The House of Rothschild, Vol 2

1. Rothschild Unity Tested but Maintained (1849-1858)

It is easier to break up a thing than to put it back together again.

Post-1848 Challenges: The Rothschild family faced internal strife after the revolutions of 1848, with the London partners seeking independence from the continental houses due to heavy financial losses. The deaths of key family members and disputes over inheritance further strained relationships, threatening the unity Mayer Amschel had established.

James's Role as Unifier: Despite the centrifugal forces, James Rothschild played a crucial role in bridging the generation gap and preserving the partnership. His energy, business acumen, and commitment to family unity helped to overcome the divisions and renew the partnership in 1852.

Compromise and Continuity: The 1852 agreement involved compromises, including higher rates of return for the London partners, but it maintained the core structure of the multinational partnership. Endogamy and a shared Jewish identity also contributed to the family's cohesion during this turbulent period.

2. Navigating the Shifting Sands of Power

Well, I wish you a hearty good Sabbath. I hope you are having a good time and a good hunt. Are you eating well, drinking well and sleeping well as is the wish of your loving uncle and father?

Adapting to New Regimes: The Rothschilds demonstrated their ability to adapt to changing political landscapes, offering financial services to liberal and even revolutionary regimes. James found it easier to do business with Louis Philippe's "bourgeois monarchy" and the new Belgian state.

Maintaining Political Influence: The Rothschilds used their fast communications network and dominance of the international bond market to act as peace brokers and exert political influence. They discerned the possibility of exercising a veto over states contemplating war by threatening to ration credit.

The Rise of Nationalism: The rise of nationalism and the tendency of politicians to elevate national self-interest above international "balance" posed a threat to the Rothschilds' financial hegemony. The family found themselves unable to prevent a succession of wars in Europe.

3. Religion, Charity, and Identity in Flux

Our good fortune and our blessings depend upon it.

Maintaining Jewish Identity: Despite their wealth and social status, the Rothschilds remained firmly attached to Judaism, viewing their worldly success as intimately bound up with their religion. They continued to lobby for Jewish emancipation and support Jewish communities.

Charitable Work: The Rothschilds engaged in extensive charitable work, including supporting educational institutions, relieving the sick, and aiding poor Jewish immigrants. The women of the family played a crucial role in philanthropy, becoming actively involved in charitable organizations.

Reform and Orthodoxy: While some Rothschilds inclined towards the Reform movement, others remained Orthodox. The family generally valued Jewish communal unity and sought to bridge the gap between different religious practices.

4. Lionel's Stand: A Symbolic Battle for Jewish Rights

Surely we do not deserve so much hatred.

Breaking Barriers: Lionel de Rothschild's campaign to secure a seat in the House of Commons was a symbolic battle for Jewish political rights. It challenged the institutional barriers that prevented Jews from participating fully in British society.

Beyond Parliament: The Rothschilds sought to improve their access to various institutions, including Oxford and Cambridge universities and London clubs. They aimed to achieve social acceptance and recognition for Jews in British society.

Liberal Principles: Lionel's campaign was driven by liberal principles of legal equality and religious freedom. It aligned the Rothschilds with the Whigs and later the Liberal party, who supported Jewish emancipation.

5. Disraeli and the Rothschilds: A Complex Relationship

We must ask for our rights and privileges not for concessions and liberty of conscience.

Mutual Fascination: Benjamin Disraeli's relationship with the Rothschilds was marked by mutual fascination and influence. He drew inspiration from their wealth, power, and Jewish identity for his novels, while they sought his support for Jewish emancipation.

Religious Ambiguity: Disraeli's own Jewish roots and his complex views on religion created a unique bond with the Rothschilds. He sought to reconcile his Jewish heritage with his Christian beliefs, often portraying Judaism in a positive light in his fiction.

Political Support: Disraeli's support for Jewish emancipation in Parliament was crucial, but his motivations were complex. He sought to advance the cause of Jewish rights while also maintaining his position within the Conservative party.

6. The Rothschilds and the Crimean War: Opportunities Amidst Conflict

It is all a question of ways and means and what Rothschild says is decisive, and he won’t give any money for war.

Financial Dominance: The Crimean War, despite its disruptive effects, presented new financial opportunities for the Rothschilds. They were able to reassert their dominance in public finance by providing loans to the British government.

Neutrality and Profit: While the Rothschilds sought to prevent war, they were also adept at profiting from it. They provided financial services to both sides of the conflict, demonstrating their ability to navigate complex political situations.

Shifting Alliances: The Crimean War marked a shift in the Rothschilds' relationship with European powers. They became more closely aligned with Britain and France, while their ties to Russia weakened.

