the interests in Spain of Nathan. As being the
supporter of the Queen Regent in her liberal adherents, He
therefore made great efforts at this time to secure the
armed intervention of England and France in Spain. However, all

(15:00):
that he was able to persuade the governments to do
was in the case of France, to place the foreign
legion at the free disposal of the Queen, and in
the case of England, to raise a volunteer regiment. Despite
the protest of the Tories, Nathan actively assisted in recruiting
the volunteers, which without his money would have been impossible.
Vaughan Humlauer, charged the affairs at the Austrian Embassy in London,

(15:24):
who was anything but well disposed to Nathan, heard of
his activities through Kirchner, a clerk at the Consulate General,
who had been engaged by and drew his salary from Nathan.
This man was therefore quite definitely acting as a spy
for Austria while being an official of an Austrian consulate. Humlauer,
who distrusted Nathan and rightly considered that Nathan did not

(15:46):
take his duties as Austrian Consul General very seriously, was
anxious to keep a closer eye on the activities of
the House of Rothschild. By this means, Nathan was not
aware that he had a powerful enemy in Humlawer, who
often reported to wrecked to Vienna in the frequent absence
of the indolent ambassador and thus had gained the ear
of Medinich. Nathan generally called that the Austrian Embassy on

(16:09):
Sundays and would talk to Humlauer if Esterhazi was away.
On hearing of the expected fall of the Spanish ministry
and that Toreino would probably become president, he called at
the embassy, shewing every sign of alarm and distress. He
stailed emphatically that it was clear from a letter his
Paris brother had sent him that if the Eastern Powers

(16:29):
should prevent France from intervening in Spain, Lewis Philippe would
be finished and dethroned within a few weeks, if not days.
Humlauer's view was that this was absolutely inconsistent with the
reports from Paris, but he felt that Nathan was in
a position to speak with such authority that what he
said could not be entirely ignored. Moreover, the fact that

(16:50):
James also was present in London indicated that the two
brothers were taking important decisions. Prince Medinich had now received
information from the most various sources to time the effect
that the House of Rothschild were supporting with money not
his candidate, the legitimist and reactionary Don Carlos, who was
fighting the Queen Regent, but the Queen Regent Christine herself,

(17:11):
who had been born of the foam of the revolution.
And in addition to all this, he was now told
that James had actually traveled from Paris to London in
order to lend considerable financial aid in support of England's
military expenditure on behalf of Queen Christine, in order that
Spanish securities might rise in value. As Metternich was unable

(17:31):
to speak personally to Solomon, who was staying in Paris,
he decided to instruct his ambassador in Paris, Count of Ponia,
to do so. He wrote a lectro particular to the Count,
explaining his suspicions of the brother's Rothschild and instructing the
ambassador to find out what the position was. Count of
PONII took the bull by the horns, although he must

(17:53):
have realized that he was scarcely likely to get a
complete explanation in this way, he simply called on Solomon
Rothschild to aid ask him about the matter. A. Ponie's
report on the meeting is exceedingly interesting. Although Solomon can
scarcely have revealed to the ambassador the fondess a Pz
when a Ponyye explained to him that Medinich was uneasy

(18:13):
regarding the policy of the House of Rothschild in Spain.
Solomon Rothschild at first expressed his painful astonishment at such
apparent mistrust regarding the attitude of his house in relation
to the financial side of the Spanish question. He most
solemnly protested his sincerity in his good faith, and assured
a poni I that precisely the converse was true, and
that the rumors that were current were entirely unfounded. He

(18:37):
followed this up with the somewhat far fetched assertion told
to the Count under the seal of the strictest secrecy,
and promptly retailed by him to Mettinich, that Nathan, the
head of the London branch, had allowed himself to be
persuaded by the entreaties of his wife, Hannah, daughter of
the English banker Cohen, who had herself been brought into
the matter by a complicated process of intrigue, to advance

(18:58):
about sixteen millionis franks to the Spanish government. The four
brothers had highly disapproved of this operation and regretted it,
but they had inevitably been involved in the transaction, since
they were all partners and jointly responsible for the actions
of any one member of the House. Solomon thus endeavored
by pleading female influence to soften the effect of his

(19:19):
painful confession that, in spite of all their assurances to
the contrary, his house had granted a loan to the
Liberal region of Spain, who was fighting against Mednache's protege,
Don Carlos. He proceeded to recount the further unfortunate vicissitudes
connected with this loan of fifteen to sixteen millions, and
the indescribable conduct of Tourino in the matter. Here we

(19:42):
give Spain, he said, our honest money at a low
rate of interest, such as anybody would have paid. And
then we have to pay a bribe to the Spanish
finance minister of one million, three hundred thousand francs and
three hundred thousand francs to other people, and to accept
quicksilver and rubbish. By this he meant the Ardouan bonds
in place of payment. Thereupon, the brothers Rothchild in London

(20:04):
and Paris proceeded to work for a fall in Spanish funds,
applying an amount of one million, eight hundred thousand pounds
to this purpose. The operation was completely successful, Spanish wrot
falling from seventy to thirty seven, and the panic resulting
from the terrible fall and value of Spanish securities in
London was simply and solely the result of the Rothchild's

(20:25):
act of vengeance. Thousands of holders of Spanish securities lost
two thirds of their property, but the Rothchilds made far
more out of it than the amount of the gratuity
and pots de vin as a pony I put it
with which they had bribed Count Toino Tell Prince Medinich.
Solomon Rothschild went on to say to a pony I,
the House of Rothchild has done all this for vengeance,

(20:47):
and if Don Carlos is successful, he will largely have
the House of Rothchild to thank for it. My brother
Nathan cannot stand London any longer. He is too disgusted
with the Spanish business. He wanted, even without having cleared
up his accounts and put his affairs in order, for
which he did not feel sufficiently calm, immediately to leave
for Frankfort. James thereupon offered to help him to clear

(21:11):
things up, and that is the real reason why James
went to London. As soon as this business is settled,
my brother Nathan is going to Frankfort to spend a
few months there. This is the whole of our secret,
and I am confiding it to you, but kindly bear
in mind that if it were to come out, we
might be in personal danger. For how many there must
be who would gladly murder us for the misfortunes they

(21:32):
have suffered. We have already sent three couriers to recall
my nephew Lionel from Madrid, as if anything were to
leak out, he would be in the most serious danger. There.
Count a pony I was profoundly moved by this story.
He felt the enormous power wielded by the House of Rothschild,
and what a misfortune and his stupidity it would be
to expose one's self to the risk of incurring its vengeance.

