The founding fortunes of the Rothschild family …
Years: 1815 - 1815
June
The founding fortunes of the Rothschild family are made through a conjunction of financial intelligence and the wealth of Prince William I, Elector of Hesse (the House of Hesse is both related and allied to the House of Hanover) in hiding his enormous wealth from Napoleon.
Due in part to the wealth of his estate, William is especially notable for his role in affording the late Mayer Amschel Rothschild both the relationship, and situational means, by assigning some of the care of his properties and tax-gathering, for founding the Rothschild family dynasty.
Mayer had sent each of his five sons to a prominent European commercial center in order to found branches of the family banking empire.
In 1798, at the age of twenty-one, Rothschild’s son Nathan Mayer Rothschild had settled in Manchester and established a business in textile trading, then from 1804 he began to deal on the London stock exchange in financial instruments such as foreign bills of exchange and government securities.
From 1809 Nathan began to deal in gold bullion, and developed this as a cornerstone of his business.
Mayer’s youngest son, Jacob, had been sent to Paris in 1811, enhancing the family's ability to operate across Europe.
This had enabled them to profit from the opportunity of financing Wellington's armies in Portugal, requiring the sourcing of large quantities of gold on behalf of the British government.
In negotiation with Commissary-General John Charles Herries, Nathan had undertaken to transfer money to pay Wellington's troops, and later to make subsidy payments to British allies when these organized new troops after Napoleon's disastrous Russian campaign.
The family has made huge profits over a number of years from this governmental financing by adopting a high-risk strategy involving exchange-rate transactions, bond-price speculations, and commissions.
Nathan’s four brothers help coordinate activities across the continent, and the family has developed a network of agents, shippers and couriers to transport gold—and information—across Europe.
This private intelligence service had enabled Nathan to receive in London the news of Wellington's victory at the Battle of Waterloo a full day ahead of the government's official messengers.
Locations
People
Groups
- Britain (United Kingdom of Great Britain and Ireland)
- Rothschild, N. M., and Sons
- Hesse (-Kassel), Electorate of