7. The Rise of the Crédit Mobilier: A Challenge to Rothschild Dominance

I do not mean that I want King John back again, but if you ask me which mode of treating these people to have been the nearest to the will of the Almighty about them—to build them palaces like that, or to take the pincers for them, I declare for the pincers ...

New Competition: The rise of the Crédit Mobilier, a new type of joint-stock bank, posed a challenge to the Rothschilds' dominance in European finance. The Pereire brothers, founders of the Crédit Mobilier, sought to mobilize the savings of smaller investors and compete with the Rothschilds in railway finance.

Different Styles: The Rothschilds and the Pereires represented different approaches to finance. The Rothschilds were more conservative and focused on government bonds, while the Pereires were more aggressive and invested in riskier ventures.

The Limits of Competition: Despite the challenge from the Crédit Mobilier, the Rothschilds remained a dominant force in European finance. Their multinational structure, vast resources, and political connections allowed them to weather the storm and maintain their position.

8. The American Expansion: A Missed Opportunity

The contest is now between the House of Lords and yourselves. They attempt to retain the last remnant of religious intolerance; you desire to remove it ...

Hesitation and Reluctance: Despite the growing importance of the United States, the Rothschilds hesitated to establish a strong foothold there. They lacked confidence in their self-appointed agent on Wall Street and failed to adapt to the decentralized fiscal and monetary institutions of the country.

Strategic Mistake: The Rothschilds' failure to establish a strong presence in the United States proved to be the single biggest strategic mistake in their history. It left them ill-prepared for the rise of American financial power in the 20th century.

Limited Involvement: The Rothschilds' involvement in the United States remained limited to bond issues for established states and railways. They missed out on the vast opportunities presented by the growth of American industry and finance.

9. The Rothschilds and the Unification of Italy

The contest is now between the House of Lords and yourselves. They attempt to retain the last remnant of religious intolerance; you desire to remove it ...

Cavour's Debt: The Rothschilds played a significant role in financing the unification of Italy, but their relationship with the Italian government was often fraught with tension. Cavour, the architect of Italian unification, sought to reduce Piedmont's dependence on Rothschild finance.

Financial Leverage: The Rothschilds used their financial leverage to influence Italian politics, but their efforts were not always successful. They faced competition from other banks and had to navigate the complex political landscape of the Italian peninsula.

A Divided House: The Rothschilds' involvement in Italian unification created divisions within the family. While some supported the cause of Italian nationalism, others were wary of the political and financial risks involved.

10. The Franco-Prussian War: A Test of Loyalties and Finances

The contest is now between the House of Lords and yourselves. They attempt to retain the last remnant of religious intolerance; you desire to remove it ...

Divided Loyalties: The Franco-Prussian War presented the Rothschilds with a difficult test of loyalties. The family was divided between its French and German branches, each with its own national allegiances.

Financial Support: Despite their personal feelings, the Rothschilds continued to provide financial support to both sides of the conflict. They recognized the importance of maintaining their position in both France and Germany.

A New Era: The Franco-Prussian War marked the end of an era in Rothschild history. The family's power and influence were diminished by the rise of new financial institutions and the changing political landscape of Europe.

11. The End of an Era: James's Legacy and the New Generation

The contest is now between the House of Lords and yourselves. They attempt to retain the last remnant of religious intolerance; you desire to remove it ...

A Changing of the Guard: The deaths of key members of the Rothschild family in the mid-19th century marked a transition to a new generation. The third generation, who had built the family's fortune, were succeeded by a fourth generation with different priorities and interests.

New Priorities: The new generation of Rothschilds were less focused on business and more interested in art, culture, and social status. They sought to integrate themselves into the aristocracy and distance themselves from their Jewish roots.

A Shift in Power: The shift in priorities and the rise of new financial institutions led to a decline in the Rothschilds' relative power and influence. The family's dominance in European finance began to wane.

12. The Rothschilds and the Rise of Imperialism

The contest is now between the House of Lords and yourselves. They attempt to retain the last remnant of religious intolerance; you desire to remove it ...

Imperial Ambitions: The Rothschilds played a significant role in the rise of imperialism, financing colonial ventures and supporting the expansion of European powers. They sought to profit from the economic opportunities presented by imperialism while also promoting their own political and social interests.

Ambiguous Attitudes: The Rothschilds' attitudes towards imperialism were complex and often contradictory. They supported some colonial ventures while opposing others, depending on their assessment of the risks and rewards involved.

A Changing World: The rise of imperialism and the changing political landscape of Europe presented new challenges to the Rothschilds. They had to adapt to a world in which their traditional power and influence were being eroded.

Last updated: March 31, 2025