Rothschild Family Essay
Rothschild family was a well known family in Europe, they were well known in banking which brought a lot of impact in economic and also in other ways to political background of Europe for many years. The family was brought about by Meyer Amschel Rothschild who was born in Frankfurt German 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 apprenticeship in Hanover. It was through this that Meyer knew a lot about banking. In around 1820 Meyer together with is sons grew to international bankers and setting up branches in places like London, Paris, Vienna and Naples. In this paper will discuss on how the Rothschild family as 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 the duke wellington to overpower napoleon at the war of waterloo. By their financial support duke wellington was able to acquire necessary war weapon that enabled them to defeat napoleon. Since the money used to acquire weapon 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 is when 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 their freedom they needed a lot of money and therefore, Rothschild was able to lend them almost two million dollars. Through this money that Rothschild lent Brazil they were able to gain their independence. After that the Brazilian government would pay back the money to the bank of Rothschild family after their problem had been solved. Today most government can borrow from outside country when they have debt or they want to stop depending from other country therefore they use the money they lend to build their economy.
Through their bank they were entrusted with the work of construction of money infrastructure. Although they were not from Egypt they were given a contract to build 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 government across the world were able to use this opportunity to grow their infrastructure.
Rothschild family lent money to various company and even industries for their expansion. For example De Beers which was leading Diamond Company was financed by the family. For a company to firm it needs a lot of finance in order for it to be financed and once the money is borrowed should have a 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 country, he financed the construction of Suez canal that is in Egypt, financed construction of many company and also help country like that of Duke Wellington to attain their freedom. The family did this by financing them at a very minimum interest and thus making many to see the need of having an international banking and thus giving rise to the evolution of international banking which is more effective and more helpful to this present time.