RISE OF ROTHSCHILD - 6. House of Rothschild Rides the Storm: Finance in the Age of Revolution - Count Egon Caesar Corti - SECRETS OF POWER: Masters of Politics, Strategy & War

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Speaker 1 (00:00):
The Rise of the House of Rothschild seventeen seventy to
eighteen thirty by County gon Caesar Cordy, Chapter six, The
House of Rothchild Rides the Storm. The control of the
business of the House of Rothschild, established as it was
in five different centers in Europe, had become exceedingly difficult

(00:20):
with the passage of time, as a result of the
enormous extension of its operations and their intimate interactions with
the events of general European politics. It is true that
Nathan quietly exerted an influence that tended to harmonize the
often conflicting aims of the various branches, But on account
of the primitive nature of the communication at that time
and the inadequate postal arrangements, it was impossible, in spite

(00:43):
of all the efforts he made for him to supervise everything.
The result was that each brother had a fairly wide
scope within his own center, it being left entirely to
his own judgment within certain limits, to do what he
considered best in the interests of the firm as a whole.
Between Vienna, frank Kingford, Paris and London, these places being
linked up on the main European routes, communication was easier.

(01:07):
It was just the least gifted of the brothers, Karl,
who was practically isolated from the others at Naples and
therefore often had to travel personally to Paris and London
in order to get into touch with his brothers. A
final solution of the problem of the Austrian troops at
Naples had become urgently necessary. Since the end of the
year eighteen twenty two, Neapolitan statesmen had been constantly protesting

(01:30):
that the Austrian army of occupation should be reduced in
view of the enormous expense of maintaining it. Memorandum after
memorandum explaining the intolerable burden and the necessity of relieving
the situation was sent in. The Congress of Vienna had
decided that the occupying forces should be reduced to thirty
five thousand men. But before this decision was put into

(01:51):
effect August eighteen twenty four, the Austrian government had already
realized savings to the extent of about six million, five
hundred thousand florrans out of the sums paid by Naples.
This fact naturally soon leaked out and caused great dissatisfaction
in the kingdom, especially as a rumor was abroad that
the government would shortly reduce the pay of all those
in its service. The greater part of naples public securities

(02:15):
was held abroad. Of the annual interest, only about two
million ducats remained in the country itself, while the balance
constituted a tribute that Naples had to pay to foreign capitalists.
The budget suffered from the malady of a constantly growing deficit,
which rose to three million, eight hundred thousand ducats in
eighteen twenty five. This meant that the interest on foreign

(02:37):
debt was only slightly less than the state's annual deficit
count of PONII. Afterwards, ambassador in Paris had been sent
to Naples by Medinik to examine the situation on the spot.
Cavalier de f Medici, he reported, regards the presence of
our troops as nothing but an intolerable burden. As finance minister,
he trembles at the idea that the foreign occupation may

(03:00):
last until after eighteen twenty six, and by compelling him
to take refuge in another loan still more increased the
state's terrifying deficit. This caused him to say to Rothschild
a few days ago, if the Austrian troops remain here
after the limit of time fixed by the convention, I
am determined to hand in my resignation. Fundamentally, Karl Rothschild

(03:21):
was absolutely on the side of the finance minister. It
was not in accordance with his wishes that the expenses
of the occupation should lead to the whole internal economy
of the state being thrown into confusion, so that the
loans handled and issued by the House of Rothchild would
run the risk of declining seriously in value. He began
therefore noticeably to adopt the Neapolitan point of view, and

(03:43):
gradually to forget to consider the interests of Austria. Although
he owed his position in Naples to that country, he
too favored speedy evacuation, especially as the new king, who
had succeeded to the throne in January eighteen twenty five,
and on whom he wanted to make a good impression,
cherished the same wish. At Vienna. He was actually suspected

(04:04):
of supporting the Neapolitan finance minister in his obstinate efforts
to recover part of the monies paid out to the
Austrian troops on the ground that they were excessive. The
Neapolitan government was claiming the repayment of one million, thirteen thousand,
three hundred ninety eight ducats as excess payments made only
up to November eighteen twenty one, and proposed to retain
one hundred thousand ducats each month from the monies payable

(04:26):
to the Austrian war account until the adjustment should have
been fully effected. Austria offered only six hundred fifty thousand
gulden in satisfaction, and was contemplating making deductions even from
this amount. However, she was afraid of any public dispute
in the matter. The Quartermaster General himself admitted in a
letter to Count Natasty that the estimate of six hundred

(04:48):
fifty thousand florins was too low. He said that in
his view, it would be better to agree to the
amount demanded by the Neapolitan government as a lump sum,
rather than to allow the matter to be discussed in detail,
as that would be too damaging to Austria. Ficklemont also
expressed his fears that innumerable claims might arise, the airing
of which would be unpleasant for Austria. He offered to

(05:11):
arrange for the settlement of the matter without publicity and
without compromising the dignity of our government, asking only that
the repayments should not be made out of the resources
of the Eye and are war Chest at Naples, but
through the House of Rothchild, for direct repayments through the
war chest would furnish proof that savings had been effected
out of the lump sums paid by Naples. Looking at

(05:32):
the matter coldly and impartially, he added, we find that
we are to refund only the portion of the excess
payments attributable to the period between February first and November thirtieth,
eighteen twenty one. But Vienna was not prepared to refund
the money so quickly and hesitated about making it available.
Medici urgently needed the money and would not wait any longer.

(05:55):
He therefore applied to Karl Rothschild, informing him that the
Royal Treasury required one one million, five hundred thousand ducats
in excess of its normal revenue. He asked Rothschild to
advance this sum, offering as partial security the claim exceeding
a million ducats which had been recognized by Austria Carl
Rothschild immediately sent Medici's letter to Vienna in order to

(06:16):
ascertain the Imperial government's attitude in the matter, As however,
it was not yet inclined to give way in spite
of Ficklemont's representations. It simply put the letter by. Nevertheless,
in return for special securities in the event of Austria
failing to pay, Karl Rothschild advanced one million, two hundred
thousand ducats. Because he attached great value to being on

(06:39):
good terms with Medici and the new king. This brought
him into great favor in high quarters, a fact which
Karl exploited to create a position for himself in society
in Naples, as his brothers had done elsewhere. During the
winter of eighteen twenty six, many distinguished foreigners flocked to
the beautiful city of the south. Amongst them were Leopold
of Saxe Cobra, afterwards King Leopold I of Belgium, the

(07:03):
Duke of Lucca, and other princes, as well as several
wealthy English families. This greatly enlivens our social gatherings, Karl
said in a private letter. Amateur companies perform French plays.
There are balls and soirees. In a word, in spite
of everything, life is very gay. Meanwhile, as the result

(07:23):
of representations made by Solomon to Metternich, the House of
Rothschild had been informed that there was no objection to
crediting to the House of Rothschild the moneys which Austria
would finally refund to Naples. Their total, however, remained undefined,
and as it went very much against the grain to
pay these amounts at all, Meterinich was somewhat annoyed that
the House of Rothchild should intervene in the matter. At

(07:46):
the end of December eighteen twenty six, Emperor Francis and
Meroinich decided finally to evacuate the two Sicilies, although not
without emphatically warning the king never to think of changing
the form of government. On the occasion of the Austrian's leaving,
General Fremont, the officer in command, had recommended various persons
for decorations, including the Finance Minister Medici and Karl Rothschild.

(08:10):
In view of the attitude adopted by both of these
in the matter of the rebates, Vienna was not prepared
to consider the suggestion. Metoniic minuted on the proposal that
Medici ought not to receive any distinction, since he already
possessed the Grand Cross of the Order of Saint Stephen,
and that Baron Rothschild should not receive one because he
is not qualified to receive the distinction. Suggested. This was

(08:32):
in effect a reply to the new attitude which Karl
Rothschild had assumed. People in Vienna were almost inclined to
call him a traitor or a deserter. The negotiations regarding
the refund of the excessive payments made for the support
of the army continued for some time. Austria maintained her
resistance against paying in full the amount demanded, until the

(08:53):
King of Naples finally yielded in order not to upset
the agreement arrived at. But he wished at least to
receive the interest on the excess that had been paid.
A memorandum on the matter states, the King does not
doubt that the difficult circumstances in which Naples has been
forced to accept her honorous obligation to the House of
Rothschild will so far influence the noble heart of the

(09:15):
Emperor that he will without delay carry out at least
this wish of the Court of Naples. The Austrian government
was to arrange the method of payment with the House
of Rothschild. This appeal, however, met with little success. Austria
finally paid only three hundred thirty eight thousand, five hundred
sixty four Gulden, which Rothschild took over on account of
his claim against Naples, and at the end of eighteen

(09:37):
twenty nine this settlement was accepted for the sake of peace. Although,
as in Karl's case, Metternich was sometimes not entirely in
agreement with the attitude of the brother's Rothschild, he always
came back to them again in both public and personal matters.
There was no other financier who controlled such large sums
of money and such important international connections. Moreover, it had

(10:01):
been the Chancellor's experience that the strictest secrecy was observed
and maintained by the Rothchilds in all transactions of a
delicate nature. In that respect, they were in marked contrast
to most other bankers, and this was of special importance
to a man in such a public position as Medinich.
Transactions constantly arose in which the financial interests of the

(10:21):
Imperial House, to which Medinich naturally always wished to prove
his devotion had to be made to harmonize with those
of the state in such a way as to avoid
any public criticism. The Rothchilds were particularly skillful in handling
such cases, and they thereby made themselves indispensable to Austria's
leading statesmen in spite of any disagreements. A striking example

(10:44):
of this was furnished when Medinich had recourse to the
services of the Rothchilds in connection with the financial affairs
of Marie Louise, wife of Napoleon the First and daughter
of Emperor Francis. Although she was far superior to her
husband in birth, this lady was in general character and
in intellectual gifts, no fit consort for the Corsican genius.

(11:04):
She remained with him as long as fortune favored him,
but when his collapse came, she left him with her
son and returned to her father without shedding a tear
for her husband. Notwithstanding Napoleon's entreaties, she never once expressed
the wish to visit him at Elba, to say nothing
of Saint Helena, Although it is true that if she
had so wished her father and still more, Medinich would

(11:26):
have opposed her. The Chancellor wished Napoleon's memory to be
completely obliterated, and he was particularly skillful in the case
of Marie Louise in exploiting her weaknesses to that end.
She was callous and pleasure loving and used to visit
fashionable spas. She lived only for her own amusement, and
did not even trouble to answer Napoleon's letters. In eighteen fourteen,

(11:48):
while the ex Empress was staying at Aix les Bayan's,
Medinich allotted to her as courtier. A man who not
only played the part of courtier but also had an
important political role in Medinich's service. Adam I Albert, Count
Vaughan Neeberg, was a handsome man of thirty nine. He
had lost his eye through a sword thrust in the
war and wore a black eye patch. He was a

(12:08):
smart and elegant officer, and had the reputation of possessing
unusual courage and exceptional intellectual and diplomatic gifts. It was
his duty to obliterate all thoughts of Napoleon and the
Empire in Marie Louise's mind, and to keep her from
all contact with any member of Napoleon's family or his supporters.
He was to be only too successful. The Congress of

(12:31):
Vienna had decided that the dukedoms of Parma, Quacenza and
Guistala should belong to Marie Louise and Count servanit E
t propriet as long as she ruled in accordance with
the principles of an absolute monarchy without constitution or representative bodies.
She thereby acquired a kind of private property in these
territories by the act of the Congress, this being quite

(12:52):
in accordance with the contemporary attitude of regarding a state
as a patrimony. It had, however, been laid down by
the Treaty of Paris of eighteen seventeen that these possessions
should not be hereditary, but should pass to another prince
on Marie Louise's death. Yet no provision had been made
as to how the transfer should be effected, nor as
to how the duchess's private property should be determined. Marie

(13:16):
Louise had entered Parma in eighteen sixteen, Count neeperg sitting
with her in her carriage. He had, in the meantime,
not merely obtained complete control over the Duchess's actions. As
Metternich had wanted, he had also won her heart. The
man in gold braided uniform sitting next her in her
carriage as Marie Louise entered Parma was already her lover,

(13:37):
and Napoleon the Great Emperor and General, her husband and
the father of her child, had been completely forgotten. The
affair was no secret at Parma, and it proved useless
to try to hush it up. It soon became publicly
known that on May first, eighteen seventeen, a daughter had
been born to Marie Louise and her courtier in the
palace of the ruler of Parma. This child received the

(14:00):
name Albertine at her christening. Two years later, on August eighth,
eighteen nineteen, Marie Louise gave birth to a son, who
received the names William Albert, Count of Montemuovo, this being
the Italian equivalent to the name nieberg Neburgh. Both children
were therefore illegitimate for Marie Louise's husband, from whom she

(14:20):
never obtained a divorce, did not die until May fifth,
eighteen twenty one, in his distant island prison at Saint Helena.
While the marriage between Knieberg and Marie Louise, who had
been living constantly together for some years, was celebrated in
secret in September eighteen twenty one. As the Duke of
Reichstadt was still alive. Neeberg feared that on the death

(14:41):
of their parents, his children might be left unprovided for.
He therefore begged Marie Louise while there was still time
to extract from her small dominion some money that could
be declared to be her private property so the children
could be given portions out of it. Marie Louise, too,
realized that something must be done for their future, since
on her death her lands would pass to another prince.

