7. THE RISE OF THE ROTHSCHILDS
This is Frankfort, Germany. Fifty years after the Bank of England opened its doors, a goldsmith narned Amschel Moses Bauer opened a coin shop - a counting house - in 1743, and over the door he placed sign depicting a Roman eagle on a red shield. The shop became known as the Red Shield firm, or in German Rothschild.
When his son, Meyer Amschel Bauer, inherited the business, he decided to change name to Rothschild.
Meyer Rothschild soon learned that loan money to governments and kings was more profitable than loaning to private individuals. Not only were the loans bigger, but they were secured by the nation's taxes.
Meyer Rothschild had five sons. He trained them all in the secret techniques of money creation and manipulation, then sent them to the major capitals of Europe to open branch offices of the family banking business. Iis directed that one son in each generation was to rule the family business; women were excluded.
His first son, Amschel, stayed in Frankfort to mind tbe hometown bank. His second son, Salomon was sent to Vienna. His third sob, Nathan was clearly the most clever. He was sent to London at age 21 in 1798, a hundred years after the founding of the Bank of England. His fourth son, Karl, went to Naples. His fifth son, Jakob (James), went to Paris.
"There is evidence fhat when the five brothers spread out to the five provinces of the financial empire of Europe, they had some secret help for the accumulation of these enormous sums … that they were the treasurers of this first Comintern .. But others say, and I think with better reason, that the Rothschilds were not the treasurers, but the chiefs .. " - C.G. Rakovsky
In 1785, Meyer moved his entire family to a larger house, a five story dwelling he shared with the Schiff family. This house was known the "Green Shield" house. The Rothschilds and the Schiffs would play a central role in the rest of European financial history, and in that the United States and the world. The Schiffs' grandson moved to New York and helped fund the Bolshevik coup d 'etat in 1917 in Russia.
The Rothschilds broke into dealings with European royalty in Wilhelmshohe, the palace ofthe wealthiest man in Germany - in fact, tbe wealthiest monarch in all of Europe - Prince William of Hesse-Cassel.
At first, the Rothschilds were only helping William speculate in precious coins. But when Napoleon chased Prince William into exile, William sent £550,000 (a gigantic sum at that time, equivalent to many millions of current U.S. dollars) to Nathan Rothschild in London with instructions from him to buy Consola - British government bonds also called government stock. But Rothschild used the money for his own purposes. With Napoleon on the loose, the opportunities for highly profitable wartime investments were nearly limitless.
William returned to Wllhelmshohe, sometime prior to the Battle of Waterloo in 1815. He summoned the Rothschilds and demanded his money back.
The Rothschilds returned William's money, with the 8% interest the British Consols would have paid him had the investment actually been made. But the Rothschilds kept all the vast wartime profits they had made using Wilhelm' s money-shady practice in any century.
Partly by such practices, Nathan Rothschild was able to later brag that in the seventeen years he had been in England, he had increased his original £20,000 stake given to him by his father by 2,500 times (=£50,000,000), a truly vast sum at that time, comparable to billions of current U.S. dollars in purchasing power.
As early as 1817, the director ofthe Prussian Treasury, on a visit to London, wrote that Nathan Rothschild had:
"… incredible influence upon all financial ffairs here in London. It is widely stated … that he entirely regulates the rate of exchange in the City. His pwer as a banker is enormous. "
Austrian Prince Metternich's secretary wrote of the Rothschilds as early as 1818 that:
"…they are the richest people in Europe".
By cooperating within the family, using fractional reserve banking techniques, the Rothschilds' banks soon grew unbelievably wealthy. By the mid-1800s, they dominated all European banking, and were certainly the wealthiest family in the world. A large part of the profligate nobility of Europe became deeply indebted to them.
In virtue of their presence in five nations as bankers, they were effectively autonomous - an entity independent from the nations in which they operated. If one nation's policies were displeasing to them or their interests, they could simply do no further lending there, or lend to those nations or groups opposed to such policies. Only they knew where their gold and other reserves were located, thus shielding them from government seizure, penalty, pressure or taxation, as well as effectively making any national investiation or audit meaningless. Only they knew the extent (or paucity) of their fractional reserves, scattered in five nations - a tremendous advantage over purely national banks engaging in fractional reserve banking too.
It was precisely their international character that gave them unique advantages over national banks and governments, and that was precisely what rulers and national parliaments should have prohibited, but did not. This remains true of international or multi-national banks to this very day, and is the driving force of globalization - the push for one-world government.
The Rothschilds provided huge loans to establish monopolies in various industries, thereby guaranteeing the borrowers' ability to repay the loans by raising prices without fear of price competition, while increasing the Rothschild's economic and political power.
They financed Cecil Rhodes, rnaking it possible for him to establish a monopoly over the gold fields of South Africa and the deBeers over diamonds. In America, they financed the monopolization of railroads.
The National City Bank of Cleveland, which was identified in Congressional hearings as one of three Rothschild banks in the United States, provided John D. Rockefeller with the money to begin his monopolization of the oil refinery business, resulting in Standard Oil.
Jacob Schiff, who had been born in the Rothschild "Green Shield" house in Frankfort and who was then the principal Rothschild agent in the U.S., advised Rockefeller and developed the infamous rebate deal Rockefeller secretly demanded from railroads shipping competitors' oil.
These same railroads were already monopolized by Rothschild control through agents and allies J.P. Morgan and Kuhn, Loeb & Company (Schiff was on the Board) which together controlled 95% of all U.S. railroad mileage.
By 1850, James Rothschild, the heir of the French branch of the family, was said to be worth 600 million French francs - 150 million more than all the other bankers in France put together.
James had been established in Paris in 1812 wih a capital of $200,000 by Mayer Amschel. At the time of his death in 1868, 56 years later, his annual income was $40,000,000. No forune in America at that time equaled even one year's income of James. Referring to James Rothschild, the poet Heinrich Heine said:
"Money is the god of our times, and Rothschild is his prophet."
James built his fabulous mansion, called Femeres, 19 miles northeast of Paris. Wilhelm I, on first seeing it exclainned, "Kings couldn't afford this. It could only belong to a Rothschild." Another 19 century French commentator put it this way;
"There is but one power in Europe and that is Rothschild."
There is no evidence that their predominant standing in European or world finance has changed, to the contrary, as their wealth has increased they have simply increased their "passion for anonymity". Their vast holdings rarely bear their name.
Author Frederic Morton wrote of them that they had "conquered lhe world more thoroughly, more cunningly, and much more lastingly than all the Caesars before…"
Now let's take a look at the results the Bank of England produced on the British economy, and how that later was the root cause of the American Revolution.
Acknowledgement and credits
The Money Masters: How International Bankers Gained Control of America
Produced by Patrick S. J. Carmack
Directed by Bill Still
Royalty Production Company 1998