19-WINE AND DENIM

By the end of June, 1773, David in Rotterdam had received and sold several shipments of tobacco and realized a bigger return than anticipated, Jean-Baptiste Willermoz and François Johannot and their wives had come back from the south of France with interesting information along with several bottles of Burgundy wine and several meters of ‘de Nîmes’ cloth.

After debriefing Jean and François in his Farhgasse office, Mayer decided to give Gutle, his one and only confident, a full account of their trip. They sat down at the kitchen table, and Mayer started relating the great news Jean-Baptiste Willermoz and François Johannot were bringing back from France.

He first showed her a sample of the cloth. It had one weave of blue thread crossed with a weave of white thread, and the double-weave not only made for an interesting design, but gave it extra durability. Gutle thought the indigo colored cloth was beyond belief and wondered if poor people could afford it.

Mayer answered that it would sell for the same price as Indian or English cotton, and before Gutle had a chance to make a comment, Mayer reached for a bottle of burgundy wine, one of the many samples brought back by François. He picked up a funny curly piece of metal, drove it into the cork with a screwing motion and pulled the cork out of the bottle neck. He took two glasses, half-filled them, and they drank to their growing family.

Gutle thought the wine was too good to be true, but her mouth dropped upon learning how much money the wine and cloth was going to bring in. Mayer had started by explaining that Bouchard in Beaune was to receive a letter of exchange in the amount of £2500, or 1 shilling per bottle of wine once delivered in Rotterdam where David would presell it for 1/6 per bottle. David would give the new willing owners a letter of exchange guaranteeing them 3 shillings per bottle if delivered in New York where Haym would presell it for 4 shillings per bottle. 250000 bottles, or half a shipload, would thus generate a profit of £6000 in Rotterdam and another £12500 in New York City.

With regards to cloth, Dollfus was to receive a letter of exchange in the amount of £12000, or £10 per bolt of denim once delivered in Rotterdam where David would presell it for £12 per bolt. David would then give the new willing owners a letter of exchange guaranteeing them £15 per bolt if delivered in America where Haym would presell it for £17 per bolt. 6000 bolts of cotton, or half a shipload, would generate a profit of £12000 in Rotterdam and another £12000 in New York.

He concludes by repeating that since a work outfit made with denim cloth in America will cost less than one made with English or Indian cotton but last ten times longer, everybody will be fighting to buy it. Likewise, since the best wine in the world will only keep getting better in a bottle, all the bourgeois in America and England will want to fill their cellars with it. He then adds that though the profits appear to be huge, the price for these superb new products is well below what people will be willing to pay.

To help Gutle get over her choc, he starts relating the adventures of François’ trip to France. His party had started off by taking a river coach to Mainz. After spending a delightful night in a well-appointed inn, they set off the next day for Basel. River coaches were much more comfortable and a faster means of transportation, but only when going downriver, the rest of the time it was best to travel by stage coach. It took them five days by stage coach to reach Basel where friends were waiting for them.

After a day’s rest, they travelled by stage coach to Montbeliard , and from there they continued on by river coach to Chalon-sur-Saone, a town south of Beaune. Having made prior arrangements, a local winemaker whom they hadn’t seen in years welcomed them in his beautiful country estate. The next day, their host introduced Jean-Baptiste and François to Joseph Bouchard, a wine merchant from Beaune. They were told the Givors factory on the outskirts of Lyon was making glass using ovens fired by ground coal. And because glass made with coal instead of charcoal as a fuel was much stronger, and because the glassblowers had started using handheld molds, they now made less fragile and more uniformly shaped bottles more quickly. Because the bottle necks were thickened and had a standard diameter, it was now possible to use a one-size-fits-all cork stopper. Bouchard told them there was plenty of wine available, but getting fifty thousand glass bottles at a time might be a problem. He told them it was best to check with Michel Robichon who was the glassmaker in Givors. As for the corks, the cork slabs could be bought in quantity in Arles, transported to Beaune where they could be suitably shaped. All in all, he thought it was quite a feasible operation, and it would be no problem to fill the bottles with the best wine of the region and cork the bottles in a matter of days. Bouchard was already experimenting with the bottles, and he promised to give them wine samples on their return trip home. If Givors supplied bottles in sufficient quantity and at the expected price, he stated he could get the wine to Rotterdam via Basel for around nine pennies a bottle.

