The Rothschilds

John Reeves

• Publisher: Jovian Press
• Year: 2018
• eBook ISBN: 9781537821801
• Topic: History
• Subtopic: European History
• Index: History

WHAT'S in a name? asks Shakespeare. The answer, when the name is such as Rothschild, is not difficult. There is a volume of meaning in its mere sound. It is a name which conjures up in the imagination visions of untold wealth and unrivalled power, which appear so startling and amazing as to be more appropriate to romance than real life. It has become a household word synonymous with unbounded riches, and is as familiar to the ears of the struggling artisan as to those of the banker or trader. No name has, indeed, been so prominently before the public during the last sixty years or more, as that of this great financial firm. Its origin was so shrouded in humble obscurity, and the rapidity with which it sprang forward to prosperity and fame was alike so extraordinary and so remarkable, that the public gaze has been kept by a species of fascination upon the movements of the well-known financiers. From one corner of the world to the other the success of the Rothschilds has been the subject of universal wonder and envy. When we recollect the poor beginnings of this eminent firm, and contrast them with the exalted position it now holds, there is good reason to be surprised. History does not record another instance of such unparalleled success, of such immense fortunes won in such a short time by sheer force of intellect rising superior to all adverse circumstances...

BARON JAMES DE ROTHSCHILD — THE PARIS FIRM

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TEMPORARY CHARACTER OF THE FRENCH Government since the First Revolution — Baron James de Rothschild — His boldness and sagacity in establishing his firm in Paris — Financial condition of France at the period — The Russian campaign and Napoleon’s retreat — The Restoration — Napoleon’s return from Elba — French finances under Louis Philippe, under the Second Republic, and Second Empire — Enormous fortunes — Reason assigned for the stability enjoyed by the Paris firm — Baron James and the Polignac decrees — Ouvrard — The fall of M. Thiers brought about principally by the Rothschild firm — The Black Arts in the Middle Ages and Stock Exchange maneuvers at the present day — Lamentable want of principle on the part of speculators — Fabrication and circulation of false news — Prominent public men implicated in disreputable stock-jobbing transactions — Mr. Walsh, M.P.; Mr. Cochrane Johnstone, M.P.; Count de Guisne, French Ambassador at the Court of St. James’s; the great Duke of Marlborough — Victory achieved by Baron James over the financial world in Paris — Corrupt state of French society during the reign of Louis Philippe — End of the Rothschild monopoly of French loans — Baron James the “ Railway King “ of France — Construction of the Northern Railway of France — Rivalry between Baron James and Emile Perreire — The Vienna Credit Bank founded by Baron James — Gigantic fraud perpetrated by Carpentier, Grellet, and others, on the Northern Railway of France — Mode of action adopted by them — Services rendered by Baron James to France recognized and rewarded — Slight put upon him by the Duchesse d’Angouleme — How he avenged it — His rough manners — His behaviour to Prince Paul of Wurtemberg — Baron James and the Deputy — The Baron and Jadin the painter — The Baron and the three peaches — The Baron and Horace Vernet — Baron James’s great beneficence — His motives frequently misrepresented — Ungrateful return for his noble charity in 1847 — Absurd calumnies circulated against him in connection therewith — His subscription for the wounded and unemployed workmen in 1848 — His conduct towards Caussidiere — His reported charity at others’ expense — Heine’s description of him — His death — Baron Alphonse de Rothschild — His remarkable business abilities — Payment of the French indemnities to Germany entrusted to him — His intense anxiety during the siege of Paris and the existence of the Commune.

FRANCE for nearly seventy years possessed no permanent form of government; each successive government was of a temporary and provisional character. After the fall of the monarchy attempts of various kinds were made in the way of forming a representative government, and following one upon the other in rapid succession came the Legislative Assembly with an interim government, the Convention with the Reign of Terror, the Directory, the 18th Brumaire with the Three Consuls, Buonaparte and his Consulate, Napoleon I. and the Empire, the first restoration of the Bourbons under Louis XVIII., Napoleon’s one hundred days, the second restoration under Charles X., the July dynasty of the Orleans with its immutable ideas, its fall through the revolution of February, the Republic, the Presidency of Louis Napoleon, Napoleon III., Emperor. Such is the list of the many forms of government to which France has been subjected, varying from the most unbridled despotism to the most extreme licentiousness.

