We have already mentioned that the number of Jews allowed to marry was limited, but [Amschel Moses] Rothschild having gained permission availed himself of his privilege and took unto himself a wife, who, in 1743, gave birth to a son whom they named Mayer Amschel. When the boy grew up and his parents had to decide as to his future in life, they resolved to have him educated with a view to his becoming a rabbi, or teacher in the synagogue. This resolution was not unnatural, seeing that several of the family had been or were then celebrated for their knowledge of the Talmud and the doctrines of the Jewish faith. Dr Lewysohn states that in the Jewish cemetery at Worms is buried Rabbi Menachem Mendel Rothschild, who had been the chief rabbi to the congregation there. Isaac Rothschild was warden of the Frankfort synagogue, Solomon Rothschild was chief rabbi of Wiirzburg and Friedburg, and Boaz Rothschild was the author of a Hebrew work published at Fiirth in 1766.
Mayer Amschel, in 1755, lost his parents and was sent by his relatives to Fiirth to complete his studies. Theology was, however, not to his taste. He had been born and bred in the midst of a community whose whole thought centred upon getting and accumulating money. He had early learnt to see in wealth the only true standard by which one could judge his fellow, and he not unnaturally shared the ambition that fired his comrades to acquire riches and a consequent name among his co-religionists. His instinct for business was too powerful to resist. Even while at college he had become well-known as a collector and dealer in old coins on a small scale, and in this way had made the acquaintance of several numismatists in the neighbourhood.
This is surprising when we remember that he could not have been much more than twelve years old at the time, but with Jews the talent for business is innate, and their natural shrewdness and skill in making bargains more than compensate them for their youth and inexperience. Notwithstanding the limited resources at his disposal, Mayer Amschel seems to have pursued his youthful speculations with considerable energy and—profit.
At length, rightly judging that he was better fitted for commercial than theological pursuits, he abandoned his studies altogether and returned to the Judengasse, where his abilities and shrewdness soon became known among his co-religionists. His reputation reaching the ears of some of the large firms, several offers of employment were made him, and not being one of “those who are content to spend their lives trotting on a cabbage leaf” as the proverb says, when a wider field of enterprise was thrown open to him, he accepted the offer of a banking firm named Oppenheim in Hanover. In their service he remained several years, gaining and maintaining a high character for steadiness and reliability, while his energy and abilities were recognized by his gradual promotion to the responsible post of co-manager. Frugal and economical in his habits, he was able to save a considerable portion of his salary, until he thought he possessed sufficient capital to make a start on his own account. He therefore left Oppenheim's service and set up in business for himself, dealing in old coins, bullion, and anything by which he thought he could make a profit. For some time it was a hard, uphill fight, and more than once the budding firm was in danger of collapse, but the untiring energy and honesty of its founder, triumphing over all difficulties, placed it on a sound basis and secured its future safety. Some years later he determined to transfer his business to hia birthplace, where he settled for good, as in 1770 he married Gudula Schnappe, and lived in his father's house in the Judengasse. His business was at the outset of a very mixed description, ranging from coins and curiosities, to bullion, bills of exchange, &c., but as his speculations, distinguished by cautious boldness, were almost invariably successful, he was soon in a position to abandon the business of a dealer in works of art for that of a banker and financier. One of his earliest investments was to purchase the freehold of the house in the Judengasse, which has given birth to one of the greatest financial houses in the world. In all his business transactions he displayed remarkable honesty and integrity; so widely did he become known as the “honest Jew” that his reputation spread through the surrounding provinces, and was largely the means of securing him fresh business. A man of his character has never lacked friends, and Mayer Amschel found many persons ready and anxious to recommend him and gain him new clients. Oppenheim, his old employer, was especially zealous in promoting the success of his former employe, and never allowed an opportunity to slip of saying a word in his favour.