(15:03):
She knew that there was an intention to construct a
dukedom out of some Bohemian estates for the Sun by
her marriage with Napoleon, but nobody at Vienna knew anything
about the Montenwovos. Up to eighteen twenty six, the annual
income from the territories ruled by Marie Louise had never
been completely absorbed in administration, and it had been possible
to allot large sums to the building of castles and

(15:24):
bridges and to improvements in the ducal gardens Et cetera.
The Castle of Piacenza had been built, and the palaces
at Parma and Colerno had been magnificently refurnished. Bridges had
been constructed over the Tarro and the Trebia. A theater
had also been built, and a survey had been made
of the whole country. Nieberg argued that these outlays had

(15:45):
been a drain on Marie Louise's personal income, since it
could not be disputed that any balance left over in
administering the state belonged to the ruler. The expenditure in
question amounted to ten million, four hundred thirty five thousand francs,
and he said that she should ask that, at any
rate of part of this sum should be refunded in
cash and applied to forming a private estate for the Duchess.

(16:06):
Neieberd fully realized how far his understanding with Medinick went,
and that the Chancellor would not be able to refuse
his request. The General decided with Marie Louise that the
matter should at first be dealt with without mentioning the
Monteuovo children, but only the Duke of Reichstadt when necessary.
The General then wrote to Medinich to say that after
all the sacrifices which Marie Louise had made for the

(16:28):
peace and welfare of Europe, and in view of the
enormous benefits which she had conferred on her subjects, the
question of her personal and private property ought to be
cleared up. It was obvious that the castles, et cetera,
which had been built out of savings, were her own
private property, and in order to secure the furniture, pictures, library, horses,
and jewels, all of which she wished to leave to

(16:50):
her son, negotiations should be immediately entered into with her successors,
so that there should not be any dispute in the
event of her death. Neieberg proposed that either all the
powers should conclude a supplementary convention or alone should be issued,
whereby what was due to the Duchess could be made
immediately available. Nieberg pointed out in a memorandum written in
support of his contention that nobody can protest that, according

(17:14):
to the law of the land, the whole direct and
indirect income of the State, of whatever kind it may be,
is absolutely at the Sovereign's disposal, and she may, after
the expenses of the administration in all its branches, have
been met out of the annual budget, dispose of any
sum saved or balances left over entirely as she thinks fit.
Metderinik wanted to keep the other powers out of the

(17:36):
matter as far as possible, and advised, as a less
compromising procedure that a direct agreement should be reached with
the Duke of Lucca, Marie Luise's designated successor. He too
was in favor of the application of carefully designed measures
in order to place Her Majesty's property beyond the reach
of foreign claims, and in so far as it cannot
actually be taken out of the country to secure its

(17:58):
separation from the property of the st the issue of
an appropriate loan seemed to him to furnish an easier
way out. In considering a loan, he wrote, we have
it is true to keep in mind the fact that
Her Majesty is herself the beneficiary of the dukedoms, but
this does not constitute a reason for denying her power
to contract loans on the country's security by virtue of

(18:20):
her recognized sovereign rights. The justification for such a loan
was to be found in the fact that Marie Louise
has made notable and extraordinary sacrifices in carrying through important
works for the benefit of her subjects and the country,
and in order to a certain extent, to indemnify herself
for these sacrifices, without imposing new burdens upon her beloved
subjects or exacting the taxes due with excessive severity, she

(18:44):
has decided to have recourse to a loan. Metinich stated
emphatically that the questions of the Duke of Reichstadt's inheritance
of a civil list for Marie Louise or of the
distinction between private property and the public treasury should not
be brought before the public. The only result of this
would be to draw undue attention to the matter and
to compromise one's self. Neither did he consider it necessary

(19:07):
to go into any question of accounts with the public,
accepting such as had reference to the amount and conditions
of the loan. After lengthy correspondence, Neeberg reported in a
personal discussion of the matter with Medinich at Vienna that
her Majesty, the Archduchess has decided to propose to her
council that she shall apply one sixth of the state
property patrimonium which is valued at thirty millions, to the

(19:29):
formation of an allodial property, which would be hers to
dispose of as she pleased, and to make a gift
to her subjects of the rest of the sum that
she had used and works for the benefit of the
public wheal, the cost of which amounted to ten million,
four hundred and thirty nine thousand francs. Marie Louise wishes
to leave it to the Council to decide whether the
public debt of Parma shall be increased from its present

(19:50):
amount of four millions to nine millions, or whether steps
shall be taken to sell some of the state lands.
Medinich felt it difficult to come to a decision. The
problems involved were of a difficult and exceedingly delicate nature,
such as were hardly suitable for official discussion. He therefore
decided again to ask Solomon Rothschild for his advice. When

(20:12):
the question became acute, Metternich was staying on his Johannesburg
estate on the Rhine. He first informed Marie Louise that
he would ask Solomon Rothschild's advice on all these matters,
and that he was certain that Solomon would have the
most useful ideas as to the best way of carrying
out her wishes. He then wrote a long letter to Solomon,
carefully explaining to him that the Archduchess wished to have

(20:34):
available a capital some of from five to six million francs,
and to assure herself of the right to spend the
income derivable from it in such a manner as she
should deem fit. There were political objections to Neeperg's proposal
that state lands should be sold, while if she increased
the public debt, the Archduchess was afraid of losing popularity.
In my humble opinion, Metternich wrote, the following scheme might

(20:57):
be suitable. The arch Duchess should state publicly to her
council that she could just as well have applied to
state revenues used of her own free will in erecting
buildings for public purposes, or about to be so used
for acquiring a private property, but that she does not
intend to do this, that she is leaving for the
benefit of the state what has already been spent, as

(21:17):
well as what will be spent, but wishes to secure
a sum of five to six million francs out of
the whole amount for her free disposal. After making this declaration,
she should take up the sum as stated and deposited
in a form of bonds in her treasury. The transaction
may be a fictitious one, for she does not need
ready money. She could leave the securities in her treasury

(21:38):
or issue them in whole or in part. My idea
is that only five percent securities should be created. Mettonik
wished to have Solomon's views as to how this scheme
should be put into practice in detail, and on receipt
of the Chancellor's letter, Solomon hastened to submit his suggestions
for his Highness's wise consideration. In my humble opinion, he replied,

(22:00):
the object which you have in view could best and
most effectively be realized in the following way. The Government
of Parma should create for the total capital some involved,
a general inscribed bond made out in the name of
our firm, which bond should be deposited at the government's
option in the eye and our Austrian National Bank at
Vienna or in the Bank of Milan. On the security

(22:21):
of this general bond, we should issue barer certificates of
varying amounts, the holders of which should be competent to
change them at any time. For inscribed bonds registered in
the Great Debt Book of the State, Solomon submitted a
three percent WROT certificate, which the French government had privileged
his house to issue. A sinking fund would furnish the
necessary security and punctual interest payments should place the business

(22:44):
on a sound basis. Solomon certainly wished first to obtain
information regarding Parma's outstanding loans, but he did not recommend
sending anybody there yet. Perhaps he concluded your Highness could
obtain the documents relating to them direct from Parma. This
would not arouse attention, as would be the case if
I did so. Finally, I assure Your Plinness that I

(23:07):
shall most zealously use all my endeavors to deserve the
satisfaction of Her Majesty, the arch Duchess, as well as
the gracious commendation of His Majesty the Emperor in this matter, since,
as Your Highness is aware, I always deem myself richly
rewarded when I have the good fortune to contribute to
the fulfillment of the lofty aims of the Imperial Court
of Austria. This was Solomon's official reply for Mettinich's use

(23:29):
in dealing with Marie Louise. He sent also a covering
confidential letter intended for the Chancellor alone. I take the liberty,
in accordance with your Highness's wish, of writing a few
separate lines regarding the business dealt within the enclosed business letter.
I am pleased to say that I am confident of
arranging this matter to the full satisfaction of Her Majesty,

(23:51):
the arch Duchess, and of h M. The Emperor and King,
and of achieving the desired results. As the financial considerations
touch political questions at many points, I venture to give
it as my opinion that it is quite important for
the Archduchess to secure the capital in such a way
that after her death the claims of her legal heirs
cannot be disputed. The preparation of bearer bonds issued by

(24:13):
an eminent banking firm, the holders of which will be
constantly changing, seems to me to meet any possible eventuality,
for if anyone attempted to seize such certificates, such action
would ruin the credit of Parma for all time. Consequently,
all governments who have an interest in maintaining an inviolable
credit system would use their influence to prevent such a
thing being done. In my opinion, it would be better

(24:35):
to fix the capital sum not at six but at
ten millions, for, as your Highness has yourself indicated, the
state requires some millions for public institutes and buildings. In
this way, the bad impression which might, as the Grand
Duchess fears, be produced by the issue of the loan,
would be largely counteracted by a consideration of the fact
that the proceeds were to be adapted to purposes beneficial

(24:57):
to the community and to the country. If on my
return to Vienna, your Highness should feel convinced that my
personal presence in Parma would assist in promoting the business,
I should not hesitate for a moment to obey your
Highness's wish, which for me is a command, and should
immediately proceed thither. I shall count myself happy. Indeed, if
my efforts are crowned with the success we desire, and

(25:19):
if I carry through the business to Your Highness's satisfaction,
which I value above all else. Medinick acted in accordance
with Solomon's wishes and obtained documents regarding Parma's former loans.
These he forwarded to Solomon. They, however, did not sufficiently
enlighten Solomon. He wrote to Medinich that he could not
obtain a clear view of the situation from them, such

(25:41):
as was absolutely necessary to enable him to draw a
valid conclusion applicable to such an important transaction as was involved.
I therefore venture to suggest that Your Highness invite Her Majesty,
the Archduchess of Parma, to send to me a confidential
man of business, furnished with the necessary powers, so that
he can let me have any information I require, and
I can negotiate the matter with him under the direction

(26:03):
of your Highness. It is with particular satisfaction that I
am able constantly to assure Your Highness that I count
it the greatest honor to devote my best services to
her Majesty, the Archduchess of Parma, and to justify the
confidence which that gracious lady reposes in me. Solomon's wish
was granted, and Colonel Vaughan Worklin, who directly controlled the

(26:24):
Duchess's public purse, set off for Vienna, taking with him
a letter from Marie Louise to her father, the Emperor.
My one desire this year, she wrote, is to have
the great happiness of seeing you again, and I cherish
the firm hope that this may be fulfilled. This letter
will be brought by Colonel work Line, whom I am
sending to Prince Mednik in Vienna in accordance with his wishes,

(26:46):
so that he may give Rothschild all the explanations he
needs in the financial matter, which you know about the
loan itself, however, which is to clarify my claims on Parma,
will be formally negotiated and concluded here with the assistants
of the Finance President and a plenet potentiary of Rothschilds.
I will then be much more at ease regarding the future.

(27:08):
The main lines of the proposal to be submitted to
Marie Louise were decided in long secret conferences between Metternich,
work Line and Solomon. Solomon Rothschild had brought with him
a detailed memorandum in which he showed that the commercial
crisis had affected the credit of all states, so that
public enthusiasm for investments of the kind in question had
been considerably damped. Moreover, Parma's public debt was too small

(27:32):
to arouse interest in any of the principal money markets
of Europe. These facts were mentioned in explanation of the
rather unfavorable conditions which he was offering. He made it
a conditionio sine qua non, that the consent of the
Duke of Lucca, the presumptive successor, should be obtained. State
lands of the value of twenty five million would realize

(27:52):
only twelve to fifteen millions at the outside, so that
alone was preferable, but Parma would have to undertake not
to incur any further debt for a period of years. Finally,
Solomon's memorandum concluded, as his Highness Prince Vaughan Mederinich is
well aware local conditions in Parma make it of the
greatest importance that the government should be told most emphatically

(28:13):
to maintain the strictest secrecy regarding the proposed business until
the time comes for carrying it into effect. We must
also bear in mind that the new loan will almost
double the public debt of Parma, a fact which will
have afar from good effect upon the country's securities, so
that the loan cannot be issued at a very high price.
There was no fear that Medinich in work Line would

(28:33):
attempt to modify these conditions. They were far too well
satisfied that the matter was being arranged so easily to
attempt to obtain better conditions. They therefore signed the draft
agreement submitted by Rothschild and Mirabad, under which a loan
of six million livres bearing interest at five percent, was
to be issued at seventy five percent on the security

(28:54):
of the three dukedoms. Both bankers undertook the sale of
the bonds, stateding explicitly in the contract that it had
been arranged at the invitation of the Government of Parma
and under the auspices of His Highness Prince Mednik. The
government of Parma also undertook for fifteen years not to
issue any other loans without the consent of Rothschild and Mirabad,

(29:15):
to reduce the present loan by three percent per annum,
and to obtain the requisite consent of the Court of Luca.
Medinich and work Line agreed because they hoped easily to
secure the other's agreement. If he, the Duke of Lucca,
should refuse Meerinich wrote, we should simply carry on and
ignore him, that is, act against him. Medinich expressed his

