Rothschild banking family of Austria
Encyclopedia
The Rothschild banking family of Austria was founded by Salomon Mayer von Rothschild
in 1820 in Vienna
in what was then the Austrian Empire
.
, Germany
by his father, Mayer Amschel Rothschild
(1744-1812). Wanting his sons to succeed on their own and to expand the family business across Europe
, Mayer Amschel Rothschild had his eldest son remain in Frankfurt, while his four other sons were sent to different European cities with the mission of establishing a financial institution to invest in business and provide banking services. Endogamy
within the family was an essential part of the Rothschild strategy in order to ensure control of their wealth remained in family hands. Through their collaborative efforts, the Rothschilds rose to prominence in a variety of banking endeavours including loan
s, government bond
s and trading in bullion. Their financing afforded investment opportunities and during the 19th century they became major stakeholders in large-scale mining
and rail transport
ventures that were fundamental to the rapidly expanding industrial economies of Europe.
Salomon von Rothschild established S M von Rothschild
a banking and investment entity that would be highly successful, playing an integral role in the development of the Austrian economy. In 1836, the bank invested in, and financed the building of, the Kaiser Ferdinand's Nordbahn
rail networks, Austria's first steam railway. As well, it financed various government undertakings where large amounts of capital had to be raised.
In 1822 Salomon von Rothschild was made part of the Austrian nobility
when he was awarded the hereditary title of "Freiherr
" (Baron) by Emperor Francis II
. However, the interests of all Rothschild banking families across Europe were adversely impacted in a very major way by three historical events: 1) the Revolutions of 1848
, 2) the Great Depression of the 1930s
and 3) Nazism
.
The Rothschild business empire was passed down to ensuing generations until the March 13, 1938 Anschluss
of Austria to Nazi Germany
when the family was pressured to sell its banking operations at a fraction of its real worth. While other Rothschilds had escaped the Nazis, Baron Louis was held in prison for a year and only released after a substantial ransom was paid by his family. After Baron Louis was stripped of his Austrian citizenship and allowed to leave the country empty-handed, in March 1939 the Nazis placed the firm of S M von Rothschild
under compulsory administration. Nazi officers and senior staff from Austrian museums also emptied the Rothschild family estates of all their valuables. Post war, some of the family's assets were restored to the survivors, but others were not. In 1999, as a result of international Jewish pressure groups along with a determined personal effort by Bettina von Rothschild, the government of Austria returned some 250 Rothschild art treasures worth more than US$100 million. The artworks, which had been looted by the Nazis and placed in the Kunsthistorisches
, the Albertina, the Leopold Museum
and other state museums after World War II
, were returned to the eldest surviving heir of two Vienna Rothschild brothers.
Further, in 2001, files involving more than 40,000 papers taken from the Rothschild family in Vienna by the Nazis were voluntarily returned by the Russia
n government to them from the State Military Archive in Moscow
. The documents are now part of the Rothschild Archive in London
.
The business success of the Austrian Rothschilds allowed them to become great patrons of the arts and substantial contributors to philanthropic causes that include a major donation in 1844 to help build a polytechnic institution in Brno
, the Rothschild Hospital
built in 1869 by Anselm von Rothschild
, the construction of a Vienna hospital for women in 1892, and the founding of psychiatric institutions in 1898 by Nathaniel Anselm von Rothschild
.
and many for their palatial estates.
Ferdinand James von Rothschild
moved permanently to England to build Waddesdon Manor
.In Austria-Hungary, the acquisition of property by branch founder Salomon Mayer Rothschild was especially significant because at the time Jews were barred from the purchase of real estate, except in designated areas. Among the Rothschild properties in Austria were:
Salomon Mayer von Rothschild
Salomon Mayer von Rothschild was a German-born banker in the Austrian Empire and the founder of the Viennese branch of the prominent Mayer Amschel Rothschild family....
in 1820 in Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
in what was then the Austrian Empire
Austrian Empire
The Austrian Empire was a modern era successor empire, which was centered on what is today's Austria and which officially lasted from 1804 to 1867. It was followed by the Empire of Austria-Hungary, whose proclamation was a diplomatic move that elevated Hungary's status within the Austrian Empire...
.