(21:56):
There were certainly many more innocent than guilty amongst the victims,
but a pony I had grounds for satisfaction. Since the
fall in Spanish securities had naturally affected Count Toino's prestige,
and the Queen Regent Marie Christine and her system, which
was so vigorously opposed by a poni I supreme chief,
the all powerful Metternich had suffered a serious blow. Is

(22:18):
it possible for a banker a pony I asked to
take vengeance in any other way having regard to the
numerous innocent victims of such an operation? And are we
justified in complaining of the effect produced by this operation
upon one of the most important political questions of our time? Meanwhile,
Metderinich had also received reports from Humlauer in England, and

(22:39):
Esterhusey had received more, particularly through the Austrian ambassador in London,
various items of information compromising the House of Rothschild with
regard to their Spanish policy. Ester Husey asked Nathan and
James to come and see him and question them on
the matter. They naturally did their best to allay the
ambassador's fears. James wrote a letter from London on June

(23:01):
twenty third, eighteen thirty five, containing the following passage. We
had a long conversation with Prince ester Hazi and it
is clear that Poso does not love us. We told
him that we are having nothing whatever to do with Spain.
Or with the payments to the troops in England. For
Poso spoke as though we were providing the money for
raising the troops. Here. We told Prince ester Hazi that

(23:23):
he could write to the Prince that we had had
absolutely nothing to do with the matter. Such was the
position of the Rothchilds that they naturally avoided expressing their
inmost thoughts in letters which were destined to be communicated
to Prince Medernich or Count APONII. One fact was clearly established,
namely that the London Rothchild stood for the same liberal

(23:44):
views as the British government, and that was the essence
of the matter. Humlauer trusted Nathan no further than he
could see him, For he wrote a little later, even
if Nathan had entirely disposed of the Spanish affair, I
should not regard this as any real guarantee for his
conduct the future. Last year, when he became a partner
to all the intrigues of the Quadruple Alliance, he observed

(24:06):
to me one day, in obvious embarrassment as to what
he was to say. I must grant it the loan
of the moment, because if I don't, somebody else will.
He has joined the ranks of the Revolutionary simply because
he saw his profit in so doing. He has struck
me ever since I have been here, as so completely
disingenuous and so cheap in his motives, that I am

(24:27):
convinced that he will always plump for the side on
which there is anything to gain, and that if offers
should be made from the Revolutionary Party, he would not
hesitate to accept them. On receiving these complaints from the
London embassy, Medinick protested to Wertheimstein, the Vienna manager of
the House of Rothschild, and he duly reported on this
to Solomon in Paris and to the two brothers in London. Thereupon,

(24:50):
Nathan and James in London went to the Austrian embassy,
where they found Humlauer again in charge, and naively asked him,
of all people, to use his good offices with Prince METAe,
so that he might no longer suffer from these misconceptions
as to their real attitude. Humlower did not disguise from
them that he had been the actual cause of the
alarm at Vienna. He said that he was bound to

(25:11):
report the fact that Nathan had at one time spoken
in favor of intervention in Spain on the ground of
news which he had received from James in Paris. Nathan
was exceedingly embarrassed, for he was unable to deny this
in front of his Paris brother. James's astonishment at my
statement humlower reported was no less than my surprise when

(25:31):
James emphatically gave me his word that he had written
in a precisely contrary sense to his brother, that is
to say, against intervention and not in favor of it.
He had actually pointed to the possibility of Lewis Philippe
losing his throne as a consequence of intervening, and not
of refraining from intervention. Everything leads me to the conclusion
that this statement of James should be fully believed, since

(25:54):
it entirely agrees with everything that one has heard from
Paris and accords with the general spirit and well known
public sense of the head of the Paris branch, and
with the fact of his exceptional relations with King Louis Philippe.
Solomon and Paris had also received Wertheinstein's letter regarding Medinich's
dissatisfaction and his request for an explanation as he was

(26:14):
normally domiciled at Vienna and completely dependent upon Metternich, he
was naturally far more sensitive to the latter's reproaches than
any of his brothers. Solomon, who was forced to live
under the immediate eye of the Prince, was naturally particularly
concerned to clear himself as far as the Vienna cabinet
was concerned, even if this had to be done at
the expense of his brother Nathan. He did not confine

(26:38):
himself to explaining his position to Count O Ponie, but
he also wrote at length to Wertheimstein, instructing him to
communicate his remarks to Metternich. His faithful secretary had the
letter copied and submitted it to Metternich. I duly received
your valued communication. Solomon's letter ran regarding the affairs of
my brother in London. Before I come to deal with

(27:00):
the matter itself, I must remind you, my dear Leopold, that,
as you know, but h h the Prince cannot know,
my brother Nathan Meyer is one of the ablest men
as far as the exchequer and price movements are concerned,
but has no special aptitude in other matters. You know
that I am a confirmed enemy of Spain, and that

(27:20):
he is no less so, not for political reasons of
which he has little understanding, but on account of the
fact of one million, three hundred thousand francs, which we
had to sacrifice in order to recover our money, and
even then we did not recover the whole amount, but
were forced to accept six hundred thousand in our doing bonds.
We brothers thereupon decided, this is between ourselves, to avenge

(27:43):
ourselves on Spain and on Tourino, because he and his
council have caused us an actual loss of one million,
six hundred and eighty thousand francs. We decided to force
Toreino into a position in which he should suffer for
every penny that he had taken from our purse, to
repay the robbery by ruin his schemes, and to indemnify
ourselves for our loss. And that was done. Nathan Meyer sold,

(28:07):
in addition to six hundred thousand pounds of stock, a
further one million, five hundred thousand pounds on bare account,
as shown by the enclosed copy of the statement, the
original of which I showed to count a pony. I
now you know what happens in a bare operation when
the time for delivery comes if you have not got
the stock, you must borrow it, and that is what

(28:29):
my brother did. But in the meantime the people from
whom he had borrowed stock, and who were forced to
take back the stock from him at the higher price,
were not able to meet their obligations. Owing to the
excess of one million, five hundred thousand pound stock which
my brother had sold. Instead of the Arduin loan being
three million, five hundred thousand pounds, five million, five hundred

(28:50):
thousand pounds had been sold, and this flooded the market
and ruined the value of Spanish paper. I have had
Lionel's letters from Madrid copy to send to you. He
says in them that our Duin and Mendisibel sent couriers
to Madrid complaining that Nathan Meyer Rothschild was selling so
alarmingly and depressing the stock. Lionel naturally denied this, and

(29:11):
he is back from Spain now, and the robbers in
Madrid have had their credit ruined. Prince de Talleyrand is
still alive, and as his Highness may ascertain, we have
been to see him ten times, which between ourselves has
also cost us a little money, and we asked him
to remain a few days longer in Paris, so that
the King might adhere to his resolve not to intervene.

(29:32):
I would have you know that we were with broy
and Guisou was there. They are both at heart opposed
to intervention. So when asked for our sincere opinion as
to what was best, we replied that we were convinced
that France's credit would go to the devil if they intervened,
and that they would have to face a second and
a third revolution. We have also seen the king and

(29:52):
made him fear for his crown, and he told us
that he would rather take on Manguin than intervene. Tierre
is now bitterly hostile to us. It seems that the
King told him what we had said, as also did
Guiseaux and Broy. As regards Nathan Meyer, rothschild, he is
a child in politics. The fact that, as you write,

(30:13):
he discussed the matter with Esterhazy is an absolute proof
that he believes that the powers will be pleased by intervention.
There is no other way of explaining it. With regard
to Spain itself, I guarantee you by the happiness of
my family and my two only children, if he has
handed clean money. All he need do is to change it.

(30:33):
He is so disgusted that he says he is going
off and won't touch Spain again if the money is
put in his hands. This, I assure you, for the
sake of his health and to have a little rest.
He is going to Frankfort when his son Lionel arrives
in London. He will take Lionel with him for a
few months to the family at Frankfort. I am prepared
to swear before God to the truth of what I

(30:55):
am writing, which I want you to pass on to
the Prince. I take my oath upon it that it
is all absolutely true. However, unfortunately the Rothschilds have brought backs,
and there are constant articles in the papers in other
matters that are not concerned with the bourse. Nathan Meyer
Rothschild is not particularly bright. He is exceedingly competent in

(31:16):
his office, but apart from that, between ourselves, he can
hardly spell his own name. This brother of mine, however,
is so disgusted with Spain that he can hardly bear himself,
just like all of us. Only perhaps he feels it
more because he realizes that he made the advance of
fifteen million francs without asking any of his partners about it.