(29:37):
satisfaction in a letter to Nieberg. In settling the matter
in this way, every factor has been carefully considered. The
best thing will be for your majesty to sell your
property to the House of Rothschild under a fictitious contract
and gradually invest the funds skillfully. You will thus find
in about twenty years that you have acquired the whole
capital sum that you want, without its having cost you

(29:58):
a hapany and you will all also, during the whole
of the period, have received nine percent interest upon it.
Unless I am very much mistaken, you will then possess
not merely six millions in cash, but seven or eight.
The Chancellor wrote a short letter to Marie Louise, in
which he expressed his satisfaction at the conclusion of such
an excellent arrangement which offered the prospect of achieving the

(30:20):
desired results in the simplest possible way. If on examining
the contract, he added, your Majesty shares my feelings, all
my wishes will be completely satisfied. Marie Louise, who understood
nothing of financial matters but gathered that she would obtain
the millions she wanted, agreed to everything, signed the contract
and rejoiced with Neeper that the future of her children

(30:42):
by the second marriage was now assured. She wrote to
her father, saying, I have accepted and ratified the fictitious
loan of three hundred thousand francs annuities which Prince Mednik
and work Line have concluded at Vienna with Rothschild and Mirabaud.
I should be glad if, when the Duke of Lucca
is being asked to give his consent, everything affecting my
private property and furniture could be cleared up at the

(31:04):
same time, so that after my decease, my son and
those persons whom I wish to benefit will not become
involved in actions and disputes with his successor. Marie Louise, however,
wished that Rothschild would carry out the agreement even if
the Duke's consent were not obtained. Mederinick informed Solomon of this,
assuring him that he would personally endeavor to secure the

(31:25):
Duke's consent, but Solomon was most unwilling to proceed without
this security. I must honestly confess to your Highness, he replied,
that I can see no prospect of this matter being
satisfactorily settled. In such a case, her Majesty cannot flatter
herself that it will be easy to double the country's
indebtedness and to find a market for such a large

(31:47):
quantity of bonds without offering the public every kind of security.
He therefore emphatically begged Mederinich to use all his influence
to secure the Duke's consent. The Chancellor concurred all the
more readily in my Roth's child's appeal, as he himself
wished to secure this consent in view of possible further developments,
Baron Vaughan Workline accordingly went to see the Duke of

(32:09):
Lucca with a letter from Marie Louise and Medinich. The
Duke unexpectedly made no difficulties. He authorized work Line to
write to Marie Louise and Mederinich and say that it
was a pleasure to him to be able to meet
the wishes of the Archduchess. He also permitted Neeper to
have an inventory taken of Princess Marie Louise's personal effects.

(32:30):
He stipulated only that the Duchess should not arrange any
further loan, that she should create a sinking fund and
sell no property belonging to the state. In the end,
all parties were satisfied, including the Austrian Treasury, which immediately
recouped itself out of the loan to the extent of
four hundred thousand francs dispersed on military expenditure and on
the maintenance of Marie Louise. During the years eighteen fourteen

(32:53):
to eighteen sixteen, Medinich wrote a self congratulatory letter to
Marie Louise herself, in which he said, the the matter
has so far worked out so entirely in accordance with
my wishes that I cannot refrain from congratulating myself for
having first conceived the idea of an arrangement that so
extensively harmonizes your Majesty's interests with the principles of justice.

(33:13):
There were certain distinctions to be conferred in connection with
this business. Metternich wrote to Nieberg, work line will have
told you that her Vaughan Rothschild wants a little Saint
George for his managing clerk. This indicates a certain amount
of vanity the Rothchilds, in spite of their millions and
their generous loyalty, having a craving for honors and distinctions.

(33:35):
At the same time, I feel that it is not
in the best of taste to ask that such an
order should be conferred upon a clerk. And I suggest
that you reply to this request that the Order of
Constantine is a knightly order. It constitutes a genuine religious
brotherhood and is not simply a distinction. And as that
the Jewish religion forbids its adherents to take the statutory
oath of the order, the chancellor of the order would

(33:57):
not be able to confer the cross. Temper your refusal
with appropriate expressions of your extreme regret, and the matter
will be disposed of. Write to her Solomon on these lines,
but do not mention me, as nobody can take offense
at a statutory provision, while a single personal remark can
do untold mischief, and I myself have committed the great

(34:18):
offense of making it impossible for all time for the
Rothschild family to obtain an Austrian decoration. If he thought
I was implicated, he would regard me as a positive Cannibal.
Medinich certainly did leave Rothschild under the impression that he
was prepared to use his influence in favor of securing
a distinction for Leopold Vaughan Werttheimstein. But Solomon himself had

(34:39):
been disingenuous in the matter. In putting his secretary forward,
he had himself in view, for if Wertthheimstein were to
be made a companion, he himself was bound to be
made at least a commander. As he took Medinich's pleasant
words at their face value and had no suspicion of
the correspondence quoted above, he wrote the following letter to
work line at Parma. I have just taken the opportunity

(35:01):
of asking our most esteemed Prince to lend his powerful
support to my request, and the gracious reply which I
have received from his Highness justifies me in anticipating that
if you will only be so good as to make
a suggestion in that quarter, his Highness will not be
averse from graciously acceding to it. I leave it to
you to choose the most propitious moment for putting forward
the proposal, having full confidence in your feelings of friendship

(35:24):
for me, which I know how to value. I feel
a correspondingly lively desire to find a suitable occasion for
reciprocating them, and you will afford me the best possible
proof of your friendship if you will give me an
opportunity of being of use to you on the earliest
possible occasion. Leopold Vaughan Werteinstein set off for Parma with
full powers to conclude the business. He brought with him

(35:46):
a secret letter from Metternich to Knieperk. To my great satisfaction,
the matter has gone through the letter ran, and something
must be done for the bearer. He is Roth's child's
right hand man and a splendid young fellow of first
straight intelligence. He hopes to get the minor cross. You
know my views on that matter. Give him a nice

(36:07):
present of a more useful kind. The deeds were sealed,
signed and delivered. The two contracting firms underwrote two hundred
and eighty four thousand lire five percent perpetual annuities representing
a nominal capital of five million, six hundred and eighty
thousand lire at seventy five percent i e. For million,
two hundred and sixty thousand lire altogether were to be

(36:28):
paid in monthly installments of three hundred and fifty five
thousand lire Rothschild and Mirobod were if possible, to sell
the securities within six months, and they received as their
commission two percent of the nominal capital of the whole
public debt of Parma, which amounted to twelve million, eight
thousand lire, so that they got two hundred and forty thousand,
one hundred and sixty lire. Marie Louise informed her father

(36:51):
that they had now concluded the contract with Rothschild and
Mirobod which Prince Medernik had prepared at Vienna, and that
she was exceedingly relieved. No sooner had the transaction been
completed than Solomon Rothschild began to wonder how Marie Louise
proposed to invest the sums of which she would become possessed.
He meant to get this business for himself to the
exclusion of his partner Mirobad, and he proposed to Medinich

(37:14):
that the Duchess should purchase shares in the Austrian National
Bank through the firm of Rothschild at a fixed average
price to be agreed, and deposit these shares in Vienna.
Medinich supported Solomon's plan because he hoped that the money
would thus certainly remain in Vienna and would not, as
the Emperor feared, be dissipated by the Duchess. He therefore

(37:34):
used his influence with Marie Louise and Knieberg in support
of Solomon's proposal, without considering that Solomon was hoping thus
to derive further profit from the transaction. While Wertheimstein was
on his way to Parma, Medinich had accordingly written to
the Duchess in the following terms, Rothchild has some ideas
regarding a transaction which is as easy as it should
be advantageous for your Majesty, and which he would like

(37:56):
to negotiate discreetly with some one who can be trusted.
Monsieur Mirobaud will be in Parma, and Rothschild's authorized agent
will not be able to discuss this matter in his presence.
I know what Rothschild has in mind, and I guarantee
that your Majesty cannot do better than to act in
accordance with his suggestions. Medinich wrote in the same sense

(38:17):
to Neeburg and asked him to send work Line to Vienna.
Work Line brought with him a letter from Marie Louise
to Medinich in which she said, you have always given
me such good advice that my interests cannot be in
better hands, and I am entirely relieved with regard to
my future. He also received a letter Fromknieburg's stating, for
Vaughan Wertheimstein has displayed as much zeal as he has understanding,

(38:40):
and her majesty has recommended that a ring with monogram
of the value of three thousand francs be given him.
Marie Louise also asked Medinich to let her know what
would be a suitable present for Solomon, as the statutes
of the Order of Saint George made it quite impossible
to admit him. Medinich and Rothschild discussed the proposed investment
of the money with work Line at Vienna, and work

(39:01):
Line brought a detailed memorandum to Marie Louise in which
Rothchild showed that it would be to her advantage to
sell the Parma bonds and to invest the money thus
made available in other suitable public securities. He pointed out
that the Parma bonds did not constitute as good a
security as those of larger states, since it was always
the smaller states that were first endangered through political movements

(39:22):
of any importance. He suggested that shares in the National
Bank would constitute an exceedingly good and safe investment. Solomon
Rothschild offered to carry through the business on the basis
of the average purchase price of the shares during the
years eighteen twenty five and eighteen twenty six, This price
to remain unaffected by any future changes, provided that he

(39:43):
was granted a share in the dividends. Marie Louise accepted
his offer, subject to the one condition that one third
of the share certificates should be sent to her at Parma,
the others being deposited in the treasury at Vienna. Marie
Louise maintained a constant business relationship with the house house
of Rothschild, even after the death of her second husband, Nieperk.

(40:04):
Everything connected both with the loan and with the budget
of Parma went off so well that in eighteen twenty
eight fully three million francs were made available for Rothschild
to apply in the purchase of one thousand and fifty
four National Bank shares. Marie Louise also entrusted Solomon with
the settlement of the moneys due from her Bohemian estates,
i e. Those of the Duke of Reichstadt and Moritz Goldschmidt,

(40:26):
a second secretary and confidential agent of Solomon, had to
make several journeys to Parma. When Marie Louise was staying
in Vienna in July eighteen twenty eight, Solomon had the
great pleasure of being received an audience by her. At
the end of eighteen twenty nine, Solomon sold Marie Louise's share,
and the money received was divided into three parts. The

(40:49):
amount of four hundred and eighty four thousand, eight hundred
and twenty four golden, realized by three hundred and sixty shares,
was put to a separate account m as a present
to the children William, Albert and Albert Mottenout. Two other
accounts were opened, for Marie Louise and for the Duke
of Reichstadt. The money was first of all left with
the Rothschilds, to be invested in other securities at a

(41:10):
suitable opportunity. The House of Rothschild had thus become the
trustees of the property of the Montemovo family, in which
were merged the amounts standing in the accounts of the
Duke of Reichstadt, who died early, and of Marie Louise
on their respective deaths. In view of the important position
which the Princes Montemwovo came to occupy owing to their

(41:31):
relationship with the Imperial House of Austria, Rothschild's connection with
the family was of great importance. Gainst viewed with satisfaction
the successes of his friend Solomon, for when his protege
later prospered, he was not left out in the cold.
At such times, Rothschild was easier in the matter of presence,
and Gainst scarcely, ever, allowed the occasion of one of

(41:52):
Rothschild's visits to pass without obtaining a loan he had
no intention of repaying. In return, Gens used his influence
with metdonate in Rothschild's favor. On the occasion of one
of these visits, the conversation turned upon Gerda, who had
requested the Austrian government to forbid the printing of one
of his works in that country. Gens asked whether the

(42:12):
house of Rothschild had come into touch with the poet,
who was also of Frankfort origin. They had, in fact
scarcely come into touch with each other at all, there
having been only occasional and casual meetings between them. This
was due primarily to the fact that Gerda did not
stay at Frankfort at all during the period between seventeen
ninety six and eighteen fourteen when the House of Rothschild

(42:34):
was first coming to the front, and that in later
years his visits to the town were always quite short.
He was indeed not much attached to his native town,
as is indicated by the fact that in eighteen seventeen
he renounced Frankfort's citizenship. Nevertheless, he, like the rest of
the world, heard of the remarkable success of the family
which had originated in the Jewish quarter of Frankfort. Born

(42:55):
of patrician parents, Gerda had as a child, as he
tells us in died of ng Uendi warheight, only rarely
peered at the ghetto as at a strange world. From
his earliest days, he had been brought up in an
atmosphere of hostility toward the Jews, and later, when his
intelligence matured, he had scarcely developed any more friendly attitude
toward them. These sentiments were often revealed in his conversation,

(43:18):
and the efforts of the Jews to secure their emancipation
would evoke harsh comments. The growing prominence of the Rothschilds
when he had reached an advanced age often led to
Gerda expressing his attitude on Jewish questions. The introduction at
Frankfort on September twenty third, eighteen twenty three, of a
new law permitting marriage between Christians and Jews was the

(43:40):
occasion of a passionate outburst in conversation with the Chancellor
von Muller. This scandalous law, the poet exclaimed, will undermine
all family sense of morality intimately associated with religion. As
it is when this goes through, how can a Jewis
be prevented from becoming principal lady of the bedchamber? Foreigners
are bound to think that bribery has been at work

