RISE OF ROTHSCHILD - 2. The Rothschild Family During the Napoleonic Era - Count Egon Caesar Corti - SECRETS OF POWER: Masters of Politics, Strategy & War

Episode Transcript
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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 two. The
Rothschild Family during the Napoleonic Era. The turn of the
century coincided with an important part of the wars against
the French Republic arising out of the Revolution. The Peace

(00:21):
of Luneville, concluded in eighteen o one, had set the
seal on the brilliant Bonaparte's territorial victories, thereby giving France
the leadership on land, while however, England's pre eminence at
sea was confirmed. Although Buonaparte had overcome all his other enemies,
he was bound to admit that seagard England had maintained
its position. The Treaty of Amiens, which followed upon that

(00:44):
of Luneville, merely marked a transition stage and was bound
to lead to a resumption of the struggle until one
of the two great opponents should lie bleeding on the ground.
This struggle was the predominant feature of the next fifteen
years and converted almost the whole of the mainland of
Europe into a theater of war. The result was that
innumerable substantial firms, banks and private persons lost their property,

(01:07):
while on the other hand, persons possessing industry, energy and
resource with a flare for turning opportunity to account were
enabled to gain riches and power at any rate within
their own caste. The Rothschild family had at that time
achieved a position in which their future was bound to
be profoundly affected by political developments. As early as eighteen hundred,

(01:28):
their father, Meyer Amskill had been the tenth richest Jew
in Frankfort. The only question was as to the attitude
that the head of the business house and his sons
would take in the stormy times that were to follow.
Numerous competitors were richer than they, or as rich, had
better and older connections, and some had been received into
the Christian Church and no longer suffered from the stigma

(01:49):
of Judaism. The Rothchilds, on the other hand, had the
advantage of a chief who was industrious, energetic and reliable,
and a man of intelligence. He had to have help him
four hard working sons who were developing into first rate
business men under the guidance of their father. One of these, Solomon,
had just married Caroline Stern, herself the prosperous daughter of

(02:11):
a Frankfort tradesman, and had thus been enabled to found
a home of his own. The third son, Nathan, was
living in the camp of Napoleon's great enemy, England. In
hat country, with its sea power and its worldwide commerce.
His undertakings were far better protected against Napoleonic interference than
those of his father and brothers on the continent. He

(02:31):
was able to form a much more dispassionate judgment of
the great events which followed so rapidly upon one another
during those years, and was in a better position to
turn them to account. Moreover, Nathan was the most enterprising
of the five sons, of which fact his decision to
go to England was itself an indication. The commercial activities
of the House of Rothschild and Frankfort itself were not

(02:53):
limited to one branch of business. It took any chance
of earning a profit, whether as commission or forwarding agents,
or in the trade of wine and textiles, which had
recently been declared free and in silk and muslin, not
to mention coins and antiquities. The wine business in particular
expanded greatly, and Meyer Amskill did not fail to use

(03:13):
every opportunity for extending his connections with princes and podentates
even beyond the sphere of the Duke of Hesse. One
of the most important connections established at Frankfort was that
with the Princely House of Thurn and Taxis, the head
of which Prince Karl Anselm held the important position of
hereditary postmaster in the Holy Roman Empire. This family was

(03:34):
of Milanese extraction. In Italy, it was known as Delatory
in France as de la Tour. It had invented the
idea of a post and had introduced a postal system
in the Tyrol toward the end of the fifteenth century.
In fifteen sixteen, it was commissioned by the Emperor Maximilian
Eye to inaugurate a mounted postal service between Vienna and Brussels.

(03:56):
Even at that early date, the dignified rank of postmaster
General was conferred upon one of its members. That was
the starting point of the impressive development of the Thurn
and Taxis postal system, which came to embrace the whole
of Central Europe. The head offices of the system were
at Frankfort, but the family were not satisfied with the
normal development of their undertaking. They turned the information obtainable

(04:19):
from the letters entrusted to their charge to profit. The
end of the eighteenth and the beginning of the nineteenth
century saw the development of the practice of opening letters,
noting the contents, and then sending them on to their destinations.
In order to retain the postal monopoly, the House of
Thurn and Taxis offered to place the Emperor in possession
of the information derived from the so called secret manipulation

(04:41):
of letters. If therefore one were on good terms with
the House, one could easily and swiftly obtain news and
also dispatch it in the course of time. Meyer Amskill
had come to realize that it is of the greatest
importance to the banker and merchant to have early and
accurate information of important events, especially in time of war.

(05:01):
As his native town was the headquarters of the postal
and Information Service, he had had the foresight to get
into touch with the House of Thurn and Taxis, and
had transacted various financial matters to their great satisfaction. It
was on this fact that he relied when he appealed
to the Fountain, head of the Imperial Postal Service at Frankfort.
His Imperial Majesty himself in a petition to his Majesty

(05:24):
that he and his sons should be granted the title
of Crown Agent. Meyer Amskill brought forward precisely those matters
from which he had derived the greatest prophet, namely his
financial and commercial transactions in the war against France, and
the services which he had rendered to the House of
Thurn and Taxis. He had been honest and punctual in
his business dealings, as those witnesses would testify. Who Indorsidi's petition?

(05:48):
The Roman German Emperor, whose power at this time was
practically limited to the granting of honors, did actually consent
to grant Meyer Amskill the title of Imperial Crown Agent
by a patent dated January twenty ninth, eighteen high hundred.
Not only was this a passport to him throughout the
whole of the Roman Empire in Germany, it also carried
the right to bear arms and liberated him from several

(06:09):
of the taxes and obligations laid upon the Jews of
that period. The patent and the title were signed and
granted by francis Io simply as Roman German Emperor, and
had nothing to do with Austria or Austrian government. Departments.
It was not until much later that the brother's Rothschild
entered into actual relations with Austria and her statesmen. Even

(06:29):
as late as seventeen ninety five when the Landgrave of
Hesse lent the Emperor of Francis a million gulden, and
in seventeen ninety eight when he lent him an additional
half million. Other bankers conducted the transaction, the Rothchilds having
nothing whatever to do with it. The dispensations enumerated in
the Imperial Patent were more or less paper ones, since
most of the smaller or greater territorial princes of whom

(06:52):
there was such a plenitude in Germany in eighteen hundred,
applied their own laws and regulations. This, however, was a
consideration with Meyer Amskill. The important point was that the
new title Imperial Crown Agent sounded much better than Hessian
Land Gravit and was likely to attract a number of
other titles. Prince Vaughan Eisenberg and the German Order of

(07:13):
Saint John both conferred upon him court titles in recognition
of loans of money from the Principality negotiated by Meyer
Amschkil in eighteen o four Rothschild requested the Prince of
Thurn and Taxis to bestow a similar favor upon one
of his sons. In view of the fact that he
himself bore the title of Imperial Crown Agent. It was

(07:33):
characteristic that when asking the Emperor for a title, he
should mention the services rendered to the House of Taxis,
and that when he applied for a favor to that house,
he should have based his claim on the fact that
his services had been recognized by the Emperor. Such promotions
were necessarily of service to him too, in his relations
with his old patron, the Landgrave of Hesse, who in

(07:54):
spite of everything, was still inclined to be suspicious. William
of Hesse was in every way a most important person
to meyer Amskill, for he was colossally rich, richer than
the Emperor himself, and a much more important point in
those days than now he was close at hand. Moreover,
he had family ties with England, where Nathan was living,

(08:15):
and with chronically penurious Denmark. By lending money to which
the firm of Reoppel and Harnier, as well as that
of beth Man, had made great profits, meyer Amskill advised
the Landgrave to participate in this loan by buying stock.
He did purchase a small amount, Rothschild being commissioned to
carry through the transaction. This was done to the Landgrave's satisfaction,

(08:38):
but Meyer Amskill required a considerable sum of ready money
in order to take advantage of a favorable opportunity for
purchasing goods and bills of exchange. Knowing that the Landgrave,
whose investments in England as well as in Germany brought
in very good returns, had spare cash available, he asked
and obtained from him on two occasions, in November eighteen

(08:58):
o one and July eighteen o two, one hundred sixty
thousand sailers and two hundred thousand gulden as a guaranteed loan,
the securities being Danish and Frankfort debentures. Although the security
offered was exceptionally good, William of Hesse was persuaded to
lend the money only after pressure had been brought to
bear and on the special recommendation of his principal financial administrator, Butterus.

(09:21):
The transaction certainly marked a distinct advance in Rothschild's confidential
relations with the Landgrave. The second amount was wanted, not
merely for Meyer Amskill himself, but also to assist his
two eldest sons, who were already beginning to acquire the
titles of court appointments wherever they could. As early as
eighteen o one they were appointed official agents for making

(09:43):
war payments on behalf of the state of Hesse. Meyer
Amschkill had been enviously observing Rupel and Harnier's financial transactions
with Denmark. It was his ambition to do similar business
with Denmark with land gravi at Moneys on his own account,
independently of any other. He still lacked any large capital
sum such as others had available, but he was accurately

(10:06):
informed by Butterus of the large amount of ready money
in the possession of the Ruler of Hesse, which was
seeking investment. He was determined to put his competitors out
of the field by offering the prince better terms. The
Frankfort firms were accustomed to wait until orders came to them,
but he meant to get in and negotiate personally. He
had put through the secured loans at Castle personally, and

(10:28):
he decided to go there again in order to secure
the co operation of William's counselors with Butterus at their head,
so that they might make the land grave disinclined to
negotiate direct with Denmark. An important point was that Denmark
was not to know where the money came from, because
William did not with to be regarded as wealthy in
his family circle, as he was afraid that some of
them might ask for special favors. For this reason, it

(10:50):
was decided that a go between who had relations with
Butterus and through him with Rothschild too, and who lived
in Hamburg, which was conveniently near to Denmark and far
enough away from Hesse to allay suspicion, should be the
first person to make approaches to that country. This was
a Jewish banker called Lowett's. Moreover, on Roth'schild's own suggestion,

(11:13):
and contrary to the usual practice, the loan was to
run over a long period. Notice for repayment was not
to be given for ten years or more, and after
that period payment could be demanded only in quite small
installments over a period of twenty or thirty years. They
did actually succeed in securing William of Hesse's consent to
granting such a loan, and no sooner were the conditions

(11:36):
agreed than Lowet's showed his hand to the extent of
making the interest payable to Meyer Amskill Rothschild at Frankfort.
The lender, the Hamburg banker wrote to Denmark is an
exceedingly rich capitalist and exceptionally friendly to the Danish court.
It is possible that even greater sums and better conditions
may be obtainable from him. It is true that Lowetes

(11:57):
did not know Rothschild personally at this time. The successful
conclusion in September eighteen o three of this the first
loan which he had carried through privately, not only brought
Meyer amskial financial profit but also resulted in his obtaining
the title of Crown Agent to the Court of Hesse.
His rivals had been highly displeased to hear of this

(12:17):
loan and kept making representations of a nature calculated to
damage Rothschild to the Landgrave. Rupel and Harnier were particularly assiduous.
They drew attention to the fact that the last Danish
loan had been issued in the form of debentures in
the name of Rothchild, and in order to rouse Danish
national vanity, they stressed the idea that this suggested that

(12:39):
it was not the national credit of Denmark but merely
the Jewish name of Rothchild that had got these obligations
accepted in Hesse. Rothschild's fight with his rivals involved the
officials entrusted with the financial administration of the land Graviate.
In the struggle, Bututerus became increasingly a partisan of Rothschild,
whereas Lennip of the War Office took the side of

(12:59):
Rears and Harnier. Rothschild and Butterus, however, had the upper
hand for the time being, and by eighteen o six
no less than seven land Graviate loans were issued. The
prophet realized from this transaction served to key up still
further the hatred and enmity of the rival firms and
of Lenip, and led to awkward developments. Rothchild had shown

(13:21):
the greatest energy in these undertakings. He did not even
spare himself the journey to Hamburg, an exceedingly difficult one
at that time, in order to get into personal touch
with the banker Loettes and to see that the Danish
business was carried on as energetically as possible. A letter
from the Hamburg banker to Butterus contains the following statement,

(13:41):
The Crown Agent Rothschild is coming to see me tomorrow
in order to settle up our remaining accounts, and he
intends to return the day after. It has been a
pleasure to me to make the acquaintance of this man,
and I shall be glad to be able to do
him any service in future. The intrigues of the rivals, however,
did not wholly fail of their effect upon William of Hesse.

(14:02):
His attitude continued to be suspicious, and he several times
refused to have anything to do with other business propositions
suggested by Rothchild, agreeing to them only as the result
of much pleading and persuasion. Besides the Danish loans, loans
were issued for Hesse, Armstadt and the Order of Saint John,
these also being subscribed by landgravi At funds through the

(14:23):
intermediary of Rothchild. The sums involved were already considerable, running
into hundreds of thousands. The larger they were, the better
pleased was Meyer Amskill, because his percentage profit rose in proportion,
while the risk was borne not by him but by
the Landgrave, whose favorite occupation had always been the careful
administration and development of his property. The sums invested in

(14:46):
England called for particular attention. Since the Peace of Basel,
relations between Hesse and England had been rather strained, although
they were not likely to become critical, as the Landgrave
had cleverly succeeded in enlisting the interests of response councible
people on his side. He had lent the Prince of
Wales afterwards, King George the Fourth, about two hundred thousand

(15:07):
pounds in two installments. The Dukes of York and Clarence
were guaranters of this loan, but they also borrowed money
from the land Grave. In addition to this, William of
Hesse had put out six hundred and forty thousand pounds
at interest in London in various ways, a fact which
was to prove exceedingly useful to him. The example of
their patron was a lesson to the House of Rothschild,

(15:29):
and they soon learned to copy his wise practice of
lending money by preference to persons in the highest position.
Even though William of Hesse remained neutral in the Second
War of the Coalition, he secretly wished success to the
enemies of Prance, for he eagerly hoped for the resumption
of his profitable subsidy contracts with England. The Peace of Luneville,
which extended France's boundaries to the Rhine, also conferred on

(15:52):
William the dignity of elector, which he had so much desired,
and which was duly proclaimed in eighteen o three. But
the meteoric rise of Buonaparte and revolutionary France's position in
the world seemed to him to be unnatural and menacing.
His friendship with Prussia was rather shattered because that state
had succeeded in annexing considerable territory, but had left the

(16:13):
Hessian prince in the cold. The peace between France and
England did not last long. As early as May eighteen
o three, the Island Kingdom again declared war upon the
usurper in Paris. It was not long before William of
Hesse was forced to take an attitude toward the new
world situation. In October eighteen o three, the French, having

(16:35):
invaded English Hanover, tried to get money from the Elector
in exchange for Hanoverian territory. His fear of offending England
caused him to refuse this offer, and thus the Elector
first gave offense to the Corsican. He had no true
idea at the time how dangerous the Corsican might be.
The quiet times for Frankfort and Hesse were now at

(16:56):
an end, stirred up by Napoleon's powerful genius. Europe passed
from one crisis to another, and in such circumstances it
was exceedingly difficult for William of Hesse to administer his
enormous property with foresight and wisdom. He felt the need
more and more of Meyer Amskill's advice, so that Rothschild's
journeys to Castle became more and more frequent. His eldest

(17:18):
son had for some months been residing permanently in that town.
The preference shown to the Frankfort family aroused the envy
and hatred of the Castle Jews against this outsider. They
complained that not merely did he steal their best business,
but he was not even subject to the night rate
and pull tax which other Jews had to pay. Meyer
Amskill did his utmost to evade such payments as far

(17:40):
as possible, but in the end he was forced to
pay some of these taxes. In August eighteen o three,
he found it necessary to apply to the Elector for
a letter of protection in Castle for himself and his sons,
so that although resident in Frankfort, he should enjoy the
same rights as the protected Jews of Castle. This would
so certainly entail obligations as well. His request was granted

(18:04):
on payment of four hundred Reichsdaler, but the document was
not completed, possibly in accordance with meyer Amschkill's own wishes,
for he would then have been liable to pay taxes
in Castle also. The Castle Jews, however, soon got wind
of this maneuver, and in the end meyer Amskill was
required to state in whose name he wished the letter
of protection made out, whereupon he wrote the following letter

(18:26):
to the Elector, most gracious Elector, most excellent Prince and Lord.
Your excellency has most graciously deigned to grant that in
return for the payment of one hundred florence, I should
be exempt from night rate, and that on the payment
of four hundred florins one of my sons or I
should be admitted to protection. I am now required to
state in whose name the letter of protection should be