(31:37):
You can therefore communicate my whole letter to the Prince
assuring him that there can be no thought of giving
the Spanish government a single farthing of credit. I myself
do not yet know when we brothers will meet, whether
the affair of the Spanish loan will cause a split.
We shall see. I am sixty My brother at Frankfort
is sixty two. I have only two children, and if

(31:59):
I I live very carefully, I can live on the
interest of my interest. I have fortunately only got to
provide for my son, as my betty is as rich
as her father. I do not mean that I intend
to give up business, but only to see to it
that I can sleep peacefully. The Spanish affair has completely
ruined my nerves. It is not the loss of money,

(32:21):
for even if the whole fifteen million francs have been lost,
my share would have been only three million. But the
unpleasantness which we have had with this business. Now. Nathan
Meyer Rothschild has four grown up sons and Karl has
two younger boys, so they manage on the basis of
a dozen heads. Because my father has so disposed. We
shall probably have to remain together, but I must confess

(32:44):
that it has all very much tired and exhausted U. S. M. V. Rothschild.
I have sent your letter of fifteenth to London, as
James is in London just now to deal with accounts.
I must beg you to show the letter only to
the Prince, as we and Nathan Meyer Rothschild are getting
anonymous letters threatening our lives for having so much depressed

(33:06):
the Spanish bonds, and I am afraid to go out
at night. This letter was characteristic in more than one respect.
It shows that the Spanish affair did really trouble Solomon exceedingly,
and that the false position it placed him in with
regard to Metternich was so painful to him that he
had even thought for a moment of separating from his
brothers and withdrawing from business. It is evidence of the

(33:28):
conflict of conscience from which Solomon was suffering, and of
the development of a crisis in his relations to his
brothers in the West. This was, however, only a passing move. Fundamentally,
the maxim laid down by the old father Meyer Amskill
still held. All the brothers shall stand together in everything
all shall be responsible for the actions of each one,

(33:50):
and the desire for profit and constantly to increase the
power of the house was greater than any misgivings or
any consideration. For Metternich, Solomon remembered, Psalm, Behold, how good
and how pleasant it is for brethren to dwell together
in unity. For there the Lord commanded the blessing even
life for evermore. Whilst the Rothchilds had at first been

(34:12):
disappointed in Spain, they had succeeded in their principal object,
the acquisition of the quicksilver minds, and the lone affair
with Toreino had been dealt with adequately By their bare
operations in Spanish securities. They had not merely recovered the
amount spent in bribing Toreino, but had made a profit. Besides.
The final result therefore had been as Solomon himself had

(34:34):
to admit that as much abused brother Nathan had achieved
a financial gain to the general benefit of the House
of Rothschild. So far, so good. But Solomon wanted to
ascertain who had spread the rumors which had made such
an impression on the Imperial court of Vienna, or rather
on Metternich. It did not take him long to find out,
for he had his confidential agents everywhere. Especially, he had

(34:59):
friends whose interest it was immediately to bring in any
news that might be of value. Prominent amongst these was
Count carl Poso di Borgo, the old bitter enemy of Napoleon,
whom he had hated since they were boys together in Corsica.
The Count, who was seventy years of age, was at
that period Russian ambassador in London. Notoriously avaricious, this seventy

(35:21):
year old diplomatist had amassed a large fortune in the
course of his career, but his desire for money was insatiable.
He had been connected with the Rothschilds when they had
been engaged in the issue of the Austrian Metallikus. Two
days after he had sent the above letter to Vienna,
Solomon received a detailed letter from his brother Nathan, putting
him in full possession of the facts regarding the part

(35:42):
which Poso had played. He at once took the letter
to Count Apoyee and wrote another letter to Wertheimstein in Hebrew, Paris,
June twenty sixth, eighteen thirty five. I enclose a copy
of a letter from London the original of which I
showed to Count OPONII request him to write to Vienna
confirming the fact that he had seen the original. Here

(36:04):
U sec that Poso is the source of all these slanders.
I may be permitted to explain to my real friends
the origin Poso's deep and bitter hatred of the House
of Rothchild. You will remember that, in connection with the
Metallik's loan, which immediately rose to a premium of live
and then of ten percent, my brother James wrote to
me at Vienna stating that Poso wanted to be given

(36:26):
one million gulden at the issue price. James added himself
that he was counting on Poso getting at least half
a million. You will remember that I had very few
Metalliks left, and why should I make a present to
Poso of forty to fifty thousand florins to Poso, one
of the world's worst misers, who has had so many
profitable dealings in wroant with our firm. Poso's suggestion was

(36:50):
accordingly refused, James, telling him that unfortunately I had none.
He has since been our bitterest enemy and makes a
profitable business out of damaging us. Us I got my
brother James to go to London to get all these
accounts cleared up. Thereupon Poso springs the yarn that James
went to London to pay the Ruffians who were going
from there to Spain. In the enclosed copy of a

(37:13):
letter from Nathan regarding part of the account, the original
of which has also been seen by a pony, I
you will find an item of about one million, six
hundred thousand, of which we had to allow Torino and
his gang to rob us in order to recover our money.
I am also sending you a Madrid newspaper which contains
proof that we were against the intervention, as well as

(37:33):
an extract from Lionel's letter, which the Count has also read.
It is not interested motives that leave me to make
such efforts to clear myself of suspicion in the eyes
of the Austrian cabinet. No, as God is my witness,
I am actuated by love, respect and devotion. Were I
dealing only with that miser Poso, who, because he did

(37:54):
not get his five hundred thousand florins, has become our
deadly enemy, he would see how little his lies worry me.
Solomon's intention was that all his remarks should be duly
conveyed to Mednick so as to re establish himself in
Medinick's good graces, even if he did so at the
expense of his brother Nathan. Nathan was far away and
outside Medinick's range. Meanwhile, the position in Spain had undergone

(38:19):
a profound change, and this was attributable in no small
degree to the influence of the Rothschilds. His overwhelming financial
difficulties and the vicissitudes of the campaign against Don Carlos
had forced Count Torino to resign in favor of Mendisibol,
who succeeded him. This man, who was a Jew by
race and religion, had passed an adventurous life, having a

(38:42):
highly developed financial sense. He had been an army contractor
early in his career, and had then entered the service
of the rich Madrid banker Don vincente Bertram Dulis, who,
as we know, came to be closely connected with the
House of rothchild It was through him that the Rothchilds
made the acquaintance of Mendisible. Mendisibal sue seated in ingratiating

(39:04):
himself with Don Pedro of Portugal, to whom he was
able to render important financial services. In these transactions, Mendisible
worked in close alliance with the House of Rothschild, which
arranged alone of two million pounds to Portugal in April
eighteen thirty five. Later on, Mendisibal was compelled for political

(39:25):
reasons to emigrate to London, where through Nathan Rothschild, he
was brought into touch with members of the British government.
He also speculated on his own account in Spanish securities
and made a great deal of money. He was still
heavily involved in these securities when the Rothchilds decided to
bring about the Great Spanish Slump. Mendisibal would have been

(39:48):
ruined had not Nathan given him previous warning of what
was going to happen. This very man was now Prime
Minister in Spain, a highly satisfactory circumstance for the Rothchilds,
especially as James as well as Nathan, was on the
most friendly and personal terms with the new minister. The
financial situation in Spain was certainly extremely bad, and the

(40:09):
continuing military operations against the Carlists made it necessary to
go on raising money. Mendisible made the most generous promises
on taking office and substantially increased the public debt. In
his efforts to carry them out, he was generally regarded
as the agent of the most important bankers in the
city of London, the Duke of Wellington, who viewed with