During his apprenticeship at Oppenheim's Mayer Amschel had more than once come into contact with Lieutenant-General Baron von Estorff, an intimate friend of William IX., Landgrave of Hesse, and had won his good opinion and esteem. When years later Baron Estorff, who, from his own knowledge and Oppenheim's accounts, was able to form an estimate of Rothschild's worth, bad an opportunity of advancing his fortunes, he did not hesitate to recommend him to the Landgrave as a person well qualified to act as his financial agent. Seeing that the Landgrave had a private fortune of thirty-six million thalors, it was indeed a most lucrative post to obtain. Rothschild received a summons to wait upon the Landgrave. When he was ushered into the room, he discovered his Highness deep in a game of chess with Baron Estorff, who seemed to be getting the best of the struggle. Not caring to disturb the Landgrave's calculations, which absorbed his attention so entirely that he had not noticed his visitor's entrance, Rothschild stood by, a silent spectator of the game. At last the Landgrave, in his perplexity and despair, threw himself back in hia chair, and in so doing caught sight of the banker. He at once inquired of his visitor: —
“Do you know anything of chess?”
Rothschild's answer was to point to a particular piece, saying—
“Would your Highness move this piece to that square?”
The move he suggested was adopted, and at once put a different complexion on matters. So far from the game being lost to the Landgrave, it slowly turned in his favour, and was eventually won by him. He then conversed with Rothschild on the subject of the latter's visit. He was so highly impressed by his visitor's intelligence and address that he told Baron Estorff, after the banker's departure, that he had “certainly recommended him no fool.” The result of the interview was that Mayer Amschel Rothschild was appointed Court-Banker to the Landgrave of Hesse.
In 1804, Rothschild contracted with the Danish government for the issue of a loan of four million thalers: a sign of his growing influence and prosperity. At that time all Europe was in arms against Napoleon, who defeated and overran kingdom after kingdom. In 1806, the Emperor sent a portion of his army to chastise Frankfort and Hesse-Cassel for the support-they had given to the cause of the Allies. The truth was that the Landgrave, having a keen eye for business, had found he could largely augment his already handsome fortune by placing his troops at the disposal of the Prussian and English governments, receiving in return large subsidies. This conduct reached the ears of the “child of fortune,” who determined to administer a severe punishment to the Landgrave, by plundering and sacking Hesse-Cassel. The approach of the French becoming known, the Landgrave concluded that under the circumstances discretion was the better part of valour. He therefore made hasty preparations for flight. But, although he would by flight secure the safety of his person, he could not render his money safe, for that he was forced to leave behind. Consisting as it did largely of specie, its mere bulk was a hindrance to its removal, and yet to leave it where it was would be but making a present of it to the French. In his dilemma he recollected Rothschild, and, thinking the banker might be able to take charge of his money, he had it packed and sent to Frankfort.
“Mayerᡍ said the Landgrave, “I have already had some experience of your honesty and integrity, and have now to put it to further proof. I wish to deposit with you my whole fortune; to your care I leave it, to be returned to me in more peaceful and happier times."”
“Such a signal mark of your confidence and esteem flatters and honours me, your Highness; but do you not forget that the French will be here in a few days?”
“Do you think so?”
“And that in their train there always follows a band of lawless ruffians, who will fall upon us and plunder us without mercy. It will be a time of unrestrained pillage, as your Highness must know full well.”
“Ah, well, Mayer, I leave my fortune to your care, and you will act as you think best. I ask no receipt from you, knowing that in your hands the money will be safe, if you can but keep the French from handling it.”
With these words the Landgrave left, paying no heed to Rothschild's protestations, on finding himself thus suddenly and unexpectedly saddled with the responsibility and anxiety attaching to the custody of so large a sum. Before the week passed all his prophecies were fulfilled. Frankfort was in the hands of the French, who gave themselves up to plunder and wanton destruction. Rothschild, being a man of well-known wealth, was one of the first visited, and had to endure calmly and unmoved the sight of his premises being sacked and stripped of everything of value. He had, however, good reason for his calmness. By thus quietly allowing the French to seize his own property, of no small value, he prevented a more thorough search of his premises being made, and so secured the safety of the Landgrave's money, which he had artfully concealed in wine casks in his cellars, or had buried in his garden.
This was the turning-point in Rothschild's career. It was the tide in his affairs, taken at the flood, and leading on to his future prosperity and fortune. Had the founder of the Rothschild family refused to undertake the trust confided to him, the course of European history might have been altered, and some of the most remarkable characters of the nineteenth century have remained unknown to fame. The trust was, however, faithfully kept, and Rothschild, after the French had once more left the city, started business afresh, and made such good use of the Landgrave's thalers that in a few years he was reputed to be richer than ever. He seems to have transmitted the whole of the money to his son Nathan, who was established in business in London. This son was already a well- known man in the English capital, where the astounding skill and boldness of his speculations had taken the City by surprise. He thus referred to the fortune left in his father's hands:
“The Prince of Hesse-Cassel gave my father his money; there was no time to lose, so he (my father) sent it me, and I put it to such good use that the Prince made me a present of all his wine and linen.”