(18:47):
made out, and this is causing me great difficulty, since
the son for whom I had intended taking it out,
has been settled for some time with another of my
sons in London, and is engaged in doing business with
him there. I have therefore to decided to take out
the protection for myself, if I may be most graciously
permitted to pay an annual amount similar to that paid
by other Jews not residing in the town, as I

(19:09):
only do business here, and could do most of it
quite as well from another place. As I have now
held the office of Crown Agent for over forty years,
Your Electoral Highness, having even in my youth, shown me
such gracious condescension, so I hope now too to receive
your most gracious consent, and remain with deepest respect, Your
Electoral Highness, my most gracious Prince and Lord's most obedient servant,

(19:34):
Meyor Amskill Rothschild, Castle, April twenty first, eighteen o five.
This personal request, sent in by Meyer Rothschild in Rather Inferior, German,
provoked a certain amount of amusement at the electoral court.
Meyer Amskill was informed that his request could not be
granted unless he moved to Castle with all his property,
and that naturally he was not prepared to do. In

(19:57):
the end, the letter of protection was made out in
the name of it Amskill Meyer Rothschild, his eldest son.
Although Meyer Amskill had to fight for his position in castle,
his prestige at Frankfort rose on account of his connection
with the Hessian ruler, which was now becoming generally known.
This was made manifest in various ways. When shops were

(20:18):
put up to auction in the electoral courtyard, to which Jews,
even resident Jews, were not admitted. An exception was made
in favor of Meyer Amskill. One of the shops was
definitely excluded from the auction and reserved for Rothchild. It
is possible that ready money was a factor as well
as his prestige in this matter. This period saw the

(20:39):
conclusion of the two last and by far the most
substantial Danish loans of seven hundred thousand and six hundred
thousand sailers. In these transactions, too, loettes played a part
of some importance. In spite of very friendly business relations,
he was still somewhat reserved in his attitude toward the
Rothschild family, Whilst when talking to his friends he often

(21:01):
declared that he had found for Rothschild, always to be
exceedingly prompt and businesslike, and worthy of the most complete confidence.
Yet he felt that where such large amounts were at stake,
one ought to be very cautious, even in dealing with Rothschild.
The atmosphere then, was full of suspicion, all the more
so because the political barometer in Europe pointed to stormy times,

(21:22):
and the capitalists were exceedingly uneasy as to the possible
fate of their wealth. Buonaparte had already cast aside his
mask and was boldly grasping at the Imperial purple toward
the end of the summer of eighteen oh for the
whole of France was echoing with the shout vive el Emperor.
The prestige of the German imperial system was suffering a
corresponding decline, an obvious symptom of which was the proclamation

(21:45):
on August tenth, eighteen o four, of Francis two as
Emperor of Austria. Moreover, September eighteen o four already saw
Napoleon touring the newly one Rhine provinces. He appeared in
full splendor and magnificence at a i x, Lachapel and Mainz,
as if he were indeed the successor of Charles the Great.

(22:05):
It was on this occasion that, with the assistance of
the Mines Electoral High Chancellor Dalberg, he laid the foundations
of that union of German princes, which was to be
known as the Confederation of the Rhine. Napoleon was already
adopting the role of their protector and invited William of
Hesse too to Mainz, an invitation which was exceedingly suggestive

(22:25):
of a command to come and do homage. The elector
pleaded a sudden attack of gout. Napoleon replied coldly. He
was still polite, but he swore that William should pay
for having failed immediately to adhere to the Confederation which
was being formed under Napoleon's protection. The French ambassador at
Cassel had uttered the menacing words when he heard that

(22:46):
the Prince was not going to Mainz. We do not forget,
We forget nothing. The Elector of Hesse was left feeling
rather uncomfortable, and he secretly threw out cautious feelers toward
England and Austria. Austria was already shar owing a marked
inclination to side against France. The occasion of the Emperor
Francis assuming the imperial title connected with his Austrian hereditary territories,

(23:09):
afforded him an opportunity of expressing his most sincere and
devoted good wishes to the most excellent puescant An invincible
Roman Emperor and most gracious Lord, for the continuous welfare
of the sacred person of his Imperial Majesty, and for
the ever increasing glory of the all highest Imperial House.
His pen was jogged by the need he felt for
powerful support, and incidentally, the letter was to serve the

(23:32):
purpose of reminding the Emperor of a request which the
writer had made on November twenty second, eighteen o four,
and which so far had not been granted. The elector's
first favorite, the apothecary's daughter Ritter, whom the Emperor had
raised to the rank of Frau Vaughan Lindenthal and who
was ancestress of the Hainos, was now out of favor
since she had preferred a young subaltern to the aged Landgrave.

(23:55):
For over a year, her place had been occupied by
Caroline von Schlothium, the beautiful daughter of a Russian officer,
whom the Emperor had been asked to create Countess Vaughan Hessenstein.
In May eighteen o five, Austria finally joined the coalition
against Napoleon. Napoleon gave up his idea of landing in
the British Isles and concentrated on Austria. This resulted in

(24:18):
great shortage of money, for the Austrian treasury had heavy
burdens to bear from former wars. Coin was scarce in
paper money much depreciated that it was herefore decided that
the interest on loans should not, as had hitherto been
the practice, be payable in hard cash in all the
principal exchanges in Europe, but should be payable in paper
in Vienna only. This was hard for the Elector personally,

(24:40):
as he had advanced a million and a half gulden
to the Emperor Francis, and he at once begged that
an exception might be made in his favor, since gilldisposed
persons had suggested to him that the Austrian state was
going to go bankrupt as far as all external debts
were concerned. The Imperial ambassador, Baron Vaughan Wessenberg, naturally, wishing
to turn the general's situation to account, sent this request

(25:02):
forward under cover of a private dispatch of his own,
in which he wrote, since avarice is the Elector's great weakness,
it might be possible, should you wish to do so,
to obtain a still greater loan from him, if you
agreed that interest and future should be payable in cash.
He would be more likely to fall in with such
a suggestion if his Imperial Majesty would grant Fraw von
Schlothium the title of Countess of Hessenstein without payment. The

(25:26):
granting of this request would particularly delight the Elector. In
the second particular, his wishes were granted, but it was
not possible to make an exception in the matter of
the interest charges. However, both Vienna and London endeavored to
secure the Elector's accession to the Confederation, and he replied
to these overtures with demands for subsidies. Yet he was

(25:47):
hard put to it to find investments for all the
money that he had at his disposal, and as late
as December second, eighteen o five he had lent ten
million failures to Prussia. He had hoped that the austr
Usso English war against Napoleon would end in victory, but
Austerlitz put a speedy end to such hopes. During the war,
England sent financial assistance to Austria in the shape of

(26:09):
a monthly payment of a third of a million pounds
in cash, which was sent to Austria by the most
difficult and circuitous routes. The Rothchild method of transferring large
sums of money was as yet unknown, and the only
method in use was the dangerous one of sending actual
bullion by road. A consignment of money was actually on
the way when Osterlitz was being fought, and in fear

(26:31):
of a defeat, orders were issued from Imperial headquarters instructing
this consignment to be diverted in a wide circuit through
Galicia and the Carpathians. The war complications in which Europe
was involved forced almost all states, whether they wished to
or not, to take sides. The Elector of Hesse characteristically
wished to attach himself to that party out of which

(26:52):
he could make the greatest profit. As Prussia was now
also being drawn into conflict with Napoleon, she attempted to
try raw the Elector in on her side. On the
other hand, the French court gave him to understand that
substantial advantages would be gained by the Electorate if he
kept himself completely free from Prussian influence. This suggestion was

(27:13):
unpleasantly underlined by the gathering of bodies of French troops
in the neighborhood of Hesse. The elector bargained with everybody
and secured from Paris accessions of territory and the incorporation
of the town of Frankfort within his domains. The only
awkward point was that Napoleon demanded that the British ambassador,
through whom the subsidy arrangements were carried on, should be

(27:34):
sent home, and when the Elector delayed about doing this,
Napoleon expressed his displeasure in no uncertain language until the
elector gave way and sent the ambassador away. Annoyed at
France's threatening attitude, the Hessian ruler again endeavored to attach
himself to Prussia. Then, on July twelfth, eighteen o six,
the document regarding the Confederation of the Rhine was published,

(27:57):
through which Napoleon, with the assistance of Prince Theodeor van
Dalberg Electoral High Chancellor, won sixteen German states by promising
them separation from the German Empire. As a counterblast to this,
Prussia attempted to bring out a union of the princes
of Northern Germany and to gain the support of the
Elector of Hesse by offering him the prospect of an

(28:17):
accession of territory and the dignity of kingship, which he
so much desired. These moves were followed by threats and
promises on the side of France. The attitude of the
Elector remained undefined. He now thought it best to preserve
the appearance of neutrality until the actual outbreak of war,
and then simply to join the side which was winning.

(28:37):
Although assigned, if not ratified, treaty with Prussia was in existence.
He had, however, not reckoned sufficiently with the forceful personality
of Napoleon. It was impossible to conduct a nebulous diplomacy
with such a man. He had long been tired of
the vacillating attitude of Hesse. A state of war was

(28:58):
declared in early October eighteen o six. On the fourteenth
of that month, Prussia was decisively beaten through Napoleon's lightning
advance at Jena and Auerstadt. Napoleon now scorned Hessian neutrality.
He ordered that Castle and Hesse should be occupied, and
that unless the elector and the Crown Prince left, they
should be made prisoners of war. As Prussian field marshals.

(29:21):
You will, commanded Napoleon, seal up all treasuries and stores,
and appoint General Lagrange as governor of the country. You
will raise taxes and pronounce judgments in my name. Secrecy
and speed will be the means through which you will
insure complete success. My object is to remove the House
of Hesse Castle from rulership and to strike it out

(29:42):
of the list of powers. At Frankfort, Meyer Amskyll Rothschild
had been watching the precipitate development of events with terror,
and his son Amshkill at Castle, as well as he
himself at Frankfort, took all possible measures to prevent themselves
and the elector from suffering too great financial loss. Business
had just been going so exceedingly well. The firm of

(30:04):
beth Man, which had felt that it was being driven
into the background and had just been making strenuous efforts
to get a share in the Elector's lone business with Denmark,
was forced to withdraw from the contest on account of
the political conditions and the resulting shortage of money, and
thereby left the way open to Rothchild, who still had
resources available. In the meantime, Louettes in Hamburg had definitely

(30:25):
decided in Rothschild's favor. On July second, eighteen o six,
he wrote himself to Butterus to say that he would
stea and by their good friend Rothschild as far as
he could, saying, I hope that in the end people
will realize that he is a good fellow who deserves
to be respected. The envious may say what they like
against him. In spite of all that Rothschild had hitherto

(30:47):
done in the service of the Elector, he had not
won his confidence to the extent of being called in
in a matter which had become pressing on account of
the developing military situation. For although the elector continued to
hope that the notices naively posted on the road leading
to Hesse bearing the words pays Nutter would be respected,
he was sufficiently concerned for the safety of his treasures
to send away and conceal his more valuable possessions. But

(31:12):
it was no light task to deal with the extensive
banking accounts of the Electoral Loan Office, and with his
vast accumulations of treasure, and after several months the work
was still far from complete. There being no distinction between
the treasury and the prince's private purse, it was necessary
to get out of the way not only his own valuables,
but also the cabinet, war and chancery cash records for

(31:34):
a period covering several decades. For so the books of
his financial administration were called in order to make it
impossible to examine into the state of his affairs. There
were large volumes of these records, representing vast sums. In
the war chest alone, there was over twenty one million failers,
sixteen millions of which were out on loan in various
places and bringing an interest to the tune of many

(31:57):
thousands of thalers. All this had to be concealed as
far as possible, and this business was done by trusty
officials under the guidance of Butus. But there is nothing
to show that any of the Rothchilds were employed in
the long continued work of transport and concealment. Time was pressing.
Some of the things were sent to Denmark, but it

(32:17):
was impossible to get everything out of the country, and
to have done so would have attracted too much attention.
So the Elector, who gave the closest personal attention to
the plans for insuring the safety of his possessions, decided
that the most precious articles should be buried within the
walls of three of his castles. Under the stairs of
the Castle of Wilhelmshow were hidden twenty four chests containing

(32:39):
silver and mortgage documents to the value of one and
a half million gulden, amongst which were certain rothschild debentures,
while twenty four chests with cash vouchers and certain valuable
volumes from the library were concealed in the walls under
the roof. A similar number of chests were concealed in
the picturesque castle of Loenburg, built in the wilhelmsho Park,
while further tr treasures were conveyed in forty seven chests

(33:02):
to the Saboberg, situated in a remote forest. The Elector
had originally intended to send the last consignment down the
Weezer to England, but he and the shipowner disagreed over
a matter of fifty failers, and so they were not
sent away. It was impossible to carry through such measures
in secrecy, as too many persons were involved in the transaction,

(33:22):
and long before the French invaded the country, there was
general alarm throughout the district because the elector was said
to be hiding all his treasures. Meanwhile, Napoleon's commands were
being carried out. French troops coming from Frankfort were already encamped.
On the night of October thirty first on the heights
surrounding castle. The elector gazed anxiously from the windows of

(33:44):
his castle at the enemy's camp fires, and sent adjutant
after adjutant to Mortier, the French Marshal. In due course,
the French envoy was announced and brought an ultimatum from
Napoleon significantly addressed to the Elector of Hesse Castle Field
Marshal then the service of Prussia. In short biting sentences,
William's double game was exposed, and the occupation of the

(34:07):
country and the disarmament of its inhabitants was proclaimed. The
elector immediately decided to throw in his lot with Napoleon
and to join the Confederation of the Rhine, but it
was too late. Marshal Mortier would no longer listen to
the Elector's messengers. The elector realized that there was nothing
for him but flight. In the few hours before the

(34:28):
French entered the country, he would have to move as
many of his remaining possessions as he could and make
the more urgent dispositions regarding outstanding accounts. William gave butterous
power of attorney to receive the interest payments due from
the Emperor Francis in Vienna, and Butterus transferred this power
of attorney to Rothschild, who proceeded to collect these payments
for the elector through a business friend in Vienna, the

(34:50):
banker franc Besides this, Butterus that night brought two chests
containing securities and statements of accounts to the house of
the Austrian ambassador at Castle Baron Vaughan Wessenberg and begged
him to take charge of them. In addition, a member
of the elector's bodyguard roused the ambassador in the middle
of the night to give him five envelopes containing one

(35:11):
and a half million thailers in valid bills of exchange
and coupons, as well as the elector's compromising correspondence with
Prussia and England. He also gave him a casket of
jewels requesting that the ambassador deal with these things as
he would for a friend. Baron Vaughan Wessenberg felt extremely
uncomfortable his position as ambassador of a neutral power was

(35:32):
being seriously compromised, but he was fortunately able to intrust
the money to a chamberlain of his acquaintance who was
traveling to Hanover that night. The letters, however, were of
such a compromising nature that he burned them in terror
that he had dealt with everything excepting the jewels, when
the trumpets and marching songs of the French invading troops
were heard in the morning. A few minutes earlier, the

(35:54):
elector had left the town with his son in a
traveling coach and six after having been held out by
French troops at one gate, he escaped by another and
drove without stopping, through Homon and Altana to Rensburg in Sleswig.
Having entered castle, Marshal Mortierre immediately began to carry out
all Napoleon's instructions, and also commandeered all the electoral moneys

(36:16):
and possessions, even including the stables and the court furniture.
He took over the electoral rooms in the castle for
his own personal use and the electoral flunkies as his
personal servants. He did not molest the elector's consort, and
Wessenberg succeeded in sending her the jewels, which she sewed
into her garments and those of her servants. Deuterus felt

(36:38):
that things might get rather warm for him, and he
left Castle disguised as an apprentice with a knapsack on
his back, to follow his master into exile. His despairing
family stayed behind while these events were taking place. Neither
mayer amschkik Rothschild, nor either of his son seems to
have been at castle. They had long realized that the

(36:59):
attitude of the French toward the elector was critical, and
that their relations with him might get them into trouble. Frankfort,
too had been occupied by the French, and the headquarters
of the firm, their house, and their whole property were
at the mercy of the enemy. In his heart, Meyer
Amskill remained loyal to the Elector and saw that the
position arising out of the French invasion and the flight

(37:21):
of the Elector was one in which he could still
be of great service to him. He presumably came quite
rightly to the conclusion that it was in the Elector's
own interest that he should stay away at this critical period,
so that he might, if possible, carry on the Elector's
business behind the backs of the French. In following his
natural inclinations and not compromising himself in the eyes of

(37:42):
the French, and in keeping out of the way of
these dangerous companions as far as possible, he was also
following the course of the greatest practical utility. Even if
Meyer Amskill or one of his sons had actually been
in castle, the moneys intrusted to Baron Vaughan Wessenberg would
not have been placed in their keeping. They were as
yet far from enjoying such a degree of confidence. Indeed,

(38:04):
the ambassador actually stated in his report to Vienna at
the time that the Elector had sent the things to
him because of lack of confidence in his business agents.
The French immediately instituted investigations to discover where the Elector
had hidden his wealth. Napoleon had received news at Berlin
of the occurrences at Kassel. At four o'clock on the

(38:25):
morning of November fifth, eighteen o six, he sent the
following orders to Lagrange, have all the artillery ordnance stores furniture,
statues and other articles in the Palace of the court
brought to Mines proclaim that this prince may no longer rule.
I shall not continue to suffer a hostile prince on
my boundaries, especially one who is practically a Prussian, not

(38:47):
to say an Englishman, and who sells his subjects. You
must completely disarm the inhabitants and authorize an intendant to
seize the prince's revenue. In general, you may treat the
country mercifully, but if there is any any sign of
insurrection anywhere, you must make a terrible example. Let yourself
be guided by the principle that I wished to see

(39:07):
the house of Hesse, whose existence on the Rhine cannot
be reconciled with the safety of France permanently removed from power.
Such were Napoleon's feelings toward the elector. The latter sent
messenger after messenger, and letter upon letter to Napoleon, but
the Emperor refused to answer. On the first of November
eighteen o six, William of Hesse arrived at his destination,

(39:30):
the castle at Goddarp near Sleswig, belonging to his brother,
who had also married a Danish princess. A whole crowd
of exile princelings from small German states was gathered there.
They had all been suddenly wrenched from a comfortable and
careless existence and were suffering acutely, especially from financial distress.

