Involvement in Finance and Industry
During the early part of the 19th century, the Rothschild's London bank took a leading part in managing and financing the subsidies that the British government transferred to its allies during the Napoleonic Wars. Through the creation of a network of agents, couriers and shippers, the bank was able to provide funds to the armies of the Duke of Wellington in Portugal and Spain, therefore funding war. In 1818 the Rothschild bank arranged a £5 million loan to the Prussian government and the issuing of bonds for government loans. The providing of other innovative and complex financing for government projects formed a mainstay of the bank's business for the better part of the century. N M Rothschild & Sons financial strength in the City of London became such that by 1825-26, the bank was able to supply enough coin to the Bank of England to enable it to avert a liquidity crisis.
Nathan Mayer's eldest son, Lionel de Rothschild (1808-1879) succeeded him as head of the London branch. Under Lionel the bank financed the British government's 1875 purchase of Egypt's interest in the Suez Canal. Lionel also began to invest in railways as his uncle James had been doing in France. In 1869, Lionel's son, Alfred de Rothschild (1842-1918), became a director of the Bank of England, a post he held for 20 years. Alfred was one of those who represented the British Government at the 1892 International Monetary Conference in Brussels.
The Rothschild bank funded Cecil Rhodes in the development of the British South Africa Company and Leopold de Rothschild (1845-1917) administered Rhodes's estate after his death in 1902 and helped to set up the Rhodes Scholarship scheme at Oxford University. In 1873 de Rothschild Frères in France and N M Rothschild & Sons of London joined with other investors to acquire the Spanish government's money-losing Rio Tinto copper mines. The new owners restructured the company and turned it into a profitable business. By 1905, the Rothschild interest in Rio Tinto amounted to more than 30 percent. In 1887, the French and English Rothschild banking houses loaned money to, and invested in, the De Beers diamond mines in South Africa, becoming its largest shareholders.
The London banking house continued under the management of Lionel Nathan de Rothschild (1882-1942) and his brother Anthony Gustav de Rothschild (1887-1961) and then to Sir Evelyn de Rothschild (b.1931). In 2003, following Sir Evelyn's retirement as head of N M Rothschild & Sons of London, the English and French financial firms merged under the leadership of David René de Rothschild.
Read more about this topic: Rothschild Banking Family Of England
Famous quotes containing the words involvement in, involvement, finance and/or industry:
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