A period of respite followed, during which most of the German rulers gave in, either willingly or from necessity, their allegiance to Napoleon. Being raised by the Emperor to the dignity of Elector of Hesse-Cassell, William IX. was enabled to return from his exile. One of the first persons he visited was, not unnaturally, Rothschild. He was aware, from the papers and other sources, of the pillage of Frankfort, and knew that the house of the Jew-banker had not escaped a visit. It had been reported to him, with every show of truth, that Rothschild had been robbed of all he possessed, and was completely ruined. Not knowing anything of the stratagem by which his fortune had been saved, the Elector concluded that his thalers had gone to fill the pockets of the French soldiery; but he still resolved to visit his old agent, if merely to show that his regard and esteem for the latter had suffered no change.
“Good day, Mayer, good day,” said he, extending his hand;“at last we have peace again, though rather dearly bought. You see before yon a poor devil of a prince as badly off as Job was.”
“You poor, my lord!”
“Yes, to be sure, since those cursed thieves have run off with my thalers as well as yours. If it is not inconvenient to you, I should be glad to get some small advance from you against the indemnity that is to be made me.”
“But your Highness has no need to borrow. The money your Highness entrusted to my keeping is safe and untouched.”
“Teufel!”cried the Prince; “why, did not the French plunder your premises?”
“Pardon me, and I will explain. The French stripped me of everything belonging to myself, but I was careful not to irritate them by any violent resistance, else they might have made a more careful search in my cellar, where your money was hidden.”
“What! can it be—”
“Yes, my resignation was a ruse; they little dreamt how great a prize they missed.”
“Is it possible!” exclaimed the Prince, almost dumb with surprise.
“For the last nine years, your Highness, I have taken the liberty of making use of your thalers to compensate myself for the loss of mine. All my speculations have been successful, aud I can at this moment, without inconvenience, restore the whole aum to you, with interest at five percent.”
The Prince was deeply moved, and with difficulty could express his gratitude and his admiration of Rothschild's noble conduct.
“Friend Mayer,” said he, “you are the most honest Jew I know; keep my money, and do what you think fit with it. I want no interest on it for the time it has been in your custody, and for the next twenty years I undertake to leave it with you, and to receive no interest on it above two percent.”
This is the account given by some writers who, dazzled by the immense riches and power of the Rothschilds, were unable to ascribe those riches and that power to ordinary business transactions, and so have gone out out of their way to invent a romance for which they have no better authority than their imaginations. This story is derived from the “Spriichworter der Deutschen,” and to show how little dependence can be placed upon its truthfulness, we need only mention that it is related about a “Moses” Rothschild of Frankfort, of whom no one has ever heard, as there was no Rothschild of that name living. Further, the Landgrave fled from Cassel at the first approach of the French, and could not have gone to Frankfort, as that city was already in the possession of the enemy. Neither could the money have been buried in the garden, as no gardens existed in the Judengasse, and the Jews were forbidden by law from owning any freehold property in any other part of the city. The true unvarnished story seems to have been the following:—
Some writers maintain that Rothschild's connection with the Court of Hesse Cassel commenced during the lifetime of the Landgrave Frederick II., who died in 1785, leaving an immense fortune of fifty-six million thalers. This he had acquired by means of his poor subjects, whom, for handsome subsidies, he had placed at the disposal of the English Government. In 1775 he raised a levy of 12,800 Hessian troops, who were shipped off to quell the rising of the American colonists, and further detachments, amounting to about 4,000 more, were sent at intervals. For the services of these men he received from England twenty-two million thalers. On his death he was succeeded by his son, William IX., a warlike prince, who had seen some service under Frederick the Great. He followed his father's plan, and increased, by large subsidies from the English Government, the vast fortune left him.