Jean-Baptiste and François were quite anxious to go to Givors to visit the glass factory and interview Michel Robichon, the owner. They left their wives with family in Lyon and continued on to Givors the following day when they reached the glass factory, they acquainted Robichon with Mayer’s idea of financing regular shipments of bottled wine using the services of Joseph Bouchard in Beaune. They told Michel they had talked to Joseph, and that his only concern was having enough bottles. Naturally, they wanted to see if his factory could supply lots of fifty thousand bottles on an ongoing basis.

Jean-Baptiste and François were happy to hear Michel say that he had just put in a second oven and that a third was on the way. Since one oven supplied enough glass to accommodate four glass masters, and since each master could turn out five hundred bottles a day, it meant that the production would soon be six thousand bottles a day, thirty-six thousand a week or some two million a year.

Michel added one cautionary note. The factory was presently getting its high-quality ground coal from Rive-de-Gier, a mine situated fifteen kilometers from Givors. The canal that was meant to transport the coal by barge was not yet completed, and the mine owners had to use mules to bring the coal to Givors. They had some twelve hundred mules in all, with two trains of four hundred mules making a daily turnaround while the remainder rested. With each mule carrying eighty kilograms of coal, it averaged out to a daily supply of around sixty tons. But since most of the coal was destined for the south of France, if he was to add extra ovens, he might not be able to get enough coal. However, he would put a little pressure on the coal mine owners by reminding them that his factory was operating under the Royal Seal, and was to be supplied in priority. But that was down the road. For now, there was more than enough coal to fire up the second oven, and it would take less than two weeks to produce the fifty thousand bottles. He could have molds made with logo indentations in order to identify the wine, and before shipping the bottles to Joseph Bouchard in Chalon-sur-Saone, he would package them in fifty bottle capacity wicker baskets.

Jean-Baptiste and François were happy and wasted no time getting back to Lyon where their wives were waiting. They spent a few days visiting family and friends, but they couldn’t wait to carry on downriver to Arles by water coach. It took them only three days to reach Arles under very comfortable conditions, and from there, it was a short trip by land coach to Nîmes where they had written ahead to Jean André, the owner of the cloth factory in Genoa, Italy.

When they finally met with Jean, Jean-Baptiste and François were pleasantly surprised to hear that he had every intention of going ahead with the production of the double-weave indigo cloth. They couldn’t believe it when Jean added that he was planning to move the production of this very promising cloth from Genoa to Mulhouse which was not far from Basel on the Rhine. It was a Huguenot city-state bordering France and the thousands of jobs being created were needed to help the growing economy. It didn’t cost much more to bring the raw cotton and indigo from the Americas up the Rhone instead of to Genoa, and because one of the two rivers that ran through Mulhouse had soft water and was perfect for dyeing cloth, the savings would more than offset the added transportation cost.

There were already fifteen cotton factories and more than two thousand cotton workers in Mulhouse, and with the advent of the flying shuttle, the spinning carding frame powered by a water wheel, two recent inventions developed in England, the cost of producing cotton cloth had dropped while the quality and production had increased dramatically. With the added planned production, Mulhouse would become the biggest cotton manufacturing center in continental Europe, and because the city was independent of France, they weren’t affected by the embargo imposed by France on the production of cotton fabrics. Understandably, since the demand for cotton cloth was exploding, the fabric would no doubt attract high prices for years to come.

Jean told them that his cotton mills would be operational within a few months. He had already bought an existing factory on the Mulhouse riverfront, and the equipment being fabricated by local artisans was likely finished by now. Jean told them his director in Mulhouse would soon be able to deliver twelve hundred bolts of the finished indigo double-weave product to Basel on a regular basis for around £10 per bolt. They confirmed that with Jean-Henri Dollfus, the man running the Mulhouse factory, on their way back to Frankfurt. Dollfus had already received several barges of raw cotton from the French West Indies along with indigo.

