THE ROMANCE OF BANKING.

Otago Witness, Issue 2811, 29 January 1908, Page 87

THE ROMANCE OF BANKING.

BT HoWABD DoBIEiIAI*. No. 8. '-

The ruse adopted by Nathan. Rothschild in creating a, panic on the Stock Exchange after the battle* of Waterloo, while i it biought 'Mm in an immense fortune, { had a correspondingly opposite effect upon hundreds of others. They realised when, too late that they had been duped by this foreign and wily Jew. Those who had merely been observers «nd not victims j of his trickery were prone to regard him ! as a wonderfully clever amd successful financier, who was by virtue of his abilityreaping ibis reward. 15or was this estimate confined to the general public ; the politicians and potentates of Europe were just as ready to regard him in the same favourable light. "Nothing succeeds like success." The mighty power undi influence of gold were as universally recognised in those early days as they are now, and men of wealth were more likely to be singled out for honours and favours than men of culture and character. The manner in which wealtn, .7as acquired was quite a secondary matter, and was rarely inquired into. The possession of wealth, irrespective of its origin, was, and still is, frequently the oirily question considered by those about to confer a title of honour. Thus Nathan Rothschild 1 , the successful national financier, and his five brothers were all made nobles by the King of Austria conferring on them the title qf Baron, and tae world applauded.v

Nathan Rothschild still continued to conduct operations from his headquarters in London, receiving the co-operation >of his five brothers, who managed the various foreign branches of the business. His phenomenal success in everything he undertook was proverbial. He had a happy knack of getting profit out of speculations that unfortunately proved disastrous to others. He seemed instinctively to know when to buy and' when to sell. He greatly popularised foreign loans at «v time when Baitish capitalists looked askance at them by- making the interest payable in London. His transactions were tiow with every crown head of Europe and with the Pope, the Sultan of' Turkey, andi the South. American Republic. He was an immense financial octopus, with his numerous feelers everywhere. From every source wealth, was simply rolling in to him. He was able to entertain' right royally, and the result was thai his tables were honoured- by the highest in the land. Peers, bishops; and men of letters were to be found constantly at his side, and although he was a man of no education and l was common and ungainly in appearance ho was always surrounded by men of far superior attributes who bowed down and worshipped anything -in the shape of gold and influence. While everything prospered with him in his numerous "undertakings, much of his happiness and peace of mind "vv'as destroyed by *he constant anonymous threats of assassination which he received from people who wanted to blackmail him or whom ihe had ruine3 by his question-" able and selfish tactics. It is recorded that on one occasion he was visited by two foreign "gentlemen whose actions ~were considered by him to be so very suspioious that, he at once concluded they were* about to murder him. With" frantic haste ne seized a large book at his elbow, and dashing it at the head of the nearest one, yelled out "Murder, murder !" His clerks and officials rushing in to his j rescue soon succeeded in relieving bis fear. The two gentlemen were foreign bankers calling upon him personally in connection with an important matter they had in hand. When they were feeling in their pockftts for their letters of introduction he imagined they were about to get concealed weapons to kill him.

In the year 1831 the Spanish Government was in want of funds, and appealed to Rothschild for accommodation. Seeing a splendid opportunity of benefiting himself, in a dual sense in connection with the matter, he stipulated that for security he should -be allowed to work the Almedan mercury mines for a certain period. This was readily agreed to, and he negotiated the proposed loan. The mercury mines of Almedan had been worked more or less continuously for about 2500 years, and with the exception of similar mines at Idria, near Adelsburg, were the only ones producing mercury. Upon the acquisition of tho Almedaia mines, Rothschild commenced operations by increasing the price of mercury by 100 per cent. When the merchants who had hitherto obtained their supplies from Almedan became aware of this they gent their orders to Idria, only to discover, much to their consternation, that thig property, too, had been quietly acquired by the Rothschilds, and the, price there had also been -cknibled. This is one Of the first noted instances of. cornering jner> chandise. The natural result followed.. During, &h« leaii-rjaa^x oi t<hfi concession

Rothschild 1 made an immense addition fo ais already large fortnne. A mam of no education, as we have already' said, Nathan Rothschild was saturally a shrewd keen man, and realised! perhaps as no other man in his particular* calling has realised the vast importancel of united organisation in the conduct of international financing. It had been al doctrine of his father, Anselm Rothschild, bhat to preserve continued prosperity thei members of his houfee should remain in copartnership. Nathan. Rothschild wenti further, and urged that that co-partner-, ship should be further • strengthened by] intermarriages. The wisdom, of this ideai has been amply vindicated' in the history of the house of Rothschild. The first step in the consummation ofl this policy was -when in 1836 all tliet members of the various -famllii&s met ati Frankfort for the .purpose of celebrating) the marriage of the eldest son of Nathan! with "the eldest daughter of his brother Charles. The ceremony took place at, the Frank* fort Synagogue, in close proximity; to thai . old and miserable quarters where Anselmj Rothschild first saw the"jigat of day.'""* A few.Jdays'-'affcer this important tion, -and when -He appeared -to lie Ilni J possession, >ol the vbest^of.heattb, iJathaji' contracted" am ilhiess from whicih he sKortlyl * died. His financial operations were on so, i huge _a scaie that upon news of the eventi Beaching England a panic took place on! ' _tzhe London Stock Exchange." The suddeni removal of so prominent an operator on ■ tlie Exchange created the -greatest excite-t , ment. The wonderful organieaiioii of tha[ firm of Rothschild, however, was perfect* and the excitement soon subsided when ifc was seen that the disappearance of one pf> ' tie members made no difference to the) / policy of the house. ' . '

Nathan's body was carried to England! for burial, and.the funeral obsequies weto. , attended bj the Lord Mayor and ' Sheriffs of London, and by the Ambassadors 'of all the European Powers. „. , ', The ]>nestige jf'the banking house ,o{ Rothschild has never lessened, and today we see the v firm in the^ very foreftrontf of financial powers, and still -a potent' factor in all international monetary opera^ tions. ..-----