(40:31):
dissatisfaction the fact that the Liberal English cabinet supported the
appointment of Mendizibal, when as far as to say that
he regarded the man as nothing more than a tool
of her Vaughan Rothschild, whose duty it was to further
the interests of the speculators in Spanish securities. In this matter,
Wellington was of exactly the same mind as her Vaughan Humlauer,
because in the Spanish affair, Nathan had supported the political

(40:53):
opponents of the aged Field Marshal. Is he still your consul, Wellington,
asked Humlower in eighteen thirty six, Yes, replied Humlauer. But
for many years all personal contact between me and Her
Van Rothschild has ceased, so that relations between him and
the embassy are now entirely suspended. Mendisibal's government, however, satisfied

(41:17):
neither the Spain of the Queen Regent nor the Rothchilds.
He kept on piling up the debt and increased the
deficit to an enormous extent. It was all very well
for the Rothchilds to tell everyone that they were having
nothing more to do with Spain. That was not the
case as long as they were in possession of the rich,
quicksilver mind's end to that extent, dependent upon Madrid, Nathan

(41:40):
did not wish to endanger the success of one of
his most daring business strokes through excessive harshness in dealing
with his friend Mendsibel's constant applications for loans. His brothers, however,
took a different attitude, as they were dependent upon Metternich, Lewis,
Philippe and other powerful persons. Towards the end of eighteen
thirty five five the Spanish Queen's government approached England for

(42:02):
a loan, and England suggested to France that they should
jointly guarantee two million pounds. Nathan was asked to take
a part in this loan. He saw that by doing
so he would win favor at Madrid. While the guarantee
of the two powers made the loan a perfectly safe one,
but in view of the great dissatisfaction that had been
caused by the previous loan issued behind Metternick's back. He

(42:24):
decided on this occasion to put his cards on the
table so far as his brothers and Mederinich were concerned.
In view of a statement that has been made to
me by one of our most intimate friends in the cabinet,
he wrote to his brother James in Paris on December twentieth,
eighteen thirty five. I am hastening to send you this
express letter to inform you that our government has proposed
to France that she should join in guaranteeing a loan

(42:47):
to Spain of two million pounds sterling. Our government's proposal
is for a joint guarantee, and they have so far
had no reply from the French cabinet. If France will
not agree to the proposal, it is highly probable that
England will give her guarantee alone, if not for the
whole amount, at any rate, for a part under such
an arrangement, My dear brother, we should be running no

(43:09):
risk at all in my opinion, for if France and
England give their guarantee, it will be like the Greek loan.
Please forward this letter at once to our brother Solomon
at Vienna, as I am very anxious to know what
Uncle thinks of this matter. By Uncle, he meant Metternich.
It is interesting to note that Nathan was kept informed
by his most intimate friend in the British Cabinet. He

(43:33):
was certainly useful for such business. It was difficult for
Solomon at Vienna to persuade Madinitch to acquiesce again in
the plan of granting a loan to the enemy of
his protege, Don Carlos alone, which in any case was
bound to be fruitless, for Medinich would not change his opinion,
especially in a matter involving the fundamental principles upon which

(43:54):
his policy was based. Solomon represented the matter as though
Nathan wished to ascertain Metternick's opinion, but he sent him
the extract from the letter which has been given above.
The result was, as might have been expected, one of
the Chancellor's typical lecturing tirades. He wrote as follows, in
a private letter to Solomon Rothschild, Vienna, December twenty ninth,

(44:16):
eighteen thirty five. I have considered the letter which you
have sent me with the attention which the subject obviously deserves.
You know me well enough to have learned that I
never engage in speculative transactions, and it is therefore unnecessary
for me to take cognizance of them. This case raises
other considerations, and your brother Nathan M desires to know

(44:38):
my views. These I shall express without beating about the
bush as an honorable man who is well disposed to
your house should. The business under discussion has two sides,
a financial and a moral one. The first is no
concern of mine alone. Guaranteed by the two Sea powers,
is undoubtedly a safe financial transaction. You will appreciate this

(45:02):
better than I can. If your brother wishes to make money,
this is an opportunity for doing so. From every moral
point of view, I consider the business to be one
of the most damnable, as I shall have no difficulty
in showing. Although neither I nor anybody else who has
had experience of public affairs would venture to prophesy the

(45:22):
final outcome of the Spanish Revolution, the outcome on another
field is painfully obvious. I mean the inevitability of Spanish bankruptcy.
Whatever may happen in that unfortunate country, its public debt
cannot be met. And anything that is done in England
now with reference to the Peninsula is simply putting off
the evil day and also making the ultimate disaster more extensive.

(45:44):
And who are the people who will be hit. They
are unfortunate fathers of families, small capitalists, the value of
whose Spanish securities will dwindle away to nothing. And in
order to put off the evil day, rivers of blood
are being poured out in Spain, while at the head
head of the so called administration for it administers nothing
is an agent of the British Stock Exchange, and the

(46:06):
country is being systematically robbed of all the resources which
might have improved its future. Such operations may bring blood money,
but that money can bring no happiness. The loan in
question can serve no other purpose but to meet obligations
due in London. For one term. Spain will receive not
one farthing of the money. All that Spain can hope

(46:27):
from the scheme is an extension of the deceptive appearance
of their still being resources where there are no real
resources at all. And this deception will cost much blood.
I am speaking now of the national bankruptcy which God
himself could not prevent. If your honorable house were to
take over the business, it would earn the curses of
those who will eventually be overwhelmed in bankruptcy. A house

(46:49):
which has won its position by very different methods from
these should not be a party to such a scheme.
Nathan Meyer may say that such considerations cannot affect a
business decision. This may be true where such decisions are
admittedly uninfluenced by any moral considerations. Whatever, I am not
that type of man, and I am sure that on

(47:11):
reflection Nathan Meyer will feel that neither is he. However,
he wished to know my opinion, and this I frankly
express in the way with which you are familiar. Metani's
high moralesy made but little impression on the members of
the Rothschild family, except upon Solomon. They knew perfectly well
that the Imperial government had backed the absolutist Don Carlos,

(47:33):
and that they were on their side, giving him very
considerable financial support. It was, as yet, by no means
evident that Don Carlos would not triumph in the end.
If he had only been somewhat more energetic and decisive,
he might, on three occasions easily have succeeded in becoming
Master of Spain. But even if he were to succeed,
how could one lose with the guarantee of France and England.

(47:56):
If things went wrong well, those two states would suffer.
Solomon at Vienna could always take refuge in the fact
that he had loyally told Medernich everything pointing to the
difficulty of opposing the majority of his brothers. In any case,
he let them carry on with their profitable transactions. At least,
such was the view of her Von Hamlauer, the enemy

(48:18):
of the Rothschilds, at the Austrian embassy in London. He
was constantly sending hostile reports about the Rothschilds to Vienna,
regarding their Spanish transactions and keeping everybody in a state
of alarm. Thus he reported on the April fifteenth, eighteen
thirty six, that the House of Rothschild was negotiating with
the government of the Queen Regent with regard to loans,

(48:40):
the payment of interest on old loans, et cetera. That
they were planning all kinds of intrigues, and more especially,
had lately endeavored to frustrate the banker of Rhard's efforts
to arrange a loane for Don Carlos. Metternich immediately asked
Solomon Rothschild, who had returned to Vienna to come and
see him, and taxed him with Humlauer's accusations. Thereupon, father

(49:04):
and son put in a detailed memorandum regarding the financial
arrangements of their house with Spain. They described Metternich's information
as false and as obviously emanating from an unreliable source.
It was true that Mendisibal had suggested that the House
of Rothchild should grant further advances to an amount of
two hundred thousand pounds to two hundred and fifty thousand