In 1787 he was paid six hundred thousand thalers for the services of 12,000 men, and in 1794 he furnished the English with 4,000 more, who were employed in Spain against France. When the French invaded Germany the petty German princes were unable to offer any opposition to their advance; they all fled before the soldiers of the Republic. The Landgrave in the first place went to his brother in Schleswig, but afterwards, in 1808, proceeded to Prague, where he met with a somewhat unpleasant surprise in the shape of an Imperial decree which stated that “the House of Hesse Cassel has for some years past sold its subjects to the English crown, and by that means has amassed a large fortune. This detestable avarice has brought about its own punishment, as the house has ceased to reign.” When the treaty of Tilsit was concluded Hesse Cassel was incorporated with the Kingdom of Westphalia.
Whether M.A. Rothschild was appointed Court; Jew by Frederick II., as some assert, or first became connected with the Court owing to some dealings he had with William IX., an ardent lover of old and rare coins, and whether his honesty and integrity had won the Landgrave's favour, is shrouded in doubt. It is certain, however, that when William IX. became Landgrave M.A. Rothschild was the “Court Jew,” and managed all the Landgrave's financial affairs. The bulk of the Landgrave's fortune, there is every reason to suppose, was invested in the English Funds, as being the only safe and reliable investment, and it was Rothschild's duty to collect the dividends as they became due by drawing upon the firm of Van Notten in London, in whose hands the stocks were deposited. The commission he charged for this business must of itself have amounted to a large sum. That the Landgrave was satisfied with the way in which Rothschild managed his affairs may be inferred from the fact that he gave Rothschild's third son, Nathan, when he established himself in London, full power to deal with his stocks as he deemed best, and transferred to him all the business which the Van Notten firm had formerly conducted. His confidence must have been great, as Nathan Rothschild was allowed perfect liberty of action, and could sell out and reinvest the stocks confided to him as he pleased. When William IX. fled from Cassel, his first great care was to provide for the safe custody of his money, and this we know M.A. Rothschild undertook to do. What was the exact sum entrusted to him on this occasion we cannot say with any certainty, though it is stated by some writers to have amounted to two million thalers. Now, instead of hiding or burying the money, as some have asserted, it would surely be more characteristic of such a shrewd man of business as Rothschild to have transmitted this sum to London to be disposed of as Nathan Rothschild thought fit. To conceal so large an amount from the French would be next to impossible, and, besides, it would have been madness for M. A. Rothschild to have kept the money himself, when its safety could have been secured by sending it to London; and that he did send it we have his son's word. The romantic version, therefore, seems to have very little truth in it, with the exception of the main point that the fortune of the Landgrave was the original cause of the subsequent success of the Rothschilds. The commission gained by the London and Frankfort houses every year for managing the Landgrave's affairs must have been considerable, and would of itself have formed a sufficiently strong base for the many successful speculations which the Rothschilds entered into in the money market. Under these circumstances, they may not have speculated for their own benefit with the Landgrave's money at all, and were therefore able to restore it to its owner whenever he thought fit to claim it back.
During the war in Spain the Duke of Wellington experienced great annoyance and embarrassment from the failure of the specie supplies, and the English Government were unable to assist him in his difficulty, as they could induce no bankers to assume the responsibility of conveying the money to Spain. At this juncture M.A. Rothschild stepped forward and offered to undertake the task for a pretty heavy commission. His offer was accepted, fortune smiled on his enterprise, and the money reached the Duke safely. This was a most profitable piece of business, as Rothschild is said to have cleared annually for eight years a sum of about £150,000. The success of this operation, and the punctuality which distinguished its execution, induced the Government to entrust the Rothschilds with the payment of the enormous subsidies to the various Continental princes, and this, again, still further increased the growing reputation and influence of the firm.
Thus it was that the Rothschilds made their first millions, and few can say they have gained their fortunes in an equally honourable and praiseworthy manner. When once the first million had been made, it was a comparatively easy task to add others. Water always flows to the sea, or, in other words, money makes money. But streams in their progress to the ocean become discoloured by the muddy waters of aifluent streams, and so with the Rothschilds5 millions. The first were gained by the fairest of means, but some of those that succeeded were undoubtedly won by recourse to those expedients and artifices, common on the Stock Exchange, which are open to serious moral objections.
Mayer Amschel Rothschild died on the 13th September, 1812, in his sixty-seventh year. Just before his decease he summoned his five sons to his bedside, and with his last breath, after giving them his blessing, enjoined them to remain faithful to the law of Moses, to remain united until the end, and to undertake nothing without having first consulted their mother. “Observe these three points and you will soon be rich among the richest, and the world will belong to you”—a prediction that has been fulfilled to the letter.
