Part 17: Louis Nathaniel von Rothschild and the Nazis
Key lessons:
Two groups are typically blamed for economic inequality: Wealthy Jews.
TL:DR
In March 1938, Hitler annexed Austria into the German Reich. There was weak resistance, marking the start of severe persecution of Austrian Jews. The Nazis arrested over 70,000 Jews. Imposed shortly after that were the Nuremberg Laws. The Nazis stripped the Jews of their citizenship. Marriages between Jews and non-Jews became illegal. The prominent Rothschild family faced intense anti-Semitic persecution. They were known for their financial support to Austria. Louis Nathaniel von Rothschild was head of the family. The Nazis arrested him. They seized their assets and demanded more from the family’s international holdings. Nazi propaganda, conspiracy theories, and historic anti-Semitism spread. This ideology exacerbated the scapegoating of Jews. The Rothschilds were particularly affected. Post-World War I, Germany was in economic turmoil. This contributed to the rise of Nazism. Anti-Semitic narratives against the Rothschilds still persist today. Nazi ideology hides underneath anti-zionism.
Last week on Methods of Prosperity:
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.
The following is Methods of Prosperity newsletter number 17. It was originally deployed October 12, 2023. As of June 20, 2024, original subscribers have received up to issue number 53 (Sir Richard Branson, continued).
In March 1938, Hitler sent German troops into Austria without a declaration of war. The Austrian government collapsed, and Hitler annexed Austria into the German Reich. Resistance was weak from the Austrian people. It was generally considered a fait accompli. Jews of Austria now faced persecution. The Nazis arrested more than 70,000 Jews in the six weeks following the annexation.
The term Ostmark in Nazi propaganda was prevalent from 1938 to 1942. After its annexation by Nazi Germany (Anschluss), the term referred to Austria. It was no longer an independent federal state. Enacted on September 15, 1935, the Nuremberg Laws had devastating consequences. These laws were a set of race-based measures in Nazi Germany, against Jews and others. Adolf Hitler designed the Nuremberg Laws. The Nazi Party approved them at a convention in NĂĽrnberg. Designated as subjects of the state, Austrian Jews no longer held citizenship. Marriages and sexual relations between Jews and Germans became illegal. The Nazi aim was to maintain the purity of Aryan blood. These laws formed the basis for further anti-Jewish legislation during the Nazi regime.
The Austrian branch of the Rothschild family became a target. Anti-Semitic national socialist propaganda pointed at them. Family members faced persecution, arrest, deportation, and death. The entirety of Austria’s Jewish population was also affected.
The Rothschilds’ financial support of the Austrian Monarchy was significant. They helped to finance the government’s operations. They provided advice on financial matters and development projects. They played a role in helping the Austrian Monarchy to maintain its status as a major power in Europe. Now the Nazis confiscated their property. All but one, Louis Nathaniel Rothschild, the head of the family in Austria, had fled the country.
Louis Nathaniel von Rothschild was born in Vienna on March 5, 1882. He was the third son of (Salomon) Albert (1844–1911) and Bettina Caroline (1858–1892). On his father’s death in 1911, Louis inherited the Palais Rothschild in Vienna. His father Albert had commissioned the project. It was one of five Palais Rothschild estates in the city owned by members of the Rothschild family. Louis was the chairman of the Creditanstalt. Louis found himself managing the family firm. This gave him an active role in two enterprises. The Witkowitz iron works and the Floridsdorf Engineering works. Louis provided his support for the Austro-Hungarian cause during the First World War. He served as director of the Viennese Rothschild banking house. He was in charge of the Austrian empire’s finances and war bond campaigns in Vienna.
Keep in mind that the rise of the Nazi party didn’t happen overnight. Anti-Semitism, the hatred or prejudice against Jews, has existed for centuries. The disruption of lives was a byproduct of the Industrial Revolution. Those who failed to adapt to economic and social change were slow to recover. Displaced workers look for someone to blame. The livelihood of a dense population is overtaken by new technologies. People get desperate.
After World War I, Germany had massive debts. Under the Treaty of Versailles, Germany owed reparations to the Allies. That put the Weimar government under significant financial pressure. To pay the reparations debt, the government chose to print yet more money. The hyperinflation had a devastating impact on the lives of people in Germany. It turned Germans against each other, breeding mistrust and animosity. Nazism seemed to them like a rational idea.
Hyperinflation hit the currency of Germany, leading up to World War II. The currency of the Weimar Republic was the German Papiermark. Between 1921 and 1923, it had become worthless. A wheelbarrow full of money wouldn't even buy a newspaper. The peak of hyperinflation was in November 1923. 4.2 trillion Papiermarks were equal to 1 US dollar. During World War I, Germany needed to finance its military expenditures. The government printed fiat currency and borrowed more than it could pay back. This led to rapid inflation. Prices were rising so fast that workers would rush to spend their wages immediately. They feared that their money would be worthless by the end of the day. The hyperinflation was finally halted in November 1923. That’s when the Reichsbank stopped monetizing government debt. A new currency, the Rentenmark, took its place.
Today, conspiracy theories are prevalent. You’ve heard of conspiracy theories about the Rothschilds. The Rothschild family has been the subject of many conspiracy theories. They are false and anti-Jewish in nature. Still, they persist.
What are the origins of the anti-Semitism directed at the Rothschild family? For one thing, there's a political pamphlet. It’s called Histoire édifiante et curieuse de Rothschild Ier, roi des juifs. It began circulating in Europe in 1846. Rampant anti-Semitism targeted the Rothschilds. Their rapid accumulation of wealth and power made many people envious. For the next 200 years, guess who was to blame for economic crises and wars.
In the early 20th century, a similar anti-Jewish publication emerged. It's the source of many conspiracy theories. The myth of an ultimate one-world government finds its origins in this work of fiction. The Protocols of the Elders of Zion is the title. This document is fraudulent. Still, it remains available in many languages. Anti-Semitic groups treat it as a genuine document. Throughout the Arab and Islamic world, many school textbooks teach it as fact. Their motive is to justify its terrorism against Israeli civilians. The Palestinian organization Hamas draws in part on this fraudulent anti-Jewish publication.
In pre-war Germany, they needed a scapegoat. Who did they blame for the widening gap between the have-nots and the haves? The Jews. The Rothschilds in particular. The Nazi Party was able to exploit this antisemitism and use it to gain power. The Nazis promised to restore Germany to its former greatness. They promised to protect the German people from Jews and other enemies. They also used propaganda and violence to spread their message of hate.
Louis faced criticism for his family connections in enemy lands. A newspaper, the Armeeblatt, criticized him. Failing to translate his French name, it called his allegiance into question. The Nazis arrested him at Vienna’s airport, Aspern. The Nazis confined Louis Nathaniel von Rothschild in the Hotel Metropole in Morzinplatz. The Gestapo made it their headquarters in March 1938. This was after the Anschluss of Austria to Nazi Germany. The Nazis held Louis for more than a year in a suite on the upper floor of the Hotel Metropole. They attempted to expropriate his business concerns and seize his assets. Heinrich Himmler extracted as much as possible from the Rothschilds through Louis. Himmler was negotiating over the confiscated Rothschild family’s fortune. Not to mention Louis’ life. The Nazis confiscated the Rothschilds’ property in Austria. They were about to seize more of their assets in other countries.
To be continued…
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