In order to realize the condition of France at the beginning of the present century, and to appreciate fully the boldness and sagacity which led Baron James de Rothschild to found his house in Paris, it will be well to give a few particulars regarding the finances of the country at that time. The first budget proclaimed by Napoleon was that of his Consulate, and it amounted to nearly 600 million francs. On the 20th May, 1804, he was elected under the title of Napoleon I. Emperor of the French, the succession to the imperial purple being limited to his descendants and those of Joseph and Louis Buonaparte. With the exception of some sixteen marshals, one hundred members of the Senate, and the judges, Napoleon could dispose at pleasure of all other appointments, so that it is not surprising that with the army at his back he should have been able to get the crown voted to him by some three and a half million citizens. In a few years he made himself master of the European continent, thanks to his skill not only in annihilating armies but in overreaching and deceiving cabinets and ministers, thereby preventing any country from arming itself and taking effective measures to resist his progress. When, however, Spain, with Austria and Russia, and at last Prussia and Germany, combined against him, his star of fortune and destiny began to wane. By arbitrary and violent methods he enlarged the limits of the French Empire, denying and destroying the worldly power of the Pope by declaring the Papal States a portion of France, depriving his brother Louis of Brabant, Zealand, and Guelderland, in order to make the valley of the Rhine the frontier line in that direction; then he annexed Holland to France, and finally, on the 10th December, 1810, declared the necessity of extending the empire to the Baltic, and, accordingly, all the sea-coast north of an arbitrary line drawn from the junction of the Lippe with the Rhine to Travemund became French territory. From the Pyrenees to the Baltic, from Texel to Terracina, the great empire reached, while in Spain, Switzerland, Denmark, and Sicily he had vassals and allies who trembled beneath his sway. In Sweden the succession to the throne had been conferred on a French marshal; Prussia was exhausted; Austria appeared fettered by family ties; only two European Powers withstood and defied the power of France — Russia and England.

However greatly the fame and dominion of the empire had grown abroad, the condition of the country itself was of the worst possible description. The imperial subjects were burdened and oppressed by all sorts of tyrannical impositions, by taxes which steadily grew in amount, and by a budget yielding a revenue considerably exceeded by the expenditure. In 1804, when France became an empire, the country was by the decree of the 23rd February called upon to face a budget in which the expenditure amounted to no less than 700 million francs. This was for a war year. For a peace year 79 millions would have to be deducted, so that 621 millions would still weigh on the country. In addition must be reckoned the Emperor’s civil list, which, with the domains left at his disposal, the appanage of his brothers, and the pay of the grand officers of the Crown, amounted to 30 millions. Included in this, however, were 7 millions for the Emperor’s household, so that to the 621 millions we have really to add another 23 millions, to which we must still add the expenses of the Departments, 79 millions; the cost of maintaining the roads, 15; the expense of collecting, 80; the secret police, 5; so that the total expenditure for a peace year may be put down at 823 million francs, or about 376 millions more than under the monarchy. Year by year the budget grew, being estimated in 1809 and 1810 at 740 millions, whilst in the following year it was reckoned at 954 millions. The preparations for the campaign against Russia — the most gigantic military expedition of modern times — swallowed up million after million.