(39:50):
We are in the greatest misery here, wrote Butterus to
London on November seventeenth, eighteen o six. Please help us
to get some money soon, because we do not know
what we shall do otherwise, as we are not getting
a farthing from Castle. God, how things have changed. Meanwhile,
the French occupied Hamburg and advanced unpleasantly close to the

(40:12):
Elector's place of refuge. He became exceedingly nervous and excited,
and feared that he might yet fall into the hands
of the French with all the belongings that he had rescued.
His possessions were all packed in chests, ready for further transport.
He once got into such a state of panic that
he wanted to send Butterus straight off into the Blue
with as many valuables and securities as possible, leaving it

(40:35):
to him to make such provision as he could for
their safe custody. However, the outlook became less menacing. The
French did yet come to Sleswig for the time being,
and the Elector gradually recovered his composure. Meanwhile, Lagrange was
ruthlessly executing Napoleon's severe commands at castle. Even Wessenberg, suspected
of concealing electoral treasure, was placed temporarily under arrest. Gradually,

(41:00):
all the treasures that had been concealed in the castle,
including the gold and silver plate, the antiques, the whole
collection of coins and medals to which Rothschild had contributed
so many valuable specimens, and also the innumerable chests containing
deeds and securities, were discovered. The Elector might well regret that,
for the sake of fifty thailers he had failed to

(41:21):
have the silver carried down the river. All his splendid
silver was sent to Mintes to be melted down. Dazzled
by the vast extent of the riches that were being
brought to light, Lagrange was moved to take steps to
feather his own nest. Although his imperial master well knew
that the Elector was rich, he could hardly expect his
wealth to be as extensive as actually proved to be

(41:42):
the case. Lagrange reported to Napoleon that the property discovered
was only worth eleven million thalers, which of course was
not remotely in accordance with the facts, and in return
for a dosur of two hundred and sixty thousand francs
in cash, he returned to the Hessian officials forty two
of the chests, uoting almost all those that contained securities
and title deeds running great dangers. A brave electoral captain

(42:06):
brought the chests into safety and conveyed nineteen of them
to Frankfort, where they were stored not with meyer Amskill Rothschild,
but in the warehouse of Prey and Jordie's, in whose
extensive vaults they could be concealed without attracting attention. For
an additional eight hundred thousand livres one lever equaled one
franc paid to himself and the intendant, the dishonest Governor

(42:28):
promised to return other papers too, and not to carry
out any further investigation. Thereby, countless chests were released, which
were distributed amongst various trusted persons for safe keeping. Four
of these chests, containing papers of the Privy Council, found
their way to meyer Amskill Rothschild's house with the Green
Shield in the Jewish Quarter during the Spring Fair of

(42:50):
eighteen o seven. This was the only part played by
the House of Rothschild in the actual saving of the
electoral treasures meyer Amskill. Rothschild hid these chests, having left
one of them for a time with his son in law,
Moses Worms, in the cellar of his house. In case
of emergency, he could have recourse to a separate cellar
behind the house and under the courtyard, the approach to

(43:13):
this cellar from the house cellar being very easy to conceal.
The courtyard. Cellar two was connected by a secret passage
with the neighboring house. The persecution of the Frankfort Jews
in earlier times had led to many such secret refuges
being constructed. In this case, it was therefore reasonable to
assume that if the house were searched by foreigners like

(43:34):
the French, the cellar under the courtyard would not be
discovered at all, and that even if it were discovered,
there was a good chance of getting its contents into
the next house. In the meantime, political changes had occurred
which put an end to the political independence of Frankfort.
Carl Vaughan Dalberg, who had collaborated with Talleyrand in the
creation of the Confederation of the Rhine. Was nominated Primate

(43:56):
of the Confederation on June twelfth, eighteen o six, and
by a decree Tree of Napoleon was granted the city
of Frankfort and the surrounding territory as his residence. This
was a fact of much importance both to the Elector
and to his devoted servants, the Rothschild family. For Dalbert
was particularly well disposed to the Elector and to his
administrator Butterus, on account of his business dealings with them

(44:18):
in earlier times, and although he was an archbishop and
a strict Catholic, he was known to be tolerant in
his religious views. The incorporation of Frankfort in the Confederation
of the Rhine put an end to its constitution as
a state of the Empire, and the Jews, who had
hitherto been subjected to oppression by the hostile patrician families
who had controlled the Senate, now hoped for the abolition

(44:39):
of all those restrictions, prohibitions, and special laws under which
they had suffered for centuries. Under the new regime, life
in the great commercial city took on an entirely different complexion.
It had to be ordered in accordance with the wishes,
or rather the commands of the French. This was especially
the case when Napoleon, in order to to deal a

(45:00):
deadly blow at the arch enemy England, declared the Continental Blockade,
whereby all commerce and communication by letter or otherwise with
England was prohibited. As that country was practically the only
emporium for such indispensable colonial produce as coffee, sugar and tobacco.
The prices of these articles rose enormously, and a clever

(45:21):
merchant could make large profits through timely purchases or by
smuggling goods through Holland and the harbors of North Germany.
In spite of the control exercised by France over the
trade of frankfort Meyer, Amskill and his son contrived, with
the assistance of Nathan in England to make a good
deal of money in this way. There were certainly risks
attached to this form of commerce, for under Article five

(45:43):
of the Continental Blockade, all goods of English origin were
declared lawful prize. With the passage of time, this kind
of business became more restricted, for as Napoleon's power increased,
he was able to make the control more effective. Meyer
Amskill well knew that, in spite of his life flight
and the loss of property which he had suffered at
the hands of the French, the Elector was still in

(46:04):
possession of very considerable resources. There was, moreover, always the
possibility of a sudden change in Napoleon's fantastic career, and
such an event would immediately alter the whole situation. He
therefore adhered to his policy of ingratiating himself to the
best of his ability with Napoleon's nominee, the new Lord
of Frankfort, while he continued faithfully to serve the Elector

(46:27):
in secret. For his purpose, it was necessary that he
should remain in constant communication with him. On the fifteenth
of December eighteen o six, meyer Amskill sent an account
to Sleswig of his earlier sales of London bills of exchange,
and reported that the other bills which he held were
unsaleable at the moment. Although the servile script was full

(46:47):
of protestations of groveling humility, and was composed in the
illiterate style and full of the spelling mistakes of the
old meyer Amschkill, it revealed a certain pride for father,
Rothschild made considerable play with the good relations which he
had established with Dalberg. Rothchild reported with pride that he
had influenced Dalberg in favor of the elector and had

(47:08):
induced the new Lord of Frankfort to intercede with the
Emperor and Empress of France on the elector's behalf. He
begged to state, however, that Dalberg advised that the elector
should not stand so much upon his rights, but should
adopt towards Napoleon the attitude of a humble petitioner. Meyer
Amskill concluded by assuring the elector of his unswerving loyalty

(47:29):
and devotion, and declared that he hoped, through his influence
with Dalberg substantially to reduce the war contribution of one million,
three hundred thousand sailors imposed by Napoleon upon the elector personally.
He also asserted that Dalberg had commended him to all
the French marshals and ministers. Although this letter of meyer
Amskill's was written in a boastful vein, and although he

(47:51):
exaggerated his influence as in point of fact, he did
not succeed in getting the levee reduced. Incidentally, the elector
got the levee transferred to the states of the Realm
of Hesse. Yet the report contained an element of truth
that I t was certainly most remarkable that the archbishop
and Lord of the Confederation of the Rhine, who ruled
over sixteen German princes and stood so high in Napoleon's favor,

(48:13):
should have shown so much good will to the jew
Meyer Amskill Rothschild of Frankfort, who, although now a rich man,
had no claim to move in high and influential circles.
There appeared to have been financial reasons for this relationship,
and it no doubt originated in loans granted by Rothschild.
When the Elector had come to feel reasonably secure in

(48:35):
his new place of refuge in Sleswig, he devoted himself
again to his favorite hobby and tried to set in
order his chaotic possessions. Deirterus had control of this work
at every point. He had left Sleswig some time before
and returned to Hanau, where he was occupied in calling
in debts due to the Elector before they could accrue
to the French. There was, for instance, the claim on

(48:58):
Prince Vaughan zeal Warzac, which which was in great danger
of being lost. Butterus, however, succeeded in saving this item,
and in his report he referred with emphasis to the
assistance granted by Rothschild, mentioning his name repeatedly, I owe
it entirely to the efforts of the Crown agent Rothschild.
He wrote to his master on March eighth, eighteen o seven,

(49:19):
that I am still not entirely without hope, and he
has undertaken to arrange an interview between myself and the
Warzac Chancellor in a place which he will select. The
eldest son of the princely debtor attended this conference himself,
and it resulted in the repayment to Butterus of the
outstanding amount, which Butterus ascribed to the fact that Rothschild
had used his influence to such good effect with the

(49:40):
advisers and officials of the Prince. He added, as especially
illustrating Rothschild's trustworthiness, that the French in Castle had offered
to pay Rothschild twenty to twenty five percent of the
amount at issue if he would assist in diverting this
debt of nine thousand gulden in accordance with Napoleon's orders,
Your Electoral Highness, the letter continued, may certainly deign most

(50:02):
graciously to realize the labor involved in saving this amount
in the most dangerous circumstances. Besides Butterus, Lennop at Castle,
Loettes at Hamburg, and the war commissioners, paymasters and Crown
agents such as Meyer Amschkill and his sons were looking
after the financial interests of the Elector. Frankfort is the
center point of all my business. Butterus, who directed all

(50:25):
the operations, wrote to the elector to an ever increasing degree.
Butterus was entrusting the elector's business to the Rothschild family. Indeed,
he was now employing them almost exclusively. They looked after
the correspondence with Cassel with the Elector and with Loetes
at Hamburg, pseudonyms being employed for the more important persons
and transactions. Thus the Elector was known as the Principal

(50:49):
or her von Goldstein. The stocks in England were known
as Stockfish. Rothschild himself was called ARNOLDI. In these letters.
Meyer Amskill was often sent to the Elector by Butterus
to convey accounts or other information. These seven day journeys
in bad coaches over rough roads, with the constant risk
of falling into the hands of the enemy, with the

(51:11):
led ter s with which he had been entrusted, came
to be felt as exceedingly burdensome by Meyer Amskill. In
the course of time, he was not more than sixty
four years old, but his health had latterly suffered from
the extraordinary demands made upon the chief of the extensive
business house. Henceforward he generally left these jownties s to
the north to his son colman Or Karl, as his
two eldest sons Amskill and Solomon, were fully occupied at

(51:35):
the head office in Frankfort. These journeys had now to
be very frequently undertaken because Napoleon had entered upon a
definite offensive against the elector's property, and this called for
countermeasures of all kinds from the elector's loyal adherents. In
accordance with Napoleon's instructions, the French attempted, as they had
already done in the case of Prince Vaughan zeal Warzak,

(51:57):
to divert the moneys lent by the elector in his
own country to the French treasury. By offering substantial discounts
on the amount due. It is true that Lagrange had
valued these amounts at only four million failers, the equivalent
of sixteen million francs, but actually they amounted to about
sixteen million failers. One can therefore readily imagine the dismay

(52:18):
which the action of the French occasion the elector. A
large number of princes belonging to the Confederation of the
Rhine who owed him money, took advantage of the opportunity
of settling their debts at a reduction. On Roth's child's advice,
the Elector implored the Emperor Francis at Vienna on no
account to pay to the French either the capital some
or the interest due in respect of the million and

(52:39):
a half gulden which he had borrowed from the Elector.
All the efforts to cause Napoleon to change his attitude failed,
and meanwhile the situation at Goddup had become impossible. The
Elector had arranged for his favorite mistress Schlothian to join him,
and his host's wife, who was a sister of the
Elector's consort, was afraid of causing pain to the latter.

(53:00):
She associated with the Schlothian. Also, the collapse of a
rising in Hesse deprived him of a last hope. Fools,
exclaimed Lagrange in a proclamation to the Hessians on the
eighteenth of February eighteen o seven. Count no longer upon
your prince, he and his house have ceased to rule.
Whoever resists will be shot. William, in the meantime, had

(53:22):
migrated to Rensburg and later to Schloss at Sea. Ho
that I am moving language, he wrote to the King
of Prussia and to the Emperor of Austria. To the former,
he wrote, I have now been living here for four months,
groaning under the weight of intolerable grief, and filled with
deep concern for the many bitter experiences through which your
Majesty is passing, and which affect me even more than

(53:43):
my own misfortunes. I have had to watch the land
of my father's suffering and arbitrary rule, and my private
property being squandered, and to see my loyal subjects suffering
in being gradually reduced to beggary if they are not
speedily succored. It is indeed hard, your Royal Majesty to
have to endure such experiences, and doubly hard when one

(54:04):
is conscious that one has always acted in a manner
which one could justify before God and men. His letter
to the Emperor of Austria was written in exactly the
same vein. In the opening sentence, the epithet most Invincible
was on this occasion in view of the Battle of Austerlitz,
not added to those of most excellent and most powerful.

(54:26):
He begged in the strongest terms for the Emperor's help
and support. These letters were written after the Elector's efforts
to conciliate Napoleon had merely resulted in the Emperor of
France showing his personal contempt in a version more clearly
than ever. William of Hesse's attitude continued to be completely
unreliable and vacillating as far as everybody was concerned. At

(54:47):
the same time that he was overwhelming Napoleon with supplications,
he was negotiating with England for landing on the coast
for combined action against the French. But in England his
overtures to Napoleon were known, he was no longer trusted,
and the electoral funds invested in that country were sequestrated,
so that although he received the interest, he had no
power to dispose of the capital. All these things had

(55:10):
not helped to improve the Elector's temper. Prince Wittgenstein, who
frequently had occasion to visit him in exile on behalf
of the Prussian government, wrote, personal association with him is
indescribably unpleasant. The greatest patience is required in order to
put up with his endless complaints and sudden outbursts. Butterus
and Meyer Amskill Rothschild were soon to suffer in the

(55:32):
same way. Rothschild had latterly been collecting and accounting for
the interest on the English and Danish loans due to
the elector. As this had not been settled by the
elector personally, he complained of the arrangement. He again became
suspicious and suddenly required that Butterus should not allow this
money to pass through Rothschild's hands, but that it should

(55:53):
be paid direct into the reserve treasury at Izehoe, an
arrangement which was more difficult to carry out. This was
galling both for Butterus and for Mayer Amskill Rothschild, who
was just endeavoring through Dalberg's good offices to buy back
the Elector's coin collection, containing so many gold and silver
specimens of priceless value, which had been carried off to Paris.

