Hidden Treasures - Nathan Mayer Rothschild

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Nathan Mayer Rothschild.

Nathan RothschildWho indeed is there who has not heard of the Rothschilds? But how few there are who know much of them save that they are the richest bankers in the whole world. The subject of this sketch was the richest and most noted of five brothers. The father, Mayer Anselm Rothschild, sprung from a poor Jewish family, and was a clerk in Hanover before establishing himself at Frankfort. At Hanover it is claimed that his integrity and ability became so marked in every position to which he was called that the attention of the Government was called thereto.

After the great French victory of Jena, Napoleon decreed that the Governor of Hesse-Cassel should have his lands and property confiscated. The order was no sooner given than a French army was on its way to carry the edict into effect. The Elector William, before his flight from Hesse-Cassel, deposited with the father of the subject of this sketch $5,000,000, without interest, for safe keeping. There was no luck about this; it was a[122] most difficult undertaking at that time. Any one who had been found with this money would have lost his life. For Rothschild to invest it so that he could make money from its use was his object; to do so safely and secretly required a good business tact. The Elector, it is said, studied sometime before he decided to whom he could intrust this vast sum during his absence. Thus it is seen that as Rothschild came of poor parents, and was simply a clerk. It was not so much luck in his case as strict integrity and the determination he manifested to master everything he undertook. This Rothschild had five sons, and by the aid of these, through different bankers, he succeeded by good management to lay a foundation upon which has been built that colossal fortune which the sons have accumulated. This money, belonging to the Elector, they had the benefit of until 1828, when the whole was paid over to the heirs of the original owner with two per cent. interest for a portion of the time. Of the five brothers, Anselm was situated at Frankfort, Solomon at Vienna, Charles at Naples, James at Paris, and Nathan at London. The two ablest financiers were James and Nathan, and of these two Nathan was the superior. His son was the first Jew that ever sat in the English Parliament. It has been said that the fundamental rule of this great banking-house was "To sell when people desired to buy, and buy when people wished to sell." It is related of Nathan Mayer Rothschild that, all day long, at the battle of Waterloo, he hung about the skirts of the two armies, waiting to see how the battle turned. Toward night of that memorable day, the clouds of smoke lifting, revealed the French army in full and disastrous retreat. Rothschild took in the situation at once. True to his instincts, he[123] saw in that awful carnage only the shimmer of his gold. Chance had overcome the most heroic valor, the most stubborn resistance, the best laid plans, and once more declared in the Hebrew's favor. He dashed into Brussels, whence a carriage in waiting whirled him into Ostend. At dawn he stood on the Belgian coast, against which the sea was madly breaking. He offered five, six, eight, ten hundred francs to be carried over to England. The mariners feared the storm; but a bolder fisherman, upon promise of twenty-five hundred francs, undertook the hazardous voyage. Before sunset Rothschild landed at Dover; and engaging the swiftest horses, rode with the wind to London. What a superb special correspondent he would have made! The merchants and bankers were dejected; the funds were depressed; a dense fog hung over the city; English spirits had sunk to their lowest ebb. On the morning of the 20th, the cunning and grasping Nathan appeared at the Stock Exchange, an embodiment of gloom. He mentioned, confidentially, of course, to his familiar that Blucher, at the head of his vast army of veterans, had been defeated by Napoleon, at Ligny, on the 16th and 17th, and there could be no hope for Wellington, with his comparatively small and undisciplined force. This was half true, and like all half-truths, was particularly calculated to deceive. Rothschild was a leader among trading reynards. His doleful whisper spread as the plague—poisoning faith everywhere. The funds tumbled like an aerolite. Public and private opinion wilted before the simoon of calamitous report. It was 'Black Friday' anticipated in Lombard Street. The crafty Israelite bought, through his secret agents, all the consols, bills, and notes, for which he could raise money.[124]

Not before the afternoon of the 21st—nearly forty eight hours after the battle—did the news of Wellington's victory reach London through the regular channels. Rothschild was at the Exchange half an hour before the glad tidings were made public, and imparted them to a crowd of greedy listeners. The Bourse was buoyant. Everything went up more rapidly than it had gone down. England was happy—as well she might be—for she had stumbled into the greatest triumph in her history. When bankers and merchants shook hands with the Hebrew speculator, they noticed—though they did not understand—an unusual warmth of pressure. It was not rejoicing with the nation; it was the imaginary clutch of six millions more of gold. Thus it is seen that the great wealth of the Rothschild was not always used to the best advantage of mankind as a Christian would argue; but a promise given by a Rothschild was as good as his note.

Their immense wealth has greatly aided, at different times, all and singular, the various European countries. A favorite investment with them has been loans to the different Governments throughout the world.

During twelve years of their business experience they loaned to different European Monarchies over $400,000,000. When it is considered that this was but one division of their business, something of an idea of its magnitude can be imagined. An amusing story is told of Nathan which will be of interest to some of our readers, and enable them to see how fertile was his mind in emergencies.

Anselm, the brother at Frankfort, drew on Nathan, of London, for a large amount, and the bill was presented[125] to the Bank of England to be discounted. The bank officials refused, saying, "We do not discount bills drawn on private persons; we recognize only our own paper." "Private persons!" exclaimed Nathan Rothschild when the interview was reported to him, "I will show them what kind of private persons we are." Three weeks afterwards, Nathan Rothschild,—who had employed the interval in collecting all the five-pound notes he could buy on the continent, or in England—presented himself at the bank on the opening of the office. He drew from his pocket-book a five-pound note, and they counted him out in exchange five gold sovereigns, at the same time looking quite astonished that the Baron Rothschild should have personally troubled himself for such a trifle. The Baron examined the pieces one by one, and having put them in a little canvas bag, proceeded to draw out another five-pound note, then another, and another and so on. He never put the pieces of gold into the bag without scrupulously examining them, in some instances weighing in his balance, as, he said, "the law gave him the right to do." The first pocket-book being emptied and the first bag full of coins, he passed them to his clerk, and received a second, and thus continued to the closing of the bank. The Baron had employed seven hours to exchange twenty-one thousand pounds. But as he also had nine employes of his house engaged in the same manner, it resulted that the house of Rothschild had drawn over $1,000,000 from the bank. He had drawn gold exclusively, and so occupied the bank employes that no one else could do any business.

The bankers the first day were very much amused at "This display of eccentricity." They, however, laughed less the next day when they beheld Rothschild on hand early, flanked by his nine clerks.[126]

They laughed no longer when they heard the irate banker say, "These gentlemen refused to pay my bills; I have sworn not to keep theirs. They can pay at their leisure; only I hereby notify them that I have enough to employ them two months!" Two months! Fifty-five million dollars in gold drawn from the Bank of England which was more gold than they had to pay! The bank was now thoroughly alarmed. Something must be done, and the next morning notice appeared in all the papers that henceforth the Bank of England would pay Rothschild's bills as well as its own.

From anecdotes one can often learn much of the inner life and thoughts of people, and much can be seen of the real character of the subject of this sketch from the above story. This Napoleon of Finance died in 1836.[127]

"The man who seeks one thing in life, and but one,
May hope to achieve it before life be done;
But he who seeks all things, wherever he goes,
Only reaps from the hopes which around him he sows
A harvest of barren regrets."

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