(44:02):
to make such a law possible. I suspect the all
powerful Rothchilds are behind it. In eighteen twenty three, therefore,
Gerda was already referring to the Rothschilds as all powerful,
recognizing the fact that it was through their money and influence,
that the Jews have been enabled, with the support of
foreign powers, to get their way against the Senate and
citizens of Frankfort. The poet also inferred quite rightly that

(44:26):
the widely current myth that the Rothschilds had made all
their money very easily and practically at one stroke was
a pure fabrication. On October twentieth, eighteen twenty eight, he
was talking to Eckermann about the period required for cultural
or any other great achievements, and said, yes, my dear fellows,
it all amounts to this. In order to do something,

(44:47):
you must be something. We think Dante great, but he
had a civilization of centuries behind him. The house of
Rothschild is rich, but it has required more than one
generation to attain such wealth. Such things all lie deeper
than one thinks. In any case, this remark shows that
Gerda found food for thought in the phenomenon of the

(45:07):
rise of this family of fellow frankforters. With the Bethmann's,
Gerda was more intimate, and he was interested in watching
the rivalry between the two leading Frankfort banking firms. However,
as he had little understanding for financial matters, he was
amused rather than concerned about their rivalry and enjoyed retailing
good Frankfort jokes about Rothchild and beth Man and stories

(45:28):
of the way in which they spoiled each other's game.
It was only toward the end of his life that
Gerda actually met any members of the Rothschild family. In
his diaries we have only the short entry that on
May second, eighteen twenty seven, two young rothchilds with their tutor,
John Darby, called on Gerda. They were Nathan's two sons,
Lionel and Anthony, who were twenty three and twenty one

(45:51):
years old at the time. On August seventh, eighteen thirty one,
Gerda noted afterwards Frau Vaughan Rothschild a young bright person.
This may have been Betty, the wife of James Rothschild
of Paris, or more probably perhaps the wife of Solomon's
son Anselm, who had married his cousin Charlotte, Nathan's twenty

(46:13):
four year old daughter. The members of the Frankfort line
are not mentioned by Gerda at all. The only other
reference we find is to the effect that a few
days before his death, on March fourteenth, eighteen thirty two,
Gerda was contemplating in oil painting propped up on his
easel of the old bridge at Prague, which was to
go to Baron Rothschild at Vienna in view of these

(46:35):
scanty references, it is not unreasonable to assume that any
personal intercourse during the latter years was of an exceedingly
superficial nature, and that the Colossus of intellect and the
Colossus of money, both originating from the same native city,
had at only the most casual intercourse, their knowledge of
one another being derived practically from reading and hearsay. The
rothchild visitors referred to in the diaries were no doubt

(46:58):
typical of the innumerable person who called out of curiosity.
Gerda had to receive many such especially during the last
years of his life. It had become a special honor
to have seen the famous aged poet face to face,
and this visit no doubt constituted a small step on
the long road of social advancement. James in Paris had

(47:18):
had the best success relatively in making his way socially,
since society in that city, having been convulsed by the
changes of revolution and imperialism, did not hang together with
the same consistency as in England and Austria. With few exceptions,
the most distinguished representatives of all parties and classes were
to be found at James's house at that time, Metternich's son, Victor,

(47:41):
who had already contracted a fatal disease of the lungs,
was an attachee at the Austrian embassy in Paris. In
accordance with his father's wish. He had got into touch
with James, and he told the Chancellor of a visit
deamity which he had paid to Rothchild. I paid a
friendly visit, he wrote to Baron James. Yesterday morning. His

(48:01):
office was positively like a magic lantern, for people of
the most various appearance and every kind of expression were
constantly coming in and out. On that particular day, the
coming and going was specially noticeable, as securities quoted on
the Bourse were fluctuating violently. The great Banker himself, who
generally maintained an attitude of such dignified calm, betrayed a

(48:23):
certain nervousness. Our conversation was frequently interrupted by burse agents
reporting quotations to their chief. The Duke of Dalberg was there, too,
indulging in outbursts of liberalism. Prince Victor Metternich described other
strange callers who would take James aside, and all of
whom wanted much the same thing, money and more money.

(48:45):
This description of the office of the Paris Money King
showed how the House was constantly extending its sphere of influence.
In the course of time, however, an opposition party grew up,
both in Paris and in London, which attempted to check
the firm's growing power. Nathan Rothschild had not acquired the
Austrian title of Baron, as he would have had to
complete certain formalities as a naturalized British subject. He also

(49:09):
feared that it might be damaging to his recently acquired
British citizenship if he made use of a foreign prefix,
but he did not conceal from the Austrian ambassador, Prince Esterhazy,
that the title would have been welcome. The ambassador asked
Peel and Lord Aberdeen whether Nathan could be granted permission
to use it, and they stated that they were aware
of no objection, either legal or customary, to this being done. Nathan, however,

(49:34):
decided to go no further in the matter, as he
feared that his new fellow countryman might regard him as
a tool of the reactionary Metternich and in general, as
a supporter of the system represented by the government of Austria.
Strong opposition against the Rothchilds made itself felt when their
friend Harry's was suggested for the office of Chancellor of
the Exchequer on the reconstruction of the ministry consequent upon

(49:55):
the death of Canning in eighteen twenty seven. The appointment
of a Tory who would be so entirely amenable to
the King aroused a storm of indignation amongst the Whigs.
The appointment of Harry's had actually been approved by the King,
and he had been summoned to Windsor. Thereupon, Lord Lansdowne
and his party suddenly offered the strongest opposition and endeavored

(50:16):
to persuade Harry's to refuse office on the ground of
ill health. Harries refused to accede to their wishes, with
the result that his opponents mobilized the press against him
in order, if possible, to delay the appointment. The Times
and The Morning Chronicle expressed the view that the appointment
of Harry's was out of the question as he was
closely associated with a big financier who controlled the European

(50:38):
money market. Other papers took up the cry that this
fact made it quite impossible to appoint Harry's Chancellor of
the Exchequer. The Conservative papers took up the issue, and
for a week the whole British press was full of
the relationship between Nathan and Harry's. The First Lord of
the Treasury actually felt called upon to intervene in the discussion,

(50:58):
with a public denial. In the end, Harrys was appointed,
but he held office only for a few months. When
the Ministry of which he was a member was succeeded
in January by a new government under Wellington. Harries had
to resign the office of Chancellor of the Exchequer and
content himself with the post of Master of the Mint.
Nathan expressed his regret in a letter to Karl, written

(51:20):
half in German and half in Yiddish, which was intercepted
by the Austrian police. Consols. He said, have gone up
because of our ministers. Our friend Harry's is Brogs slang
forth annoyed because he has been given a poor job.
He is Brogs. But I cannot help him. He must
be patient and perhaps he will get another job. Praise

(51:42):
be to God that we have good news, as Russia
will wait through Wellington. Everybody is for peace. Scalum which
does not surprise me, for our King, in his speeches,
is nothing but scalum owl. Like him, peace be unto you.
In France, too, a new ministry had come to the
Helm in January eighteen twenty. The harsh, reactionary and clerical

(52:03):
regime of Charles the Tenth had aroused such opposition in
the country that, in an election affecting four hundred and
twenty eight seats, only one hundred and twenty five supporters
of the government were returned. Charles the Tenth was therefore
forced to dismiss villel and to send for Martignac to
form a moderate ministry, but he cherished secret plans of revenge.
Although the state of things in France afforded the Rothschild

(52:25):
some ground for satisfaction, the general situation in Europe was
anything but pleasant. The Greek problem was still unsolved, and
the Battle of Navarino, in which the Turko Egyptian fleet
was destroyed, produced a tense situation. This sought relief in
open hostilities between Russia and Turkey. The port went so

(52:45):
far as to declare that the Czar was the arch
enemy of the Turks. In these circumstances, Emperor Alexander's successor, Nicholas,
began to think of war, Whereas Medenich still congratulated himself
on having converted Alexander into an ultra from being a Jacobin,
and on having attached him permanently to his system. Nicholas
inclined to a Rusa nationalist policy. But for this and

(53:09):
especially for war against Turkey, he needed money. The Russian
government therefore inquired of the House of Rothschild in Paris
toward the end of March eighteen twenty eight whether it
would place its services at the disposal of the Russian
government for floating a large loan. The bank fully appreciated
the political nature of the question of financial assistance at

(53:29):
such a time and for such a purpose. While on
the one hand it was offered an opportunity of doing
big business, it might, on the other lose powerful patrons.
The Rothchilds had struck their roots in Western and Central Europe,
They had no considerable interests or connections in Russia, and
their minds were oppressed by the ill treatment to which
Jews were subjected in that country. It would moreover have

(53:53):
been exceedingly dangerous to come to Russia's assistance without the
Chancellor's knowledge at a time when Russian policy was starting
out on a line hostile to Metternich. James therefore decided
to communicate the inquiry he had received to Medinich through
his brother Solomon, asking the Chancellor to express his opinion.
Metternich naturally advised refusal, although his advice was clothed in

(54:14):
soft words through a third person probably dense. Solomon was
shown a memorandum in reply, entirely in Medinich's handwriting, although
composed in a third person. The Prince says the memorandum
ran that he entirely shares the opinions and sentiments of
Solomon Rothschild. There are two questions that have especially to

(54:35):
be considered in this matter. One is the purpose to
which Russia is going to devote the money, and on
this there can be no doubt. Russia is seeking money
in order to pursue her plans, and these plans threaten
the political peace of the world. In this case, therefore,
the money would be applied to the most evil ends
conceivable in the present dangerous condition of governments and of

(54:57):
affairs generally. The other question dan is whether if the
House of Rothschild refuses to do the business. Russia will
still find means for carrying through her plans. There is
no one better qualified to answer this question than Her
Solomon Meyer Rothschild, for he alone can judge whether, in
the present state of credit there is a possibility of
other firms being able to carry through such a considerable,

(55:19):
if acceptable business as Russia requires without the assistance of
the Rothchild Bank. If the answer to this question be
in the negative, the House of Rothchild would alone have
to accept the moral responsibility for all the evil which
would result from its acquiescence. If the answer be in
the affirmative, it remains for the House of Rothschild to
decide whether, merely to prevent others from securing the profit

(55:42):
they wish to take upon themselves such a heavy responsibility,
and incidentally, whether under prevailing conditions, and in view of
the risks necessarily attendant upon the carrying out of Russia's plans,
the entrepreneur would be reasonably certain of realizing his profit.
All these are questions which Her Rothchild is alone qualified
to decide. If the Prince be asked what he considers sensible,

(56:04):
he feels he must declare against the business. In any
case he advises her S. M. Rothschild to discuss the
matter quite frankly with Wellington and ascertain his views. Indeed,
he has no objection to the Duke being informed of
his the Prince's views. England was fundamentally opposed to Russia's

(56:25):
warlike operations against Turkey, and Nathan was therefore also against
granting the loan. Metdterinick's memorandum, moreover, did not fail of
its desired effect, for the Rothchilds, who had acquired their
enormous fortune by taking advantage of the cross currents of war,
were now opposed to all wars with their inevitable effect
of shattering public credit. They were also able to claim

(56:48):
approval from their corligionists for their refusal as constituting a
protest against the ill treatment of the Jews in Russia.
The Russian loan was frustrated, and Metonik ascribed this fact
principally to his doc dominent influence. The Chancellor deemed himself
superior to everybody, including the Rothchilds. He credited them with
a special knowledge of technical financial matters that he himself lacked.