(56:15):
The following events did not improve the elector's temper. By
offering the csar the prospect of sharing the work dominion
with himself, Napoleon had in the Treaty of Tilsit reaped
the fruits of his campaign against Prussia. The result was
that Hesse was allotted to the newly created Kingdom of Westphalia,
and Napoleon's brother Jerome pitched his tent in William's residence

(56:35):
at Kassel. The exiled elector was filled with rage and indignation,
and his tendency to behave unjustly to those about him
became more marked when Butterus was again staying with his
master at Izaho and spoke of Rothschild and the services
that he had rendered. The Elector indicated that he noted
the special favor shown to Rothchild with surprise, as after

(56:56):
all he was a Jew of very obscure antecedents, and
expressed his concern to find Butterus employing him as he
had lately been doing to the exclusion of almost everybody
else in the most important financial transactions. Butterus declared himself strongly.
In reply. He pointed out how promptly Rothschild had always paid,

(57:16):
especially in the case of the monies from London, and
emphasized the skill with which Rothschild had succeeded in concealing
from the French his English dealings on behalf of the Elector.
He related how French officials in Frankfort had recently been
instructed to carry out investigations at meyer Amskill Rothschilds in
order to ascertain whether he did not collect English moneyes
for the Elector, and how meyer Amschkill had immediately produced

(57:39):
his books, an inspection of which had revealed absolutely nothing
of this matter. This fact proved that even then meyer
Amschkill was keeping two sets of books, one of which
was suitable for inspection by the various authorities and tax collectors,
the other containing the record of the more secret and
profitable transactions. Deuterus pointed out that Bethman, in view of

(58:01):
his standing as a Frankfort patrician and as the head
of a firm that was centuries old, could not so
suitably be employed in transactions which, in the difficult political
conditions of the time, could not bear the light of day.
He added that Bethmann's financial resources had given out in
connection with the Danish loan in eighteen o six, and
that Rothschild far surpassed him in determination and energy. He

(58:23):
also suggested that Rothschild had given greater proof of loyalty,
for they had hardly heard anything of Bethman since the
elector had gone into exile, whereas meyer Amskill was constantly
concerning himself with the Elector's interests, and also, when necessary,
coming personally to Sleswig or sending one of his sons.
Deuterus's representation succeeded finally in allaying this bout of suspicion

(58:45):
against the Rothschild family, with whom he had now established
very close personal relations. Through the efforts of the administrator
of the Elector's estates, all the other bankers were gradually
forced into the background, Rothschild taking their place. From this
time onwards, he enjoyed the Elector's confidence as far as
such a thing was possible, and we find meyer Amskill

(59:06):
becoming not only William's principal banker, but also his confidential
adviser in various difficult matters, as his health no longer
permitted him to do full justice to the strenuous requirements
of the Elector's service. He placed one of his sons
at the Elector's disposal when necessary. Up to this time,
the Elector had turned down the various proposals regarding the

(59:27):
collection of interest in the investment of capital that Nathan
had made to him from London. As late as June
eighteen o seven, he actually instruct his charged affair in
London to vouchsafe no reply whatever if Nathan should venture
again to inquire as to the Elector's financial affairs. In
this matter too, he was slowly and completely to change

(59:47):
his attitude without any disadvantage to himself. Everybody who possibly
could was borrowing money from the Elector for the German sovereigns,
and not least the King of Prussia were suffering from
extreme short of money after Napoleon's victorious march through their country,
owing to the heavy war expenses and the subsidies which
he imposed. Prince Wittgenstein repeatedly urged the King of Prussia

(01:00:10):
to be very cordial to the Elector and as soon
as it should be practicable, to invite him to live
in Berlin, because it might then perhaps be possible to
persuade him to grant alone. The invitation was actually sent,
but the king had then himself been obliged to flee
from his capital and was suffering the most grievous misfortunes,
so that Berlin was out of the question. Meanwhile, Denmark

(01:00:32):
had also been forced by Napoleon to give up her neutrality.
The French invaded the Dukedoms, and the Danish royal house
found the presence of the Elector, who was such a
thorn in Napoleon's side, most embarrassing. In these circumstances, the
refugee was in constant danger of being discovered and taken prisoner.
Jerome was ruling in Hesse, and it was of little

(01:00:53):
use to the Elector that Lagrange's double dealing was brought
to light and the general dismissed in spite of an
invitation from the Prince of Wales. William did not wish
to go to England, since that would have meant a
final breach with the powerful Usurper. For the Elector continued
to cherish an unreasonable hope of Napoleon's forgiveness. There was
still Austria. In his last letter, the Emperor Francis had

(01:01:16):
expressed his most heartfelt sympathy in these sad circumstances, with
the hope that he might be of assistance to him.
The Elector accordingly asked for asylum in Austrian territory and
decided to continue his flight to Bohemia, stopping first at Carlsbad.
He did not part with his treasures, but took with
him all the valuables and papers which had been saved,

(01:01:38):
including a chest full of deeds which meyer Amskill had
proposed to bring on afterwards. From Hamburg, the travelers were
carefully disguised on their journey. In one place where there
were French troops, they nearly lost their most valuable belongings,
as the wheels of the carriage in which they were
packed broke in the marketplace, and they were forced to
transfer them to another vehicle. Fortunately, nobody guessed what the

(01:02:00):
bales contained. The journey proceeded without further mishap, and on
July twenty eighth, eighteen o eight, the Elector arrived at Carlsbad,
where he awaited the Emperor's decision as to his final
place of abode. Meanwhile, meyer Amskill and his son were
carrying on their business at Frankfort and developing the trading
as well as the purely financial side of it. All

(01:02:20):
the members of the family were actively engaged in it,
and Rothschild's unmarried daughter sat at the cash desk, assisted
by the wives of Solomon and Amskill. Meanwhile, the fifth son,
Jacob generally called James, had reached the age of sixteen, and,
like his elder brothers, had begun to take an active
part in the business. This had made it possible for

(01:02:41):
the eldest son, Amshkill, also to leave Frankfort fairly often
in order, like Karl, who was the firm's traveler, to
visit the elector in Bohemia. Deuterus in the meantime had
arranged that the elector's cash income, which it was really
his duty to administer, should be collected by Rothschild and
remain in his hands at four perc sent interest. Thus,

(01:03:02):
during the summer of eighteen o eight he received two
hundred twenty three thousand, eight hundred gulden against bills at
four percent, a very respectable sum at a time when
ready money was so scarce and the elector was reluctant
to leave it all with him. However, he found in
due course that Rothschild accounted with extreme accuracy for every
penny of it. In accordance with the wishes of Emperor Francis,

(01:03:24):
the Elector moved to Prague toward the end of August
eighteen o eight. That monarch knew well what he was
doing in welcoming the Elector to his territories. Austria was
chronically in need of money. Nevertheless, plans were being made
to avenge her defeat. Count Stadion especially was the prime
mover in the idea of waging a new war against

(01:03:44):
the insolent Emperor of the French. Financial affairs in Austria
were in a state of chaos, as revealed by the
Vienna burs of the period. A confidential friend of Emperor
Francis had sent him a report on the subject, in
which he did not mince his words. I feel it
my duty to observe. He wrote, that the Bourse at
the present time seems more like a jumble sale than

(01:04:06):
an imperial burse. The dregs and scourings of the population invaded,
and decent business men capable of handling such matters are
pushed into the background and shouted down, so that reasonable
discussion becomes impossible. Closer investigation will reveal the fact that
many of these people are paid by stock jobbers systematically
to create disorder at the burse. The collapse in the

(01:04:29):
value of the paper currency, the violent fluctuations in all quotations,
the fear of war, and the general unrest all contributed
to this state of affairs. It was in vain for
Emperor Francis to resolve that measures must be taken to
prevent the boors from degenerating into a rowdy collection of
persons of no position who sacrifice all considerations to the

(01:04:49):
basest greed for profit. The fundamental cause of these conditions
remained unaltered. The Austrian state hoped for some financial assistance
from the Elector at Prad, he was living a retired
life at the palace Liechtenstein, and Vienna set itself to
discover the state of the Elector's purse. All kinds of
confidential persons and secret agents of the police, some of

(01:05:12):
them disguised under titles of nobility in wearing officer's uniforms,
were sent to Prague. One of them reported that the
Elector of Hesse had large sums at his disposal and
was in communication with particulars through middlemen regarding the purchase
of state obligations. He stated that it was not at
all unlikely that alone to the Imperial Court could be

(01:05:32):
obtained under favorable conditions, and suggested that it might be
worth while to make inquiries on this matter through confidential
bankers and exchange merchants. Immediately on receipt of this report,
the Emperor, with quite unwonted promptitude, instructed the Chancellor of
the Exchequer, Count O'Donnell, to let him have his opinion
as speedily as possible. On this report received from a
trustworthy source, we now for the first time find the

(01:05:56):
name of Rothschild mentioned in connection with the Austrian court.
Count O'Donnell reported that there was no doubt that the
Elector had rescued considerable sums and also had large amounts
to his credit in England, and that it was therefore
worth attempting to induce him to subscribe to a loan,
either in solid gold or in reliable bills of exchange
on places abroad. The Count emphasized that in order to

(01:06:19):
achieve this object, the best method would probably be to
approach the middlemen to whom the Elector entrusts his financial affairs,
and this can best be done through a reliable exchange
office in Vienna or Prague. O'Donnell recommended that such middlemen
should receive one, two or three percent commission, this being
in any case customary in such proceedings, and they would

(01:06:39):
then have an interest in stimulating the elector to carry
through the transaction. The papers of the credit's commission reveal.
The Count's report continued that the persons who appeared on
behalf of the elector then Landgrave in connection with the
negotiation of the loan of one million, two hundred thousand
Gulden in seventeen ninety six were the Frankfort firm Rupel
and Harnier and Privy Councilor Butterus. At that time the

(01:07:03):
interest on these loans was collected by the local firm
Frank and Company on behalf of the Jewish firm at
Frankfort of Meyer Amskill Rothschild, who were authorized to collect
them by a power of attorney executed by Privy Councilor Butterus.
And it appears to me abundantly evident that this Privy
Councilor is the principal person who should be moved through
some advantage to smooth our path, it was decided to

(01:07:24):
put up to the intermediary's two proposals, either that they
should obtain a five percent loan on mortgage security, or
that they should persuade the Elector to invest a considerable
sum at least one or two million in the lottery loan. Hereupon,
the following resolution was issued by His Imperial Majesty, in
view of the indubitable necessity for providing, if possible, for

(01:07:45):
the collection in hard cash of an adequate supply of money,
I approve of an attempt being made to obtain a
cash loan from the Elector of Hesse. The important thing
is to make use of a reliable and intelligent mediator
who may be relied upon to carry through the negotiation's
caution and skillfully, so as to achieve the desired end
on the most favorable terms possible. In accordance with these instructions,

(01:08:07):
Butterus and Rothschild were confidentially approached as mediators, and they
promised that they would do their best. But they emphasized
the fact that the ultimate decision lay solely with the elector.
They at once duly informed the Elector of the wishes
of Austria, but he showed a reluctance to meet them,
and then war broke out and the negotiations were postponed.

(01:08:27):
During the period which followed the elector regarding whose avarice
and enormous wealth, the most varied stories were spread. At
Prague was closely watched by secret police specially sent from Vienna.
He took an active interest in current affairs and closely
followed the powerful movement which was developing in Germany, particularly
in Prussia, its aim being to shake off the foreign yoke.

(01:08:49):
This movement could not as yet come into the open,
but in Koenigsburg, where the King and the government of
Prussia were residing, the Tugenbund was formed, a league which
ostensibly pursued moral science anentific aims, but the ultimate object
of which was deliverance of Germany. The principal protector of
the league was the Minister Baron Vaughan Stein, and William
of Hesse held an important position in it. Its membership

(01:09:12):
was so wide that it also included Jews and the
Rothschilds appear to have become members. At any rate. They
acted as go between's for the Elector's correspondence on this
matter and made payments in favor of the Tugenbund. Through
an intercepted letter from Stein which mentioned the Elector, Napoleon
learned of the desire for a war of revenge and
of the plans for a rising in Hesse. Stein had

(01:09:36):
to flee, and Napoleon's distrust of the Elector and of
his servants was very much increased. The Emperor saw clearly
that the Elector was implicated that is was financing it.
Further intercepted letters confirmed this view. As a result, several
business men mentioned in them by the Elector were arrested.
It was desired through them to obtain further information regarding

(01:09:58):
the apparently inexhaustible reas sources of the Elector. Amongst these
men of business, Butterus was prominent, and it was particularly
desired to ascertain his precise connection with the bankers. One
of these was Meyer Amskill Rothschild, whose relations with Butterus
had long been no secret to the French officials. The
Frankfort banker was accordingly cited to appear before the Chancery

(01:10:20):
of the Urban and District of Frankfort on August thirteenth,
eighteen o eight but he could not obey his summons,
since he was confined to his bed. He had fallen
seriously ill in June eighteen o eight, had been operated
on by a professor from Mainz, and fearing that his
days were numbered, he had made his will. He therefore
sent his son Solomon to appear in his place, telling

(01:10:42):
him not to let himself be drawn, and to make
only such statements as were not likely to furnish the
French with any clue, or else to provide false clues.
Solomon carried out his mission with great skill. The French
were but little enlightened by the cross examination, and in
the end they dismissed the young Jewish the order that
he should immediately hand over to the court any letter

(01:11:03):
from bud Crust to the firm of Rothschild. Deuterus and
Lenip were themselves arrested in September eighteen o eight and
minutely examined for several days at Mince, this being only
natural in view of the fact that these men, who
were the Elector's tools, were in the power of the
French at Frankfort, whereas their chief was living in Prague,
out of Napoleon's reach. Napoleon's mistrust of William was fully justified,

(01:11:27):
for in October eighteen o eight the Elector was carrying
on negotiations at Prague for promoting insurrections throughout the whole
of the northwest of Germany, with the view that they
should spread to the south as well. This matter was
certainly carried on with great secrecy. Even the Austrian secret
police agents knew only in a general way that something
was in the wind. It is amusing to note the

(01:11:49):
naive manner in which they arrived at the conclusions contained
in ti Air reports. The Elector of Hesse says one
of these reports has forty one natural sons, all of
whom he has had decently provided for. But as the
fall of the Elector has disappointed their hopes of a
brilliant career, they are endeavoring to reinstate their father. As
the defeat of Prussia has deprived them of all chance

(01:12:11):
of achieving their object by force, they have had recourse
to a secret association which is intended to extend its
activities throughout the whole of Germany under the protection of
the English Masonic Lodge at Hanover. This league will take
a suitable opportunity to reveal itself in a public conspiracy
in order to attain its final object. The probability of
another war has aroused fresh expectations of making proselytes in small,

(01:12:36):
confidential circles. Something is occasionally said about the possibility of
putting an end to the miseries of the country by
putting Napoleon and his brothers out of the way. Vienna, however,
was not merely interested in the elector's high politics. Further
information was also desired as to his financial advisers, particularly
as to Rothschild, mentioned by O'Donnell. Urgent instructions were therefore

(01:12:58):
sent to the Chief of Police Oface, the city of Prague,
to obtain as accurate information as possible regarding that man's activities.
The chief of police reported, Amsel Mayor Rothschild, living under
the registered number one hundred eighty four in the third
main district, is agent for war payments to the Elector
of Hesse, and in that capacity he has achieved mention

(01:13:19):
together with his brother Moses Mayor Rothschild in the Electoral
Almanac for the year eighteen o six. The father of
these two men appears in the almanac as a war paymaster.
According to information supplied by Major Vaughan Thummel, Amsel Mayor
Rothschild has come here from Frankfort, where he has been
living hitherto in order to look after the Elector's financial affairs,

(01:13:41):
which were formerly entrusted to Balibaum, who seems to have
shown a certain lack of diligence. Be that as it may,
we may assume that Amsel Mayor Rothschild renders the Elector
important services in other matters too, And it is not
entirely improbable that this jew is at the head of
an important propaganda system in favor of the Elector, whose
its branches extend throughout the former Hessian territories. I have

(01:14:04):
reasons for this opinion. These suppositions are based on the
following fact. Whenever I enter the Elector's quarters, I always
find Rothschild there and general Why in the company of
Army councilor schmenk and War Secretary Knats, and they go
into their own rooms, and Rothschild generally has papers with him.
We may assume that their aims are in no sense

(01:14:24):
hostile to Austria, since the Elector is exceedingly anxious to
recover the possession of his electorate, so that it is
scarcely open to question that the organizations and associations whose
guiding spirit Rothschild probably is are entirely concerned with the
popular reactions and the other measures to be adopted if
Austria should have the good fortune to make any progress
against France and Germany. Owing to his extensive business connections,