History
Salomon had been sent there from his home in FrankfurtFrankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
by his father, Mayer Amschel Rothschild
Mayer Amschel Rothschild
Mayer Amschel Rothschild was the founder of the Rothschild family international banking dynasty that became the most successful business family in history. In 2005, he was ranked 7th on the Forbes magazine list of "The Twenty Most Influential Businessmen Of All Time"...
(1744-1812). Wanting his sons to succeed on their own and to expand the family business across Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, Mayer Amschel Rothschild had his eldest son remain in Frankfurt, while his four other sons were sent to different European cities with the mission of establishing a financial institution to invest in business and provide banking services. Endogamy
Endogamy
Endogamy is the practice of marrying within a specific ethnic group, class, or social group, rejecting others on such basis as being unsuitable for marriage or other close personal relationships. A Greek Orthodox Christian endogamist, for example, would require that a marriage be only with another...
within the family was an essential part of the Rothschild strategy in order to ensure control of their wealth remained in family hands. Through their collaborative efforts, the Rothschilds rose to prominence in a variety of banking endeavours including loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s, government bond
Government bond
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country...
s and trading in bullion. Their financing afforded investment opportunities and during the 19th century they became major stakeholders in large-scale mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
and rail transport
Rail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
ventures that were fundamental to the rapidly expanding industrial economies of Europe.
Salomon von Rothschild established S M von Rothschild
S M von Rothschild
S M von Rothschild was a banking enterprise established in 1820 in Vienna, Austria-Hungary by Salomon Mayer Rothschild, the founder of the Rothschild banking family of Austria and a member of the Mayer Amschel Rothschild family of Frankfurt, Germany. The business prospered, financing various...
a banking and investment entity that would be highly successful, playing an integral role in the development of the Austrian economy. In 1836, the bank invested in, and financed the building of, the Kaiser Ferdinand's Nordbahn
Northern Railway (Austria)
The Emperor Ferdinand Northern Railway was the name of a former railway company during the time of the Austro-Hungarian monarchy. Its main line was supposed to connect Vienna with salt mines in Bochnia near Kraków...
rail networks, Austria's first steam railway. As well, it financed various government undertakings where large amounts of capital had to be raised.
In 1822 Salomon von Rothschild was made part of the Austrian nobility
Austrian nobility
Historically, the Austrian nobility was a privileged social class in Austria. The nobility was officially abolished in 1919 after the fall of the Austro-Hungarian Empire. Former noble families and their descendants are still a part of Austrian society today, but they no longer retain any specific...
when he was awarded the hereditary title of "Freiherr
Freiherr
The German titles Freiherr and Freifrau and Freiin are titles of nobility, used preceding a person's given name or, after 1919, before the surname...
" (Baron) by Emperor Francis II
Francis II, Holy Roman Emperor
Francis II was the last Holy Roman Emperor, ruling from 1792 until 6 August 1806, when he dissolved the Empire after the disastrous defeat of the Third Coalition by Napoleon at the Battle of Austerlitz...
. However, the interests of all Rothschild banking families across Europe were adversely impacted in a very major way by three historical events: 1) the Revolutions of 1848
Revolutions of 1848
The European Revolutions of 1848, known in some countries as the Spring of Nations, Springtime of the Peoples or the Year of Revolution, were a series of political upheavals throughout Europe in 1848. It was the first Europe-wide collapse of traditional authority, but within a year reactionary...
, 2) the Great Depression of the 1930s
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
and 3) Nazism
Nazism
Nazism, the common short form name of National Socialism was the ideology and practice of the Nazi Party and of Nazi Germany...
.
The Rothschild business empire was passed down to ensuing generations until the March 13, 1938 Anschluss
Anschluss
The Anschluss , also known as the ', was the occupation and annexation of Austria into Nazi Germany in 1938....
of Austria to Nazi Germany
Nazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...
when the family was pressured to sell its banking operations at a fraction of its real worth. While other Rothschilds had escaped the Nazis, Baron Louis was held in prison for a year and only released after a substantial ransom was paid by his family. After Baron Louis was stripped of his Austrian citizenship and allowed to leave the country empty-handed, in March 1939 the Nazis placed the firm of S M von Rothschild
S M von Rothschild
S M von Rothschild was a banking enterprise established in 1820 in Vienna, Austria-Hungary by Salomon Mayer Rothschild, the founder of the Rothschild banking family of Austria and a member of the Mayer Amschel Rothschild family of Frankfurt, Germany. The business prospered, financing various...
under compulsory administration. Nazi officers and senior staff from Austrian museums also emptied the Rothschild family estates of all their valuables. Post war, some of the family's assets were restored to the survivors, but others were not. In 1999, as a result of international Jewish pressure groups along with a determined personal effort by Bettina von Rothschild, the government of Austria returned some 250 Rothschild art treasures worth more than US$100 million. The artworks, which had been looted by the Nazis and placed in the Kunsthistorisches
Kunsthistorisches Museum
The Kunsthistorisches Museum is an art museum in Vienna, Austria. Housed in its festive palatial building on Ringstraße, it is crowned with an octagonal dome...