(49:25):
pounds on the security of the royalties of the quicksilver mines,
and a similar amount on the security of Spanish round
The House of Rothschild had, however, refused to do so,
although the minds in the south of the country were
far from the scene of action in the civil war
and therefore offered adequate security for repayment. In spite of everything,

(49:45):
this attractive suggestion had been turned down. Medinich should have
confidence in Solomon's character and word. For anyone familiar with
the methods of the House of Rothschild, and who had
occasioned to observe the principles which had for some time
governed their trends, his actions would inevitably come to the
conclusion that they had no intention of extending the range
of their operations, but wished rather gradually to narrow their scope,

(50:09):
and above all to hold aloof from such venturesome operations
as could only result in unpleasantness and bad blood. Thus,
the London branch of the House of Rothschild had kept
entirely aloof from industrial undertakings such as canals and railways, which,
in England, more than anywhere else, had been the subject
of the most unrestrained speculation. No sensible man, therefore could

(50:34):
seriously believe that the House of Rothchild would invest a
large portion of its wealth in stocks, which, in the
view of even the most zealous partisans of Isabella, offered
only a highly precarious security and rested on no solid foundation.
The position of the House of Rothschild was such that
it could not absolutely stand apart from all transactions in
Spanish funds. Its relations with the public and the nature

(50:58):
of its business forced it to engage in them, even
against its inclination. Such operations, however, were essentially stock exchange
transactions and did not constitute real investments such as would
bind the House of Rothschild to the interests of that country. Finally,
I would take the liberty. Solomon's letter continued to observe
to your Highness that all the rumors and unditts current

(51:20):
about the House of Rothschild and its relations with the
Spanish government should be accepted only with the greatest reserve.
They are generally the result of that slanderous malice to
which anybody who exercises a certain influence is inevitably exposed.
Persons interested in speculating on the burses, and the habit
of speculating in negotiable securities is extending to all classes

(51:43):
of society frequently make play with the name of the
House of Rothchild and try to interpret its actions in
the sense of their own operations, as this increases their
confidence in making a profit. This memorandum, except for one inconsistency,
was very cleverly drafted. The inconsistency lay in the fact
that the opening paragraphs, which stated that mendisibal less offers

(52:05):
had been refused, described them as being very attractive and
fully guaranteed, whereas two pages later Spain's guarantees were described
as highly precarious and unsound. The truth was that, in
view of the fact that Spanish securities were falling away
to nothing owing to the civil war and the maladministration.
The Wrothchilds were really not at all anxious to invest

(52:26):
too much money in that country, except under the guarantee
of states such as France and England. But having regard
to their position in the quicksilver minds, which they did
not wish to sacrifice at any price, they had to
exercise a certain restraint in this matter, and were therefore
compelled to engage in certain transactions. Humlauer in London continued

(52:48):
to send Metternich in Vienna reports hostile to the Rothschilds.
He went so far as to accuse the British government
also of intrigues and of capable connivance with the Rothschilds.
The Ministry, he reported on April twenty sixth, eighteen thirty six,
is to such an extent dependent upon the House of
rothschild that it will shrink from no sacrifice of honor

(53:09):
or profet to induce that firm to pay the interest
due on the Spanish bonds on May first, in order
thus to prevent the immediate collapse of Spain's finances, which
the government could not survive in spite of the pressure
of the British government. However, the Wrothchilds were very much
disinclined to commit themselves too deeply in Spain, especially as
the possibility of intervention in that country was more remote

(53:32):
than ever. Louis Philippe in particular declared that nothing would
move him in the attitude he had taken up with
regard to Spain. Before France shall intervene in Spain, the
king said, it will he necessary to dethrone me. It
is said that the Wrothchilds want to negotiate alone in
the Peninsula, they will only bring loss in suffering on others,

(53:54):
for they themselves will have sold the loan before it
is issued, and in any case, Spain can not escape
ultimate bankruptcy. If Don Carlos is to be suppressed, this
must be done by the Spaniards themselves. The Rothchilds did,
in fact grant no further loans to Spain, and this
was due in no small degree to the fact that

(54:15):
the most powerful pillar of the five brothers suddenly collapsed.
The marriage between Nathan's eldest son Lionel and his cousin Charlotte,
the daughter of carl at Naples, had been fixed to
take place at Frankfort in June eighteen thirty six. This
further union between two blood relations was entirely in accordance
with the scheme of Old Meyer Amskill Rothschild, who, in

(54:37):
order to maintain the family unity and to concentrate the
family fortunes, had charged his children to admit as few
foreign families as possible into the most intimate family circle.
All the brothers met at the family home at Frankfort
for the wedding, James being accompanied by his friend, the
Great Rossini. The wedding itself was celebrated with unparalleled splendor

(54:58):
and magnificence, but shortly after the festivities, the bridegroom's father
fell sick. Nathan, the greatest financial genius of the five brothers,
was at that time fifty nine years old. His malady
grew obviously worse, and the brothers finally called in Traverse
the most eminent English doctor of the day, but medical

(55:18):
skill was of no avail, and on July twenty eighth,
eighteen thirty six, Nathan Rothschild, the greatest of five great brothers, died.
Solomon Rothchild, who had stayed at his brother's bedside throughout
his illness forgot all that he had ever said or
written about his brother Nathan. In reporting the cruel loss
to Metternich, filled with immeasurable sorrow, he wrote, and in

(55:41):
the deepest despondency, I have to inform you that my
most deeply loved brother, Nathan Meyer Rothschild, is no more.
It has pleased Almighty God to call him in the
best years of his life, and just at the moment
when he should have been taking pleasure in the happiness
of his eldest son, having but just pronounced his paternal
blessing upon yours marriage with the daughter of my brother Karl,

(56:02):
and might have enjoyed the festival of our family reunion.
He has died too soon for our love and devotion,
too soon to receive all those marks of respect and
gratitude which were his due from his dependents, in return
for the constant and tireless efforts which he made throughout
his whole life to place their well being on a
firm and lasting foundation, to make his house prosperous and happy,

(56:23):
and to assure the continued prosperity and honor of his family.
Heaven would have it so. In pious resignation, to divine providence,
we hope to find the comfort that we so sadly need.
On the afternoon of July twenty eighth, my brother passed
over to a better life, after he had solemnly conveyed
through us his brothers his solemn charge to his sons,

(56:46):
who were not all present when he died, loyally and
firmly to hold together and always to keep in view
as there aim the example of unity and affection which
we have set. The London House will continue to operate unchanged,
under the name of him the found. It will be
managed by his sons, and there will be no change
of any kind with regard to property and means, and

(57:07):
in its principles and relations with us other four brothers,
there will not be the slightest modification in previous practice.
Solomon made the letter an occasion for the following request,
that Your Highness will transfer all those feelings of gracious
and kindly goodwill which you entertained for their lamented father
to his sons. How greatly it will strengthen and encourage

(57:27):
them in the painful blow that they have suffered. If
they may enjoy the gracious good will of a prince
of a dignity, magnificence, and renown beyond all words. May
Your Highness be graciously pleased to comfort your loyal and
truly devoted servant with this hope, that it may cheer
me in my sorrow and sustain me in my suffering.

(57:47):
If there were anything that could assist in bringing comfort
in their irreparable loss to the deeply sorrowing family in London,
it would be to grant them some public distinction in
the eyes of the world, such as would show that,
through the death of their father, the family had not
lost a distinction which he was proud to possess so
long as he breathed. I refer to his position as
Consul General in London of his eye and our apostolic majesty.