(01:14:48):
it is probable that he can ascertain this more easily
than anybody else, and can also conceal his machinations under
the cloak of business. This report was more or less
in accordance with the facts. For Rothschild was the connecting
link between Butterus, who lived in Hesse and could never
come to Fragile, and the elector. Rothschild was also constantly

(01:15:08):
busy with the Elector's financial affairs, and these were of
a particularly wide scope at the beginning of eighteen o nine,
since with the passage of time the accumulations of money
in England by way of interest and otherwise had grown
so large that their supervision required particular care. Butterus proposed
that his master should acquire British securities at three percent,

(01:15:29):
and suggested that Meyer Amskill should he commission to effect
the purchase of them. Rothchild had naturally made this proposal
to Butterus in the first instance, and Butterus had duly
put it forward as his own suggestion. The close relations
between Butterus and Wrothchild had at that time actually been
embodied in a written agreement between them, which virtually made

(01:15:49):
the electoral official a secret partner in the firm of Rothchild.
This highly important document runs as follows. The following confidential
agreement has today been concluded between the Privy War councilor
Butterus Vaughan Karlshausen and the business house of Meyer Amskil
Rothschild at Frankfort, Whereas Butterus has handed over to the
banking firm of Meyor Amskill Rothschild the capital some of

(01:16:11):
twenty thousand golden twenty four florins, and has promised to
advise that firm in all business matters to the best
of his ability, and to advance its interests as far
as he may find practicable. The firm of Meyor Amskyll
Rothschild promises to render Butterus a true account of the
prophets made in respect of the above mentioned capital some
of twenty thousand golden and to allow him access to

(01:16:32):
all books at any time, so that he may satisfy
himself with regard to this provision. The agreement contained a
provision for its termination on either side by giving six
months notice. Deuterus now had a personal interest in securing
for meyor Amskyll Rothschild a monopoly in the conduct of
the Elector's business. What he had done had been in
the best interests of all concerned. His experience of a

(01:16:56):
period of years had proved to him the reliability and
the skill of the House of Rothschild. He harbored no
prejudices against the Jews, and he was firmly convinced that
the elector his master, was bound to gain by placing
his financial affairs in the hands of one firm, especially
of such an able firm as the House of Rothschild.
The Wrothchilds, on the other hand, needed the support of

(01:17:17):
a man who could gain for them the confidence of
the suspicious and avaricious elector, who was an exceedingly difficult
person to handle. They had achieved this object through Butterus,
but they wanted to secure the relationship for the future,
and therefore gave him a personal interest in the continued
prosperity of the business. Finally, Butterus himself profited by this arrangement,

(01:17:37):
as he fully deserved to do after the persevering and
self sacrificing efforts that he had made, and he could
never hope that he would be regarded in accordance with
his deserts by the rapacious Elector. Moreover, he was far
too scrupulous and honorable spontaneously to appropriate money in the
course of his administration of the elector's property. But he
had a very large family, and by becoming a secret

(01:17:58):
partner in the firm of Rothschild, he was enabled to
meet its requirements. Deuterus's efforts with his master were successful.
The Elector acted upon Rothschild's recommendations regarding British stocks, and
he then actually ordered that one hundred and fifty thousand
pounds of the stocks should be purchased on his account,
which in fact exceeded the amount that Butterus had suggested.

(01:18:20):
The investment itself was entrusted to Rothschild. Up to this time,
the financial transactions in England had been the most reliable
as far as interest payments were concerned, but the payments
in respect of interest due from members of the English
Royal House came in at most irregular intervals, and were
often outstanding for very long periods. The Elector, however, did

(01:18:40):
not agitate to get these payments in for he regarded
the money laid out in this direction less as an
investment than as a means of putting the members of
the ruling house under an obligation to himself. The brothers
Rothschild noted this practice of the Elector with important personages.
They had practical evidence from the experience of their princely
client of the fact that transactions involving temporary loss may

(01:19:02):
ultimately result in very good business. The debtor's uneasy feeling
on failing to make payments at the date when they
fell due sometimes led them to try to make amends
in other ways, through furnishing valuable information or through political services,
and such favors often produced cash results far exceeding the
amount actually owing. At this time, the bond between the

(01:19:23):
House of Rothschild and the Elector had become a very
close one, and this was not due to butterus only,
but also to their loyalty. Although this quality resulted to
their advantage, they incurred the risks that loyalty involved. The
only really unpleasant circumstance in this connection was the fact
that the frivolous heir to the Elector, who was always
in need of money, exploited the situation and at every

(01:19:45):
possible opportunity borrowed from his father's faithful Jewish servant. In
any case, there could not be a very serious matter,
as Rothschild was morally certain to get his money back,
the prince being the heir to the enormous fortune which
his father had amassed. These large financial transactions did not
put an end to the dealings in small antiques between
the Elector and Rothschild, which had been the starting point

(01:20:08):
of their business relations. However, there was a difference. Their
roles were reversed. The Elector now sold to Rothschild vases, jewels,
and antique boxes, et cetera, more often than he bought them.
These dealings constituted a peculiar bond of sympathy between the
Elector and his Jewish crown agent, and the Elector enjoyed
showing his talent in this field as far as was

(01:20:30):
consistent with his high birth. Meanwhile, the relations between Austria
and France had become more acute. The Emperor Napoleon had
returned from Spain, and a new war between Napoleon and
the Emperor Francis was imminent. The Elector offered the Emperor
a legion of four thousand men, this offer being coupled
with a touching appeal that the Emperor should secure his
reinstatement in the rulership of his territories. The offer was

(01:20:54):
thankfully accepted. On April ninth, eighteen o nine, the Austrians
crossed the thereupon Napoleon ceased to be a factor in
the treatment accorded to the Elector At Prague. The Elector
was granted the honors due to a sovereign and society
was commanded to call on his favorite at Prague, who
until then had been very much slighted. They wanted to
get on the right side of him in order to

(01:21:16):
get as much money and as many troops from each
time as possible. The Elector, however, put only one half
of the promised forces in the field. That cost him
six hundred thousand goulden, and it was Rothschild who saw
to the collection and distribution of this sum. This work
was full of danger for the Rothchilds as they were
at the mercy of the French in Frankfort. In spite

(01:21:38):
of the great scarcity of money at the time, it
was Rothschild who, from his own resources, advanced to the
Elector the cash amount of several hundred thousand goulden required
on short loan. The Elector already saw himself in possession
of his states. I come, he wrote, somewhat prematurely, in
a proclamation of April eighteen o nine, to loose your bonds.

(01:21:59):
Austria's exalted Monarch protects me and protects you. Let us
hail the brave Austrians. They are our true friends, and
it is in their midst and with their assistance, that
I come to you. It was with eloquence, rather than
with cash, that he called upon his Hessians to rise.
When one of the local leaders wanted to seize castle
and take King Jerome prisoner, he applied to the Elector

(01:22:21):
in the first instance for financial support. All that he received, however,
was a piece of paper representing an order for thirty
thousand failers, payable only in the event of the rising
being successful. When the attempt failed, the Elector laid the
blame upon the premature and unprepared nature of the attack.
The immediate result of the attempt was that the Elector's

(01:22:42):
servants in Hessian territory were subjected to more stringent regulations.
Notwithstanding that Butterus and Wrothschild were on such exceedingly good
terms with the Primate of the Confederation at Frankfort, the
fact that King Jerome's position in Westphalia had been seriously
threatened caused the police at Castle to watre much the
movements of Butterus and Rothschild with renewed assiduity, as they

(01:23:03):
suspected them, not unjustly, of having financatrizing. This favorable opportunity
was exploited by jealous rivals at Cassel, who supplied the
police and a notorious Chief Savonnir with information. Moreover, Baron Backer,
the accredited Westphalian ambassador to Dalberg at Frankfort, was a
bitter enemy of Rothschild and felt particular displeasure at the

(01:23:26):
favor shown by Dalberg to the jew since he had
long been convinced that Rothschild was in the Elector's confidence
in all the activities undertaken against the French. Savonner, who
thought that a prosecution of the rich jew might accrue
to the benefit of his own pocket, concentrated all his
efforts on inducing King Jerome of Westphalia to authorize the
issue of a warrant against meyer Amskill Rothschild on the

(01:23:49):
ground that he had been a channel through whom the
Elector's money had passed to the rebels. In this dangerous situation,
Rothschild appealed to Dalberg to intervene on his behalf. Dalberg
did what he could, and it was only with great
difficulty that the French police in Castle managed to obtain
the warrant. A certain Levy, the son in law of
a rival of Rothschild, informed Savanner as to the lines

(01:24:11):
on which Rothschild should be examined regarding his business dealings
with the Elector. On May ninth, eighteen o nine, Butterus
was again arrested at Hanau, submitted to searching cross examinations,
and was let out on substantial bail only after an
interval of several days. On May tenth, Savonnyer set out
for Frankfort with the warrant, which he had at last

(01:24:31):
succeeded in obtaining, but which authorized only a domiciliary search
and a close examination of all members of the House
of Rothschild. They had been warned in good time. The
prevailing sentiment amongst the local inhabitants, both at Castle and
at Frankfort, was one of solidarity against the foreign invader.
It was only rarely that this feeling was subordinated to

(01:24:52):
commercial rivalry. Meyer Amskill was also given a hint by Dalberg.
He was particularly concerned about the alle elector's four chests
containing account books, which were under his care. They were
in his house sellar, and he did not even know
what they contained. As the seller would naturally be searched,
he would have to do his host to rescue the
elector's property as speedily as possible. In the general excitement

(01:25:15):
arising out of the sudden menace, Old Meyer Amschkill and
his wife, Solomon and James, and the wives of the
two eldest sons were at home Amshkull, the eldest son
was staying with the Elector at Prague, and Karl was
traveling on other business. Those members of the family who
were at home now tried to get the compromising chests

(01:25:35):
through the connecting passage to the yard cellar at the back,
but they found that the passage was too narrow for
the chests. These were therefore emptied and their contents placed
in other cases, together with some coupons representing unrealized obligations
due to the firm itself. The family then set about
the work of hiding the compromising account books and the

(01:25:56):
secret records of the elector's intimate affairs, as well as
certain embarrassed correspondents. When the Westphalian Commissioner of Police arrived
on the tenth of May eighteen o nine, furnished with
his exceedingly limited warrant for summoning the Rothchild family and
searching their house at Frankfort, the most important documents had
already been well concealed, and the individual members of the

(01:26:17):
family had arranged between themselves what they would say when
they were examined, so that they would not get involved
in contradictory statements. Dullbert, the sovereign at Frankfort, had been
watching the activities directed from Castle with a certain resentment.
They constituted an infringement of his sovereign rights, and they
effected a valued financier to whom he would soon want
to apply again for a personal loan. On the other hand,

(01:26:40):
he felt that it would be exceedingly unwise for him
to oppose the wishes of King Jerome's great brother at
the same time for financial reasons. It was only with
reluctance that the King of Westphalia himself had consented to
the issue of the warrant. It was therefore a foregone
conclusion that the Rothchild family would not suffer any serious harm.

(01:27:00):
Dalberg also gave orders that one of his own police
officials should accompany Savanna. The two commissioners, accordingly betook themselves
to Rothschild's business house in the Jewish Quarter, where the
whole family were expecting them. Old Meyer Amskill, who on
this occasion too was unwell, was placed under arrest in
his own room, while Solomon and James were placed under

(01:27:21):
arrest in the office below, under the guard of police constables.
In the meantime, all cupboards containing papers and business correspondents
were sealed and a systematic search of the whole house
was instituted. Simultaneously, the home of Solomon, who also lived
in the town, was submitted to a similar search. Thanks
to the advanced warnings and to the well concealed duplicate books,

(01:27:44):
not much incriminating matter was discovered, the next step was
to investigate the individual members of the family. Meyer Amskill
had to answer the questions drafted by the jew Levy
on the instructions of his rival, the banker Simon at Castle,
questions affecting the detail tales of Rothschild's financial dealings with
the elector. In many cases, he replied that he had

(01:28:05):
no recollection of the matters referred to, pointing out that
he had suffered a severe illness and undergone an operation
in eighteen o eight. He stated that this had had
serious after effects, and more particularly that it had affected
his memory. By this method of evasion, he succeeded in
avoiding making statements which the Commissioner of Police could have
used as incriminating material. In these circumstances, recourse had to

(01:28:29):
be had to an examination of the other members of
the family, including meyer Amskill's wife. The old mother replied
that she knew nothing at all, as she only concerned
herself with the house, never went out from one year's
end to another, and had nothing whatever to do with
the business. The two sons made the statements which they
had previously arranged with their father, and in general said

(01:28:50):
as little as possible. The examination of such books as
were discovered yielded very slight result, as the incriminating documents
had been removed. Meyer Amskill cleverly used an opportunity which
proffered itself, of lending Savanyar three hundred thalers, and this
helped considerably to expedite the conclusion of the official investigation.

(01:29:11):
In any case, Savannyar's authority was of a limited kind,
and Dalberg's commissioner, who was himself a Jew, was well
disposed toward Rothschild, and used his influence to bring the
examination to an end. As sufficient material had been collected
to show that the action which had been taken was
justified and necessary in the circumstances, the authorities at Castle

(01:29:32):
too were satisfied. Fortunately for the accused, roth's Child's enemy,
Ambassador Backer, was not in Frankfort at this time, so
that the whole painful business passed off well for the
family of Rothschild. French reports on the matter revealed that
the French officials found the Rothschild family to be exceedingly
wise and cunning, and to have managed to secure friends

(01:29:54):
in all quarters. The only positive result of the inquiry
was to establish the fact that A M. Rothschild was
staying at Prague and was directing the financial speculations of
the Elector of Hesse, and that the firm of Rothschild
had made small payments to individual leaders of the insurrection.
The only circumstance noted which was regarded as of graver
import was that the brother's Rothschild had regularly paid considerable

(01:30:17):
sums to the Elector's consort, who was staying at Gotha,
and to her business manager Cuncle, who also acted as
an agent of the Elector in promoting the revolution of
Hesse against France. These facts in themselves furnished sufficient material
for dealing ruthlessly with the family, if that had been
seriously desired. But the Rothchilds benefited by the inhibitions of

(01:30:37):
the rulers of Frankfort and Castle, who at heart were
pleased to have remained faithful to the Elector, although they
had maintained practical relations with the new French powers. Everything
had resulted happily, and the Rothschilds could breathe freely, but
it had been a warning to act with even greater
precaution in the future. The most important thing was to
get the chests belonging to the Elector out of the

(01:30:59):
house at once, for in the course of another search
the yard cellar might perhaps be discovered. The chests were
therefore sent successively through the mediation of a Jewish friend
to a business acquaintance of the Rothschilds at Darmstad as
certain Abraham Mayor, and they stayed with him until the
elector returned to his country. While these events were taking
place at Frankfort, Napoleon's campaign against Austria was proceeding swift

(01:31:23):
as lightning. Napoleon's genius was thrusting down the Danube to
Vienna that he sustained a reverse at Osbourne, but on
July sixth he made good this defeat by the decisive
victory at Vogram. The Elector at Prague had been anxiously
watching the changing vicissitudes of the campaign that he had
hoped that his tormentor would be speedily beaten, and he
now saw him coming ever closer to his place of

(01:31:43):
refuge at Prague. When Napoleon was at the gates of Vienna,
the Elector was seized with terror he would have to
flee again, and in great concern, he took counsel with
his advisers, and with Amskill Rothschild, who was staying with him,
and who was no less terrified than his elect ectoral master,
as to whether they should not take refuge in the
fortress of Almuts. At any rate, the more valuable articles

(01:32:07):
were sent on there. Seven chests containing securities and one
containing jewelry were actually sent off. Then came Vagram. Napoleon
advanced to Marin, and Almets was seriously threatened. The boxes
had to come back, and the Elector set out for Berlin,
as the king had already offered to shelter him there.