(57:11):
But it never for a moment occurred to him that
they might be cleverer than he. Whenever the Rothchilds did
or omitted to do anything from motives of personal interest
which happened to coincide with Medinick's wishes, they always conveyed
the impression that it was Medinik who had won the
day and that they were making a sacrifice. Although not
free from vanity themselves, they recognized the great Man's weakness

(57:34):
very well and exploited it cleverly. It is true that
their refusal did not prevent the Russo Turkish war, for
other financiers were found to provide the Russian government with
the necessary cash. Solomon made great play with his refusal
of Russia's request to emphasize the extent to which the
intentions of the Austrian government and Mednick's wishes were regarded
as commands. Gens especially had this dinned into him daily,

(57:58):
so that he might be sure of retailers it to Metternich.
In return, Wertheimstein industriously discounted Gens's bills, greatly facilitating his
little financial transactions. The Rothchilds made extensive use of Gens
in other ways. Two he was paid to supply the
banking firm with political information the correspondence being carried on

(58:20):
in the form of private letters. This was an exceedingly
important factor during such an unsettled period. Solomon, who was
constantly traveling on business, was thus able to keep abreast
of events. The written method of communication was, however, maintained
even when Solomon was staying in Vienna, as he sent
the information on to his brothers. Meanwhile, the development of

(58:43):
events in France was becoming more and more menacing. Although
Charles the Tenth had at first seemed to yield, he
demonstrated that he was unteachable by summoning on August eighth,
eighteen twenty nine, the ultra royalist cabinet of Prince Polignac,
whose slogan was no more concession. Solomon, who was staying
in Paris at the time, expected that the news of

(59:05):
the change of ministry in France would exercise a marked
influence on the Vienna Bourse. He therefore sent a special
courier with this news and appropriate financial instructions to Wertheimstein
at Vienna. The letter was somewhat delayed, and when it arrived,
Wertheimstein feared that he might not be the only person
to have received the news, in which case he would

(59:25):
be selling during a slump and might sustain a loss.
I had difficulty, he replied to Solomon in the Hebraic language,
in carrying out your instructions received by the post of
the day before yesterday to sell five hundred metalliks and
all our shares on the bourse. This was much increased
by the fact that the postmaster of Sigardskirchen, who brought

(59:45):
us your letter himself, told us that another post had
arrived at the same time as yours, which most probably
also brought news of the change in the French ministry.
The above letter was intercepted by the police and a
copy was laid before Metternich. It shows the manner in
which the Rothschilds exploited political events, regarding which they always
endeavored through their own news and courier service to have

(01:00:08):
the earliest possible information. The Russians had meanwhile been carrying
on war against Turkey with varying success, and in August
eighteen twenty nine they had advanced through the Balkans as
far as Adrianople. Although their position was not by any
means free from danger, their display of energy led the
Sultan to sign a Treaty of Peace at Adrianople on

(01:00:29):
September fourteenth, eighteen twenty nine, which, although it did not
put Russia in possession of Constantinople, certainly secured her predominance
in the east, improved her boundaries against Turkey, and offered
great political and economic advantages. The Danube principalities served as
a pledge for Russia. The Russians controlled the mouth of
the river and the straits were opened to them. Turkey

(01:00:53):
was to pay eleven million, five hundred thousand Dutch ducats
as war indemnity. In order to carry out this obligation,
she applied to the principal European bankers, including Nathan Rothschild,
for a loan. Russia's successes gave little ground for satisfaction
in England or Vienna. They had necessarily been achieved at
the expense of England's influence. Moreover, since the beginning of

(01:01:15):
the war, Russia had ignored all the protests made by England.
Paulagnac was also disappointed, as he had hoped that European
Turkey would be partitioned and France would be indemnified by
territorial acquisitions on the Rhine. Nathan sent a report on
the situation to his brother Solomon in a letter written
in Hebrew, of which Solomon made a personal and therefore

(01:01:37):
very poor translation for Metainick's information. I am now going
to tell you, my dear Solomon. The letter ran all
about how everything is here so far. There are some
here who want to quarrel and that with Levin and
want us to send angry notes because Polgnac is angry too. Now.
I have spoken about the Turkish loan and they said

(01:01:58):
to me Austria will do it, but it can't be
done without us in England, Rothschild speak to Wellington. I
must tell you Wellington and Peele would like to quarrel
with Russia, but in the end we should have to
go to war. I am not for demonstrations, and we
must see to maintaining peace. What's the good of quarreling.

(01:02:19):
The Russians have gone too far, and the world will
be angry with us and will say why didn't you
do it twelve months ago? If England now says yes,
we are angry and want to go to war, Austria
and France will say we will remain out. They will
leave us in the lurch and we shall be involved alone.
I went to Wellington and congratulated him on peace. He said,

(01:02:42):
peace is not yet, it is not yet ratified. I
spoke with him about Turkish loan, as to whether he
would give a guarantee. He replied, no, I cannot do
so at the moment. You must get Austria to see
to that. Another minister said to me, I am a
fraid we shall make an enemy of Russia if we
guarantee alone. The matter needs consideration. Perhaps the Turks will

(01:03:07):
give the island of Candia as guarantee. Wellington also said
to me that many people had been to him who
wanted a guarantee. There is dissatisfaction with the Russian peace
in every respect. The Cabinet has now decided for the
present to remain quite calm and not to write a
word to Russia, to keep quiet and to let come
what may. I shall certainly not leave you without news

(01:03:30):
as soon as I hear anything further. Political considerations alone
prevented the Rothschilds from participating in a Russian loan before
the war or in a Turkish loan after the war,
for they had not been severely hit by such few
failures as they had suffered, and their wealth had increased
enormously during the last few years, so that the banking
firm of the Five Brothers of Europe, as the House

(01:03:52):
of Rothschild was called in several papers, had several million
of cash available for which it was seeking profitable employment.
As a result of their happy knack in floating loans
that almost immediately afterward were most favorably quoted, all countries
wanted to have recourse to the Rothchilds for their loans,
and a positively jealous rivalry developed to secure their favor.

(01:04:13):
While needy states were seeking opportunities for obtaining money on credit,
the Brothers Rothschild were looking for safe and profitable investments
for their accumulated capital. The State of Prussia again entered
into negotiations with the banking firm. The five percent interest
payable on the five million pound loan of eighteen eighteen
was a heavy burden on the state budget. All states

(01:04:36):
at that time were endeavoring to convert their public debt,
and the Prussian finance Minister Motts wished to reduce the
interest payable on the state debt of thirty six million
failures from five percent to four percent. The finance Minister
entrusted the preliminary negotiations to Christian Rather, an important Treasury
official and president of the Public Debt Administration who had

(01:04:56):
arranged the loan of eighteen eighteen with the Rothschilds. Rather
asked that he should not be hampered by detailed instructions,
but that full confidence should be placed in him, as
that was the only way in which he could be
sure of success. From the start. Rather thought of no
one but the Rothschilds. He went to Helgeland in July
eighteen twenty nine, where he met a confidential agent of

(01:05:19):
Nathan's and had a noncommittal discussion with him about the business.
He then went to Frankfort and negotiated with the house there,
but he was offered conditions. He could not accept gratuitous
interference by business men. Here. Rather reported to his Sovereign
has caused the Frankfort House to suspect the possibility of
making large profits. In the course of our conversation, conditions emerged,

(01:05:43):
all of which I had to reject as being damaging
to the interests of your Royal Majesty. I stated definitely
that I would have to transact the business in question
through the shipping interests unless Solomon Vaughan Rothschild at Vienna
would carry on the further negotiations, as I could not
undertake a journey to Lundon. Rather, thereupon decided to negotiate
with Solomon, who, as he believed, had unlimited confidence in him.

(01:06:08):
He met him at Tropau on December twenty fourth. They agreed,
subject to Nathan's concurrence after two days discussion, which was
sometimes heeded on a draft agreement which Rather declared to
be extraordinarily advantageous, adding that the state could not have
secured such conditions through other channels or with other firms.
Rather wrote, I have succeeded in obtaining what we wanted

(01:06:31):
throughout and in some matters far beyond my expectations, through
the good nature of Solomon Vaughan Rothschild, who is really
an estimable person. Under the agreement, the State of Prussia
was to issue a new loan of three million, eight
hundred sixty thousand, four hundred pounds and four percent Prussian
bonds at ninety eight and a half through the House
of Rothschild, the proceeds of which were to be devoted

(01:06:53):
to redeeming a like amount of five percent bonds of
the eighteen eighteen loan within about two years. On signing
the agreement, rather had to promise Solomon to indicate to
his Royal Majesty that Solomon had not done this business
for financial gain, but regarded the whole affair as a
matter of honor. Bennick Vaughan Groeditzberg reported some details of
the Tropau discussion to Berlin. Solomon Rothschild told me at

(01:07:17):
the time he wrote that in concluding this business a
highly profitable one for the State of Prussia, in my opinion,
he had had the honor of his house, particularly in
view he attached the greatest value to demonstrating to the
Royal Government of Prussia that the consolidation of its public
credit and the fulfillment of the assurances which his house
had given in this matter were of more importance in

(01:07:38):
his eyes than any considerations of private profit. While I
do not wish to suggest that the least value should
be attached to the unimportant part which I have played
in this transaction, I consider it to be my duty,
in all humility to inform Your Excellency of the sentiments
expressed by her Vaughan Rothschild, which I believed to be
sincere we owe it entirely to him and to the

(01:07:58):
efforts of her. Rather that this business has been put
through to the credit and profit of Prussia's finances. Rather
similarly reported to the King that this extraordinarily favorable agreement
had far exceeded anything that he had expected. Nathan in
London and his brother at Frankfort were less well satisfied.
At first. They turned the agreement down absolutely, but they

(01:08:19):
had misgivings about disavowing their brother in Vienna, and Nathan
contented himself with sending Solomon's son, Anselm, who was then
twenty seven years old, to Berlin to delay the signature
of the agreement and to secure improvements and alleviations. He
was to agree only if better conditions were unobtainable. Rather
offered a stout resistance, and in the end, after some

(01:08:41):
mutual concessions of minor importance, the matter was settled. The
three million, eight hundred and nine thousand, four hundred pounds
in five percent debentures still outstanding with respect to the
eighteen eighteen loan were to be fully exchanged for four
percent bonds for the same amount by October first, eighteen
thirty two. In US five half yearly transactions. Rather, himself

(01:09:03):
was very high in praise of his own work. This contract,
he reported to his sovereign, is purely advantageous to the state,
and constitutes the first example of a financial operation by
a great state for the reduction of interest on a
large scale, in which the nominal amount of the death
has not been increased. The interest payable on a debt
of about twenty seven million failures being reduced from five

(01:09:25):
to four percent. The commission of one and a half
percent is quite negligible and scarcely covers the cost of
such a transaction. The King expressed his satisfaction with Rother
and wrote, saying, I gladly assure you also that the
conditions have led me to the conviction that Baron Solomon
Vaughan Rothschild concluded the agreement with you in the interests
of the State of Prussia as a matter affecting the

(01:09:47):
honor of his house. Wherefore I particularly instruct you to
convey to him my satisfaction. It was all an affair
of disinterestedness and honor, and Rather was zealous in emphasizing
this aspect to his royal master. It was a matter
of satisfaction to him too that the business had gone
through so well, and in praising Solomon, he was indirectly

(01:10:08):
praising himself for getting such good terms out of an
astute business man. Yet in normal circumstances, Solomon might have
been able to make the transaction a highly profitable one.
All that he needed was a continuance of fair weather
on the Bourse and the absence of any violent external influences.
While the operation affecting the millions of pounds worth of
Prussian securities was carried through, such conditions apparently obtained at

(01:10:32):
the time for the Russo Turkish war was over, the
general situation in Europe was tranquil, and there then seemed
to be no risk in carrying through operations on the
burse Further loans immediately followed on that of Prussia. The
Austrian government also wished gradually to proceed to the conversion
of her five percent state debt to four percent, and

(01:10:52):
the Ministerial Conference decided on the issue of a loan
of from twenty to thirty million golden four percent state
debentures through the four Native banking firm in which Solomon
Rothschild had come to be included. After the ruin of
the Fry's bank. Count Cholerat, who had been appointed head
of the Commission of the Privy Council to control the
financial administration, had recommended this issue on the ground that

(01:11:13):
the interest rates obtaining in Germany, France, England and Holland
were lower than four percent, and a reduction in those
countries either had been or was about to be undertaken.
It did not seem that there was any prospect of
political complications. For some time the loan was decided upon,
and on April third, the Emperor expressed his special satisfaction

(01:11:34):
with the conduct of the four banks. On this occasion,
Rothchild certainly endeavored to get rid of the bonds as
speedily as possible, and invested all the ready cash in
the three accounts of Marie Louise of Parma in the
new four percent Metallik's bonds at the issue price, subject
to a commission for his trouble, on the ground that
they were a particularly safe investment. Metternich had to use

(01:11:56):
Solomon's words in constant and zealous endeavor to be of
surin to her majesty. The Archduchess made it clear to
him that he must devote himself as much as possible
to the interests of the Montunuovo family I have repeatedly
endeavored to demonstrate. Rothchild replied that I am filled with
the same zeal to show this to Her Majesty again,

(01:12:16):
and also to please your Highness, I will now undertake
to forego the commission which Her Majesty has allowed me
in the past on the investments that I have effected
in Austrian securities, as far as the capital of the
Montanuovo family under my control is concerned. And I hereby
declare that, when the time comes, that family shall enter
into the new bonds at their issue price, without my
having derived any benefit from them. Rothschild did, in fact

(01:12:40):
waive the commission on account M and reduced the commission
on the two other accounts by one half. He did
this the more readily, as he had already made a
large profit out of the Parma business. But his sacrifice
of the relatively trivial commission made a good impression. It
was just such an occasion as Solomon would use for
playing up to his reputation for interestedness and honor. In

(01:13:02):
any case, Solomon was unable at once to find purchasers
for the large volume of security issued in connection with
the Austrian loan. In addition to the Prussian and Austrian
loans just described, they undertook an operation on a far
larger scale, fraught with far more serious consequences, namely the
underwriting of eighty million francs of French rant needed by

(01:13:22):
the French government to pay for the Algiers campaign on
which it had just embarked. Several rival firms had stated
that they were prepared to deal with it. Aguado offered
seventy three to underwrite it at ninety seven to fifty
five percent, A consortium headed by Mallet Freres offered ninety
eight percent, the Syndicate to Receivers General offered one hundred percent,

(01:13:43):
and the Rothschilds one hundred and two point seven two
half a percent. The rivals perceived, wrote cape Fague that
in future nobody would be able to stand against the Rothschilds.
Even these gigantic transactions left them unsatisfied. They suggested to
Marie Louise that the public debt of Parmes should be converted,
and they also wanted to maneuver the House of Bethman

(01:14:05):
in Frankfort out of a connection it had recently established
with Austria. Solomon Rothschild had been informed by the Finance Minister,
Count Natasty that the Austrian administration was proposing to convert
all its five percent securities to four percent. He promised
on his journeys to ascertain foreign sentiment regarding this proposal
and to let Vienna know the result of his investigations.