Before Gutle had a chance to give vent to her unbelief, Mayer sat down at his desk to write to Joseph Bouchard in Beaune and Jean André in Nîmes telling them he was willing to buy as much product as possible at the agreed price. There was no time to lose for the letters had to be translated by François before being sent on. He was telling Joseph Bouchard to deliver all the grand cru Burgundy wine he could bottle. Mayer would give him a letter of exchange redeemable upon delivery in Rotterdam and would willingly give him a down payment if he so wished. He then addressed a letter to Jean André asking him if he would agree to the same financial conditions. Just like with the wine, Mayer would buy all the cloth that could be delivered to David in Rotterdam where the letter of exchange would be redeemed.

Soon, it would be possible to redeem Mayer’s bills of exchange, and even use them as currency, in Frankfurt, Rotterdam and the 13 Colonies, not including the counting houses that would soon open in London and Basel. He had contacted Moses Haim Montefiore in Rotterdam, the friend who had helped David Schiff get settled, asking him if he was interested in running a counting house in London. Moses had replied by return mail that he had been thinking of settling permanently in London, and running a counting house for Mayer in that city was more than he could have hoped for.

By the end of 1773, David was receiving tobacco on a regular basis and he had dispatched the first shipments of Burgundy wine and denim cloth. In both Rotterdam and New York, everything always presold at a price better than anticipated, and Mayer’s counting houses were becoming financial institutions of note. He was now ready for his next venture.

He wrote to Haym asking him to come to Frankfurt as soon as possible. Haym was to first go to Williamsburg in Virginia and introduce himself to as many members of the House of Burgesses as possible in order to see what the political climate was in that very important southern colony. Virginia’s leaders had always been stalwart supporters of the Crown. However, some die-hard loyalists had started being upset with the English Parliament just like in the colonies up north, and Mayer wanted to confirm that. Haym was to identify any leader who stood out in his opposition to the Crown, preferably someone who was imposing, ambitious and vain.

The very powerful Bank of England, by way of the English Parliament, was treating the 13 Colonies as a parent would a child. Although the pound was the official currency, the Bank of England supplied very little sterling in order to facilitate trade. The colonials were reduced to using tobacco, wampum and the like when they couldn’t get their hands on Spanish dollars. The lack of credit, the unjust rate of exchange between the Spanish dollar and the Pound, the lack of representation in decision making, and the unjust taxes forced upon the colonials by the Mother Country was making for an explosive situation.

Mayer was honest and had enough specie to redeem all the paper he was issuing, and because his counting houses on both sides of the Atlantic used the same conversion rates, his paper was in high demand. In all his counting houses one pound had the same value as the Spanish dollar, and 1oz of gold was worth 15 oz. of silver. And since the British insisted on a colonial conversion rate of 4 Spanish dollars to the Pound, it gave Mayer’s American counting houses a serious edge over the English. Necessarily, all bills originating from the colonies were expressed in Spanish Dollars, whereas all merchandise coming from Rotterdam was valued in Pounds, as this greatly advantaged the American colonials. Since Mayer’s counting houses only accepted gold and silver as payment, and since Haym was instructed to never exchange Spanish dollars for Pounds, the great disparity in the English exchange rate didn’t affect his counting house.

Mayer’s counting houses were gaining in international status, and he had more than he needed to finance a meeting of the 13 Colonies. The colonies’ representatives would not question the help of Haym Salomon, for it was only natural for a rich friend who profited so much from colonial trade to help out. Once the Americans gained their independence, they would look upon Mayer’s counting house as an honest, dependable source of credit, and Mayer would take control of the 13 Colonies’ monetary system just like the Bank of England bankers had done with that of England a century before, but he would do it anonymously