(01:32:27):
But the King now rather regretted having made this offer.
Napoleon was too powerful and might resent the electors being
granted asylum in Berlin. The King therefore wrote on January
twenty ninth, eighteen ten, to put him off on the
ground of management's deli cats obtaining between himself and Napoleon
at the time. Meanwhile, peace was signed at Chunbreun, no

(01:32:49):
mention whatever of the Elector being made in the treaty.
Napoleon returned to Paris, whereupon William decided to remain at Prague.
The unsuccessful campaign of eighteen ze nine had resulted in
the retirement of Count Stadion, the Austrian Minister for Foreign affairs,
and this brilliant man and bitter opponent of Napoleon withdrew
for some years into private life. On October eighth, eighteen

(01:33:13):
o nine, he was succeeded by Prince Clemens Medinik, who
was to play such a decisive role in the destinies
of Europe during the following half century. Medinich had only
just entered upon his duties when he received a letter
from the Elector of Hesse requesting the Minister to support
him and to restore to his orphaned subjects their native prince,
whose presence they so ardently desired. He had great hopes

(01:33:36):
that Mednick would use his influence with the Emperor, and
he was bitterly disappointed when he learned that he had
not even been mentioned during the peace negotiations. He wrote
a bitter letter of complaint to Stadion. So many worthless
people relying on French protection are enabled to sin against
me with impunity, and nobody now feels that he has
any duties toward me. Everybody does as he pleases and

(01:33:57):
is actuated by base and selfish motives. I have thus
lost more than two thirds of a fortune that was
never very large. That is hard, but harder than everything else,
is my present condition. It was highly typical of the
elector to suggest that he was badly off. In spite
of his losses. He was still actually one of the
wealthiest princes of his time. But if there were spoils

(01:34:19):
to be divided, he did not want to be left
out in the cold, on the ground that he was
rich enough already. The money motive was always the principal
one with the Elector, and in this matter he had
a perfect understanding with his crown agent, Rothschild. Rothschild always
advised the elector to ask concessions at every possible opportunity,
as for instance, that claims on him in respect of

(01:34:41):
the troops should be waived, et cetera. And the Elector
got more and more accustomed to following roth's Child's advice,
and scarcely took any important financial step without consulting him.
A sum of one hundred and fifty thousand pounds had
been invested as recently as December eighteenth, eighteen o nine
in three percent British consuls from interest received on behalf

(01:35:01):
of the poor elector. The business in connection with this
transaction naturally entailed voluminous correspondence, for the conveyance of which
between Frankfort and Prague Meyer Amschkill made himself personally responsible
that he traveled in a private post chaise which contained
a secret drawer. The French were anxious to intercept, if possible,
the correspondence between the elector and as Frankfort agents. Once

(01:35:23):
they did actually succeed in seizing a letter destined for England,
which clearly revealed the fact that the Rothchilds were responsible
for the management of the Elector's funds in that country.
In the meantime, an important change had taken place in
general European politics. The new personality directing Austria's foreign affairs
had brought about a complete reversal of the policy followed previously.

(01:35:46):
Nothing could be achieved against Napoleon by the use of force,
and therefore Metternik tried other means. Napoleon's marriage with Josephine
was childless, his union with an imperial princess would increase
his prestige and might pre deduce the air he so
much desired. The hitherto hostile states were thus reconciled by
the prospect of a marriage, and in January eighteen ten,

(01:36:09):
the Imperial House of Austria gave Napoleon to understand that
if he asked for the hand of Marie Louise, the
eighteen year old daughter of the Emperor, he would not
be refused. The contract of marriage was signed as early
as the seventh of February. One of the first to
be informed of this complete change in the situation was
the Elector of Hesse. He immediately wrote again to Metternich

(01:36:31):
to the following effect. I am writing to your excellency,
trusting to enlist your sympathy for my most cherished desires.
The marriage, which is to unite the two greatest monarchies,
causes me to hope that I may regain the Emperor
Napoleon's good will. If our Emperor will but intercede in
my favor, one word from him to the Plenipotentiary of
France will secure my happiness and will at any rate

(01:36:52):
establish me as ruler of one of the liberated states
in Germany. Even if I cannot regain my own penedes,
Surely that onarch will not be able to resist the
intervention of his exalted father in law and of an
adored wife on behalf of a prince who has never
yet understood how he has incurred his displeasure. The Elector
also repeatedly pressed Count's stadium to use his influence with

(01:37:14):
the Austrian ruler in William's behalf. The Minister had great
difficulty in dissuading him from traveling to Vienna. Although in
these letters the Elector gave such a woeful account of
his condition, he was faring exceedingly well at Prague. He
had bought a palace on the Klein site, where he
held court, and he maintained a household of thirty six persons.

(01:37:35):
He had also acquired the magnificent castle and grounds of Baubinych,
which was finally furnished throughout, but with due regard to
economy the firm of Rothschild carried through the business matters
connected with these purchases. The actual state of the Elector's
affairs was well known. At Vienna. The financial affairs of
the court and of the public departments were getting steadily worse,

(01:37:55):
and the new friendship with France had done but little
to lighten the burdens of debt incurred under the Reas
Peace treaty. In the negotiations between France and Austria, and
the Austrian treasury official Nicolaus Barbier, had been so vehement
in his advocacy of Austria's interests that the French Planet
Potentiary on one occasion actually protested against his being present.
This clever financial expert had played a considerable part in

(01:38:18):
all the various loan operations which Austria had had to
carry out during these wars. At that time, the Imperial
State had no business relations with the Rothschild banking firm.
There were four more or less official discount houses at
Vienna through which the Austrian government arranged its loans and
other monetary business. They were the banking firms Gaymehler and Company,

(01:38:39):
Arnstein and Eskils and Company, graft Fries and Company, and
Steiner and Company. The Austrian government also dealt with the
banking firm of Parish at Hamburg in eighteen o nine
in matters relating to remittances and realizations, such were the
technical terms used at the time of English subsidy moneies.
The condition of the Austrian state finances was lamentable. The

(01:39:03):
value of her bank notes had fallen steadily during the wars,
and the amount of paper money in circulation had risen
to the enormous figure of over a thousand million golden.
It was already necessary to pay five hundred paper golden
for one hundred golden in coin of the realm, this
amount soon rising to twelve hundred golden. In June eighteen ten,
the difficulties had become so acute that an attempt was

(01:39:25):
made to raise a loan of from two to three
million golden on the contents of the Privy Purse, which
were deposited in the Vienna Treasury. This loan to be
carried out by the four discount firms mentioned above on
the security of mortgage deeds. The banker Eskylls made a
journey to Paris and Holland in order to raise this money.
It was also suggested that the state lottery monopoly should

(01:39:46):
he mortgaged, but the four banking firms had not great
resources themselves and were not particularly successful in their attempts
to raise credits. Eskylls was forced to report from Frankfort
that he had no hope of success, either in raising
money or in mortgaging the state lottery. In these depressing circumstances.
Vienna remembered the wealthy elector of Hesse, whom it had

(01:40:07):
been treating so shabbily, and it was suggested that he
might be persuaded through Rothschild to grant alone to Austria.
Barbier was entrusted with this mission and discussed it personally
with the Elector and also informed Rothchild of the matter.
The Elector replied evasively. He said that he must first
discuss it with his advisers, and Butterus had pointed out

(01:40:28):
to his master that so much money was already on
loan with private persons that it was not desirable to
make further investments. Rothschild also advised against producing capital sums
of the amount required by the Austrian court, although he
felt that it was not desirable to give the Emperor
a rebuff the Elector and Rothchild hit upon the idea
of suggesting to the Emperor that the elector should transfer

(01:40:51):
to him all his individual outstanding claims, and that it
should he the monarch's own business to bring the debtors
to book. He suggested that the Emperor might have more
inflatrullans and power to effect this, and that he might
be able to neutralize any opposition of the French to
collecting the debts. The advantage for him would be that
he would then have only one single debtor, the Emperor

(01:41:11):
of Austria. The Elector accordingly wrote to Barbier that he
would be happier than he could say if his Royal
and Imperial Majesty would take over the debts due to
him mentioned in the accompanying schedule. He stated that he
was not in a position to grant alone in any
other way than that suggested, as eighteen months earlier he
had purchased Austrian government stock of the value of over

(01:41:31):
a million gulden, and funds in England had been sequestrated.
If he recovered from his financial difficulties, he would be
delighted to be of service to his Majesty. He enclosed
a list of thirty three different clients who owed him
sums in varying amounts, ranging from seven hundred and eighty
four thousand, eight hundred and forty eight reichstalers down to
six thousand, nine hundred and fifty one reichstalers. Apart from

(01:41:54):
several princely houses, the names of Privy councilors and councilors
of embassies figured in these lists, as well as ministers
such as Hardenberg, who owed the Elector one hundred forty
thousand tailers. The total value of all the claims amounted
to the sum of five million, eight hundred thirty two thousand,
five hundred thirty two reichstailers. This proposal, however, came to nothing.

(01:42:18):
The scheme put forward by Rothschild and approved by the
Elector had been too subtle and complicated, and on the
instructions of Emperor Francis, a reply was sent to the
Elector forty nine declining the offer on the ground that
the collection of the money would be a process too
difficult and uncertain and not consonant with the dignity of
the Austrian state. It was also pointed out that the

(01:42:38):
monies had been attached by the French government and that
to accept a transfer of these obligations would therefore compromise Austria.
Although the proposal was rejected, it had the important result
that for the first time a high Austrian treasury official
negotiated with a member of the Rothschild family. In the meantime,
important political changes had taken place at Frankfort. Dalberg's Confederation

(01:43:01):
of the Rhine had exchanged Hanau and Fulda for Regensburg,
and the title of Grand Duke of Frankfort was conferred
on the overlord. Dalberg's promotion furnished an opportunity to Meyer Amskill,
who was in his favor of proving his gratitude to
Butterus for his good offices in the past by services
other than financial. Butterus had been continually molested by the

(01:43:22):
French police, and Rothschild decided to put an end to
this by persuading Dalberg to recognize the electoral official as
a deputy of the estates of the Grand Duchy of
Frankfort on the occasion of the handing over of Hanau,
and also to appoint him director of the Finance Committee
of the Diet. He hoped that when Butterus held this
official position, he would be left in peace. Dalberg acceded

(01:43:44):
to Rothschild's request. He steered his course very cleverly between
the former powers who were now in exile and the
new masters at Frankfort. It was very necessary that he
should do so, for he could not upproude himself from
the city of his birth. All his possessions were there,
and the city was the principal commercial and financial center

(01:44:04):
of the continent. The Austrian ambassador, Baron Vaughan Hugel reported
enthusiastically regarding the increasing prosperity of Frankfort, which had conserved
its wealth through all the difficulties of the war period
and had actually grown richer. Luxury, he wrote, has increased incredibly.
Cash has turned over much more rapidly. Hospitals, libraries, museums,

(01:44:27):
et cetera. Are provided on the most generous scale. Trade
and industry flourish, and everyone is full of enterprise. Hugal
emphasized the fact that the city already gave the impression
of being one of the pleasantest and most important towns
of Germany. The Grand Duke, he continued, takes an active
interest in everything. Since I have been here, I have

(01:44:48):
not seen a beggar or been asked for alms. The
roses in the gardens are never touched, and in spite
of all difficulties, the industry of the tradespeople and bankers
is exemplary. In in fact, their difficulties seemed to act
as an incentive to further efforts. During the last twenty years,
there has been no bankruptcy of any note. The volume

(01:45:09):
of goods passing through the city is inconceivably great. Plutocratic
standards obtain at Frankfort, and persons are judged by the
magnificence of their establishments or by the appearances that they
managed to keep up. Hugel pointed out that Frankfort was
a focus for trade between northern and southern Germany and
a gateway to France and Austria, and that no less

(01:45:29):
than eight hundred of its citizens had admitted to possessing
unencumbered cash to the sum of fifty thousand golden or more,
while some hundreds enjoyed annual incomes of this amount and upwards.
Although this description may have been painted rather rosalie, it
was in essentials in accordance with the facts. There were
many people at Frankfort who had grown rich, and the

(01:45:50):
rapidity of the rise of the house of Rothschild to
wealth and influence had been particularly marked. In view of
the progress of his business, Meyer Amschkill now decided to
define more clearly its internal constitution, and more particularly to
regulate his son's share with greater accuracy than had been
done within the framework of the existing concern. On September

(01:46:11):
twenty seventh, eighteen ten, a new deed of partnership was
accordingly drawn up between the father and his sons. The
main principle of this contract was that Meyer Amskill gave
all his sons a substantial share in the business in
order to stimulate their industry. They became not merely indirectly,
but directly interested in its continued prosperity. To mark the change,

(01:46:33):
the name of the firm was altered to Meyer Amskill,
Rothschild and Sons. And Rothchild conveyed this information to all
his business friends in a printed letter in which he
emphasized the fact that he was now associating his three
sons with him in the direction of the business, which
had been established for forty years. The contract assessed the
capital value of the business at a total of eight

(01:46:54):
hundred thousand golden, three hundred seventy thousand golden being allotted
to the father, one hundred eighty five five thousand golden
each to the sons Amskill and Solomon, and thirty thousand
each to Karl and James, who had not yet connic
of age. These shares were allotted to them as their
absolute property. And it is noteworthy that Jacob James Rothschild,

(01:47:15):
who was barely eighteen years old, was allotted shares to
the capital value of thirty thousand golden as duly earned
through the conscientious carrying out of the business entrusted to
him by the old concern. For the purpose of dividing
profit or loss, the business was divided into fifty shares,
a multiple of five, having the convenience of facilitating the

(01:47:35):
future division of the business equally between the five brothers,
while the smaller fractions made it possible in the meantime
to allot shares with due regard to the varying ages
and capacities of the five sons. When the time came
to divide up the inheritance, each son could acquire an
equal fifth share. On perusing the document, one is struck
by the fact that Nathan, who was living in England,

(01:47:58):
is not mentioned in the partnership deed and seems to
have been left entirely to his own resources, although he
was in close business association with the parent concern and
on the best terms with his family. Under the contract,
twenty four of the fifty shares were for the next
ten years to belong to the father, twelve each to
Amshkill and Solomon, and one each to Karl and James.

(01:48:19):
In point of fact, however, Meyer Amschkill was holding the
twelve fiftieth destined for Nathan, but for the sake of
public opinion, on account of the French domination, the connection
with Nathan, who was living in England, had to be
kept secret. We may assume that there was a secret
subsidiary agreement with Nathan, accurately defining his relation to the company.

(01:48:40):
Each partner of adult age was authorized to sign on
behalf of the firm. The deed recited that, with the
help of the Almighty Meyer Amskill, rothschild has, through the
industry which he has shown from his youth upwards, through
his commercial capacity i e. Business instinct, and through a
tireless activity continued to an advanced age alone, laid the

(01:49:00):
foundations of the present flourishing state of the business, and
thereby provided for the worldly happiness of his children. It
was therefore laid down that the decision in all transactions
should remain with him as being the head of the business. Moreover,
he expressly retained for himself alone the right to withdraw
money from the capital of the business as he might
think fit, whereas the other partners could take out only

(01:49:23):
their annual profits and what was necessary for their households.
It was also laid down that no daughters or children
in law should have any right to see the company's books. Finally,
there were provisions against vexatious litigation, and any partner who
set the law in motion was made liable to a
penalty for doing so. Before he could appear before the judge,

(01:49:44):
he was required to deposit this amount. This article was
cleverly designed to lessen the possibilities of disputes between the
five brothers, and although they might perhaps have rendered it
invalid at law, they fully appreciated its wisdom, and all
five solemnly agreed to abide by it. The Deed of
Partnership gives some insight into the varied nature of the

(01:50:04):
business of the House of Rothschild and the vicissitudes to
which it was liable, As bad and unrealizable mortgages, debentures,
and outstanding debts of all kinds are mentioned. It is
clear that in its numerous undertakings, the House of Rothchild
sometimes suffered losses and made mistakes. These certainly always brought
indirect advantages, as Meyer Amskill continually emphasized to his sons

(01:50:28):
that mistakes have an educational value and one must never
lose courage. Meyer Amschkill was careful to nurse the old
connections which the elector had facilitated for him through his
relations in high Quarters, and to exploit them for the
benefit of his house. Whereas previously he had acted as
the middleman between the electoral lender and Denmark, he offered

(01:50:48):
as early as December eighteen ten a loan of four
hundred thousand failers to Count Skimmelman, the Danish finance minister.
Which loan was to be advanced not by the elector
but by Meyer amschkll wrong Rothschild and his sons. It
was another step towards his gradual financial emancipation from the elector.
Although having now arrived at the point of doing business

(01:51:09):
on his own account, he continued to apply in his
own interests the business principles so well proved by William
of Hesse. Rothchild carefully watched the general political situation, though
by reason of his personality and origin and his ignorance
of language, he could not possess those qualities which are
normally required in a diplomat. He had a sagacious understanding

(01:51:30):
of human nature, entirely free of any preconceived ideas or prejudices.
This was a particular advantage in a world which at
the time was politically topsy turvy. One really had to
be a consummate diplomatist in order to carry on one's
business without causing offense, either to the French or to
the powers which they were oppressing. As long as Napoleon's

(01:51:52):
star was in the ascendant, the Rothchilds acted as if
they were well disposed of France and her ruler. They
lent money both to the French and to the native authorities,
delivered flower to friend and foe alike, and hoped to
be left entirely unmolested by Napoleon. They felt, as we
know today, more secure than they really were. They were
running great risks, for instance, in their commerce, or rather

(01:52:16):
illicit trade in merchandise with England. It was not till
some time after the proclamation of the Continental Blockade that
Napoleon realized that it inflict de hardship not only upon
England but upon France, as France thereby lost her best
customer and the cost of allying in that country rose
much higher. He accordingly issued various decrees modifying the strict

(01:52:37):
provisions of the Continental blockade so as to permit of
a kind of official smuggling under departmental supervision, and also
to allow the import of colonial goods on the payment
of a very heavy duty approximating fifty percent of their value.
In spite of these alleviations, smuggling was carried on on
a large scale, and its direction was naturally concentrated in

(01:52:57):
the commercial city of Frankfort. Napoleon had sent his own
spies there, and on receiving their reports, he decided to
take more active measures against Frankfort. Beuterus had just decided
to give to the young Crown agent Karl Rothschild, who
was about to attempt to bring to Prague the property
which the elector had left in Sleswig, the final account
for the year eighteen o seven, which the elector required.