(01:14:28):
In June eighteen thirty he made his first report to Natasty.
It was sent from Frankfort and contained a proposal which,
in its essentials, was directed against the House of Bethman.
His idea was that the five percent Bethman bonds which
were still in circulation should be redeemed at Frankfort by
cash payments at par through the Frankfort branch of the House.

(01:14:49):
Your Excellency, he wrote, is not unaware of my deep
devotion to the Austrian State, which is shared by all
my brothers and partners. I trust that you are convinced
that we always have the best interests of the treasury
in view, and that it must be our principal concern
to fulfill Your Excellency's wishes to the best of our ability.
The taking over of the beth Man bonds was to

(01:15:10):
serve to secure and hasten the conversion operation as far
as possible, and create enthusiasm abroad for the transaction. Not
until he had delivered the five percent debentures did Solomon
wish that his firm should receive four percent debentures at
the rate of one hundred and five florins for each
hundred or treasury notes or money, or whatever else the
authorities considered most convenient. Since my brothers and I, Solomon continued,

(01:15:35):
have no keener desire than constantly to furnish proofs to
the Austrian State of our most disinterested service, unaffected by
any private interests. We flatter ourselves that your Excellency will
receive our most dutiful offer with your customary kindness. He
hoped thereby to make the conversion more popular abroad. Your Excellency,
he continued, may be convinced it is neither pride nor

(01:15:57):
self interest that induces me to take this matter up,
as I have already had the honor to prove to
your Excellency. I always speak openly and sincerely, and I
can absolutely assure you that if my suggestion be adopted,
the conversion will go through speedily and successfully. If therefore
your Excellency is agreed that direct cash payments shall be
made through my Frankfort house, which I flatter myself possesses

(01:16:20):
the confidence of the public, we shall arrange for such
payments to be made not to her Bethman here, but
by us direct to the holders of the bonds. The
Austrian Treasury thereupon asked the firm of Bethman to submit
a preliminary memorandum on the question of conversion. This was done,
and the authorities forthwith sent this memorandum, which naturally differed

(01:16:41):
in many respects from the Rothschild's offers to Amschkal At Frankfort.
He made some very sharp comments on Bethman's document, ascribing
its feebleness to that bank's lack of resources and knowledge.
If that firm, he wrote, is really serious about the
conversion and means to throw itself heart and soul in
God to the business, it is inconceivable that it should

(01:17:02):
have neither the confidence nor the means to acquire the
small quantity of six hundred four percent Metallik's bonds in advance.
Smaller firms without such a well known name or such
a position as the firm in question would certainly have
offered to do so. The Rothchild memorandum described the reasons
put forward by Bethman as evasions, because that firm was

(01:17:23):
not strong enough and did not sufficiently possess the confidence
of the public to carry out so great an operation.
Amskill Meyer asked Solomon, who was about to make a
journey to Paris, to come and see him at Frankfort
in order to discuss the matter. The memorandum of the
Frankfort Rothschild, written in grotesque German, ran the same Solomon

(01:17:44):
assured me on his honor that he was not actuated
by the least resentment at the conversion, having been entrusted
to the house of Bethman. He also asseverated that his
house was devoted life and sold to the Austrian government,
and that both his honor and his private interests were
involved in caring through the conversion. He had negotiated the
French and the Prussian loan, all these things hanging upon

(01:18:06):
one another and being interdependent, and he did not propose
to act against his own interest. His house held fifteen
to sixteen million gulden of Austrian public securities, which he
could produce on demand, whereas the House of Bethman had
neither the resources, nor the knowledge of markets, nor the
influence that were necessary. Not one of its partners had
the requisite energy to take control of such a business.

(01:18:29):
The memorandum went on to state, it is possible, and
indeed probable, that one or more banking firms and their
supporters believe, if they directly or indirectly got fabricated articles
into the papers and spread unfounded rumors on several courses,
they could put the House of Rothschild in an unfavorable
light to the Austrian government and at the same time
extend their own sphere of influence. We had expected such

(01:18:52):
irresponsible newspaper articles as those that recently appeared in some
French papers attributing the fall and wrought to the action
of the House of Rothschild on the ground that we
wanted to get rid of all our want at any price,
because we had taken over a Turkish loan of eighty
million francs. They will not be the last, as they
are not the first of their kind. The memorandums set

(01:19:13):
forth that important firms dealing with governments would always have
such fanciful stories attached to them. Truth and justice were however,
bound to prevail, and such lies would meet their own
reward by coming to the rescue with the greater part
of its cash resources. The House of Rothschild had quite
recently in May prevented a terrible crisis on the Frankfurt Bourse,

(01:19:35):
which would have had serious consequences in other money markets.
Even now, the political situation was far from satisfactory. In France,
nobody knew what was going to happen, while in England
the king was ill and a change of ministry expected.
The memorandum concluded on its original note, asking that the
Rothchilds might convert the Bethman debentures. The Finance Minister, Count Madeste, was, however, unshakable.

(01:20:01):
He was not willing to offend the House of beth
Man by allowing the conversion to be carried through by
a different firm from that which had originally negotiated the loan.
The brothers Rothchild were then holding enormous quantities of state
securities in addition to their large Austrian investments. They held
millions of the newly issued French front as well as
the bonds of the conversion loan of Prussia. The Rothchilds

(01:20:23):
were therefore overstoked with bonds at a time when the
general state of Europe might change from one of apparent
calm to one of acute crises. While James did not
feel that the political situation in France was wholly satisfactory,
he did not realize how critical it really was. He
gave balls which were attended by princes such as the
Duke of Chartra and the Duke of Brunswick. He supported

(01:20:46):
French theatrical undertakings to give performances abroad, as in Vienna,
for instance. He was associating with princes and ministers and financiers,
but the opinions that he heard were so various and
so conflicting that he did not feel he could predict
the future with any confidence. James's own particular domain, the
sensitive burse, was already showing signs of the coming storm.

(01:21:10):
On June first, there was a severe slump, and several
politicians implored Rothschild to use his power to prevent a collapse.
The Duke of Decayses wrote to him, if you do
not succeed in preventing the fall and values, every one
will believe that a coup d'eta will occur such as
you so rightly fear, for you may be sure that
in such a case no creditor would be paid his debts.

(01:21:32):
James Rothschild thereupon hastily went to see Polgnac, as he
had so often done before, and was again reassured by
him anything of the kind was again out of the question.
The bourse and the public were nervous. That was all. Solomon,
the chief of the Vienna House, had in the meantime
also come from Frankfort to Paris. He had promised Metternich

(01:21:54):
he would send an accurate report as to the state
of affairs in France, and faithfully fulfilled his promise in
spite of all difficulties. His first report, dated June nineteenth,
eighteen thirty, reads as follows, Most Eminent Prince, I hope
that your Highness is enjoying perfect and constant well being
on your beautiful estate. I am taking the liberty of

(01:22:16):
reporting to you my arrival here the day before yesterday.
I am venturing already to avail myself of the permission
accorded me by your Highness to inform you occasionally of
political events here through other than the ordinary channels. So
far as I have had the opportunity during my short
stay here of ascertaining from conversations with well informed persons
of all parties and opinions, it seems that the spirit

(01:22:39):
of opposition, which has grown so very much more embittered
in the last month, is directed not against the sacred
person of the King and the dynasty of the Bourbons,
but only against the leaders of the present cabinet Messrs.
To Polignac and Parinet. Solomon still hoped that peace might
be maintained, but he viewed with dismay Polgnac's intention of
changing the electoral and press laws to which he adhered

(01:23:01):
in spite of the strongest representations. The whole tenor of
Solomon's report revealed his uneasiness. Shortly afterwards, Solomon reported that
the result of the new elections had been markedly unfavorable
to the government. The generally prevailing spirit of opposition had
infected everybody, with the result that element's hostile to the
Ministry had been returned to the Chamber. In fact, the

(01:23:24):
elections had resulted in only one hundred and twenty five
supporters of the Ministry being returned, for four hundred and
twenty eight seats. The list is odious and contemptible. Count
of Ponia reported to Vienna. The Ministry was dismayed and
shocked by the result. The idea of changing the electoral
law was again being mooted. Such a step, Solomon wrote

(01:23:46):
to Metternich, might lead to the most unforeseen results. Meanwhile,
the King is firmly determined not to weaken his royal
prerogative at any point, for he knows only too well
from his own experience, how quickly one concession leads to another,
and how gravely the royal authority is endangered thereby. The
general situation was exceedingly unpleasant, although Solomon and James, especially James,

(01:24:10):
still hoped that the storm would pass over. But at
the end of June, rumors were thickening to the effect
that the King and Polagnac meditated a coup destas to
rid themselves of the inconvenient Liberal Chamber before it met,
and to limit still further the rights of the people.
Those who accepted these rumors or whose actual knowledge confirmed them,
secretly sold large holdings of bonds in the London market,

(01:24:32):
and the House of Rothschild, being interested in maintaining their value,
was forced to buy them. James Rothschild, believing that as
State banker he must necessarily be in the confidence of
the government, was convinced that before any such fatal decisions
were made, he would surely be consulted, or that at
any rate, he would be given a hint before any
vital step was taken. He heard nothing, however, and the

(01:24:55):
rumors of serious steps contemplated by the government increased. On
such one day, July twenty fourth, James accordingly decided to
go to Monsieur Parrinet, Minister of the Interior, and ask
him what it all meant point eighty one. The Minister
expressed his astonishment that such an intelligent and well informed
man as James should attach any significance to such gossip,
and pointed to his office desk covered with letters summoning

(01:25:18):
the newly elected delegates to the first session of the Chamber.
In a reassured frame of mind, Rothschild went to dine
at the country house of Madame de Thuritt, where the
whole diplomatic corps had been invited. People asked him anxiously
about the situation. He told them about his call on
the Minister and the letters summoning the delegates. Which he
had seen, and his statements reassured the diplomats who were present. Meanwhile,

(01:25:43):
the ministers were secretly framing the famous Ordinances, in which
the King, on Pollgnac's advice, dissolved the hostile chamber before
it had ever met, ordered new elections on a different
electoral basis, and severely limited the freedom of the press.
Early on July twenty sixth, eighteen thirty, the ordinances were published,
to the general astonishment. The secret had been most scrupulously kept.

(01:26:07):
The whole capital was swept by indignation. Everyone said that
this meant the end of all liberty and the relapse
of France into the darkest medievalism. The press was particularly
vocal and protested most vehemently in spite of any ordinance.
The excitement in Paris was prodigious. High barricades were erected

(01:26:28):
in the principal streets, The populace collected in groups, marching
through the streets, shouting menaces at the king. Shops with
weapons and military stores were plundered, and strong opposition was
offered to the royal troops, who were completely unprepared and
were present only in small numbers under the command of
Marshal Marmont, who was himself taken by surprise. Stones were

(01:26:49):
thrown at the windows of Polignac's private house, and his
carriage was almost smashed to pieces. By July twenty eighth,
the rising was in full swing. The streets re echoed
with shouts of down with the Bourbons, down with the ministers.
The garrison consisted of only twelve thousand men, and large
sections had gone over to the rebels. The remainder were

(01:27:12):
far from being sufficient to hold down the indignant city.
By July twenty ninth, the revolt had extended to the
whole of Paris. The royal troops were slowly forced back
on Saint Cloud, where the king anxiously awaited the development
of events. He was now prepared to revoke the ordinances,
but it was too late. Not only his position, but

(01:27:33):
that of the whole of his house had collapsed. The
Louver and the tilleries, defended by Swiss troops, were stormed
by the populace. The revolution was victorious all along the line.
On July thirty first, Charles the tenth and his guilty
ministers fled. Their dominion was at an end. If the
monarchy was to be maintained. Only one thing could make

(01:27:56):
this possible. The old line of the Bourbons must be eliminated.
Recourse would have to be had to the king's rival,
Louis Philippe of Orleans, son of the notorious Philipe Egolitae
of the days of the Great Revolution. This prince played
his part very cleverly. He contrived to make the people
feel that they were conferring the crown upon him. His

(01:28:16):
liberal views and his simple, unadorned appearance as he courageously
showed himself to the angry mob, did not fail of
its effect. The old Royal House was finished, the Orleans
followed it, and Louis Philippe became head of the state.
James and Solomon were both in Paris during this period
and were reduced to a state of the greatest anxiety

(01:28:37):
as the revolution proceeded. They were not only afraid for
their wealth. As foreigners who had been so closely associated
with the hated king and his ministers, they went in
fear of their lives, holding, as they still did, such
a large amount of paper from the state loan they
had just taken over. They had watched with the greatest
dismay the catastrophic fallen wrought amounting to twenty two thirty

(01:29:00):
percent during the first days of the revolution. But this
fear was for a moment kept in the background by
their immediate bodily danger. Although their nervousness in this respect
proved to be unfounded. The Revolution of July was a
bourgeois revolution. The people, it is true, sacked a few
royal chateaus, but the life and property of private persons

(01:29:21):
were spared. Nathan Rothschild appears to have been the first
man in London, apparently by means of a carrier pigeon
sent by his brother to receive news of the great event.
Even if this particular is unfounded, it is clear that
he received news of events at Paris before the British government.
Talleyrand once stated in a letter to Madame Adelaide, the

(01:29:42):
sister and adviser of King Louis Philippe, the English ministry
is always informed of everything by Rothchild ten to twelve
hours before Lord Stuart's despatches arrive. This is necessarily so
because the vessels used by the Rothchild couriers belong to
that house. They take no passengers and say in all weathers.
On July thirtieth, by which time peace had been restored

(01:30:05):
in the capital after the unexampled tumult and indescribable disturbances
of the previous three days. Solomon Rothschild remembered his promise
to report to Metternich. We have been completely out of
touch with the ministry for several days, he wrote, as
we do not even know where the ministers are. We
are also told that the king has left his residence
to day for the vendee. The Tricolor flag is flying

(01:30:28):
on all public buildings, and the diplomatic corps here has
ceased to function. Solomon's view was that the issue of
events must be quietly awaited. He feared a civil war,
and according to rumor, the Duke of Orleans had accepted
the crown. Such is the state, he continued, to which
the self confidence of three or four ministers has reduced

(01:30:48):
France in three or four days. Rothschild described how a
new administration was being set up in the capital with
the support of from thirty to forty thousand men drawn
from the dregs of the population who had been let
loose against the king's troops. It could certainly not be
denied that the people had behaved well for apart from
the King's property, no public or private property had been touched.