“Napoleon had collected the most powerful army the world ever saw; from all parts of the Continent had he summoned his forces for the struggle; every variety of blood, of complexion, of language, of dress and arms, were to be found in its ranks. The auxiliaries from whole provinces were led through kingdoms that respected his arms; the artillery of entire fortresses ploughed across the fields; cattle from a thousand hills were collected for the support of myriads who spread themselves like a plague across the plains of eastern Europe, where blood flowed in streams, and where the earth became blanched with the men’s bodies. But this gigantic expedition, although successful, gained no object, since the enemy was vanquished, but the conqueror in vain tried to secure peace. The ancient capital of the Czars in Moscow was in his power, but the capture was profitless to him, owing to the refusal of the enemy to come to peaceful terms, and the barrenness of the neighbourhood. The burning of Moscow in one night began Napoleon’s downfall, which the frost of a second completed. Upon all the pomp and material of numerous warriors, upon their cavalry, their cannons, their magazines, and their baggage fell thickly and steadily the snow-flakes of a northern night; the retreat of the armed hordes was cut off, and their destruction as effectually achieved as if it had been on the battle-field. All Napoleon’s endeavours to regain his lost power were never able to remedy the effect of that Russian night. The fire of his genius still burned as brightly as ever; in two campaigns his efforts were superhuman; his resources were even more remarkable than before; his courage deserved the reward and prize of victory for which he played — but all was in vain. The weapons remained only a short time longer in his hand; his army was scattered to the winds; his opponents no longer bowed beneath his superior nature, for they discovered that he, like themselves, could be conquered, and they in their turn became bold. Such was the great captain, and such the destiny into which he plunged.

“A mighty genius of the first rank; one of the greatest masters in the art of war, he occupies a place among the generals of the highest class. His genius, however, was not confined to war. In the circumstances of government he showed himself equally sharp — as quick in deciding his procedure in politics as in the field. But with all these qualities he was a conqueror, he was a tyrant.

“In order to appease his thirst for power, in order to satisfy his ambition for empire — an ambition no conquest could still — he trod freedom beneath his feet. He enveloped the world in flames, which the blood of millions was unable to extinguish. Honesty, truth, pity, and sense of duty were cast aside by him, who pursued a single and selfish policy. Enghien’s death, Wright’s horrible sufferings, Pichegru’s mysterious death, Palm’s punishment, Toussaint’s martyrdom, are all blots on his fame.”

Equally characteristic is the opinion of Lord Brougham concerning him: — “He sacrificed to his ambition three milliards in money as the acknowledged cost of the wars of 1802-1814 to France alone, and five-sixths of three million men, who were called out for active service.”

Following upon his memorable campaign against Russia and his disastrous retreat came his dethronement and banishment to Elba, whence he issued to try his fortune once more against the whole of Europe. The sequel to this attempt is too well known to need repetition, leading as it did to his final overthrow, and to the restoration of Bourbon rule in France, with a constitutional government, under Louis XVIII.

When the Chambers met for the first time after the restoration, Montesquieu laid before them a report of the condition of the country, describing in very striking language the evils arising from the imperial form of government. Still more gloomy was the picture painted by the Minister of Finance of the State’s finances and requirements. The arrears amounted to more than 1,308 millions, which, however, were afterwards reduced to 759. The funded debt amounted to only 93 millions. To provide means to discharge these liabilities, it was decided to sell the domain forests and common lands. The abnormal and provisional budget of 1814, and the normal budget of 1815, estimating the receipts at 618 million francs, and the expenditure at 547 millions, were passed on the 23rd September, 1814; the civil list of 33 millions, and an additional vote of 30 millions for the debts incurred by the Bourbons abroad since their expulsion, were likewise voted.

Then came Napoleon’s sensational return, with his brief enjoyment of power, cut short by the efforts of the allied forces. Nearly a million foreign troops entered the French territory, and demanded an indemnity of 100 million francs at the expiration of the one hundred days. The budget for 1816 estimated the ordinary expenditure at 548 millions, and the extraordinary expenditure at 290 millions, in addition to that for the Consolidated Fund of 125,500,000 francs. Taken all in all, the expenditure amounted to 1,069,261,826 francs as given in the law of the 25th March, 1817. The indemnity of a milliard francs claimed by the emigrants, and the war indemnity of 700 millions claimed by the Allied Powers, were enormous items in the State accounts, in addition to the cost of maintaining the foreign army of occupation for five years.

