Part 16: Kissing Cousins (Rothschilds’ genealogy, cont.)
Key lessons:
Keeping it in the family is like making love to your uncle.
That’s exactly what it’s like, but no one said creating generational wealth is easy.
TL;DR
The Habsburg dynasty is notorious for its distinct facial feature, the Habsburg Jaw. The Habsburg jaw is also known as mandibular prognathism. It’s a distinctive facial deformity. For example, Emperor Maximilian I and Charles II, the last Spanish Habsburg. They both had an elongated and protruding lower jaw. It’s a prevalent characteristic among members of the Habsburg royal dynasty. Generations of inbreeding within the family may be a cause. They did this to preserve their royal lineage and hold power. The Rothschild family prioritized good genetics and ambition. To maintain control over their banking empire and preserve secrecy, they intermarried. Unlike the Habsburg dynasty, the Rothschilds avoided deformities. Mayer Amschel Rothschild enforced cousin marriages. This was due to restrictive inheritance rules for female descendants. Such marriages were common for securing alliances and fortunes. Mayer’s eldest son, Amschel, remained unmarried. His nephews took over the Frankfurt branch. None of them had heirs. Anselm Salomon von Rothschild and Nathan Rothschild held significant positions. They held titles in European banking and aristocracy. This practice continued until 1938. That’s when German invasion of Austria disrupted their operations.
Last week, on Methods of Prosperity
Elevated to Austrian nobility, the Rothschild family gained elite status in 1817. By 1822, the five Rothschild brothers established branches in major European cities. They excelled in arbitrage, increasing their wealth by exploiting market inefficiencies. They gained the trust of key Austrian officials during the Napoleonic wars. The Rothschild brothers handled British subsidy payments to Austrian allies. Salomon Mayer Rothschild relocated to Vienna. There he oversaw financing for the Austrian aristocracy.
The Rothschilds founded the Alliance Assurance Company in 1824. This entrance into the maritime insurance industry rivaled Lloyd’s of London. This company would merge and evolve into the RSA Group, acquired in 2021. Nathan Mayer Rothschild’s relationship with the Bank of England was crucial. In 1825, his family provided gold to prevent a financial crisis.
Mercury is essential for gold refining. The Rothschilds acquired Almadén mercury mines in 1835. This placed them in the dominant position of the global mercury market. They expanded their refining interests, acquiring the Royal Mint Refinery in London. The Rothschild family gained considerable influence over the gold market into the 1850s.
In 1873, the Spanish government bought the Almadén mercury mines from the Rothschilds. Operations ceased in 2003 due to environmental concerns.
The following is Methods of Prosperity newsletter number 16. It was originally deployed October 5, 2023. As of June 13, 2024, original subscribers have received up to issue number 52 (Sir Richard Branson).
Back in Part 4, The Reign of Charles V, we’ve explored the Hapsburg dynasty. They’re known for distinctive facial features. Holy Roman Emperor Maximilian I ruled from 1486 to 1519. He had what is now called the Habsburg Jaw (a pronounced underbite). The last Spanish Habsburg was Charles II. “Feeble-minded and deformed”, he inherited the Habsburg Jaw. Most of the mechanisms of heredity remained a mystery. Genetics as a systematic science wouldn’t begin until the 19th century.
Luckily, the Rothschilds had good genes and high aspirations. Between 1824 and 1877, of the 36 male Rothschild descendants, 30 married their cousins. Those whose fathers were partners in different branches of the bank took privilege.
The Rothschild family have married their cousins for several reasons. Maintaining control of their banks and maintaining confidentiality is the primary reason. Cousin marriages among Mayer Amschel Rothschild’s descendants were inevitable. The founder of the banking family arranged his affairs that way. His will barred female descendants from any direct inheritance. Female Rothschilds had few potential marriage partners. Except for other Rothschilds, few of the same religion or social status were eligible.
Keep in mind that this wasn’t unusual. As far back as the biblical Adam and Eve story, family members wanting a mate had very few options. Royalty married into royalty to form and strengthen alliances. It’s the House of Rothschild that emerged from the Jewish ghetto. Visiting with other non-Jews around Frankfurt was impossible. Generations of Rothschilds married within the family. It was a practical way of securing their family’s fortune.
The eldest son of Mayer Amschel Rothschild, Amschel von Rothschild (1773-1855), never married. Thus, he had no sons to take over the Frankfurt branch. Two sons of Carl von Rothschild inherited the original Frankfurt branch. They’re from the Italian Rothschilds’ family. Carl von Rothschild is the nephew of Amschel von Rothschild. Carl had three sons, none of whom had heirs.
Salomon Mayer von Rothschild (1774-1855) was the next eldest of the five brothers. Amschel von Rothschild’s passing made him head of the family. His son is Anselm Salomon von Rothschild (1803-1874). He was part of the Vienna branch of the Rothschild dynasty. Anselm Salomon von Rothschild also founded the Creditanstalt bank.
Anselm Salomon von Rothschild married his cousin Charlotte. She was the daughter of his uncle Nathan M. Rothschild (1777-1836). Uncle Nathan’s firstborn son was Lionel de Rothschild. He married a different cousin, named Charlotte. She was the daughter of Carl von Rothschild from the Italian branch of the family. They’re the parents of Baron Nathan Rothschild (1840-1915).
Baron Nathan Rothschild (1840-1915) became a member of the House of Lords in 1885. Bestowed upon him was the title, Baron Rothschild. Nathan married Emma Rothschild. She was his cousin from the Italian branch of the family.
Albert Rothschild, at the age of 37, married Bettina Rothschild. She was 18 years old. Their son is Louis Nathaniel Rothschild. He became the head of the family in Austria. Everything was fine until March 1938. That’s when Hitler sent German troops into Austria without a declaration of war.
To be continued…
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