(58:11):
May Your Highness be graciously pleased to use your all
powerful influence to the end that this office may pass
to Baron Lionel Nathan Vaughan Rothschild, the eldest son of
my late brother. He no less than his other brothers,
will certainly fulfill the behests of his late father, and
will consider it his constant duty to emulate all his
father's virtues. My brothers and I, Solomon continued. Indeed, the

(58:35):
whole family of the departed will raise to your excellency
a monument of undying gratitude that after this inexpressibly sad event,
you should be the first to perform a public act
whereby the world shall learn that the honor and dignity
that pertained to the father having passed on to his
son still redounds to the honor and glory of the family.
Forgive me, your Highness, that in the first violent rush

(58:57):
of grief and sorrow, I should approach you with a request.
But I count it as my most sacred duty to
the memory of my late brother, whom I can never
honor and lament enough to do for his children and
for his family all that can bring them any alleviation
of their sorrow and secure for them esteem and regard.
And may your Highness rest assured that in all the
circumstances of life, I shall never cease to cherish those

(59:20):
feelings of deep, sincere, profound and unlimited admiration and regard,
and of most unchangeable and loyal devotion with which I
have the honor to subscribe myself, Your Highness, most completely
humble servant. S. M. Vaughan Rothschild frankfort A m. The
August third, eighteen thirty six. Solomon Rothschild had also reported

(59:42):
his brother's death to Count Cholerad and asked his secretary,
Morritz Goldschmidt also to make a verbal request that almost
the last wish expressed by the dying man with regard
to the Consulate General should be carried out. Metternich sent
a friendly and sympathetic reply, assuring Solomon that he would
favorably got consider the question of appointing Lionel. Solomon thanked

(01:00:04):
him for his gracious letter, assuring Metternich that he set
the highest value on it as a proof of the
latter's sincere sympathy, and that it would be most carefully
treasured as a sacred mark of his kindness and friendship.
Your highness, Solomon continued, may easily judge how deeply this
sad death has especially affected me. Throughout the whole period
of the illness, I was almost always the person who

(01:00:26):
was with my late brother day and night, for I
was living in the same house with my son Anselm.
I would constantly come at his bidding to hear any
wish that he had to express in his last moments,
and I may say I enjoyed his complete confidence in
all his affairs. Three days before his death, he told
me all his thoughts and wishes with regard to the will,
which he then drew up, and which I then had

(01:00:47):
written out in accordance with his intentions. We brothers and
the whole family have suffered an irreparable loss in his death.
God alone can heal the wound that has been inflicted
upon us. We must seek alleviation for our sorrows in
the consolations of our religion. Your Highness will graciously pardon
me if, at this time of uncontrollable sorrow, I cannot

(01:01:09):
refrain from expressing my feelings. Your kindness and humanity are
guaranteed that you will honor my just sorrow. In view
of the friendly advice Your Highness had given me, I
will not conceal from you that I consider it fortunate
that I was able to be present here on this
unhappy occasion. Since I enjoyed the confidence not only of
my late brother, but also of my other brothers in

(01:01:30):
everything that was done, and they left everything to me,
I may say with a clear conscience that they will
have no cause to regret this for I have acted
with true disinterestedness as a brother and friend, and have
carried through everything justly. The agreements between us for a
further period of three years have been drawn up embodying
every point, and they were ready for signature, for we

(01:01:52):
still believe that our late brother would, with God's help recover. However,
this was not to be Fate had decided others wise.
On his death bed, Nathan asked me to have the
contract renewed with his surviving sons, with the provision that
it should not be terminated within a period of five years.
And this has been done, as Your Highness will see

(01:02:12):
on perusing the contracts, which I shall have the honor
to eye before you on my return. The firm of
Nathan M. Rothschild remains unaltered, the sons together acting as
a unit with one vote in the partnership. The whole
trading capital of the four brothers and of the late
Nathan M. Rothschild cannot be touched for the next five years,
and nobody can draw anything out of the working capital,

(01:02:34):
while we have reduced the interest that we draw individually
from four to three percent, so that the partnership as
a whole will with God's help still further improve its
position in the five years, as the proportion of the
funds which can be spent has been reduced, and there
is no necessity for the young men to be drawn
into speculative ventures. My brother reckoned that he had given

(01:02:57):
his children about eight hundred thousand pounds during his lifetime,
and he has left an extraordinarily valuable business, so that
apart from their share in the business, each of his
sons has about one hundred fifty to two hundred thousand
pounds of his own. On his death bed, my late
brother charged his eldest son and through him those who
were not present, always to apply all their efforts to

(01:03:18):
keep the business property intact, and not to participate in
any risky ventures. He gave them much wise counsel, bade
them avoid all evil company, and always to keep in
the way of true virtue, religion, and righteousness. My late
brother told them that the world would now try to
make money out of us, so that it behooved them
to be all the more careful, And he remarked that

(01:03:40):
whether any son had fifty thousand pounds more or less
was a matter of indifference to him. All that mattered
was that they should hold together in unity. He died
in the full possession of his faculties, and ten minutes
before his death he said, as he received the last
consolations of religion that are customary with us, it is
not necessary that I should pray so much. For believe me,

(01:04:03):
according to my convictions, I have not sinned. To my
daughter Betty. As she took leave of him, he said,
in the truly British manner, good night forever. Thus peacefully
and in full possession of his faculties, our brother passed
over into the better life. On his brother's death, any
resentment or difference of opinion that Solomon had ever felt

(01:04:23):
with regard to Nathan's actions melted away like snow in
the sun. Everything else was lost in an overwhelming sense
of family unity, which is especially characteristic of the Jewish race,
and in this case had been inculcated with particular emphasis
by Old Meyer Amskill, the founder of the bank. Nathan
had left four sons, the eldest of whom Lionel, became

(01:04:45):
head of the London Bank. Thus the third generation since
the foundation of the firm were coming into the saddle
in its patriarchal style and in a tender concern that
he showed for his children. Nathan's will was reminiscent of
that of his father. It was very general in its terms,
and particularly refrain from entering into precise details as to

(01:05:06):
the value of the property left. It dealt especially with
the method of carrying on the business and the contractual
relationship binding the partners for the periods of three or
five years. It is my earnest wish. Nathan wrote in
his will that my sons shall carry on my business
in London, that the association with the other houses which
my dear brothers direct shall be maintained, that they shall

(01:05:29):
continue to remain partners together, and that to this end
the articles of association between my sons and my brothers
shall be renewed for further periods of five years. At
the same time, I charge my sons always willingly to
accept the advice of my experienced brothers, and to direct
their tireless endeavors through assiduous industry intelligently applied to establish

(01:05:50):
on an ever firmer foundation the welfare and reputation of
the house. I would request the executors of the will,
as well as any relations in London and frankfort unturned
to confine their efforts simply and solely owe the due
execution of this my last will and Testament, and since
it does not pertain to their office at all, not
to ask for any further information or for the production

(01:06:12):
of any books of accounts. It was thus possible again
to avoid any unpleasant scrutiny or public discussion of the
enormous Rothchild wealth which was spread over the whole of Europe.
The government also refrained from applying too close a measure
in the case of a man who had rendered it
such important services over a period of years, and even
in the last year of his life, had succeeded in

(01:06:34):
raising a loan of fifteen million pounds to indemnify the
slave owners when slavery was abolished. The death of Nathan
was a very serious loss to the house. Hayden says
of him very justly in his gallery be under U N. D. Merkwordiger.
Frankforter that although Nathan was the third son, he was
looked upon as the head of the family, and the
other brothers generally took his advice. He was the controlling