(01:31:11):
Even while the excitement was at its height. It is satisfactory,
Solomon admitted to see the uniforms of the regular citizen
Guard appearing at every corner. They are forty thousand strong
and often protected the city from pillage. In eighteen fourteen
and eighteen fifteen, the confirmation of the rumor that the
Duke of Orleans had accepted the crown was a great

(01:31:31):
relief to the brother's rothschild. In spite of their connection
with Charles the tenth and his ministers, they had rendered
financial services to the Duke of Orlands too, and had
thus come into touch with his house. They felt that
they had been in a sense betrayed by Charles the tenth,
as he had never informed them of the ordinances, and
now that the Duke's star was in the ascendant, they

(01:31:52):
saw a profitable opportunity of changing their allegiance. They accordingly
began to sympathize with the victorious Revolution, and a letter
from Solomon to a friend clearly shows that they were
preparing to play up to the new powers. In that letter,
Solomon spoke of the general indignation aroused by the ordinances.
There was no armed force, he said, that could have

(01:32:13):
controlled the people beside themselves with rage, who felt that
they were being led to the slaughter by their king's command.
The nation would have let itself be cut in pieces
before submitting again to the domination of the Bourbon family.
Solomon referred to the fears aroused by such a terrible explosion,
but said that everything had fallen out in the most
amazingly satisfactory manner. Private property had not been in danger

(01:32:37):
for one moment, and in fact, the people had refused
money they had been offered. The troops and the people
had fraternized everywhere, and all were forsaking the cause of
Charles the tenth, and turning to Lewis Philippe, who claimed
to have been always devoted to liberty and to constitutional ideas,
he was being received with the greatest enthusiasm wherever he appeared.

(01:32:58):
The Rothchild's change of front was thus clearly stated. The
revolution had triumphed and the old powers were finished with,
and the new man in whom they trusted seemed to
be firmly in the saddle. They immediately adjusted their policy accordingly,
and James offered his financial services to the new powers
in the state. In spite of the losses incurred through
the fall and the funds, and the continuing uncertainty, the

(01:33:21):
news of the entirely unexpected revolution and the success it
had gained in such a short time profoundly affected the
whole of Europe. All governments saw with dismay how France
Pandora's Box, as Leopold of Coburg called her, was again
spreading terror and unrest over Europe. There was a slump
on all the courses. While the hope of liberty ran

(01:33:41):
high among the peoples, the consequences for Metternich's peace of
the world seemed unpredictable. It had been the worst possible
blow for the Chancellor and his system. At the time
of the outbreak of the disturbances, he was staying with
Ghents at his country place Koenigswort in Bohemia, and he
received the first news of these EVAs events through the
Frankfort ambassador, Baron Vaughan Munch Bellinghausen, who had received the

(01:34:04):
news from Rothschild. It is remarkable evidence of the efficiency
of the Rothschild news service, even during times of such
disturbance that both the British government and the powerful Chancellor,
who controlled the vast diplomatic machine of the Austrian Empire,
should have received the first news of these important events
from the house of Rothschild. Munch Bellinghausen's report, dated Frankfort,

(01:34:26):
July thirty first, was based on a letter from Solomon
and James in Paris, which Meyer Amskill had received at
Frankfort on the thirtieth, and upon a short report brought
by a messenger Rothschild has just received through a courier
who left Paris on the twenty eighth. The report ran
a short letter from his brothers telling him not to
worry about them, as they were well and hoped that

(01:34:47):
things would improve within a few days. They could not
write him any news, and the courier would tell them
everything verbally. The courier's statement is to the effect that
Paris is in a state of great commotion, followed a
description of the serious disturbances at the beginning of the revolution.
Metternich and Ghens were at first unwilling to believe the news.

(01:35:09):
The Chancellor had just expressed his great satisfaction at the
issue of the ordinances. He was now quite terrified, he
kept hoping that the news would not be substantiated. I
confess to you, gents, wrote to Pilot immediately after the
first news was received, that I believe all this to
be only partially true. The mysterious letter from a panic

(01:35:30):
stricken Rothschild and the stories of a courier are doubtful sources,
but it is certain that things are not well. Nevertheless,
the Rothschild courier was right, and liberals throughout Europe took
courage from what had happened in Paris and felt that
freedom was in the air. The news of the revolution
resulted in a catastrophic slump on the Frankfurt burse and

(01:35:51):
masses of securities were thrown on the market. While Meyer Amskill,
being the first to receive the news, had made some
provision for this, he had not been able to do
much in the short time available, and the collapse of
all public securities reduced him to a state of panic.
He applied his efforts to keep the disaster within bounds.

(01:36:11):
When disturbances consequently broke out in several German cities, and
it was feared that they might occur in Frankfort too,
the Senate called up the special constabulary so as to
be ready for possible attacks. Amskill, who as a result
of the last settlement, enjoyed the rights of citizenship, took
up his duties as a special constable. When his turn came,

(01:36:32):
he had more reason than any one else in Frankfort
to fear for his possessions, and he heard with terror
that outside the city walls the peasants were plundering country
houses and driving landed proprietors from their estates. He anxiously
awaited his brother Solomon, who had just informed him that
he would arrive from Paris early in September. He wanted
to enlighten the head branch of the firm as to

(01:36:53):
the present political situation in Paris, and to discuss the
measures to be taken to meet the terrible losses which
the House had incurred in these hours of danger, affecting
the very existence of the house. The unity and harmonious
collaboration of the brothers was particularly vital. On his arrival
at Frankfort, Solomon was able somewhat to reassure Amskill at

(01:37:14):
any rate as to the momentary position in Paris. After
the abdication of the king, The funds had somewhat improved
during the last few days as compared with the lowest
point which they had touched, and the proclamation of the
Duke of Orleans had had a very good effect. Solomon
described that event as a particularly fortunate one for the
House of Rothschild. Their difficulties consisted in their large holdings

(01:37:38):
of securities. They would not be able at the moment
to get rid of the enormous stock of French rant,
except at very heavy loss. The conversion loan with the
Prussian government, arranged during a boom period, would also prove
to be a ruinous business. Austrian securities were still the best,
but these two had suffered somewhat. The solution was get

(01:37:59):
out out of all engagements, have lone, agreements, rescinded wherever possible,
and especially the new Prussian loan. Amskill promised to put
out feelers in that direction, and especially to try to
secure rather support. After the most pressing matters had been
agreed upon, Solomon immediately returned to Paris, where his presence
was urgently required. The news of the July Revolution had

(01:38:23):
already begun to produce disturbances in all the states of Europe,
and there was the danger of fresh complications in the
form of military intervention by the absolutist conservative powers, whose
peace was threatened. There was still a possibility that the
danger to the House of Rothschild arising out of the
July Revolution might be averted, but if a European war
were to break out, securities would continue to fall in

(01:38:46):
value and the very existence of the House would be imperiled.
The brother's slogan, therefore was avert war at any price.
It was in their favor that the new king feared
a campaign against his usurped powers and was anxi at
all costs to avoid external complications. He was at pains
to show the powers that if he had not stepped

(01:39:06):
into the breach, France must have fared far worse, and
that possibly it would even have come to the establishment
of a republic. In order to put this view to
Mettinich more particularly, the King made use of James Rothschild.
In the middle of August, as a member of the
Associated at Antiquites, James was one of a deputation to
congratulate Lewis Philippe on ascending the throne. As the deputation

(01:39:30):
was leaving, the King signaled to James to remain behind
and made the following remarks to him, having seen the
happiness that I enjoyed in the bosom of my family,
such as accorded with my peaceful and entirely unambitious disposition,
You know me too well to be deceived for a
moment as to the state of mind in which I
am approaching my present task. In giving up such a

(01:39:51):
pleasant and carefree existence in order to mount to a
throne set with dangers and difficulties, I have made an
enormous sacrifice for my country. France was heading straight for
a republic, she would have ruined herself and perhaps the
whole of Europe with her. The monarchist principle has triumphed
over anarchy. My most ardent desires are centered upon the

(01:40:12):
peace of Europe, and I hope that the states will
resume their former friendly relations with France and come to
have confidence in France's new government. James saw to it
that this was accurately conveyed to Mednick at Vienna, and
that the call to peace was properly emphasized. Meanwhile, there
were occurrences in Paris that threatened further risings in various
states of Europe. Countless emigrants from the period of the

(01:40:36):
Neapolitan and Spanish revolutions, thought that the moment had come
for resuming their revolutionary activities. The Rothchilds knew some of
these people and heard of their plans, and they did
everything possible to induce the new authorities in Paris to
refrain from supporting their efforts. What, for instance, would be
the fate of Neapolitan bonds, which had already slumped heavily.

(01:40:57):
If General Peppe, who was staying in Paris, were, as
Solomon put it, began to arouse the spirit of the Carbonari,
a rising was expected hourly in Spain. The Wrothchilds immediately
informed the newly constituted French government of everything that they
heard of these activities, and through a common friend, they
also put Metternich in possession of such information. Count de Mole,

(01:41:20):
Solomon wrote to Vienna is well aware of all these
activities and has been enlightened as to the importance of
suppressing them in the general interests of peace and of
the tranquility of France. He fully shares our convictions in
this matter, and is applying all the means at his
disposal to frustrate these and scrupulous schemes. I hope, my
dear friend, that you will observe the strictest confidence in

(01:41:42):
the use you make of this communication. It was made
to me under the seal of the strictest secrecy. It
would be exceedingly unpleasant for me if there were the
slightest suspicion that I had breathed a word about it.
For this reason, I am not signing this letter. Owing
to their excellent connections, the wroth chick Childs were thus
receiving the most important and confidential information. In spite of

(01:42:03):
the complete change in affairs, The new King, Louis Philippe,
and the bourgeois ministers who now received the seals of office,
had the greatest interest themselves in seeing that peace was maintained,
that law and order was restored, and that private property
was not interfered with. The aims of the Rothschilds were identical,
and they were to learn Louis Philippe's intentions from the

(01:42:24):
best possible source, namely the King himself. On September seventh,
eighteen thirty, James was received by Leuis Philippe in private
audience and discussed the general situation with him. My brother
Solomon reported thereon to Vienna yesterday had the opportunity of
a leisured discussion with the King of France. The King said,

(01:42:45):
with regard to Austria, which was strengthening her forces in
the Italian provinces, that she should not go too far
with her military preparations, as this alone would automatically lead
to war. In the end, my brother represented to the
King that he was not dealing for firmly enough with
the activities of the Spanish and Neapolitan exiles in the
heart of the capital itself, and that such laxity might

(01:43:06):
produce the most pernicious results. The King replied that he
was using every means in his power to frustrate the
agitator's schemes, but that his mandate as a constitutional monarch
involved limitations which he could not legally exceed. The King
assured me that he was opposing revolutionaries in all countries
as far as his position as a constitutional monarch allowed

(01:43:27):
him to do, but he stated that he was compelled
to show a certain regard for liberal aspirations. I should
be exceedingly glad, he said to James, if you could
possibly be the means of communicating my views to his
Highness Prince Vaughan Medderinich, and request him, in his wisdom
to make urgent representations to the Court of Naples, so
that it may be moved to make a few concessions

(01:43:47):
in the general interests of the country and in accordance
with the progress of contemporary ideas. Solomon skillfully incorporated in
this letter, which he intended Mederinich to read, a few
flattering remarks about the Chancellor attributed to Lewis Philippe. The
letter concluded with the following words, such, my dear friend,
are the essential points mentioned in my brother's conversation with

(01:44:09):
the King, with the exception of certain highly placed persons,
observed the strictest secrecy in regard to it, and accept
again the assurance of my most friendly sentiments. The fears
that the revolutionary movement might spread prove to be well founded.
The July Revolution produced repercussions throughout Europe. Apart from minor

(01:44:30):
disturbances in Germany, Italy and Spain, there were serious risings
leading to important results. The peoples of the Kingdom of
the United Netherlands, which have been welded together in eighteen fifteen,
without any consideration of the diverse populations of Belgium and
Holland living within its boundaries had long been restive. On
August twenty fifth, eighteen thirty, revolution broke out in Brussels,

(01:44:54):
as the result of which a change in the form
of government, separation from the Dynasty of Orange, and indeed
the as severance of Belgium from Holland were demanded and
soon afterwards achieved. This produced a severe crisis in the
commercial world and increased the fears of a general European war.
For news was received from both Vienna and Saint Petersburg
that the authorities were not merely determined to suppress these

(01:45:16):
revolutionary uprisings individually, but also proposing to use military force
against the new regime in France, as the breeding place
of all these dangerous movements. Meanwhile, Solomon had returned from
Paris on a most important mission. His brothers had urged
him to bring all his influence to bear upon Metternich
to restrain his warlike zeal from embarking on such an adventure, which,

(01:45:39):
quite otherwise than in the case of Naples, would be
fraught with the gravest consequences, such as nobody could foresee
for Europe in general, and for the House of Rothschild.
In particular, Solomon was to do what he could in
the way of direct, written and verbal communications with the Chancellor,
and also to bring pressure to bear upon Gainst daily
while enlisting the influence of third persons whom he had

(01:46:00):
placed under financial obligations. His brothers in London and Paris
unceasingly urged him in their letters not to flag in
his efforts. James wrote on November twenty fourth, eighteen thirty,
my dear brother, an Austrian courier, will be passing through Frankfort,
so I am taking this opportunity of writing to you.