18-INTERNATIONAL TRADE

Mayer sat down and wrote Haym that he was to go ahead with the tobacco shipment. He told him he would confirm it with David who would then get the necessary warehouses built in Rotterdam. Haym was to get the best tobacco available, for high quality products attracted higher prices and could be sold more easily.
As for the wine and denim, he told him he was acquainted with two Frenchmen in Frankfurt who were in a position to help. Jean-Baptiste Willermoz had a silk factory in Lyon, France, but spent a lot of time in Frankfurt where another Frenchman, François Johannot, operated a silk factory as well. The high-end silk business wasn’t doing so well and they would certainly welcome a chance to get involved in a more lucrative business. Mayer was certain that Jean-Baptiste, François, and their wives would welcome a chance to have a first class, fully financed voyage to the south of France while inquiring about the availability of bottled wine and denim cloth. The offer to leave winter behind them, visit family and friends in Lyon, and bask in the Mediterranean sun was a powerful enticement.
With the help of Jean-Baptiste and François he was certain he would soon be financing wine and denim shipments to Rotterdam, London and NYC. This would work out extremely well, for wine and denim shipments would go down the Rhine by barge to Rotterdam, and the same barges would come back up the Rhine with arms and military supplies for Prince William along with pre-ordered manufactured goods to cities along the way. In anticipation, he was arranging to have more of the Roman-type barges constructed in Hanau. So far, his barges on the Rhine were proving to be quite a success, and because they all flew the Prince’s colours, they hadn’t been harassed by the bandit lords and forced to pay tolls. He intended to continue the same modus operandi with the wine and denim shipments.
He finished his letter to Haym, and took it to the Thurn and Taxis office for delivery to America. He came back in time to have supper with Gutle and his precious little Yochana. He told Gutle he was planning to go to Rotterdam to acquaint David with the latest developments, and that he would be gone at most three weeks. When prompted by Gutle, he proceeded to tell her what was on his mind.
He had already told her how the Sephardi Jews had joined up with the Huguenots and created the Bank of England in 1694. He explained that he saw an opportunity to do the same in America. The Americans needed credit, and since the Bank of England bankers weren’t providing it, he would. Everybody trusted his bills of exchange, and they were already widely accepted on both sides of the Atlantic. If he helped the Americans win their independence from England, his bank would then be automatically recognized as the official bank of America when the time came.
For now, he was planning to finance shipments of high-quality products in both directions across the Atlantic. When merchants became convinced that his bills could be redeemed for specie and on demand on both sides of the Atlantic, and that his exchange rates for Thalers, the Spanish pound and the sterling pound were fixed and fair, he was sure that instead of going through the trouble and cost of redeeming them they would just sign them over to third, fourth, and fifth parties. On the other hand, David and Haym would be instructed to only accept specie regarding all sales. As more of his bills circulated, more species would accumulate and both counting houses could then issue more bills of exchange. As he waited for the sale of the first shipment of tobacco in Rotterdam, he was already making plans to send Jean-Baptiste and François to France to look into the wine and denim possibilities.
As Gutle grasped the huge sums of money that were involved, she worried about her family and told him this wasn’t what she had expected when she married him. Mayer reassured her. He had no intention of showing his wealth and letting everybody know how rich he was. He told her that his name would never be officially connected to anything he did because he didn’t want to stir up feelings of envy and hatred. He told her he was not interested in flaunting his wealth. The only things that mattered were his family and his extended family, and what he wanted above all else was for her to be proud of him.
He explained how he planned to finance the Americans in their fight for independence, and once achieved, how he would create a bank for them without their ever knowing who he was. His financial operations would be international in nature, and that would ensure his success and his anonymity. His counting houses on both sides of the Atlantic would be run by people who didn’t officially answer to him, like Haym and David. Because each counting house had to interact with the others, they would be independent and yet firmly part of the whole. Notwithstanding the fact he trusted his agents with his life, the counting houses would be accountable to each other and to Mayer without his ever having to be present.
Mayer intended to surround himself with Ashkenazim who would become an extended family network, and he would use goys only when he had to. Haym may have been a Sephardi, but he was like a brother. He respected and trusted David and Haym, and by giving them everything they could possibly want, he was sure of their respect and loyalty, and this allowed Mayer to work in anonymity. Maintaining anonymity, making astounding amounts of money and being magnanimous and honest in all transactions at all times was the key for lasting success.
Gutle loved this man, and as he picked up Yochana and started singing from the Torah, she was the happiest woman in the world. She didn’t want to lose that. But she also knew that if Mayer didn’t follow his dream, he would cease to be the man he was, and she could not bear that.
The next morning, before leaving to meet with Jean-Baptiste and François, Mayer told her how important that meeting was. French wine was the best in the world, and there was talk that the Burgundy wine could be bottled in uniform-sized bottles. The other product had to do with cloth. The Huguenots, in wanting to have a country of their own, had emigrated to the Prince-Bishopric of Basel where they were weaving cotton cloth which was in great demand, but which was forbidden in France proper. They grew cotton in the Caribbean islands and were shipping it up the Rhone-Saone-Doubs river system to Montbéliard and then by land to Mulhouse, the industrial center near Basel.
Mayer wanted Jean-Baptiste and François to look into those two products. If it turned out as he expected, he would consult with Haym, authorize the shipments, and then help the Americans gain their independence. He would start by financing a meeting of the thirteen colonies with the aim of creating some kind of government. He would find and finance leaders who were opposed to English rule, and since Virginia was the most sophisticated politically, that’s where he planned to concentrate his efforts.

