Key Messages
Uncovering The Untold History Of The Rothschild Dynasty: How They Accrued Their Wealth And Scandalous Rumours Surrounding Their Banking Empire
If you’ve ever heard of the Rothschild family, then you know they were incredibly wealthy.
In this book summary, you’ll learn more about this famous family and the immense financial success that their multinational company achieved throughout the 19th century.
You’ll also discover the historical background of this family’s most mysterious figures, explore how their proximity to Europe’s political elite gave rise to a set of myths and legends – and uncover secrets about bribery and Jewish emancipation that were integral to the Rothschilds’ business.
From Mayer Rothschild’s office filled with bags of money from his antiques business to initiatives undertaken by the family to advance Jewish Emancipation, learn all about one of the world’s most successful businesses in history -the House of Rothschild.
How The Rothschild Family Beat Anti-Semitism To Reach Great Riches
Despite the anti-Jewish sentiment prevalent in Frankfurt during the 18th century, Mayer Amschel Rothschild established a successful banking business there.
This was no mean feat, as Jews were subjected to systematic discrimination and confinement within a designated ghetto known as the Judengasse.
Nevertheless, Mayer Amschel’s journey into banking started when he had already established himself as an antique dealer in Frankfurt.
Thanks to the capital generated by his antique dealing business, he began lending money to suppliers and customers and thus entered the world of banking.
By 1800, his business was flourishing so much that bags of money could be found scattered around his office on a regular basis.
Thus, through skill and determination, Mayer Amschel Rothschild built up a successful banking business even under difficult conditions.
Mayer Amschel Rothschild’S Lasting Legacy: Unity And Success In Banking
Nathan Rothschild was instrumental in taking the banking business from Frankfurt, Germany to England.
When his father, Mayer Amschel, passed away in 1812, Nathan took the lead and the bank was officially passed on to Mayer Amschel’s five sons.
His last testament to them had been one of strict unity when it came to continuing the family’s banking business – a wish that was fulfilled for years thereafter.
Nathan traveled to England in around 1800 and began taking orders from back home before eventually putting down roots and making his own decisions within the business.
It was this move that ultimately contributed to building the Rothschild name and branch in London, as well as helped establish Nathan himself as a banker rather than just a merchant.
With their father’s death, it became even more important that they stayed united while running the family business; with Mayer Amschel’s testament still resonating through those close to the late patriarch, maintaining fraternal unity proved highly profitable for all five brothers.
The Rothschilds’ Success Was Achieved Through Financing And Exploiting Exchange Rate Fluctuations
The Rothschilds had a knack for amassing large amounts of wealth, and they mainly did so by giving loans to governments.
In particular, they made profits from their financing of Britain’s war against France in 1814.
But this was only one among many such ventures.
They also provided financial assistance to the “Holy Alliance” of Austria, Prussia and Russia helped them recover from the Napoleonic Wars.
All these payments generated two kinds of profit: commissions up to 8 percent, and price differentials which came with taking advantage of exchange rate fluctuations across different markets.
With permanent offices in Frankfurt, London, Paris, Vienna and Naples, the Rothschild brothers were well placed for currency trading that could be done at a discount in one market and sold at a profit in another.
But perhaps the biggest factor that led to their success was Nathan’s emergence as the leader among his siblings: their “commanding general.” His English office generated far more capital than any other base, boosting his already aggressive attitude and increasing the anglocentricity of the business operations.
A joke among his brothers referred to Nathan as being able to “command” despite an equal stake between all five of them; earning him the title –albeit only half-jokingly– of “marshals”
The Rothschilds: How Financing The Political Elite Gained Them Clout And Controversy
The Rothschild family had a long history of interacting with the political elite in Europe, providing them with loans, favors, and even inside tips on which investments to make.
This close contact between the powerful family and the elite caused public speculation and rumor-mongering; people assumed that their close relationship was more than mere financial transactions.
People believed that the Rothschilds had a clandestine influence over European politics, and hostility toward them rose due to simple economic rivalry coupled with anti-Jewish sentiment.
The perceived influence of the Rothschilds created a mythical reputation that suggested they were able to manipulate events behind the scenes.
This close contact between the Rothschilds and political elites gave rise to these rumors that fostered hostility towards them and continued for many years after.
To this day, discussion about their influence continues as part of their legacy.
The Rothschilds Leveraged Their Social Status To Advocate For Jewish Emancipation
The Rothschilds were well aware of the fact that Jews were often still targets of discrimination and prejudice and refused to forget their fellow “co-religionists”.
They made it a point to advocate for their rights and for Jewish emancipation, often using their social status as leverage.
Despite having been afforded privileged positions in high society, the Rothschild brothers would enlist the help of political friends to help secure equal civil rights for European Jews.
Salomon Rothschild wrote letters to Metternich and Prussian chancellor Hardenberg, while Carl implored his brothers to use their influence to better elevate the status of Jews in Europe.