In the following years both the receipts and the expenditure rose and fell. In 1824 the Chambers put the civil list for the King at 25 millions, and that for the Princes at 7 millions. The budget grew steadily under the different ministries until the July revolution. Under Martignac in 1828 the expenditure was estimated at 980 million francs, whilst the receipts reached only 986 millions. During the reign of the Orleans family the State finances, in spite of the enormous receipts, were far from flourishing. The indirect taxes exceeded a total of 12 milliard francs, whilst the yearly expenditure amounted to from 1,000 to 1,200 millions. The chief cause of this lay in the lasting “armed peace.” In 1841 a deficit of 1,000 millions was declared. The system followed by Louis Philippe had already brought the country to the verge of a financial crisis. The city of Paris was burdened with a debt, now considerably increased, of 12 millions, and the State budget with a rent of 600,000 francs. The distress among the working classes was fearful; in commercial circles bankruptcy was the order of the day. Under the fraudulent system then generally prevailing persons had carried on business without any capital at their backs, by means of credit, ill-deserved but too readily obtained. The revolution came without any warning to complete the feeling of anxiety and uncertainty prevailing at the time. A provisional government was placed at the head of affairs, and issued decrees one after the other dealing with all subjects, from the abolition of the monarchy down to the assignment of the millions of the civil list to the relief of the working classes. The indebtedness of the State was fearful; the financial disorder unlimited. Even without the revolution a State loan of 600 millions would have been absolutely necessary. There were but two means of saving the newly-created republic — a dictatorship, or in other words, exaction, or credit. If the State had displayed the slightest hesitation in meeting its engagements the word bankruptcy would have been on every lip. Goudchaux, the Finance Minister, resigned; he felt himself unequal to the difficulties of the situation. A man of ability, capable of manfully grappling with and mastering the dangers of the impending crisis, was above all things required. Gamier-Pages succeeded Goudchaux as Finance Minister. One of his first proceedings, after his accession to office, was to sell the forests belonging to the old civil list. Ha decreed a voluntary loan, but, as the coffers remained empty, he had recourse to the most pitiable of all financial measures: he laid an additional 45 centimes on the four installments of the direct taxes, a measure which severely hit the already heavily-burdened peasants and the small landowners. The expenditure amounted to 1,700 million francs, and the State debts, which had increased by nearly a million in seven years, to 5 milliards 170 millions. The additional tax brought in 150 millions, whilst the Bank advanced 230 millions upon the State forests. By these means the State was saved from bankruptcy.

Under the Presidency of the Republic, which ere long was converted into the Empire, the indebtedness of the State continued to increase steadily. The war with Russia required one sacrifice after the other. In April, 1856, the State expenditure, the revenues and the State debts were estimated by the Minister of Finance to be as follows : —

“The regular expenditure amounts to 1,598 million francs. The first portion of this consists of the interest on the debt, which takes 342 millions for the dividends, and the redemption of the consolidated debt; 10½ millions for the interest on the special loan for canals; 33½ millions for the interest on the floating debt, the guarantees, and finally 68 millions dette viagere, together 455 million francs. The supplies are 25 millions for the Emperor; 1½ millions for the Princes and Princesses of the Imperial house; 6½ millions for the Senate; 2½ millions for the Legislative Body, and 3½ millions for the Legion of Honour; making in all 38½ millions. The collection of the taxes costs 165 millions; 4 million francs are set apart for the completion of the Louvre.” In a word, taking the population of France at 35 millions, the average contribution per head to the State treasury was about 46 francs for the year 1856.

The fortunes amassed by individuals — bankers and financiers, more particularly — resident in France, or rather in Paris, cannot be described nor estimated. In June, 1848, when the proposed decree for the conversion of the floating debt into a consolidated debt was brought before the National Assembly, a Paris paper, published under the title of “The Organization of Labour,” gave the following details respecting the wealth of the leading houses in Paris:” The firms Laffitte Frere and Delamarre are estimated at 10 millions; Baudon at 12; Rougemont and Lafond at 15; Dourand, Delessert, Aquirrevengon and Halphen, each at 20; Hottinger and Pellaprat each at 25; Fould at 30; Hoop at 40; Baron Gressulhe at 100; Rothschild at 600 million francs” The King was put down as worth 800; the Due d’Aumale and Madame Adelaide each at 70; and the Due de Montpensier at 20 millions. According to this estimate the combined wealth of the above well-known banking-houses amounted only to 362 millions, a total which Rothschild exceeded by no less than 238 millions. It was by means of this immense capital at their command that the Rothschilds gained that consideration and influence which no other firm has ever yet equaled or approached.