(01:53:21):
The official stated that he was not inclined to venture
on the journey himself because he was too closely watched
and feared a further arrest and a possible confiscation of
all his property. His letter also contained news that would
be welcome to his avaricious master. After long arguments and
as the result of great efforts, he stated, I have

(01:53:41):
persuaded the Crown Agent Rothchild in affecting the third investment
of one hundred fifty thousand pounds Sterling, to charge one
quarter percent less commission, so that he will deliver the
stock for seventy three and three quarters, involving a saving
of four thousand, five hundred twenty one pounds. The younger
son of Crown abs Agent Rothschild will bring over the
document relating to the first purchase of stock as soon

(01:54:04):
as means can be found for sending it safely. But
this could not be carried out so easily. Napoleon's anger
because Frankfort did not respect his blockade regulations against England
led to more stringent regulations, and Butterus was forced to
change his plans completely. The Crown Agent, Colman Rothschild, he
wrote on November two, eighteen ten, should proceed to Prague

(01:54:26):
at once, as several French regiments with artillery have come
into the town, as well as a host of customs officials.
All the gates have been occupied and nobody is allowed
to pass out without being closely inspected. All warehouses have
been sealed, and an extensive search for English and Colonial
goods has been instituted, severe penalties being indicted when such

(01:54:47):
goods have been discovered, the extent of the general confusion
and distress which this has caused Beggar's descriptions, I myself
have taken every conceivable precaution, and I feel justified in
stating my absolute conviction that the sons of Crown Agent
Rothschild deserved the highest praise for the tireless industry and
zeal which they have shown in their devotion to your

(01:55:07):
Electoral Highness. Fresh proclamations have been issued promising a reward
of fifteen percent for information regarding the investment of Your
Electoral Highness as funds. And the number of spies and
traders under every guise is so great that it is
impossible now to trust anyone. From this mild account of conditions. Here,
you may graciously be pleased to infer that it would

(01:55:28):
be as impracticable for me to leave as it was
formerly to transport the effects and custody at Goddarup. I
shall arrange for Crown Agent Colman Rothschild to start as
soon as it is possible to get a package out
of Frankfort. On instructions from Paris, a general domiciliary search
for concealed English manufactured goods had been ordered at Frankfort.

(01:55:48):
The city, which had just been described in such glowing
colors by Hugel, was now in a panic. Naturally, the
business house of Rothschild was also affected by this measure.
A list was drawn up of two high hundred and
thirty four tradesmen who had to pay the heavy duties
prescribed for the colonial wares which were discovered. Meyer Amskill
Rothschild was the sixty eighth name in this list and

(01:56:10):
was made liable for a payment of nineteen thousand, three
hundred forty eight francs, which was certainly not a very
large amount compared with the sums payable by other tradesmen.
Heaven Street, for instance, paid nearly a million francs, and
beth Man three hundred and sixty three thousand francs. Altogether,
the French collected a total of nine and a quarter
millions on the colonial stores discovered at Frankfort. Half the

(01:56:34):
amount payable by Rothschild was for Indigo. In view of
Meyer Amschkik's relations with the Grand ducal government, and his
cleverness at concealment. We may assume that his actual stores
of colonial goods were much greater, and that through his
connections he substantially reduced the amount which he ought to
have paid. Nevertheless, this sudden incursion, personally ordered by Napoleon

(01:56:55):
had distinctly alarmed him. Meanwhile, the Elector at Prague had
received Butterus's letters and sent the following reply to his trust,
the official. It is a special satisfaction to me that
you have induced the firm of Rothschild, in view of
the prospect of the further investment of one hundred and
fifty thousand pounds, to reduce their commission by one quarter percent.

(01:57:16):
In view of further representations made by the Crown Agent Rothschild,
and having regard to the favorable price, I have decided
to increase this investment by a further one hundred thousand pounds,
but on the understanding that I shall pay this amount
in installments, and that I am not to be worried
about it in any way. At the same time, you
are to see that the document regarding the first investment

(01:57:36):
reaches me as soon as possible, and that I receive
the others. Shortly afterwards, I note with pleasure that the
House of Rothschild has shown its traditional devotion to me
even in the present catastrophe at Frankfort. You will kindly
convey to them my satisfaction and gratitude. Meanwhile, the Emperor
of France had just experienced one of the happiest hours

(01:57:56):
of his life. On March twentieth, eighteen ten eleven, Marie
Louise had presented him with the son and heir he
so much desired. The baptism of the French heir, who
had been created King of Rome while still in his cradle,
was an occasion of unexampled splendor and magnificence. From all
their domains. Princely personages swarmed to the festivities to take

(01:58:18):
advantage of the opportunity of expressing their allegiance to the
mighty monarch. The Grand Duke Dalberg in Frankfort also desired
to go to Paris to due obeisance, but there was
a formidable obstacle in the way of his doing so.
The journey was very expensive, and Dalberg could not visit
Paris except with a retinue such as befitted his rank.

(01:58:39):
But he had no retinue, and in the first instance,
he turned for assistance to the association of Frankfort Merchants,
requesting them to lend him eighty thousand gulden for the
journey to Paris. The merchants, who disliked the Napoleonic regime
and could not agree as to the proportions in which
the money should be subscribed, declined the request. Dalberg had

(01:59:00):
not applied to Rothschild in the first instance because he
thought the amount was too heavy for a single individual
to advance. Meyer Amschkill learned of the Grand Duke's wish
and voluntarily offered to advance him the sum at five percent.
Dalberg could now proceed to Paris. While Rothschild had always
enjoyed Dalberg's favor, this clever action gained for him the

(01:59:21):
full confidence of the Grand Duke, as is indeed specifically
stated in a later French police report regarding the Rothchild
family through meeting him in this matter. He was so
successful in gaining the Grand Duke's confidence and secured himself
so thoroughly in his good graces that henceforth the Grand
Duke scarcely ever refused him any request he asked. For instance,

(01:59:42):
for a passport for young James, who was then nineteen
years old, and who was sent through Antwerp to Paris
straight into the Lion's mouth. His presence was necessary there
in connection with certain illicit business that Nathan was carrying
out from England, which will be described in more detail later.
For the present was suffice to state that James actually
arrived in Paris on the twenty fourth of March eighteen eleven,

(02:00:05):
took up his quarters at five Ru Napoleon without being hindered,
and duly reported himself to the police. At this time,
the Rothschild family were kept very much on the move.
Apart from their own business, all the members of the
family who were capable of traveling, were constantly on the
road in order to transact personally the important business of
the Elector at various places. This is most clearly revealed

(02:00:29):
in the correspondence between Butterus and the Elector Young Rothschild.
He wrote from Hanau to his master on April seventh,
eighteen eleven, is actually on his way to London to
fetch the certificates of title regarding your investment of capital.
He can take the packet of letters with him. His
father will gladly make an effort to get the things
away from Goddup, and is already making inquiries on this

(02:00:51):
matter on my advice. Crown Agent Rothchild has called in
the capital payment due at Copenhagen and has received one
hundred and fifty nine thousand, thousand, six hundred gulden. Will
your Electoral Highness graciously permit me to convey to Crown
Agent Rothchild your Highness's satisfaction regarding his manifold activities on
your behalf. I am informed by Crown Agent Rothchild that

(02:01:13):
the Prague police have discovered the secret drawers in his carriage.
I have therefore thought it advisable not to send my
account for last month with the other documents on this occasion,
as it cannot be concealed under the clothes as letters can.
The Elector rewarded such news with expressions of genuine satisfaction
and agreed that Rothschild should be acquainted with his satisfaction

(02:01:35):
with him. He was, however, still concerned about the money
which he had invested in English stock, in respect to
which he had not yet received any document of title.
I feel a real longing which I think is justified,
he replied to Butterus to see the documents regarding the investments.
I had not been informed that the police here had

(02:01:55):
discovered the secret hiding place in a carriage. In any case,
there is no reason to expect anything untoward from that quarter.
Butterus was unceasing in his efforts to exalt the Rothschild
family in the opinion of the Elector, and to represent
all other business houses as unreliable or less accommodating. This
was shown in the case of a transaction of earlier origin.

(02:02:17):
The Elector had transferred to Meyer Amskill Rothschild and two
other Jewish bankers from Castle an amount of a million
Dutch gulden due to him in Holland. In accomplishing this,
various technical difficulties arose, which delayed the payment of the
sum in Holland. While the transferees of the debt had
already paid out the greater part of the sum involved
before making further payments, they naturally asked the Elector for

(02:02:40):
a guarantee. In righteous indignation, Butterus reported this to his master.
The worst of this business is that it was not
entrusted to one single business firm. The agent Steuben Hesse
Goldschmidt and the heirs of Michel Simon are most ill
disposed towards your electoral Highness. Levy Simon's son in law,
who manages the business, has gone to such extremes that,

(02:03:02):
as I know for certain, he caused the recent arrest
of myself and Rothschild and furnished the police commissary with
the questions on which we were cross examined with extreme severity. Butterus,
how proposed that the Castle Jews should be made to
retire from the business, and that the matter should be
entrusted to Meyer Amskill Rothschild alone. The Elector concurred in

(02:03:23):
this proposal and replied as follows. I have read with
great interest the reports regarding the Dutch loan of a
million gulden. You are quite right in holding that it
is essential to keep the Castle Jews out of this business.
Although I have always regarded Goldschmidt as an honorable man,
I fear that these Jews will not trust the Frankfort
agent Rothschild and will imagine that there are heavy profits

(02:03:46):
at issue and demand high compensation for retiring. In the end,
the Elector left the whole matter to Butus, and he
accordingly put it all in Rothschild's hands. In general, however,
the Elector was again in an exceed eadingly bad mood,
first because Rothschild had still not succeeded in bringing his
property from Hallstein to Prague, and secondly because he had

(02:04:08):
received a report from Butterus regarding an electoral loan which
had been made to a family called Plettenberg through the
intermediary of Prince Wickenstein, the recovery of which seemed highly doubtful.
He was also annoyed by a suggestion made by Butterus
that he should again take part in Frankfort loans, of
which he had had such an unfortunate experience. It was

(02:04:28):
in a highly nervous condition that he awaited the documents
regarding his investment in English stocks, which had not yet
come to hand. This mood found expression in an exceedingly
angry letter in which the Elector notified the cessation of
payments to Rothschild in respect to the English stocks, thereby
causing a positive panic in the Rothschild Butterous firm. In

(02:04:49):
the course of this letter he said, after all, my
trunks and chests in Hallstein contained something more than clothes.
There are Hessian debentures and accounts of various kinds, and
a chest containing solk, that I will arrange to have
them brought to me here direct for I am weary
of giving instructions in this matter to the House of
Rothschild year after year. I shall dispatch the draft letter

(02:05:10):
to Prince Vaughan Wittgenstein regarding the Plettenberg loan affair, But
do not expect that it will have much result. The
whole business is a network of intrigue, and I am
absolutely determined to sacrifice everything rather than involve myself further
with that Prince. He has behaved in a shockingly irresponsible
way toward me. I am not inclined to take part

(02:05:31):
in the Frankfort subscription loan. I am sick of all loans,
and I really prefer to have my money lying idle.
Nothing had yet arrived from London, a fact which particularly
exasperated the Elector. I am exceedingly worried about this matter,
he wrote, and am most eagerly waiting to hear what
you have to say. In the meantime, you are to

(02:05:52):
cease making any further payments with respect to these stocks.
Neither are you to invest in many further English interest payments.
I am still waiting in Vain for the documents regarding
the capital which I have invested, and in spite of
all the confidence which I have in Rothchild, I cannot
tolerate this delay any longer. Neither has the registration of
the older stocks been affected. Yet Lorrence is constantly and

(02:06:16):
emphatically reminding you of this matter. You must see that
he is kept fully informed of all my financial affairs
in England, and especially of the investments effected through Rothschild,
in order that he may keep an eye on them,
as it is his duty to do as my charged affair.
You are to see to this without delay. The Elector's
fears had been increased by letters from Lornce, his plenipotentiary

(02:06:39):
in London, who was offended because he had not been
taken into the confidence of Butterus and Rothchild in the
business which they were transacting for the Elector in England.
He had suggested to his master that England might conclude
an unfavorable peace which would cause a heavy fall in
British stocks, and therefore advise the sale of the securities
which had only just been purchased. Yeuterus replied to his

(02:07:01):
master in a very injured tone, stating that in accordance
with instructions, he had stopped payments to Rothschild with respect
to the new purchases of stock. He enclosed Rothschild's explanation,
which set out the enormous difficulties in the way of
undertaking journeys to and from England in safely conveying documents
and letters in a time of war and blockade. Deuterus

(02:07:21):
strongly indorsed the remarks of his Frankfort partner. In my opinion,
he wrote, his judgment is sound and his request is justified.
I have not yet informed War councilor Lawrence of the
investments made by Crown Agent Rothschild. It is not desirable
that such information should be too widely known. He added

(02:07:41):
that if the Elector's instructions in this matter were not countermanded,
he would forthwith carry them out. The bank of Reappel
and Harnier, he continued, is not to put too fine
a point upon it. Filled with absolute rage against your
electoral Highness. Although they owe their fortune entirely to your Highness,
they be cave like madmen, instead of keeping quiet as

(02:08:02):
they ought and doing their duty by their customers, whom
they serve for profit. In a second letter, Butterus wrote,
Rothschild is unjustly accused of having, from motives of secret advantage,
delayed the Dutch business, which is probably to the great
detriment of your Highness's interest. For it is Rothschild alone
who has collected such sums as have reached your electoral Highness,

(02:08:23):
while the other bankers have made no effort whatever in
the matter. Meanwhile, one of the younger rothschild brothers, probably Karl,
arrived at Prague with a detailed report from Butterus, in
which that official strongly urged his master not to jeopardize
the business of the English investments, which was proceeding so well.
Young Rothchild employed all his powers of eloquence to persuade

(02:08:45):
the Elector to revoke his veto regarding further payments. He
thought that he had gained his object, and wrote to
Butterus from Prague stating that the Elector had graciously agreed
to continue to invest in British stocks the interest received
in England. Terist thereupon immediately resumed his payments to Rothschild
on the Elector's account until he received an instruction from

(02:09:06):
his master dated December ninth, eighteen eleven, which did not
confirm Rothschild's premature conclusion. Thereupon, Butterus made a further effort
to impress upon his master that it was in his
highest interest finally to cancel the veto on further payments,
since otherwise the Rothschild Banking Firm would be faced with
a severe crisis. It is my duty, he wrote, to

(02:09:27):
bear witness to the fact that the Rothchild Bankers have
not failed to make every possible effort to obtain the
certificates of the investments. And your Electoral Highness can have
no conception how difficult it is to send important documents
between here and London. If your Highness will consider the
dangers that would arise if such a document were to
fall into the wrong hands, you will surely realize that

(02:09:48):
all precautions which human ingenuity can devise must be taken
in order to reduce to a minimum the chances of
such an occurrence. The withholding of further payments to the
Rothschild Bankers has not increased their efforts to obtain in
the documents, as these efforts could not be increased directly
After his return from Prague, the Young Crown Agent Rothchild
traveled to the sea coast in order to seek an