Though there have been rumours or assumptions that after making their fortune, the Rothschilds had become apathetic towards those that were less fortunate than them, they did actually give a considerable amount money back into charity works.
In 1825 they even donated money to build a new hospital!
Nathan was involved in multiple charities aimed at helping the poor and sick too.
The Rothschilds’ Secret: A Multi-Faceted Plan Of Communication And Cooperation For Unprecedented Prosperity
The Rothschilds’ success was due to their unparalleled communications network and cooperative alliance between the five Rothschild houses.
To put it simply, they had better access to information than anyone else in Europe.
Their brotherhood created a unique multinational partnership which allowed them to place their financial influence in some of the most major European financial centers.
In other words, it gave them an edge over the competition when engaging in exchange rate trades.
Moreover, they were always striving to find new ways of expediting their communications, such as employing private couriers and paying premiums for express delivery instead of relying on the slow German post office.
Then with advances in technology – namely the railway and telegraph – they really stepped up their game and made it even easier to send messages faster than ever before.
To top it all off, every week each house would share its transactions with the others so that everyone was kept up-to-date on what was going on throughout the network.
All these factors combined became integral components of their immense success as a banking enterprise.
The Death Of Nathan Rothschild Shook The Financial Markets Worldwide And Unevenly Distributed Power To The Rothschild Brothers
When Nathan Rothschild passed away in July 1836, it had an enormous impact on not just the Rothschild family but also the entire world.
Not only had Nathan led the brothers since their father’s death in 1812, he was widely seen as the main pillar of strength upon which the House rested.
Nathan’s death changed power dynamics within the family, and while some assume that his role was filled by youngest brother James, it is far from clear that he had absolute control over the rest of his brothers.
The relatively equal distribution of power among them meant that no one brother could give orders to the others like Nathan had done.
For Europe and beyond, Nathan’s death had a ripple effect because he was recognized as one of wealthiest men alive at that time – if not THE wealthiest man on earth.
This meant drastic changes to European financial markets as investors scrambled to adjust to this sudden shift in economic influence.
Suffice it say, Nathan Rothschild’s passing affected more than just his immediate family; its effects reverberated throughout the world.
How The Rothschilds Supported The Arts – And The Artists Who Created It
For the Rothschild family, patronage of the arts was an important source of enjoyment and prestige.
To show their wealth and influence, they amassed a great collection of prestigious works by 17th century Dutch painters like Rembrandt, Peter Paul Rubens, and Anthony van Dyck.
However, they didn’t limit themselves to secular artwork; they also acquired art with explicit Christian iconography.
The family also patronized some of the premier composers and performers of the 19th century.
Among the notable performers who played at Rothschild gatherings were Felix Mendelssohn, Franz Liszt, Charles Hallé, Joseph Joachim and – depending on whom you ask – possibly even Frédéric Chopin himself!
Writers such as Heinrich Heine and Honoré Balzac also benefited from their attentions.
They both enjoyed James Rothschild’s support for many years; Heine being seen as something of a jester to entertain him whilst Balzac happily borrowed from him without ever repaying the debts.
In short, patronage of the arts was hugely important to the Rothschilds.
As evidence suggests, they used their wealth to nurture talent in painting, performance and writing – ensuring that these would be remembered in history long after them.
The Rothschild Family Legacy Is Tested By Social Revolutions Of 1848
The Rothschilds were one of the wealthiest families in Europe and their influence in the business world meant that they had to confront hard challenges.
One such challenge was when the family decided to invest heavily in railway construction during the mid-1830s.
This decision put them into direct conflict with a rising tide of hostility towards monopoly and private interests that had become more prevalent in European society.
The Rothschilds’ stake in the railways made them vulnerable targets during the social revolutions of 1848, which protested against inequality and spoke out against huge disparities between wealthy and poor.
Their prominence on railway lines led to resentment from journalists and ordinary citizens who viewed them as symbols of privilege who had achieved their status through unfair means.
When a train on one of their lines derailed resulting in 14 deaths, this animosity only intensified.
And when rioters began targeting Rothschild properties, financial losses soon followed as governments sought to address the rebels by increasing welfare spending and falling into debt, weighing down the value of government securities held by the family.
Fortunately for them, London escaped these events unscathed allowing then house there to save all four from bankruptcy.
Wrap Up
The House of Rothschild, written by author Frederic Morton, is a fascinating look into one of history’s most successful and powerful financial families.
Not only did the Rothschilds rank among the wealthiest and most influential dynasties of nineteenth-century Europe, but they also built their business empire through an exceptionally international scope.
As the book progresses, readers gain invaluable insight into the meteoric rise of this family, dispelling many myths along the way that do not accurately reflect the truth.
By exploring several events in which the Rothschilds played significant roles—including politics and wars—the author skilfully pieces together the complete story of this vastly influential dynasty.
Ultimately, The House of Rothschild provides a comprehensive understanding of an extraordinary family whose legacy will continue to reverberate throughout world affairs for many years to come.