(01:06:58):
spirit in the application of the uk enormous fund which
they jointly possessed. Gutsko said of him that he threw
himself into all his undertakings with enormous vigor, and everything
about him was on a large scale. Nathan was a
splendid example of the traditions and wealth of the city.
He was as much respected there as he was feared,
and made upon all who knew him the impression of

(01:07:20):
a man who had a positive genius for business. He
himself had the greatest possible admiration for industry. He once
said to a friend, with reference to his children, I
wish that they may devote themselves mind, soul, heart and
body to their business. That is the way to attain happiness.
This remark was absolutely in accordance with his character, but

(01:07:42):
it simply confirmed the old adage that work makes a
man happy. Nathan was a very well known figure in
the city of London. The pillar against which he was
accustomed to lean is still pointed out on the stock
exchange of massive build His head set between thick shoulders,
he would stand there with his hands deep in his
trouser pockets, apparently indifferent to what was going on about him,

(01:08:04):
but in reality observing everything very closely. Nathan would always
reply in monosyllables, giving short and definite instructions. He was
fully conscious of his power, and uninfluenced by the flattery
which his riches called forth. He had gradually come to
despise mankind, having been led to this conclusion through observing
the effect of the gold that flowed from his hand.

(01:08:27):
Nathan's body was brought from Frankfort to London and lay
at New Court, his house in Saint Swithin's Lane. The
funeral procession on August eighth, eighteen thirty six was an
outward symbol of the enormous position which Nathan had achieved
in the British Empire. The representatives of the great powers,
the Lord Mayor, the sheriffs, and several aldermen of the

(01:08:49):
city of London followed the coffin, which was preceded by
a procession of Jewish orphan children clothed in white. The
whole of London had come to see the funeral procession.
The crowds were enormous and it was difficult to maintain order.
Such was the funeral of the man who forty years
before had emigrated to London as a small Jewish trader
from Frankfort without name or position. Solomon saw to it

(01:09:12):
that the event was given proper publicity. James had arranged
for an article of extravagant praise of Nathan to appear
in the Journal the Debats, and Solomon arranged for it
to be printed in other papers as well. He asked
Gutskowe to help him in this, and Gudscowe wrote the
following letter on August twelfth, eighteen thirty six, to colb
the editor in chief of the Algaemina's Item the Vienna

(01:09:36):
Rothschild has approached me with a view to having the
article on his brother which appeared on fifth I n. S.
T in the Journal de Debots reproduced in the Algamina's Item.
I have had the article which I enclose, translated, and
would be glad if you could have it printed if possible.
I need not remind you of Metternick's relations with Solomon.

(01:09:57):
Nathan's death naturally produced important changes in the management of
the Rothschild business, the tacit leadership which he had held
past to James in Paris in Spanish affairs. The House
of Rothschild henceforward paid less attention to British wishes and
confined its concessions to the minimum that was necessary in
order to retain their hold over the Quicksilver Minds, which

(01:10:17):
they rightly regarded as a highly profitable business. It was
the more desirable that they should cut down their Spanish commitments.
Since Mendisible proved a failure, he lost all prestige and
Spain came threateningly near the verge of bankruptcy. To Metamich's
great satisfaction, the Rothchilds withdrew from financial transactions in Spain

(01:10:38):
in view of the desperate condition of the country. Nathan's sons,
who wished to stand as well as possible with Austria
in order to secure the consulate, declared to her Von
Humlaner that they would have nothing further to do with
the Spanish business. All kinds of offers, they said to him,
have been made to induce us to take over the
next payment of Spanish dividends, But we we are determined

(01:11:00):
not to do so, and added one of the Rothschilds,
it was not we who paid the earlier dividends. The
earlier dividends Humlaer commented on this were always paid out
of the loans floated by the House of Rothchild. Debts
were met by further borrowings without the House of Rothschild
advancing its own cash. As it is now quite impossible

(01:11:21):
to get any more money out of the public, the
House of Rothchild would have to find future dividends out
of their own resources and without any possibility of seeing
their money again. Meanwhile, important changes were taking place in
Spain that only served to make the position more critical.
Mendizibal had resigned in May eighteen thirty six, and the

(01:11:42):
summer brought further successes to Don Carlos. Indeed, there was
a rising in the immediate neighborhood of the castle of
the Queen Regent. The Constitution of eighteen twelve was accepted
under duress, and the Queen at that time even meditated flight.
The constituent Cortes met on an October twenty fourth, eighteen
thirty six, amidst circumstances of general confusion. Don Carlos, however,

(01:12:07):
had failed to turn these favorable circumstances to full account,
and Espartero, the General of the Christinos, actually succeeded in
December eighteen thirty six in inflicting a severe reverse upon him.
In the first half of March, however, a concentrated attack
by the Christinos failed. Mettinik was constantly watching the attitude

(01:12:28):
of the Rothchilds to Spain with grave mistrust and asked
a poni I to report on it. The latter, instead
of referring to persons who had other sources of information,
generally asked James Rothschild himself, or accepted the statements of
a political charlatan and paid informer called Klindworth, whose reports
were only too frequently untrue. In March eighteen thirty seven,

(01:12:50):
a pony I had another discussion with James Rothschild, in
which the latter said that the yield of the quicksilver
mines had been enormously increased, and that the Rothchilds were
being asked for an advance of dars two million francs
on account of royalties. He said that their Madrid agent
was pressing for the acceptance of this proposal, and begging
that James Rothschild, who paid the expenses of the Spanish

(01:13:11):
legation in Paris amounting to eighty thousand francs a month
out of his own pocket without ever having any of
them were funded, should not cease these payments. Wiseweiler, the
rothchild representative at Madrid, said that if that were done,
he would be hounded out of the town and the
exceedingly profitable quicksilver business would be lost. Such statements necessarily

(01:13:33):
indicated that the House of Rothschild still had schemes with Spain,
but these were connected only with the quicksilver mines, for
the prestige of Spain's finances had sunk so low that
rot were quoted at about only twenty to twenty five percent.
June saw a further change in the fortunes of war,
and for a time Don Carlos was actually planning to
advance on Madrid. In May and June eighteen thirty seven,

(01:13:56):
he had substantial successes. This reduced a panic in the
Paris branch of Rothschild's where it was feared that these devils,
the members of the Cortes, would make difficulties about the
Almada mines. However, Rothschild thought he could come to an
understanding with them, but that if Don Carlos were to
be victorious, everything would be lost. At the end of June,

(01:14:18):
the French Prime Minister was dining with the panic stricken
James Rothschild and remarked on that occasion to Baron Vaughan Hugel,
who was acting for Count Aponia, Rothschild is entirely preoccupied
with the losses that he expects to incur, and he
is particularly anxious about his quicksilver minds, which he says
Don Carlos will take from him. These people are simply

(01:14:38):
after money and forget everything else when their interests are
at stake. A little later, Mole reported, with reference to James,
that since he had got involved in the Spanish affairs,
he had not been the Rothschild of former Times Solomon,
who was then again staying in Paris, stated definitely that
no one, and he least of all, would ever again

(01:14:59):
lend the governor at Madrid as Singleso Metternich's resentment against
the Rothchilds kept increasing, although he still handled them with
velvet gloves. His police intercepted a letter from Lionel in
London to his uncle. Lionel spoke of the highly unfavorable
impression which had been created by the news that Don
Carlos had crossed the Ebro, stating that British consuls and

(01:15:21):
Spanish securities had both fallen sharply and that the whole
outlook was exceedingly gloomy. The bad news from Spain and
Portugal was entirely to blame for the present panic. It
was essential to be patient. Only God could bring everything right.
I am too unhappy, wrote Lionel to write at length.