“Involuntarily” wrote the “Augsburger Allgemeine Zeitung” “one is forced to ask the question how it was that the house of Rothschild managed to maintain its distinguished position undisturbed throughout the manifold changes of government in France? The explanation is easy,” continued the writer: “the house belonged to no political party; the Rothschilds are the friends of the kingdom, of law and of peace, and as such could maintain their preponderating influence equally as well under the heterogeneous ministries of a Decazes, Villèle, Martignac, or Polignac, as under the government of Louis Philippe.”

When we remember the disturbed state of Europe in 1812, and how much the Rothschild family had suffered at the hands of Napoleon, we cannot but wonder what could have been the reasons which induced Baron James de Rothschild to determine opening a branch house in the French capital. That he did so in spite of the unpropitious aspect of affairs speaks volumes for both his boldness and foresight. It may have been that he had already made sure of his prospects by having rendered the Emperor some services, for few had more need of financial assistance than Napoleon I., and Baron James, we may presume, was not unwilling to secure himself substantial advantages at the expense of the French nation. This is, of course, all surmise on our part, but, when we recollect that the supplies entrusted by the British Government to Nathan Mayer Rothschild for the army in Spain were conveyed to their destination through France, it does not seem altogether improbable that Baron James must by some means or other have obtained a certain degree of influence with the French Government, or he could never have executed the business with such success. Money is proverbially all-powerful, and in this case certainly did not belie its reputation. A more favourable period, as events proved, could hardly have been chosen for establishing the new firm in Paris. It was started in 1812. In 1815 Napoleon was deposed and business at once poured in upon Baron James de Rothschild. Thanks to the influence and warm recommendations of the Elector of Hesse, Baron James de Rothschild was empowered to receive the milliard of francs war expenses claimed by the Allied Powers when they entered Paris. In the same way the two milliards war indemnity passed through his hands, and we may feel sure that the transaction was most profitable. For some years afterwards we do not find him engaged in any great financial operation; indeed until 1823 his name is altogether lost sight of. In that year, however, he took up the whole of the French loan at the price of 89 fr. 55 cent., and the “Gentleman’s Magazine” in chronicling the occurrence testifies to the confidence and influence enjoyed by the firm, by stating that the immediate effect on the French Rentes was that they rose to 90 frs. 25 cent.

In 1824, the Marquis de Villele, the Minister of Finance at that time, projected the conversion of the whole of the French Five per Cent, debt into a Three per Cent. debt. Those who were so disposed could exchange the old Five per Cent, stock into bonds of the new Three per Cent, stock by accepting the exchange at the rate of 100 francs new stock for every 75 francs of the old. The whole debt amounted to 3,066,783,560 francs, and it was estimated that perhaps only one-third of the stockholders would accept the conversion; consequently, to satisfy the State creditors, no less than 1,055,556,720 francs would have to be paid them in cash. In order to collect this immense sum, the assistance of all the great financiers on the English, Dutch, and French markets was sought. Subscriptions were received in Paris, London, and Amsterdam by the firms of Baring Brothers, J. Laffitte and Co., and N. M. Rothschild and Sons. A committee under the presidency of Alexander Baring, with Baron James de Rothsch...

Table of contents

• About The Jews
• Mayer Amschel Rothschild — THE FRANKFORT FIRM
• The Progress of the Firm
• Anselm Mayer von Rothschild — THE FRANKFORT FIRM (continued)
• Nathan Mayer Rothschild — THE LONDON FIRM
• Baron Lionel de Rothschild — THE LONDON FIRM (continued)
• Baron Carl von Rothschild — THE NAPLES FIRM
• Baron Salomon von Rothschild — THE VIENNA FIRM
• Baron James de Rothschild — THE PARIS FIRM
• ROTHSCHILDIANA