Rothschilds

A detailed Summary of Rothschilds

The Vienna branch of the Rothschild banking consortium was established by Salomon Rothschild in 1815, after the end of the Napoleonic Wars. His brother Carl established the Naples branch only a few years after him. The biggest struggle that the Rothschilds faced during these early years was acceptance. Anti-Semitism kept them out of the elite social circles, necessary realms of connection making, and thus hindered business. This was especially felt in Vienna and Naples.

Salomon wasn't even able to buy a home in Vienna until 1842, as there were laws forbidding Jews from owning property within the Imperial capital. Through his wealth alone was he able to receive an exemption from this rule. He and his brother Carl in Naples were hesitant to purchase much real estate, though, for fear of the anti-Semitic backlash which it might incur, since real estate was seen as a sign of aristocracy.

The Rothschilds frequently found themselves left off of the guest lists of influential balls. They countered this by throwing their own balls, which, by their extravagance alone, eventually attracted the clientele they were after. It wasn't until the late 1830's that senior government officials such as Metternich and Gentz would dine wit

Salomon's son Anselm came down to Vienna from Frankfurt in 1848 to take over, to the casualty of the relationship with his father. This marked the end of the dominance of the second generation, and was itself a revolution within the house. The burden of the crisis rested on the shoulders of the Naples, Frankfurt, and especially London branches of the family, as they were less affected by the revolutions. Luckily for London, the Revolution never spread to England, most directly because of the repeal of the Corn Laws and the suspension of the Bank Charter Act in 1847. Naples didn't have as much of a loss as Vienna because the revolution was a complete failure in Naples, unlike other places in Italy such as Sicily. They were therefore able to send money to bail out their less fortunate siblings. It was the family unity that Mayer Amschel instilled in them that allowed the Rothschilds to survive.

h Salomon. Once they established themselves, however, they became less cautious in hiding their blithe disregard for social rank.

This decision was made on his own, without consulting the other houses, who had doubts about the arrangement. Their doubts proved justified, as the loans became to be one of Salomon's greatest errors. The endeavor might have been profitable if five years of peace and prosperity in Europe had at least been probable.

The House continued to grow after the 1850's, expanding their markets and investments. However, it no longer enjoyed the unchallenged position it held previously. Joint stock banks and deposit banks proved a strong threat to the Rothschild system. The weaker Naples branch was dissolved in 1861. The Vienna branch, survived the competition however, and remained until the German invasion of Austria in 1938.

The money was supposed to be for railroad investments, but was known to really be for putting down insurrections, in Lombardy and Venetia primarily. The government's credit was already questionable at best, and became weaker and weaker as unrest grew and the money necessary to quell the various uprisings increased. The Austrian budget rose 30% between the years 1842 and 1847. Metternich didn't care however, and continued to request or even demand more money from Salomon, having confidence that the uprisings would pass.

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Approximate Word count = 1813
Approximate Pages = 7 (250 words per page double spaced)

Category: History