13-INDUSTRIAL REVOLUTION

The Anglican religion, England’s state religion, can hardly be called protestant like the Lutheran or Calvinist religions, it’s a pseudo Catholic religion. When King Henry VIII personally replaced the Pope as head of the Church of England, he and the country remained very much Catholic. In time, that church was strongly influenced by the Puritans and the Lollards who had followed John Wycliffe’s teachings and wanted to change the liturgy, but it remained true to its Roman Catholic roots. The strong anti-royalist or anti-papist feelings in England in the 17th century were a sign of the growing opposition to Church abuse, of course, but the Catholic Church’s demise was mainly due to the work of the Jews and the Huguenots who had created the East India Company in Amsterdam, in 1602. As the company dominated world trade, its owners became very powerful, and they were more determined than ever to destroy their mortal enemy, the Holy Roman Empire, or the Ancien Regimes of Europe.

When Charles I was decapitated in 1649, it marked the beginning of the end for the Absolute Kings of Divine Right and the Ancien Regime of England. At that time, the East India Company effectively controlled the economy of the Netherlands, but it had always wanted to move its headquarters from Amsterdam to the City in London. However, because Cromwell had disappointed his sponsors when he failed to establish a proper parliamentary system in England, they had had to postpone democracy for another 40 years until the circumstances were favorable for William and Mary to wear the crown.

In 1694, once established in the City at the helm of the Bank of England, investment in research and development (R&D) could start in earnest. Because they were sure to have their loans repaid in a timely and just fashion, they invested with abandon and launched what became known as the Industrial Revolution. Thanks to ready credit, the English economy became dynamic, and European know-how flowed into the country. The bankers then started financing infrastructure projects in order to facilitate tax collection, internal trade, commerce and exchange of ideas. However, developing road and canal transport didn’t happen overnight, and the Industrial Revolution had to wait for the steam engine to really get started.

Denis Papin, a Huguenot from Hesse, had developed the cylinder and piston concept as early as 1695, but the use of steam was not fully exploited until James Watt invented the condenser in 1765. The Industrial Revolution coincided with the creation of the Bank of North America and Elie Whitney’s mindboggling invention, the cotton gin with interchangeable parts, in 1781. The main industry of the times, cotton, had experienced a great leap forward with the invention of the flying shuttle in 1733, the spinning Jenny in 1764, and the spinning frame in 1769, but it was the use of steam power and the invention of the cotton gin that revolutionized the greatest industry of the times.

On the iron side of things, railroads started being built in early 19th century, but the rails were made with wrought iron and were not durable. Sir Henry Bessemer, another Huguenot, changed all that when he invented a steel making process in 1856. In his blast furnaces, air oxidized and raised the temperature of the molten pig iron, while a small quantity of molten pig iron containing manganese was added and converted the whole large mass of molten iron into steel in just minutes, without the need for any additional fuel. That’s when track started being laid non-stop across Europe and America. In 1876, limestone was added to draw out phosphorous and make the steel less brittle, turning it into the wondrous material we know today.

Samuel Morse invented the telegraph in 1844, Elias Howe, the sewing machine, in 1846, Graham Bell, the telephone, in 1876, Thomas Edison, the light bulb in 1879, Galileo Ferraris & Nikola Tesla, the A/C motor in 1888, and Charles Steinmetz, the A/C transformer in 1893. When George Westinghouse bought Tesla’s invention and started distributing A/C electrical current over long distances, the whole world lit up.

The Bank of England created in 1694 was the catalyst for the Industrial Revolution, but it didn’t get started until steam power became a functional everyday reality. But more was to come. Because the Bank of England was made up of dozens of private bankers, it didn’t speak with one voice, and though the bankers had become very powerful, they had also become very English, and very parochial. It wasn’t until the first genuine international banker created the Bank of North America in 1781, and officially took over the English monetary system in 1810, did the world have an international financial institution that spoke with one voice. Today, two hundred years after that takeover, we are the ones who enjoy the benefits of the great market economies made possible by that man and his dynasty.