, the Albertina, the Leopold Museum
Leopold Museum
The Leopold Museum, housed in the Museumsquartier in Vienna, Austria, is home to one of the largest collections of modern Austrian art, featuring artists such as Egon Schiele, Gustav Klimt, Oskar Kokoschka and Richard Gerstl....
and other state museums after World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, were returned to the eldest surviving heir of two Vienna Rothschild brothers.
Further, in 2001, files involving more than 40,000 papers taken from the Rothschild family in Vienna by the Nazis were voluntarily returned by the Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n government to them from the State Military Archive in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
. The documents are now part of the Rothschild Archive in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
.
Philanthropy
The Austrian Rothschilds and members of the other branches in Europe were all major contributors to causes in aid of the Jewish people. However, many of their philanthropic efforts extended far beyond Jewish ethnic or religious communities. They built hospitals and shelters for the needy, supported cultural institutions and were patrons of individual artists. Their donation of works of art to various galleries has been the largest of any family in history. At present, a research project is underway by The Rothschild Archive in London to document the family's philanthropic involvements.The business success of the Austrian Rothschilds allowed them to become great patrons of the arts and substantial contributors to philanthropic causes that include a major donation in 1844 to help build a polytechnic institution in Brno
Brno
Brno by population and area is the second largest city in the Czech Republic, the largest Moravian city, and the historical capital city of the Margraviate of Moravia. Brno is the administrative centre of the South Moravian Region where it forms a separate district Brno-City District...
, the Rothschild Hospital
Rothschild Hospital
The Rothschild Hospital was founded in 1869 by Baron Anselm von Rothschild in Vienna, Austria. It served as a clinic for neurological disorders, with among others Viktor Frankl as its leaders. After World War II, it was a hospital for sick and infirm displaced persons in the American zone of...
built in 1869 by Anselm von Rothschild
Anselm von Rothschild
Anselm Salomon von Rothschild, baron was an Austrian banker, and a member of the Vienna branch of the Rothschild family....
, the construction of a Vienna hospital for women in 1892, and the founding of psychiatric institutions in 1898 by Nathaniel Anselm von Rothschild
Nathaniel Anselm von Rothschild
Nathaniel Mayer Anselm von Rothschild was a member of the Rothschild banking family of Austria.Born in Vienna, he was the fifth child and first son of Anselm von Rothschild and Charlotte von Rothschild . As the eldest male, he was expected to take over the running of the family's Viennese bank, S...
.
Family members
Members of the Rothschild family of Austria include:- Albert Salomon von RothschildAlbert Salomon von RothschildAlbert Salomon von Rothschild was a banker in Austria-Hungary and a member of the Rothschild banking family of Austria. Businesses that he owned included Creditanstalt and the Northern Railway.-Personal life:...
(1844-1911) - Alice Charlotte von RothschildAlice Charlotte von RothschildAlice Charlotte von Rothschild was a socialite and member of the prominent Rothschild banking family of Austria. Born in Frankfurt, she was the eighth and youngest child of Anselm von Rothschild and Charlotte Rothschild...
(1847-1922) - Anselm von RothschildAnselm von RothschildAnselm Salomon von Rothschild, baron was an Austrian banker, and a member of the Vienna branch of the Rothschild family....
(1803-1874) - Ferdinand James von RothschildFerdinand James von RothschildFerdinand James Anselm Freiherr von Rothschild was an English art collector, and a member of the prominent Rothschild family of bankers...
(1839-1898) - Jeanne Stuart von RothschildJeanne StuartJeanne Stuart , born Ivy Sweet, was a British stage and film actress.Using the stage name Jeanne Stuart, she performed on the London stage, on Broadway, and in motion pictures...