(01:46:21):
I hope that as Uncle Metternich will be back in Vienna,
you will know more about what is happening. You know
that Count Sebastiani, Minister for Foreign Affairs, has given me
permission to call on him every morning. I am on
the most friendly terms with him, a fact which is
not likely to be displeasing to Uncle, as it enables
me often to let you have advanced news. He said

(01:46:43):
to me, my dear Rothschild. The one question is are
the foreign powers seeking an excuse to declare war on
the King? It will be a murderous one. If they are,
and God knows when and how it will end, we
will leave nothing undone to preserve peace. We will do
every everything possible. And the King sent a man to
Brussels yesterday to beg that the Nassaut dynasty should not

(01:47:05):
be excluded and to say that if it behaved foolishly,
it was at its own risk, as France would not interfere.
Talleyrand has been written to in London to try and
settle the question between Holland and Luxembourg. Sibastchani told me
that the King had had a very long conversation with
a pony Eye and had no other wish than to
preserve peace. Therefore, my dear Solomon, do try to find

(01:47:28):
out the position. For even though we are not carrying
out any transaction in Rant, we have a holding of
nine hundred thousand rant i e Eighteen million francs nominal.
If peace is preserved, they will be worth seventy five percent,
while in case of war they will drop to forty five.
We should not be certain of dropping twenty five to
thirty six percent, and I should say that we better

(01:47:49):
go straight and secure ourselves. You have no idea what
the position is here with regard to actual rant people
are selling every day in England, and today I sold
twenty five thousand francs again in London, but I see
no real sellers. And in spite of all the military preparations,
Derontiers are not getting nervous because it is not consistent

(01:48:10):
with sanity that the powers should now undermine industry, trade
and public credit through a war. Meanwhile, my dear Solomon,
the whole world is arming, and this fact alarms me.
They are already telling us here that they are going
to station a defense force of three hundred thousand men
on the frontiers. Now. Experience, unfortunately teaches us that military

(01:48:31):
preparations very easily lead to war, and if anybody wants war,
we shall have it. Believe me, I feel sure that
it depends now on the Prince alone, and he can
use the opportunity to influence France as he wishes. If
Uncle wants peace and convinces our government that he does,
we shall have peace, and he will certainly have a
firmer control over affairs here than he had in Pollgnac's time.

(01:48:54):
For neither the Ministry nor the chambers are as has
been supposed ultra liberal indeed, their views have been modified
so much that they are much more inclined to royalism
than in Pollennac's time. You can see a proof of
this in their way of dealing with the Spanish revolutionaries.
There are no more clubs or popular gatherings. Each day
we have new laws for maintaining peace. There are no

(01:49:17):
posters or top thumpers. The revolutionary papers are being suppressed.
SIBASTCHANI also said to me the one person for whom
I have unbounded admiration in all the ministries is Prince Metternich,
and he will find me a straight man to deal with.
I want to maintain the existing agreements, but if he
means to declare war on us, we must conclude an

(01:49:37):
agreement with England. But believe that I am making every
effort to maintain peace. As far as I can see,
the issue of peace or war depends entirely upon your Prince.
Stuart believes that peace will be maintained. That peace and
war are being discussed a great deal, but that peace
will prevail. I beg you, if there is any news,

(01:49:58):
send somebody to Strasbourg or sen the special courier here,
because it makes a great difference. We have been cautious
enough to consolidate our position by realizing a large holding
of wroant at a loss. And I am convinced that
if peace is maintained, rot will improve in three months
by at least ten percent. Since there is a shortage
of actual wrant on the market and the bare speculators

(01:50:18):
require millions to cover, and it would be a very
good thing to recover part of their ill gotten gains
from these wretched people. And this is just the moment
for doing so. You yourself will see, my dear brother, how
exceedingly important it is that I should have the earliest
possible news of what we are to expect. People are
for war here to day because of an article in

(01:50:39):
the journal the debats. Everybody here is very pleased with
a pony. I I assure you one nearly loses one's
head here because common sense is in favor of peace,
but warlike ideas are getting the upper hand. I am
hoping to have full news from you at an early date,
and am your very affectionate brother no signature. This effusion

(01:51:01):
was followed three days later by a second letter my
dear brothers, the news that the Belgians have dethroned. The
Orange dynasty has shocked everybody deeply. Rodt fell to sixty
point two five, but closed at sixty one point one
nine and the five Percents at ninety one point one five,
while Ducats were sixty five point four zero. As the

(01:51:23):
Bourse was closing, it was stated that La Fitt would
make a speech on Monday demanding five hundred thousand men,
not that France should intervene in Belgian affairs, but only
for her own security. I spent a long time with
la Fitt and Sebastiani. I have never known them so moderate.
They said to me, we sent somebody to Brussels and
they did not listen to us. Are we to set

(01:51:46):
Europe ablaze in order to put Monsieur Meroud on the
Belgian throne. The powers are arming and we must do
the same. We have bought one hundred thousand muskets in Hamburg.
We have also bought munitions at Frankfort, as we must
take precautions and the inter of the powers are identical
with ours. They said that they definitely believed that there
would be no war, but the Belgian affair complicates everything

(01:52:08):
very much. Good news is supposed to have been received
from Russia. I shall probably send you a courier on
Monday night or on Tuesday with the speech, if it
is important and likely to be helpful. The moderates, such
as Purier and all the rest are wild and are
screaming against Russia, saying that the publication of Emperor Nicholas's
letter was an insult to the nation. You have no

(01:52:31):
idea of the war's spirit among these people, but it
is clear that none of those in real authority wants war.
Do tell the Prince these things, my dear Solomon. The
massing of troops exasperates them. Hence these great preparations be assured, however,
that it depends entirely on the Prince whether we have
peace or war. If we have war, I see the

(01:52:53):
whole of France putting up barricades, and I assure you
I tremble for Germany. The people are like a lion,
and it is not well to rouse such a strong
and powerful nation. This all amounted to the fact that
Sebastiani wished to warn Austria through Rothschild, not to prompt
Russia to make war or to arm herself. While such
developments might prove embarrassing to the new government in France.

(01:53:17):
They might also produce results disastrous to all absolute governments.
On receipt of these letters, Solomon went to see the
Prince and Ghents and gave them copies. He tried to
read the mind of the Chancellor and if possible, to
influence him. Mettonik repeated his well worn phrases, and, realizing
that his reply would be conveyed to the French government

(01:53:37):
through James, just as that government's views had been conveyed
to him by Solomon, he uttered an emphatic warning that
Louis Philippe should render no assistance to revolutionaries in any
country if he was concerned for the continuance of his
rule and the maintenance of peace. Solomon thereupon replied to James,
my dear brother, I have received your valued communication of no.

(01:54:00):
November and conveyed its contents to the Prince. One may
now infer that the French government must be principally concerned
to secure its own position, and will therefore have no
use for mere adventures like Mole and broy On. Behalf
of the Prince, Solomon conveyed an assurance that he also
desired peace, but that he would strike a blow in Italy,

(01:54:20):
not against a power, but against the revolution, which had
to be fought everywhere in the interests of peace and order.
If France permitted this, it would not be troubled and
peace would be maintained. But if not, there would be war,
in which case Austria would certainly not stand alone, for
it would be in the interests of all governments to
support the state which desired nothing but peace and order.

(01:54:41):
I have also informed the Prince of your inquiry, Solomon continued.
If General Sebastiani wishes to say anything to him, as
man to man, it is perfectly open to him to
do so, either through you or through any particular person
in whom he has confidence. Metdinik thus appointed the Rothschilds
over the head of his Paris and bans Basster, as
the channel of communication between him and the French cabinet.

(01:55:04):
This implied extensive confidence in them and was a priceless
advantage to the Rothchilds, for it meant that during those
dangerous times, they would receive news of the most important
decisions before anyone else. However, they continued to be in
a state of great anxiety as to whether peace would
be maintained their losses already amounted to millions. In accordance

(01:55:25):
with their own estimate, perhaps deliberately somewhat exaggerated, they had
irrevocably lost about seventeen million gulden at one blow through
the July Revolution. A war might cause further losses and
perhaps occasion the collapse of their house. Even the tame
extracts from the Rothchild Paris letter made for Prince Mednick's
benefits still sounded exceedingly menacing. We have received your valued

(01:55:48):
letter of the tenth of this month. One of these
letters ran and regret to learn that your securities are
falling as badly as ours. Yesterday things got a great
deal worse. War is on every everybody's lips. There are
those who want war for its own sake, and those
who wanted to take the public's mind off the proceedings
against the ministers. Sibaschani remarked today that it would be

(01:56:10):
better for the public to have something else to think
of now than these proceedings, and that after the action
things would be much better. Others such as our friend Stuart,
are of a different opinion and think that after the
action things will be much worse. And that we shall
have nothing but war to think about then, and that
the present ministers are not strong enough to adopt an
unpopular line. Ronk remain at fifty eight point five zero,

(01:56:33):
and from today all the Guard's natiorios must wear uniforms,
so that you will see nothing but soldiers on the
bours were several soldiers in uniform. This does not look
like peace. Last night Lafitt said that war was less
likely now than ever, and that everything possible will be
done to avoid it. He hopes that Prince Medernik will

(01:56:54):
seriously think of means for settling matters before all. The
powers have their armies equipped and every thing is ready
for war. For as soon as the young French are ready,
and anything happens to set them off, the devil himself
won't stop them. Frankness and mutual forbearance are more than
ever necessary. I read out to General Sebastiani what you

(01:57:15):
told me about uncle. He said that he was pleased
with everything I had heard from the good gentleman. I
assure you that he actually used the word good. He
went on to say, I am doing everything possible for peace,
and I do not see what we should go to war. About.
I have given orders in Italy to be accommodating to
Austria in all matters. If, however, which God forbid, anything

(01:57:38):
should happen there, I do ask, for God's sake not
to let troops march into any other country, for that
might produce war. You see, my dear brother, that the
issue of war and peace really does hang on a
thread to day. God grant that everything may remain peaceful
in Italy. For if God does not maintain peace, he
alone can say what will become of Europe. James might

(01:57:59):
have n of us after Europe. It is exceedingly probable
that the original letter did contain some such phrase, for
the passage quoted was only a carefully selected extract made
for the benefit of the Chancellor. And indeed, when in
the last days of November a rising broke out in
Poland against Russian rule, the danger of hostilities against France,

(01:58:21):
which stood before the world as the originator of all
these revolutionary troubles, became particularly acute. The future destinies of
the House of Rothchild largely depended upon whether the decision
should be for peace or for war. They redoubled their
efforts to win the statesmen and persons in power for
the cause of peace. The three brothers in Paris, London,

(01:58:42):
and Vienna arrivaled one another in their feverish efforts to
influence their country's policies. Amschkill Meyer at Frankfort had meanwhile
been allotted the task of relieving the House of Rothschild
from as many of its financial agreements and obligations as
he possibly could. Karl stayed with him in order to
help in this labour. Of Sisyphus. Involved in dealing with
the enormous ramifications of businesses that were mostly in a

(01:59:05):
bad way, the great question continued to be war or peace.

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RISE OF ROTHSCHILD - 6. House of Rothschild Rides the Storm: Finance in the Age of Revolution - Count Egon Caesar Corti

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.css-14f5ked{margin:0;word-break:break-word;display:-webkit-box;-webkit-box-orient:vertical;box-orient:vertical;-webkit-line-clamp:2;overflow:hidden;}RISE OF ROTHSCHILD - 6. House of Rothschild Rides the Storm: Finance in the Age of Revolution - Count Egon Caesar Corti