The Rothschild dynasty is believed to be the wealthiest family in the history of the world. According to some estimates, the Rothschild family controls assets worth more than $350 billion when each of their personal fortunes is combined.
The Rothschild empire had its genesis during the 1760s when a court Jew by the name of Mayer Amschel Rothschild founded a banking business in his native country, Germany. As a court Jew, Rothschild managed finances for the German Royals in exchange for certain social privileges such as living at court or outside of the Jewish ghettos. Over time and with the help of Mayer Rothschild's five sons, the family business expanded throughout several European countries. During 1815 and 1914, the Rothschilds controlled the world’s largest bank. Fast forward to more than two centuries, the Rothschild name is still synonymous with wealth and influence. In a 2005 issue of Forbesmagazine, Mayer Rothschild ranked seventh on a list of the twenty most influential businessmen of all time. Here is an overview of how the Rothschilds became the world’s wealthiest family.
Early Life and Career of Mayer Rothschild
The Rothschild’s story of power and riches began with the humble beginnings of its founder, Mayer Rothschild. Born in 1744, Mayer Rothschild was raised in a Jewish ghetto in Frankfurt, Germany. During that era, Jews were legally required to live in small communities that were distant from Christians. They were also not allowed to leave their villages on Christian holidays, Sundays or at night.
As a child, Rothschild lived in a full house with about 30 other family members. Rothschild learned about the business world at an early age—his father, Amschel Moses Rothschild, traded coins, silk and other commodities for a living. One of Amschel Rothschild's clients was the Prince of Hesse.
Mayer Rothschild became an orphan at the age of 12 following the death of his mother. His father had died from smallpox the year before. Before their passing, Rothschild’s parents wanted their son to study Jewish teaching to become a Rabbi. However, he decided to take on an apprenticeship with a banking firm in Hanover, Germany shortly after turning thirteen. The firm was operated by Court Jews who furnished credit to European royalty. During his time there, Rothschild learned the ins and outs of banking and foreign trade. (See also, The 5 Most Influential Bankers Of All Time.)
Rothschild Banking Empire is Formed
Rothschild returned to his hometown, Frankfurt, when he turned 19-years-old. He along with his brothers continued the commodities and money trading business that their father started. Rothschild also continued his career as a court Jew. By 1769, Rothschild was given the title "Crown Agent" which helped to further establish him as a credible Court Jew among German royalty. He provided banking services to a number of nobles in Europe including Crown Prince Wilhelm of Hesse, who later became the continent's richest man. In 1770, Rothschild married the daughter of another Court Jew. The dowry received from the marriage helped to increase Rothschild's wealth. The couple had ten children–five sons and five daughters. All of their sons later contributed to expanding the Rothschild banking empire.
Expanding and Controlling the Rothschild Footprint
The Rothschild banking empire benefited tremendously from the French Revolution. During the war, the Austrian army contracted Rothschild to supply it with a range of items including wheat, uniforms, horses, and equipment. He also facilitated monetary transactions for Hessian mercenaries. Around that time, Rothschild sent his five sons to live in the capital cities of various European countries. His goal was to have each of his children establish a banking business in Frankfurt, Naples, Vienna, Paris, and London.
In 1798 Mayer Rothschild's oldest son, Nathan Rothschild moved to London, England. There he founded a textile jobbing business with £20,000 of working capital, which in today's terms is equivalent to £1.9 million. Nathan Rothschild later founded a bank which became N M Rothschild & Sons Ltd. The firm is the country's seventh oldest bank in continuous operation. Although privately held and still controlled by the Rothschild family, N M Rothschild & Sons Ltd. reported a net profit of £34 million at the end of 2014. Like the other Rothschild banks that were subsequently set up throughout Europe, N M Rothschild & Sons furnished credit to the government during times of war and crisis. During Napoleon's French Revolution, N M Rothschild & Sons managed and financed various subsidies that the British government sent to its different allies.
Before he died, Mayer Rothschild left strict rules for his descendants on how they should handle the family's finances. For example, Rothschild wanted to keep the fortune within the family and as such encouraged the arrangement of marriages among Rothschild relatives. According to an article published in the August 2003 issue of Discover magazine entitled "Go Ahead, Kiss Your Cousin", writer, Richar Conniff states, "Mayer Amschel Rothschild, founder of the banking family arranged his affairs so that cousin marriages among his descendants were inevitable. His will barred female descendants from any direct inheritance. Without an inheritance, female Rothschilds had few possible marriage partners of the same religion and suitable economic and social stature—except other Rothschilds. Rothschild brides bound the family together. Four of Mayer's granddaughters married grandsons, and one married her uncle. These were hardly people whose mate choice was limited by the distance they could walk on their day off."
The Rothschild Family in the 21st Century
It is estimated that the Rothschild family controls more than $350 billion worth of assets. The family wealth has been divided among many descendants throughout the years. There are a few Rothschild owned financial institutions still operating in Europe including N M Rothschild & Sons Ltd, in the United Kingdom, and Edmond de Rothschild Group, in Switzerland. The family also owns more than a dozen wineries in North America, Europe, South America, South Africa and Australia. (See also, 5 Of The World's Oldest Companies.)
The Bottom Line
With a combined fortune worth hundreds of billions of dollars, the Rothschilds are the wealthiest family to have ever lived. The origin of the family’s massive fortune comes from a German banking business that was established during the 18th century by Mayer Amschel Rothschild. By the 19th century, the business had expanded to England, France, Austria and Italy with one of Mayer Rothschild’s five sons overseeing operations in each country. For more than two centuries, the Rothschild wealth has slowly declined because it has been divided and passed down to hundreds of heirs. With that said, the Rothschild empire is still substantial. Today, it spans across a number of diverse industries including financial services, real estate, mining, energy and even charitable work.
No comments:
Post a Comment