(01:15:42):
The Peers have the upper hand, and political developments, as
well as the stupid measures taken by the government here,
favor their activities. The best thing is to remain calm
in order to act when we see more clearly. Today
it was stated here too that Don Carlos had crossed
the Ebro and that disturbance would break out in Naples.

(01:16:02):
The Belgian charged affair in fact said to us today
that Sir Bowring had left for Naples on a government mission.
I am afraid that if the Austrians enter Naples, Lewis
Philippe will be forced to intervene. In Spain. Prices suddenly
fell abruptly towards the close of the Bourse, and I
fear that the carrier pigeon service will bring news of
a still further decline. I believe that the English will

(01:16:25):
gradually bring a lot of wrant into the market, which
is bound to have an influence. We will hope for
the best On receiving the copy of this intercepted letter,
Metternick immediately sent it forward to the Austrian Minister at Naples,
telling him to watch the suspicious Liberal emissary and report
as to the alleged revolution at Naples. Thereupon, Attempts published

(01:16:46):
an article regarding possible intervention by Austria in Naples, which
very much annoyed Medinich. The Chancellor wrote the following letter
to Hugle for Solomon's benefit, I request you, the letter ran,
to read this letter to Baron Solomon Vaughan Rothschild. I
wish this to be done, since I know his honest
nature and genuine principles. It is generally known that the

(01:17:10):
Minister Montalovt and Baron James are on intimate terms, and
that the Minister has a definite influence on the editorial
policy of the Tempts. Now that paper has a great
deal to answer for in the articles in which it
is just published to the world, the lie that Austria
contemplates sending troops to Naples, with the result that political
complications will arise between ourselves in France. Almost worse is

(01:17:33):
the statement which appeared very shortly afterwards to the effect
that there was no further question of sending such troops,
since Austria would think twice before exposing herself to the
consequences of such a venture. These two entirely imaginary statements
contain the most dangerous matter for a newspaper that is
on confidential terms with the French Ministry to give forth

(01:17:55):
to the world. They encourage the spirit of faction and revolt,
while they place a quiet and serious governments such as
ours in the awkward position that we don't know whether
to speak or to be silent. If the tempts were
not closely associated with the French ministry, there would be
nothing in this matter. I would pass it over as
I pass over the daily pack of lies that issue

(01:18:16):
from the revolutionary press. But the case here is entirely different.
I want Baron Solomon confidentially to convey these considerations to
his brother, and to request him, on my behalf, to
use his influence to see that this kind of thing
does not occur again. I want this to be done
in the interests of the House of Rothschild itself. As

(01:18:37):
remarks from several quarters abroad have reached me attributing these
articles to a speculation by the house in Neapolitan funds.
There is nobody more inclined to regard this as a
slander than I. That is precisely why I am taking
this step. Baron Solomon knows my attitude too well for
it to be necessary for me to say anything more.

(01:18:57):
It will be enough for you to let him know
my wishes, and he will do what is right. Hugo
read Metdronick's letter to the two brothers and thought they
had understood, and particularly that James was beginning to realize
that in intervening in political matters he had played a
sorry part. James was not as penitent as Hugo thought,
but he pretended to be while the charged affair was

(01:19:18):
talking to him. There were in fact no disturbances at Naples,
and the incident simply served to give a glimpse of
the way in which the Rothschilds collaborated with some of
the French ministers, and to reveal their influence upon leading
Paris papers. Towards the end of eighteen thirty seven, Spain
was again engaging the anxious attention of the brothers, as

(01:19:39):
the Cortes, at the instigation of the Rothschild's rivals were
questioning the validity of the Quicksilver Minds contract and of
the variations which had been made in it. Wiseweiler, the
Wrothchild agent at Madrid, made every effort to maintain the
legal validity of the contract. The firm of Zuluida, which
had competed with the House of raw Rothchild for the contract,

(01:20:01):
based its objection on the fact that the latter had
at the time offered only fifty subject to the proviso
that if anybody offered fifty four, they would pay fifty five.
Such a procedure had, however, been irregular. The Wrothchild agent
also called in the assistance of the English and French
ministers to the Spanish government, who both made representations on

(01:20:22):
behalf of the House of Rothschild. The Spanish ministry also
represented to the Cortes that the Quicksilver contract was an
important and useful one to the Spanish state. However, that
may be Count of PONII reported with reference to the
effect of this contretant on James Rothschild, he appears to
be in a state of the most extraordinary excitement at
this attempt of the Cortes to deprive him of a

(01:20:44):
business which at an approximate estimate must yield him an
annual income of from one and a quarter to two
million francs. He will, no doubt, in the end be
guided by the direction in which his interests lie, and
will find roundabout means at the sacrifice of a certain
amount of mine money to secure a business which is
a scarce of such considerable profit to his house. It

(01:21:05):
was also current gossip in Paris that the quicksilver agreement
had not gone through without a certain amount of money
having passed under the table, and that the House of
Rothschild were now threatening disclosures, so that a friendly solution
would appear to be in the interest of both parties.
In the end, an agreement was reached by increasing the
amount payable to the Spanish government in respect of each

(01:21:26):
hundredweight of quicksilver raised, and by granting new advances on royalties.
Apart from this, after the death of Nathan, the Rothschilds
had practically nothing more to do with Spanish loans except
under French and English guarantee, and in such cases Medinich
was always advised. In March eighteen thirty eight, the secret
agent Klindworth, whom Count Aponi I was using to an

(01:21:49):
increasing extent, again stated that the Rothschilds were negotiating for
a further Spanish loan. Medinick again asked Solomon what this meant,
with the result that James went to see opponent in
a state of high indignation, asking him to inform his
chief of the falsity of this rumor about the loan.
Baron James Vaughan Rothschild, Count a pony I reported, who

(01:22:10):
has undoubtedly foreseen that rumors of financial transactions would come
to my knowledge, has given me the most formal assurance
that he has not only refused to take part in
any loan in favor of the Spanish government, but has
also declined any financial operation the object of which would
be to raise money for Spain. He most positively denies
all imputations of this nature and asked me to inform

(01:22:33):
Your Highness of this most formal declaration by him. Baron
Rothschild has expressly and spontaneously instructed me to give Your
Highness his word that he will never engage in a
loan to the Spanish government without first being authorized to
do so by Your Highness. Thus, Medenik felt that through
his obstinate insistence. He had at last succeeded in stopping
further payments of money being made at any rate by

(01:22:55):
the House of Rothschild to the government of the Queen Regent,
whilst he himself was constantly supplying Don Carlos with money
and was also obtaining support for him from the state's
ally to Austria. All his efforts, however, proved of no avail,
for Don Carlos lacked the personality to establish his position.
The changing vicissitudes of this War of the Spanish Succession

(01:23:17):
ended by Don Carlos being finally driven out of the
field by the Queen Regent's general, Espartero. The son of
a workman, He was forced to flee from Spain and
no longer menace the Rothchilds in their possession of the
quicksilver mines. Nathan was justified. The valuable quicksilver mines remained
in the family's possession and became a source of very

(01:23:37):
considerable profit. The house owned them until the year eighteen
sixty three, when they were again taken over by the
Spanish government. By that time, richer minds had been discovered
in the New World, and the Rothchild monopoly had been
broken down. This example of their business in Spain reveals
particularly clearly how closely politics and business were interdependent at

(01:23:59):
that time. Kay

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REIGN OF ROTHSCHILDS - 4. Difference between the Five Brothers with regard to Spain: Power Plays in a Troubled Spain

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