He left five sons, Anselm Mayer, Salomon, Nathan, James, and Carl, who soon after his death established a pentarchy, Anselm retaining command of the original house in Frankfort, whilst the others founded new branches in Vienna, London, Paris, and Naples respectively. By so doing they wonderfully increased the reputation and influence of the firm, and gradually gained that control over the different money markets which enabled them to augment their fortunes with such astounding certainty and rapidity.
Although Mayer Rothschild is known to history merely as an eminent financier, moneymaking did not monopolize his time or thoughts. With all his engagements, he still managed to find leisure and opportunities for administering relief from his well-lined purse to his suffering fellow-mortals, and many tales are told of his benevolence and charity. He would often stop a poor, starving creature in the street, to place a coin in his hand and hurry away to prevent his face being recognized. He moreover exerted his influence to obtain an extension of the civil and political rights of the Jews, and the abolition of the tyrannical restrictions from which they suffered.
His wife Gudula survived him many years, dying in 1849, at the ripe old age of ninety-six. Notwithstanding its dismal and filthy surroundings, the old house in the Judengasse was her home to the last. No entreaty or attempt at persuasion could induce her to abandon the house so intimately associated with the growth and success of the great firm, whose very name was derived from the sign by which the house had been distinguished from its neighbours. Superstitious scruples and a love of the old place combined to prevent her forsaking it. In her eyes it had some mysterious connection with the prosperity and greatness of the family. Here then she lived on, distinguished by the simplicity of her habits, until the thread of life was snapped and her remains were carried to the grave.
“The mother of the Rothschilds, the Hecuba of the European Croesus family,” wrote an eyewitness during her lifetime, “must be almost a centenarian, but so vigorous and active is she still, that she manages to visit the theatre nearly every night. There she sits in her box, with a fan in her hand to shield her eyes from the dazzle of the lights, with an old Jewish hood, adorned with flowers, upon her head, no hair visible, dressed in coloured silks, with the most costly lace about her neck and breast. Of her sons, Anselm is most like her. She lives in the Judengasse still, in the same house as when she, at that time the wife of a needy shopkeeper, brought her children into the world. This old musty house, in the dampest and most unhealthy street in the city, she has never been willing to abandon.
“Here I have seen,” said she, “my sons grow rich and powerful, and, as I have not become conceited in my old age, I will leave them their good fortune, which would certainly forsake them, were I from pride to abandon my humble dwelling.” Owing to the narrowness of the street, no vehicle could approach her house, and her son's carriage could come only as far as the entrance of the Gasse when she returned from the theatre, so that she was always carried home from the carriage.
Heine, in his work, “Ueber Borne,” gives us a pleasant description of a walk he took through the Judengasse, together with an interesting reminiscence of the first Rothschild and his wife:—
“In this small house lives the worthy dame, the Letitzia, who has given birth to so many Napoleons of finance; the great parent of all loans, who in spite of the worldwide rule of her kingly sons, will never consent to leave her little, but fondly cherished palace in the Judengasse, and today, owing to the great festivities, her windows are adorned with white hangings. How pleasantly the lamps shine which she lit with her own hands on the 18th October of the Jews, which has been celebrated now for more than two thousand years in remembrance of the day when Judas Maccabaeus, with his equally brave and heroic brothers, set his country free, as did Frederick William in our day. The tears spring to her eyes as the good old dame looks at the lamps, for they bring back to her the memory of Mayer Amschel, her dearly loved husband, and of her children—then young children—who would plant the lamps in the ground, and with childish glee jump over and round them. Old Rothschild, the founder of the reigning dynasty, was a noble soul, goodness and kindheartedness itself; a benevolent face with a pointed little beard; on his head a three-cornered hat, and his dress quiet and sober, if not poor. Thus would he go about in Frankfort, and frequently surrounded, as if holding a levee, by a crowd of poor people, to whom he would either give alms or address a kind word. If a row of beggars was met in the street, with cheerful and pleased countenances, one might be sure that Rothschild was in the habit of passing down that way.”