(02:10:09):
opportunity for bringing over these documents. He did not feel
secure in a Dutch village where he was staying and
went across to Dunkirk, where he has to furnish daily
to the police department, a satisfactory reason for his living there.
According to his last letter, he expects the documents to
arrive at any moment and he will then hasten here
without any loss of time. The power of Attorney sent

(02:10:32):
to the bankers van Noughten under date October twenty eighth,
eighteen ten, authorizing the transfer of the old stock under
another pseudonym, has been recovered. After leaving Amsterdam, the ship
was driven back to the coast and my letter was
delivered in a Dutch village where a reliable acquaintance of
the banker Rothschild has kept it until now. The Young

(02:10:53):
Crown Agent Rothchild has now taken advantage of a favorable
opportunity to forward it and has received an assurance that
it has safe reached the other side of the channel. Finally,
young Rothchild, who had traveled to London, succeeded in smuggling
over to the continent a certificate for one hundred eighty
nine thousand, five hundred pounds sterling, and this was immediately

(02:11:13):
forwarded to the Elector. William now again consented to the
interest on his capital being used for affecting further investments,
after noting with satisfaction that the House of Rothchild, which
had been highly nervous about retaining this business, had reduced
its terms and declared that it was now willing to
deliver the stock for seventy percent commission. The Elector expressed

(02:11:33):
his pleasure in conveying this information to Butterus, and concluded
his letter by saying, I do not fail to realize
the difficulties involved in communicating with London, and am therefore
exceedingly happy to be in possession of the certificates for
one hundred eighty nine thousand, five hundred pounds sterling. The
Elector also expressed the wish that one of the brothers
Rothchild should reside permanently at Prague, but this Butterus had

(02:11:57):
to refuse. The operations of the family were already so
extensive that with the best will in the world, it
was impossible to accede to this request, Deuterus wrote to
his Master flattering. Though the suggestion is that one of
the Rothschild's sons should be allowed to reside permanently in
the neighborhood of your electoral Highness, it is no less

(02:12:17):
impossible than flattering. Their father is old and sick. His
eldest son, amskill Meyer, and his second son, Solomon, who
is also delicate, are indispensable to him in his extensive operations.
The third son, Karl, is almost continually engaged in traveling
in the service of your Electoral Highness, while the fourth son, Nathan,

(02:12:40):
is very usefully established in London, and the youngest James,
spends his time between London and Paris. They have declared
to me that they will spare no effort to carry
out Your Highness's commands. The continental blockade was naturally the
chief cause of the great difficulties in the way of
communications with England. This question had indeed become the crucial

(02:13:01):
problem in general European politics. At Airfort, the opinion had
obtained for a time in eighteen o eight that Napoleon
and Alexander of Russia would be able to share the
dominion of Europe between them. The Emperor of France had
particularly in view that he might finally be enabled to
subdue England with the assistance of Russia. For this purpose,

(02:13:21):
it was essential that Russia should unconditionally adopt the continental blockade,
but the Czar never contemplated sacrificing all his trade with
England for the sake of Napoleon. On the contrary, he
facilitated the import of goods by sea, and goods of
English origin could now easily find their way to other
continental states via Russia. Thus the effectiveness of Napoleon's measures

(02:13:43):
was endangered, and as early as the summer of eighteen
eleven it was obvious to the whole of Europe that
a complete breach between the two most powerful continental states
was inevitable, and that war was now only a question
of time. The Napoleonic police consequently applied a much more
rigid censorship to all correspondents and secret agreements in territory
subject to French rule. Anything addressed tb the ruling family

(02:14:07):
of Hesse was subjected to a particularly close scrutiny. A
letter dated Frankfort November one, eighteen eleven, which carelessly mentioned
Meyer Amschkill's name in two places and was addressed to
the elector's brother, Landgrave Karl fell into the hands of
the French. In one passage, the unknown writer acknowledged the
receipt of a letter from the Landgrave through the good

(02:14:29):
offices of Meyer Amskill, while another passage read as follows,
I deliberately read to Rothschild in his son's presence, the
passage in which your Highness speaks of them so kindly
and graciously. They were all delighted. It was clear from
the context that the letter referred to the Tugenbund, of
which the Landgrave was a member, and it was a

(02:14:50):
question of payments which Rothschild had to make on the
Landgrave's behalf. This letter was immediately forwarded from Hamburg, where
it had been intercepted, to General Savary the CA, the
Missioner of Police at Paris, who instructed Baron Backer, the
French ambassador at Frankfort, to furnish any light he could
as to the implication of the letter and the parts
played by the persons mentioned in it. Baron Backer suggested

(02:15:12):
that they should not proceed against the family Rothschild by
domiciliary search and arrest, as in eighteen o nine, but
should act with greater cunning, the House of Rothschild and
the other agents of the Elector should be lulled into
a complete sense of security. Their letters should be skillfully opened, copied,
and then forwarded. In this way, Backer hoped, in a
very short line, to familiarize himself with their network of

(02:15:35):
intrigue in all its complicated ramifications. The Chief Commissioner of
Police also asked for a report from his commissioner at Minz,
and the letter informed him that the House of Rothschild
had formerly been exceedingly active in the trade of colonial
goods and English manufactures, but since they had been subjected
to a domiciliary search and had had their English goods sequestrated,

(02:15:56):
they had occupied themselves principally with banking business and commerce
in goods confined to the continent. The Mines commissioner added
that the head of the house was not friendly toward France,
although he pretended that he was sincerely attached to that country.
Backer's advice was taken. The brothers Rothschild were most carefully
watched by agents of the French Imperial State Police, both

(02:16:19):
in Frankfort and in France, where they were amongst those
who carried on illicit trade with England subject to departmental authorizations.
At the same time, they were on the best of
terms with Dalbert's Frankfort Police, although this force was also
subject to Napoleon. Dalberg's police commissioner, Vaughn Estein, who, although
a Jew, was director of the police of the Grand Duchy,

(02:16:40):
was a particular patron of Meyer amskial and of all
the Frankfort Jews. Meyer Amskill Rothschild had long cherished the
idea of exploiting Dalberg's friendly feelings for the Jews and
the interests of the fellow members of his faith who
had formerly been so oppressed, and incidentally, of his own family.
It is true that a new status proclaim aimed by
Dalberg had somewhat improved their condition, but it involved no

(02:17:03):
essential change. For example, the number of Jewish families tolerated
remained at five hundred, five hundred, only five. Indignantly wrote
a certain Israel Jacobson, why not more and why not less? Dalberg,
seeing that he could exploit this situation and do a
good business deal, allowed Meyer Amskill and his partner Gumprech

(02:17:26):
to persuade him to commute the annual amount of twenty
two thousand golden payable by the Jews into a lump sum,
and to grant them the rights of citizenship in Frankfort,
thereby making them the political equals of the Christians. At
the same time, the Jews were granted their own governing body,
known as the Governing Body of the Israelite Religious Community.

(02:17:46):
Police director Vaughnitstein was nominated president, while the other members
of the committee were chosen from amongst the most prominent
Jews in the town. In the course of his efforts,
meyer amschkal Let Dalberg infer that the Jews were prepared
to make fine financial sacrifices, and in the end Dalbert
demanded that they should commute the annual payment of twenty
two thousand golden by a single payment of twenty times

(02:18:08):
that amount. This was a substantial amount of money, but
one that the Frankfort Jews could produce, especially as Meyer
Amskill alone advanced one hundred thousand golden, or almost a
quarter of the total sum. He also managed to arrange
that only one hundred fifty thousand of the four hundred
and forty thousand golden should immediately be paid in cash,
and that for the balance twenty four barred aventures would

(02:18:30):
be accepted. Jewish circles awaited with considerable suspense the conclusion
of these arrangements, which were so important for their future.
If the proposal went through, Meyer Amskill wanted to be
the first to bring the good news to the fellow
members of his faith. As he was constantly being begged
for information by members of the Jewish community. He requested

(02:18:51):
a recorder of the province who was friendly to him,
to let him have the earliest possible information as should
be most pleased. He wrote to him in his peculiar German,
if I could be the first messenger of the good
news as soon as it has been signed by His
Royal Highness, our most excellent Lord and Great Duke in
our favor, and that I can inform my nation of
their great joy, will you graciously inform me of it

(02:19:13):
through the post. I confess I abuse your goodness and grace,
but I do not doubt that Your Highness and your
honored family have to await great heavenly rewards and will
receive much happiness and blessing, because in truth, our whole jury,
if they have the happiness to obtain equal rights, will
gladly pay with great pleasure all dues that the citizens
have topi. After some time the matter was put through

(02:19:35):
and aroused as much enthusiasm amongst the Jews as indignation
in the Senate and amongst the patrician families who were
hostile to them. It was at once suggested everywhere that
Dalberg had received money personally in addition to the sum
publicly mentioned in this connection. Pointed remarks were made about
the fact that meyer Amskill and his sons had been
appointed official bankers to the Grand Duchy, and that meyer

(02:19:58):
Amschkill had been made a member of the elector College
of Frankfort. A member of the Austrian Secret Police, actually
claimed that he knew the amount of the sum, namely
thirty three thousand carolins, which Dalberg had received for his
good offices. The Jewish community certainly had every reason to
be grateful to the aged and infirm meyer Amskill, who
had never completely recovered since his operation, and yet still

(02:20:21):
had the energy to apply all his influence and money
to secure this improvement in their status. The debentures to
the value of two hundred ninety thousand golden were immediately
brought into circulation. One of them of the value of
fifty thousand was acquired by Dalberg's finance minister, Count Christian
Vaughan benzelsternaw Eight debentures of ten thousand golden each were

(02:20:43):
taken over by her von Bethmann, while the greater part
of the amount paid by the Jews in cash went
direct to Paris as a payment on account of the
electoral domains in Fulda and Hanne which had been seized
by the French and which Dalberg had repurchased. On taking
over these two principalities, the Grand Duke immediately sold the
domains again to private persons for earnest money of three

(02:21:04):
and one half million francs payable by installments, a transaction which,
when concluded, would yield one hundred ninety thousand francs more
than France had received for the domains. When the bargain
was concluded, Dalberg declared, with somewhat premature joy, a transaction
concluded in so masterly a manner deserves a reward, and
rewarded the ministers who had been principally employed in the

(02:21:26):
transaction and their wives with presents of forty thousand francs each.
In the letter regarding this matter, he stated, since I
am determined to gain nothing by this business except the
welfare of the state. There are still seventy thousand francs
available out of the one hundred and ninety thousand realized.
Of this amount, I give ten thousand francs to Privy

(02:21:47):
councilor Vaughnitstein as a reward for services rendered in converting
into cash the debts of the Jews to the state.
I give ten thousand francs to the House of Rothschild
for their excellent cooperation. I shall leave the rems aiming
fifty thousand francs with the House of Rothschild as a
part payment of what I owe them. The Senate of
the City of Frankfort and the exiles, who had formerly

(02:22:09):
been in power, observed these events with concern and ill will,
and were firmly determined if matters should take a different turn,
to do everything possible to undo what had been done.
Mayer Amschkill's conduct had made him by no means popular
with the former authorities of the city, but for the
time being they had to look on in impotence and
allow him and his protector Dalbert to have their way.

(02:22:31):
It was with the greatest suspense that they watched the
course of general European politics. The points at issue between
Napoleon and Russia had already almost resulted in war. Napoleon
collected the Grande Army, the greatest host that Europe had
ever seen, in order to subdue the last independent monarch
on the continent. At Dresden, he gathered his dependent princes

(02:22:53):
about him at a great court ceremony, and his imperial
father in law, Francis of Austria, was also present. On
that occasion. The Elector in Prague had again begged Francis
to avail himself of the favorable opportunity for pleading his
cause with the Emperor of France. Emperor Francis was used
to such appeals and paid no further attention to the letter.

(02:23:14):
While the great drama of the Russian campaign was being enacted,
the Elector remained at Prague and awaited the outcome of
events in a state extreme anxiety. Napoleon's army was advancing
steadily toward the heart of the Russian Empire, although it
was certainly suffering enormous losses. Out of an army of
four hundred thousand men, scarcely one hundred thousand entered Moscow,

(02:23:36):
but all that Europe saw was the victorious advance. Owing
to the prevailing conditions, it was weeks even months before
further news reached Frankfort. The merchants of that time could
not adjust their affairs to events as speedily as scientific
discoveries have now enabled them to do. Mayer Amshkill Rothschild's
attitude was entirely determined by his sense of the overwhelming

(02:23:59):
power of the court Rsican, who was now at Moscow
when the reopening of his old wound quite unexpectedly brought
him back to his sick bed. He did not live
to see Napoleon's complete failure in Russia, to be followed
a year later by his defeat in Germany, which was
followed by the return to his Hessian domains of Rothschild's
lord and master, the Elector. On September sixteenth, eighteen twelve,

(02:24:21):
a high Jewish feast day, the so called Long Day,
which is set apart for the pardoning of the penitent
sinner Meyer Amschkill had been fasting in accordance with his
strict religious principles, and spent many hours standing in the
synagogue sunk in prayer. The same evening he felt severe
pains in the region of his wound. He was immediately

(02:24:41):
put to bed, but his condition grew worse. He had
violent attacks of fever, and he felt that death was approaching. Thereupon,
he determined, while he still had the strength in him,
to order his affairs, and to make a new will,
adapted to the most recent developments, to take the place
of the earlier which he had made. In doing so,

(02:25:02):
he was giving effect to an agreement which he had
made with all his children, and in accordance with which
he sold to his five sons all his shares in
the business, his securities and other possessions, as well as
his large stocks of wine, for the sum of one
hundred ninety thousand golden, which of course was far below
their real value. His sons were henceforth to be the
exclusive owners of the business, and it was clear, although

(02:25:25):
not definitely stated, that after their father's death, any inequality
in their shares ceased, and each of the five sons
henceforth possessed ten fiftieths, that is, a fifth share in
the business. The will completely excluded the daughters and their
husbands and heirs from the business, and even from all
knowledge of it. Meyer Amskill applied the purchase price of

(02:25:45):
one hundred ninety thousand golden as follows. He granted his
wife Guttle a life interest in seventy thousand golden. The
remainder he divided amongst his five daughters. This arrangement served
a double object. First, it made it unrests necessary on
his death to declare to the officials the enormous value
for those times of the business that was divided between

(02:26:06):
the five sons, and to put the capital bequeathed at
the modest figure of one hundred and ninety thousand golden. Secondly,
the business was secured absolutely to the five sons, save
from the possibility of any interference from the sisters and
their relations. The will concluded by enjoining unity, love, and
friendship upon the children, and any undutiful child that showed

(02:26:27):
an intention of rebelling was threatened with the penalty of
inheriting no more than the legal minimum, which was only
to be reckoned on the basis of the one hundred
and ninety thousand golden, from which would have to be
deducted anything that the child in question had received during
his life. When Meyer Amskill drew up his last well,
there cannot have been more than two of his five sons,
namely Amskill and Karl at Frankfort, for Solomon was living

(02:26:50):
in Paris, and James, who was maintaining communication between Solomon
and Nathan in England, was living at Gravellen on the
Channel coast, in the department pot de Calais. These facts,
proved as they are by French police records and the
records of vices issued, are fatal to the well known
legend according to which Meyer Amskill gathered his five sons
about his death bed and divided Europe amongst them. Moreover,

(02:27:14):
his illness had come on quite suddenly and developed so
rapidly that the idea of recalling the sons who were
abroad could never have been considered. When Meyer Amskill had
thus done everything that lay in his power to secure
the future prosperity of his house, which it is true
he considered in terms only of financial gain, and by
clear and simple provision to maintain unity and peace amongst

(02:27:36):
his numerous family, he could look death calmly in the face.
Two days after he had completed his will, on the
evening of September nineteenth, eighteen twelve, his old complaint took
a marked turn for the worse. The alpha and omega
of medical practice of the time was to let blood,
a procedure which simply served to weaken old people who
were very ill, instead of giving them relief. At a

(02:27:59):
quarter past on the evening of the same day, Meyer
Amskill Rothschild, the tireless, cunning, simple and religious Jew and
founder of the banking firm M. Rothschild and Sons, was
no longer to be counted amongst the living. In his
last hours, he was fully aware that he was leaving
a fine inheritance to his sons, but he certainly could

(02:28:19):
not have guessed that he had laid the foundation of
a world power which, during the first half of the
nineteenth century was to exercise an unparalleled influence throughout Europe,
and was to maintain this influence almost unimpaired throughout the
changing conditions of the second half of the century.

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RISE OF ROTHSCHILD - 2. The Rothschild Family During the Napoleonic Era - 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 - 2. The Rothschild Family During the Napoleonic Era - Count Egon Caesar Corti