Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-01

after jay Cookies sensational collapse
IN the panic Of 1879.
The vast industrial development IN
the New world was q bit too Wild for
the conservative Jews. They stayed
out Of the gigantic promotions into
which the MorRanS Rockefellers, Har-
rimans. vanderbilts and the rest
plunged
London Becomes Stronghold.
London was now their chief strong
hold. Lionel fioated is British loans,
and Lionel's successor. Nathaniel,
already a baronet. was raised 70
the peersge-the first Jew IN England
TO enter the House Of Lords. Their
girls we're beginning that series Of
marriages which has taken the Roths-
child blood into the great old families
Of the Cholmonddieys. the Hardwicks
and the Roseberys.
Diraen, the great Tory premier,
was their friend SO was the Prince
Of wales, afterward Edward VII. He
vent TO their dances and to their mar
riages. He also borrowed money from
them against the time he should be-
come King, for Queen Victoria kept
him short The Queen for her part
was appalled, by her son and heirs
familiarity first with Lionel. Antony
ard Mayer, the heads Of the family.
and subsequently with the younger
generation. Nathaniel. Ferdinand and
Jeopold-until they came to the rescue
Of the British government In the mat
ter of the Suez Canal shares, after
which her majesty beamed upon them.
That story has often been told-usu-
ally inaccurately. The true story Is
queer enough. The grandson of that
Mehemet AL who, sent to Egypt as
viceroy by The Turkish sultan, had
seized that country for himself and
established q new dynasty Incidental
ly seriously disturbing the Rothschilds
at the time). His credit was gone. But
he he'd his Suez Canal shares-l77, 500
Of them. France wanted them, so did
Britain.
Gives French Option.
The Khedive gave a French financial
house an option on them. Another
French financier heard of the project
and told British journalist and Lionel
Rothschild what was happening. The
journalist told Disraeli, who had long
desired to obtain the dominating in
fluence in the canal, the jugllar vein
Of imperial Britain. Twenty million
dollars were required Immediately If
Britain was to swing the deal before
the French financiers had time to raise
the money and complete the purchase.
But Parliament was not sitting, and
not bean can come out of the British
treasury without Parliament's senction.
We have scarcely time to breathe,
we must carry the matter through"
wrote Disraeli to the Queen, whom he
was soon to acclaim Empress Of India
and he went on to friend Lionel, who
raised the 100000 900 In a trice, and
charged only 8 per cent. AS the
Khedive, overjoyed to get his cash,
agreed to pay 5 per cent until dividends
on the shares were again forthcoming,
It was good stroke OF business for the
British government, the vital political
and imperial aspect apart.
Fought Against Wars.
If the Rothschild house Of the second
decade of the twentieth century had
been able to WELD the power II pos
sessed in Metternioh's day. there might
have been no World War. They were
always working and intriguing and
which menaced their business and their
capital; and they fought hard to avert
o war which would split their house.
But events were too much for them.
They therefore resignedly threw II their
respective lots with the states whose
fortunes they had entwined with their
own. One Rothschild fell in Palestine.
When the World War ended, and the
vast giincrack empire Of the. Hapsburgs
collapsed 1t looked as II the Austrian
house Of Rothschild might as well
nquidate also. But Vienna still had
prospects of becoming the economic and
financial center Of the new conglomera-
ton of states of Southeast Europe, With
the Rothschild bank getting the cream
of the business. Besides, it had great
properties to nurse-rnines, estates,
forests, industrial enterprises, so big
buildings In the heart of Vienna, apart
from loads Of paper securities. In the
midst Of the imitation it could not sell
out and get out.
Rush to Rescue.
The London and Paris houses rushed
to the rescue. The League OF Nations
jumped in with the FIRST big postwar
loan floated under its auspices. The
Rothschilds Of London ana Paris guar
anteed the success Of the loan.
They helped in other ways. It was
necessary that the Vienna house should
make money to recolp it for the tre-
Tnendous losses 1t had suffered In the
war and the imitation. The Paris house,
cooperating with the Morgans to re-
habilitate the French franc, tipped of
the Vienna house to deal IN francs.
The franc improved 80 per cent and
the Vienna house made huge profits
These profits have since been swal-
lowed up in the depreciation in
securities consequent upon the eco
nomic blizzard and the credit crisis
in Central Europe. Powerful bat
talions of international finance have
moved hastily to the rescue. But the
other branches of the RothschildS this
time do not seem to have supported
their hard pressed kinsfolk to the limit.
Still. the situation is not a new one
for this old financial dynasty. And un-
less the stock is getting worn out by
too much Observation-Disclosures Paris
house is still adventurous, but the Lon
don house devotes itself to conserving
its capital rather than risking it in
new ventures-much water viii have to
flow under the bridge of time and of
events before we see these Austrian
Rothschilds going out OF business and
retiring TO their palaces and estates as
private individuals.