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How The First Rothschilds Created Modern Finance And A Vast Fortune That Has Lasted For Centuries

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Rothschild Coat of Arms + Mayer

The Rothschild dynasty is, without a doubt, the pioneers of international finance.

Mayer Amschel Rothschild, the first of the family to open a bank, was honored by Forbes as the seventh most influential businessman of all time and the inventor of modern banking who introduced "concepts such as diversification, rapid communication, confidentiality and high volume."

Simply, Mayer understood and was willing to spend money in order to make money.

But the family's rapid rise to wealth has earned them much animosity throughout the annals of history. A quick Google of 'Rothschild family' reveals a vast number of conspiracy theories surrounding the allegedly unsavory means used to attain their fortune, the breadth of their connections, and their influence over major world events.

To be fair, many elements of the family's history are unsettling enough to pique mass interest. For instance, Mayer's primary manner of hoarding the dynasty's wealth was to institute a policy of keeping friends close...and family even closer.

But, as William Langley notes, one question looms large:

How did a down-on-its-luck brood of German street traders emerge, seemingly overnight, to become the prime facilitators of modern capitalism, the wielders of immense political power and, as the historian Niall Ferguson puts it in The House of Rothschild, “the richest family in all of history”?

Here's the answer; the tale of how Mayer and his sons established an international banking dynasty.

The Rothchilds come from humble beginnings: the Jewish ghetto in Frankfurt known as the Judengasse.

Mayer Amschel Rothschild, original architect of the family fortune, was born in 1744. He lived above the family shop with up to 30 relatives in extremely cramped conditions.

Source: The House of Rothschild



Mayer Rothchild's father was a trader and money changer.

Mayer's father, Amschel Moses, worked as a money changer and silk cloth trader, and had Prince William of Hesse on his client list.

However, Amschel wasn't a rich man by any stretch of the imagination, as his meager dwelling suggests.

Source: The House of Rothschild



After his parents passed away at the age of 12, Mayer went to Hanover to learn finance.

Mayer left rabbinical school in Furth, and honed the craft he had dabbled in as a child. In a letter, he wrote "in my youth I was...a very active merchant, but I was disorganized, because I had been a student [of the Talmud] and learnt nothing [about business]." He worked as an apprentice at the firm of Wolf Jakob Oppenheimer, who provided credit to royalty and engaged in international trade, especially in bullion.

Source: The House of Rothschild



See the rest of the story at Business Insider

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