(1908-2003) - Ludwig (Louis) von Rothschild (1882-1955)
- Mathilde Hannah von RothschildMathilde Hannah von RothschildHannah Mathilde Rothschild was a German patron in the Jewish faith....
(1832-1924) - Nathaniel Mayer Anselm von Rothschild (1836-1905)
- Salomon Mayer von RothschildSalomon Mayer von RothschildSalomon Mayer von Rothschild was a German-born banker in the Austrian Empire and the founder of the Viennese branch of the prominent Mayer Amschel Rothschild family....
(1774-1855)
Rothschild properties
All branches of the Rothschild banking family are famous for their art collectionsArt
Art is the product or process of deliberately arranging items in a way that influences and affects one or more of the senses, emotions, and intellect....
and many for their palatial estates.
Ferdinand James von Rothschild
Ferdinand James von Rothschild
Ferdinand James Anselm Freiherr von Rothschild was an English art collector, and a member of the prominent Rothschild family of bankers...
moved permanently to England to build Waddesdon Manor
Waddesdon Manor
Waddesdon Manor is a country house in the village of Waddesdon, in Buckinghamshire, England. The house was built in the Neo-Renaissance style of a French château between 1874 and 1889 for Baron Ferdinand de Rothschild . Since this was the preferred style of the Rothschilds it became also known as...
.In Austria-Hungary, the acquisition of property by branch founder Salomon Mayer Rothschild was especially significant because at the time Jews were barred from the purchase of real estate, except in designated areas. Among the Rothschild properties in Austria were:
- Villa Victoria - GrasseGrasse-See also:*Route Napoléon*Ancient Diocese of Grasse*Communes of the Alpes-Maritimes department-External links:*...
, Alpes-MaritimesAlpes-MaritimesAlpes-Maritimes is a department in the extreme southeast corner of France.- History : was created by Octavian as a Roman military district in 14 BC, and became a full Roman province in the middle of the 1st century with its capital first at Cemenelum and subsequently at Embrun...
, FranceFranceThe French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France... - Enzesfeld Castle - Enzesfeld-LindabrunnEnzesfeld-LindabrunnEnzesfeld-Lindabrunn is a town in the district of Baden in Lower Austria in Austria.-External links:^...
, Lower AustriaLower AustriaLower Austria is the northeasternmost state of the nine states in Austria. The capital of Lower Austria since 1986 is Sankt Pölten, the most recently designated capital town in Austria. The capital of Lower Austria had formerly been Vienna, even though Vienna is not officially part of Lower Austria... - Palais RothschildPalais RothschildPalais Rothschild refers to a number of palaces in Vienna, Austria, built and owned by the titled Austrian branch of the Rothschild banking family...
- the name of several properties in ViennaViennaVienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
, all of which were confiscated following the AnschlussAnschlussThe Anschluss , also known as the ', was the occupation and annexation of Austria into Nazi Germany in 1938.... - Schloss Rothschild - Reichenau an der RaxReichenau an der RaxReichenau an der Rax is a market town in the Austrian state of Lower Austria, situated at the foot of the Rax mountain range on the Schwarza river, a headstream of the Leitha.-History:Reichenau castle was first mentioned in a 1256 deed...
, Lower Austria - Rothschildschloss - Waidhofen an der YbbsWaidhofen an der YbbsWaidhofen an der Ybbs is an independent city in the Austrian state of Lower Austria. The city had a population of 11,662 as of the 2001 census...
, Lower Austria - Schillersdorf Castle - ŠilheřoviceŠilheroviceŠilheřovice is a village in the Moravian-Silesian Region of the Czech Republic. It is part of the Hlučínsko micro-region of Czech Silesia, located about northeast of Hlučín at the border with Poland. The municipality has about 1,500 inhabitants....
, Czech SilesiaCzech SilesiaCzech Silesia is an unofficial name of one of the three Czech lands and a section of the Silesian historical region. It is located in the north-east of the Czech Republic, predominantly in the Moravian-Silesian Region, with a section in the northern Olomouc Region...
See also
- Rothschild banking family of EnglandRothschild banking family of EnglandThe Rothschild banking family of England was founded in 1798 by Nathan Mayer von Rothschild who first settled in Manchester but then moved to London. Nathan was sent there from his home in Frankfurt by his father, Mayer Amschel Rothschild...
