The Rothschilds were a Jewish banking family who, at one point in history, owned roughly half of all wealth in the world and were well-known for their extensive charitable endeavours, particularly in the arts and education.
For nearly 200 years, the Rothschild family, the most well-known of all European banking dynasties, had a significant impact on Europe’s political and economic history. They went on to become one of the 19th century’s richest and most powerful dynasties, serving as bankers to kings and governments, home builders, and collectors of the finest works of art.
The family’s wealth declined throughout the twentieth century and was distributed among numerous descendants. Some of the Rothschild family’s current descendants are thought to be the wealthiest people in Europe. According to reports, the family is now worth $500 trillion. While the Rothschild family is now mostly underground, several reputable financial journalists have claimed that the entire family operates as a shadow organisation and owns a significant stake in almost every international bank. They believe they own approximately 30% of all major banks combined.
The Rothschilds were founded in the 18th century. Mayer Amschel Rothschild derives his surname from their ancestors’ 16th-century home, ‘zum roten Schild’ (at the sign of the red shield), in Frankfurt’s Jewish Ghetto. [1] He briefly studied to become a rabbi, but the early deaths of his parents forced him into an apprenticeship in a banking house.
In the 18th century, Mayer Amschel Rothschild (1744–1812) established a business in Frankfurt, Germany, that specialised in lending money and exchanging currencies. Mayer Amschel believed that keeping the business in the family would ensure its future success. By the 1820s, Mayer and his five sons had established themselves as early pioneers in international banking, opening offices in London, Paris, Vienna, and Naples. They were the first to put some of their bank deposits toward international government projects in the colonies. As a result, they were able to achieve high and significant returns. This is the model that banks all over the world use today.[2]
The Rothschild fortune was built on the financial transactions of the Napoleonic Wars, which lasted from 1792 to 1815. Mayer and his oldest son, Amschel (1773-1855), ran the expanding business from Frankfurt, while his other sons established branches elsewhere: Nathan (1777-1836) established a branch in London in 1804, James (or Jakob, 1792-1868) in Paris in 1811, and Salomon (1774-1855) and Karl (1788-1855) in Vienna and Naples, respectively, in the 1820s.
Later, the Rothschild business shifted to government securities and industrial companies, including investments in railways, coal, ironworking, oil, and metallurgical firms. Due to new commercial banks threatening their powerful position, the Rothschilds were no longer the first banking consortium by the late nineteenth century. Despite this, the Rothschilds were able to maintain their dominance in the banking world due to their strong relationships with government officials and highly successful business strategies. They once controlled the largest bank in the United States of America while residing in Europe.
The Rothschild family’s legacy is one of enormous success and contribution to both the Jewish community and the wider economic world. The British and French houses were merged, bringing the Rothschild family business back together for the first time in nearly two centuries. In doing so, the Rothschilds established an unrivalled banking and investment network that extended throughout Europe, the Americas, and beyond.
Reference:
- Rothschild. (n.d.). History. [online] Available at: https://rothschildfoundation.eu/who-we-are/history/#:~:text=The%20Rothschilds%20are%20a%20pan [Accessed 12 Jan. 2023].
- Mehul Reuben Das (2021). Meet The Rothschilds, The Richest Family Of All Time Who Started World War I To Make Money. [online] www.mensxp.com. Available at: https://www.mensxp.com/special-features/features/91417-rothschild-family-richest-in-the-world-conspiracy-theories.html [Accessed 12 Jan. 2023].
Very well articulated!