In 1804 Mayer Amschel found that he had prospered so well in his undertakings that he was in a position to lend his assistance to the Government of Denmark, whose finances were not then in a flourishing condition. This transaction was followed by several of a similar nature, Denmark being overtaken by a series of undeserved aud unforeseen calamities which quite crippled her for the time. The greatest and most hurtful shock she received was when the English fleet appeared in the Sound without any previous declaration of war, and demanded the surrender of the Danish fleet. This demand being refused, General Cathcart landed some 30,000 men a few miles above Copenhagen, and then bombarded the town for three successive days. The result of these vigorous measures was that General Pyrmann was induced to comply with the English terms and surrender the Danish fleet. In the ensuing year war with Sweden followed, and still further crippled the financial resources of the Government, which was compelled to impose fresh burdens on the already heavily-taxed and impoverished country. Besides issuing an enormous amount of paper money, the Government was compelled in their extremity to apply to the Rothschilds for assistance, an application which, as we have said, met with a favourable response. Between 1804 and 1812 the loans issued by M.A. Rothschild on behalf of Denmark amounted to no less than 10,000,000 thalers; a large sum for any one firm to be responsible for at that time, when money was dearer than it is now. This large business proved, no doubt, very lucrative to the contractor, and gave a turn to the business of the firm which it has since retained. After 1812 the miscellaneous business was gradually abandoned, Government operations taking its place. It is not certain whether the last Danish loan was issued during the lifetime of Mayer Amschel or not; that, however, is a trifling matter. Having established the firm on a solid basis, Mayer Amschel during the last years of his life left the management to a great extent in the hands of his sons, and devoted himself to work more congenial to his better nature. His philanthropy and benevolence were unbounded, and endeared him to the memory of his fellow-citizens. The esteem in which he was held was proved by his being nominated by the Grand Duke a member of the Wahlcollegium, when Frankfort was made the capital of the new Grand Duchy. It was to the Grand Duke that the Jews of Frankfort were indebted for the grant of the full enjoyment of political and municipal rights which had hitherto been withheld. With the death of Mayer Amschel in 1812 the first period in the history of the firm closed—a period small and insignificant in results when compared with those that followed, but still considerable if compared with the results achieved by any other banking firm.
The success achieved by the founder of the firm was no doubt greatly due to the disturbed state of the financial and political world. Had he fallen on more peaceful times, it may well be questioned whether he would have met with the success he did. In more senses than one we may regard Mayer Amschel as a child of fortune equally with his illustrious contemporary Napoleon. The period from his starting in business to his death in 1812 was a period rife with wars and rumours of war—a period eminently favourable to such a shrewd and daring speculator as he was. It is in such disturbed times, when the prices fluctuate greatly, yielding to the influence of any and every rumour, that speculators reap their richest harvest. Peace, which means prosperity to the country at large, is their dread and abhorrence. Times could hardly have been more auspicious for Mayer Amschel. Trade was then almost annihilated on the Continent, and confidence and credit were at such a low ebb that Rothschild could obtain for his advances pretty well whatever interest he chose to demand. Favoured by fortune and circumstances, and aided as it was by the remarkable faculty he displayed of forecasting the future, his progress was rapid. We are forced to write in these general terms of the founder of the firm, as little but tradition remains to afford us information either as to Ms business or private life. To the public the archives of the family which could throw so much light upon the history of this century are a profound secret, a sealed book, kept hidden from profane eyes. What a mass of interesting information must the pages of those archives contain ! and yet no stranger has been allowed to inspect and make known their contents. No encouragement is offered by the family to any who may desire to obtain information respecting the early history of the members of the firm; indeed, such inquiries, however laudable may be their object, are regarded as intrusive, if not impertinent, and an evasive answer is all that is usually received. The reticence of the family can be easily understood; but still it is to be regretted that some relaxation of this hard and fast rule cannot be made, seeing that the family, owing to the exalted position and relations it holds towards all the States of Europe, has long since ceased to retain its private character. The movements of the Rothschilds are carefully watched, and are as important to the public as those of any Minister. It is said that one enthusiastic inquirer was informed that “they much regretted that no information could be given him on the subject of the business of the founder of the firm, as no record of his loans and other financial operations had been kept, neither could they furnish a photograph, as he had never sat for his portrait; and, in conclusion, that it was impossible to name all the members of the family, aa a full pedigree did not exist.”