- Rothschild banking family of FranceRothschild banking family of FranceThe Rothschild banking family of France was founded in 1812 in Paris by James Mayer Rothschild . James was sent there from his home in Frankfurt, Germany by his father, Mayer Amschel Rothschild...
- Rothschild banking family of Germany
- Rothschild banking family of NaplesRothschild banking family of NaplesThe Rothschild banking family of Naples was founded by Calmann Mayer von Rothschild who was sent to the Kingdom of the Two Sicilies from Frankfurt am Main, Germany in 1821 by his father, Mayer Amschel Rothschild...
- Rothschild banking family of Switzerland
Further reading
- The Rothschilds; a Family Portrait by Frederic MortonFrederic MortonFrederic Morton is a Jewish Austrian writer who emigrated to the United States in 1940.Born Fritz Mandelbaum in Vienna, Morton was raised as the son of a blacksmith who had specialised in forging imperial medals. In the wake of the Anschluss of 1938 his father was arrested but later released again...
. Atheneum Publishers (1962) ISBN 1-56836-220-X (1998 reprint) - The Rothschilds, a Family of Fortune by Virginia Cowles. Alfred A. KnopfAlfred A. KnopfAlfred A. Knopf, Inc. is a New York publishing house, founded by Alfred A. Knopf, Sr. in 1915. It was acquired by Random House in 1960 and is now part of the Knopf Doubleday Publishing Group at Random House. The publishing house is known for its borzoi trademark , which was designed by co-founder...
(1973) ISBN 0-394-48773-7 - A History of the Jews by Paul M. Johnson (1987) HarperCollins PublishersHarperCollinsHarperCollins is a publishing company owned by News Corporation. It is the combination of the publishers William Collins, Sons and Co Ltd, a British company, and Harper & Row, an American company, itself the result of an earlier merger of Harper & Brothers and Row, Peterson & Company. The worldwide...
ISBN 5-551-76858-9 - Rothschild: The Wealth and Power of a Dynasty by Derek WilsonDerek WilsonDerek J. Wilson is a New Zealand architect. He was active in Wellington. He is also known as an environmentalist, and has published several works.-Early years and private life:...
. Scribner, LondonCharles Scribner's SonsCharles Scribner's Sons, or simply Scribner, is an American publisher based in New York City, known for publishing a number of American authors including Ernest Hemingway, F. Scott Fitzgerald, Kurt Vonnegut, Stephen King, Robert A. Heinlein, Thomas Wolfe, George Santayana, John Clellon...
(1988) ISBN 0-684-19018-4 - House of Rothschild : Money's Prophets: 1798-1848 by Niall FergusonNiall FergusonNiall Campbell Douglas Ferguson is a British historian. His specialty is financial and economic history, particularly hyperinflation and the bond markets, as well as the history of colonialism.....
. Viking PressViking PressViking Press is an American publishing company owned by the Penguin Group, which has owned the company since 1975. It was founded in New York City on March 1, 1925, by Harold K. Guinzburg and George S. Oppenheim...
(1998) ISBN 0-670-85768-8 - The House of Rothschild (vol. 2) : The World's Banker: 1849-1999 by Niall Ferguson. Diane Publishing Co. (1999) ISBN 0-7567-5393-7
- "The Rothschild Affair: A Test of Austria's Conscience" by Jason Edward Kaufman in the Wall Street Journal, July 6, 1999, p. A13 http://www.jasonkaufman.com/articles/austria_returns_war_booty_to_rot.htm
- Was einmal war - A Handbook of Vienna's Plundered Art Collections by Sophie Lillie. Czernin Verlag, Vienna (2003) ISBN 3-7076-0049-1
External links
- The Rothschild Archive - an international centre in LondonLondonLondon is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
for research into the history of the Rothschild familyRothschild familyThe Rothschild family , known as The House of Rothschild, or more simply as the Rothschilds, is a Jewish-German family that established European banking and finance houses starting in the late 18th century...
. - http://www.charlottederothschild.com/musical_assoc.htmThe Musical Associations of the Rothschild Family by Charlotte Henriette de RothschildCharlotte Henriette de RothschildCharlotte Henriette de Rothschild is a British soprano specializing in the recital and oratorio repertoire who is a member of the Rothschild banking family of England. The second daughter of the four children of Edmund Leopold de Rothschild and Elizabeth Edith Rothschild née Lentner , she is a...
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