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Rothschild Family and the evolution of international banking

The Rothschild family was a well-known family in Europe; they were well-known in banking, which had a lot of impact on the economy and also, in other ways, on the political background of Europe for many years. The family was brought about by Meyer Amschel Rothschild, who was born in Frankfurt, Germany, in the year 1774. He became an orphan when his father and mother died when Meyer was very young. The parents wanted him to be a Rabbi, but instead, Meyer took an apprenticeship in Hanover. It was through this that Meyer knew a lot about banking. Around 1820, Meyer, together with his sons, grew into international bankers and set up branches in places like London, Paris, Vienna, and Naples. This paper will discuss how the Rothschild family has contributed to the evolution of international banking.

Through their wealth, they were able to offer financial support to famous battles. This family of Rothschild was able to finance, for example, Duke Wellington to overpower Napoleon at the War of Waterloo. Through their financial support, Duke Wellington was able to acquire the necessary war weapons that enabled them to defeat Napoleon. Since the money used to acquire weapons can be much higher for a certain country to manage, the country can lend money from any bank in any country in order for them to be able to go through the war. When they are done, they start paying back the money from the bank they borrowed from, which is normally at a lower rate.

In order for Brazil to gain its freedom, it needed a lot of money, and therefore, Rothschild was able to lend them almost two million dollars. Through the money that Rothschild lent Brazil, they were able to gain independence. After that, the Brazilian government would pay back the money to the bank of the Rothschild family after their problem had been solved. Today, most governments can borrow from outside countries when they have debt, or they want to stop depending on another country; therefore, they use the money they lend to build their economy.

Through their bank, they were entrusted with the construction of money infrastructure. Although they were not from Egypt, they were given a contract to build the Suez Canal, which is in Egypt, and after that, they would be given their money back. This led to the evolution of international banking since individual and most governments across the world were able to use this opportunity to grow their infrastructure.

Rothschild’s family lent money to various companies and even industries for their expansion. For example, De Beers, which was the leading Diamond Company, was financed by the family. For a company to be firm, it needs a lot of finance in order for it to be financed, and once the money is borrowed, it should have as minimum interest as possible in order for the company not to go down through debt. International banking assists in such a way that it lends money and allows minimum interest, just like Rothschild did.

Through this, we can see that Rothschild contributed to the evolution of international banking by financing important wars that were among different countries; he financed the construction of the Suez Canal that is in Egypt, financed the construction of many companies, and also helped a country like that Duke Wellington to attain their freedom. The family did this by financing them at a very minimum interest, thus making many see the need to have international banking and thus giving rise to the evolution of international banking, which is more effective and more helpful in this present time.



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