Rothschild dynasty, no doubt, can be considered a pioneer in the field of international finance. Its founder, Mayer Rothschild was listed seventh in the list of the most influential businessmen in the history according to Forbes. It is called the founder of the modern banking system, which introduced the concept of "diversification, rapid transmission of information, privacy, and the large turnover."
Simply put, Meyer was ready and understand the need to spend big bucks to get a huge profit.
However, the rapidly growing rich family more than once in its history, faced with a hostile attitude. A little Googling, you can easily find several conspiracy theories, one way or another connected with the Rothschilds.
So how do you have a family of German street vendors suddenly, almost instantly, to become "the richest dynasty in history," and the owner of the enormous political influence?
The answer to you — is the story of how Meyer and his sons built an international banker dynasty.
Rothschild roots more than modest: Jewish quarter of Frankfurt
Mayer Amschel Rothschild, which started as the family, was born in 1744. His family huddled over his own shop, along with approximately 30 families.
Father Mayer Rothschild was a merchant and money-changers
Father Mayer Amschel Moses me money and traded silk fabrics. Among his clients were important personalities — such as Prince William of Hesse-Kassel.
However, wealth Amschel was very modest, judging at least by the conditions in which his family had to live.
Mayer's parents died when he was 12 years old, and the boy went to Hanover to learn from the financier
Meyer left the rabbinical school and began to learn a new field for himself. Later he admitted in a letter: "in his younger years … I was a very successful businessman, but very disorganized, because he taught Talmud and nothing about commerce." He was apprenticed to the firm Wolf Jakob Oppenheimer, provides loans to members of the royal family and involved in international trade — mainly gold.
The most important customers Mayer he had inherited from his father
Like his father, Meyer was able to earn the trust of Prince William and made a decent fortune by gathering and selling rare coins.
Historian Neil Ferguson believes that the antique trade has formed the basis states of Rothschild. In 1769, Meyer received the title of legal representative, so that it will have additional opportunities to make money.
Marriage also contributed to the multiplication of wealth Mayer
In 1770, Meyer married Gutlu Schnapper and received a generous dowry from her father — also legal representative. From this marriage were born five sons and five daughters.
The will of Mayer were prescribed strict and quite specific rules concerning marriages members of the Rothschild family.
Antique business from Mayer went to the bank
Neil Ferguson describes it as a natural extension of the work of Mayer as an antiques dealer, as he had to provide credit to their customers. Due to this expansion, a tax-free status of Mayer 4000 guilders in 1795, quickly soared to 60,000 guilders in 1796 th.
Lack of organization Mayer made his fortune great temptation for employees
Employee named Mayer Hirsch Liebmann awarded for three years almost 30,000 guilders. This was possible because much of the accounting was conducted "on a primitive level regrettable." In court, Meyer admitted that holding bags of money available in the field and in the home and office.
Revolutionary change — and in society and in technology — enriched Mayer
During the French Revolution, Meyer earned by providing supply the Austrian Army British money. In addition, he felt that he could make money on the industrialization and became the largest importer of English textiles.
He soon expanded its activities in Britain and around the world.
At the turn of the century Mayer sent his sons to found banks in the major cities of Europe.
The coat of arms depicts Rothschild fist, holding five arrows — symbolizing the unity of the five sons of Mayer. At the beginning of XIX century, Meyer sent his sons to found banks in Frankfurt, Naples, Vienna, France and London.
Meyer continues to control the direction of the family through the marriage between relatives
Meyer was concerned that family wealth is gone in the sand. In his testament descendants were forbidden to make public any documents about the financial activities of the family, and banking could be transmitted only through the male line. As a result, four of his grandchildren married by his granddaughters (cousins), one granddaughter married his own uncle.
The eldest son of Amschel Rothschild was to manage the affairs in Frankfurt
The least known of the "five arrows" — Amschel died childless in 1855, after which the control of affairs in Frankfurt moved to the sons of his brother Charles.
Karl Rothschild founded the Bank CM de Rothschild & Figli in Naples
In Naples, Karl has developed a fairly close (and profitable) relationship with located in power at the infamous Medici family. Charlotte daughter of Charles married his nephew Lionel, the son of Nathan.
Solomon Rothschild founded SM von Rothschild bank in Vienna
Solomon played a key role in the financing of the railway company Nordbahn, was an avid collector of works of art. During the revolution of 1848, he lost some of his fortune and became a target for criticism in the society. As a result, he referred the matter to his son. According to family tradition, the daughter of Betty Solomon married his brother James.
The founder of the Paris branch of the De Rothschild Freres was the aforementioned James
The Paris branch was one of the most successful, in particular thanks to the relations established with James King Louis-Philippe. The house where the children grew up, James is now the American Embassy.
James acquired winery Chateau Lafite, which remains the property of the family still
This winery, located in the Bordeaux region, is considered one of the best in France.
The most successful of his sons, Nathan got his start-up capital from the Landgrave Wilhelm XI
Former Prince Wilhelm of Hesse, who once had dealings with Moses and with Mayer, received the title of his father in 1785. After Napoleon's invasion, he fled to Denmark, leaving the care of Mayer much of his fortune. Rothschild gave the money to Nathan, who ably multiplied them, returning in the end, most of William. With the help of royal money Nathan managed to significantly improve the family affairs.
Nathan has inherited his father's lack of organization — but that did not prevent him to move quickly to the top
His father wrote: "… all on you complain, my dear Nathan, say that you are very inconsiderate deliveries. Sometimes you say what to send, for example, a container under that number, and then, when it comes, is another room … I have complained to Frankfurt on your extraordinary expenses and disorganization, dear Nathan, I do not like it. "
In 1806, Nathan married money, and five years later opened a bank NM Rothschild & Sons
His wife was the daughter of Anna Cohen famous diamond merchant and a partner Nathan on business. Marriage has strengthened its ties to the business and increase profits. In 1811, Nathan opened bank NM Rothschild & Sons. Nathan first developed a strategy for the provision of loans to governments during the war, when the winner of the debt covered by the losing side.
The battle of Waterloo, Nathan promised or huge profits or huge losses. Urban legend has it that he first received the news of the victory of Wellington
Nathan listened to the news with a straight face and continued to sell securities that others thought that the British were defeated. As a result, this day was one of the most profitable in the history of the dynasty.
Nathan first decided to lend to governments in war
The tactic used by Nathan financing Wellington's army in 1814, enabled the family repeatedly multiply their wealth for 150 years, almost incessant wars. Between 500 and 000 pounds in 1818, the state of the Rothschilds rose to 4,330,333 pounds in just a decade, and the strategy itself took up the other branch of the dynasty.
And without the conquest of the New World, the Rothschild family has achieved a dominant position in world finance
Neil Ferguson notes the scale of operations of the Rothschild family:
"Throughout most of the nineteenth century, NM Rothschild was the largest bank in the world, dominating the global securities market. His modern counterparts can be considered Merrill Lynch, Morgan Stanley, JP Morgan and probably, Goldman Sachs — considering the role that the Rothschilds XIX century played in strengthening the financial position of a number of governments.
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