11-VERSAILLES

 

France had so many indirect taxes, and they were so complex, that the king, who was forever broke, was quite happy to farm out the tax-collecting chores to accelerate cash flow. The Farmers General, as they were called, would buy a six-year lease for a price corresponding to the total amount of taxes they deemed they could collect in that period of time. Obviously, the estimates were always on the low side, but the king, forever short of money and anxious to get at these huge upfront sums of money, wasn’t inclined to negotiate to any great extent. As one would expect, since the Farmers General kept all the taxes collected and acted in the name of the king, they used very aggressive tactics in dealing with the citizens.

The Farmers General became fabulously rich, pocketing as much as half of the total taxes paid out by the citizens. They would also routinely coerce and blackmail the producers in order to buy their goods at ridiculously low prices, and then they would sell the same goods to city merchants at the other end at exorbitant prices. They were the most hated men of the realm and much of the bitterness was directed at the king, for they acted in his name. When a finance minister was to be named, they directly influenced the king in his choice, thus getting the most accommodating candidate. When Nicolas Fouquet was named Superintendent of Finances, the East India Company shareholders were offered a great opportunity.

Louis XIV was a born megalomaniac, and in 1661, he was humiliated by Nicolas Fouquet who was suspected of having doubtful dealings with the Farmers General. Fouquet had invited the king to his magnificent château de Vaux-le-Vicomte that he had just built, and the king upon seeing the magnificence and the beauty of the domain, not only envied his achievement but wondered where all the money to build it had come from. Smelling a rat, he confiscated Fouquet’s assets and threw him in prison.

The shareholders of the East India Company seized the opportunity and relieved the King’s rancour by making all necessary credit available through third parties so that he could build the most sumptuous kingly residence in the world, the chateau de Versailles. Louis XIV proceeded to hire the great artisans that had created the château de Vaux-le-Vicomte, architect Louis Le Vau, painter Charles Le Brun, and garden designer André le Nôtre, and construction began.

By this time, the owners of the East India Company were the masters of international trade and commerce and their navy ruled the oceans of the world. The shareholders of the East India Company were Jews and Huguenots, and although they were business men and bankers first and foremost, they harbored a festering hatred directed at the Holy Roman Empire, the politico-religious institution that had persecuted them for centuries. They were intent on bringing it down, and the obvious starting point was France, the cornerstone of that empire. In financing the construction of the chateau de Versailles, they were looking well ahead. They had found a way to divide in order to better conquer when the time came. By separating the seat of power from the people, Versailles was twenty kilometers from Paris, the king would become vulnerable. Eventually, Versailles would be perceived as a den of vipers living off the misery of the people, and the King would easily be brought down. The occult financing of the chateau de Versailles by the Amsterdam financiers was the seed that would develop into the French Revolution a hundred years later.

By 1789, bread continued to be the most important ingredient in a Frenchman’s diet. It was central to people’s lives, and though it was the corrupt Farmers General who controlled the supply of cereal and created famines, the bakers were the ones perceived as profiting from dearth and famine and making huge profits by selling this vital commodity at a high price. Bakers were often accused of hoarding stocks and were frequently assaulted. Being lynched became the occupational hazard of bakers. So, limiting the supply of cereal was a very easy way to create unrest in the major urban centers.

There was such unrest in the realm when the tennis court oath under the leadership of Mirabeau in June, 1789, the taking of the Bastille under the sponsorship of Louis-Phillippe d’Orléans in July, and the March on Versailles under the guard of Lafayette in October, were carried out. These incidents were obviously organized by well-paid East India Company agents, and the March on Versailles is perhaps the one that best shows that. In October of that year, a very odd crowd of transvestites went to Versailles to fetch the royal family, “the baker, the baker’s wife, and the baker’s apprentice” as their chant went. The untypically aggressive ‘ladies’ even entered the royal residence while Lafayette and his mounted guard made no attempt to stop them. How such an ungainly disguised group could go to Versailles, capture and bring back the royals to Paris with Lafayette’s National Guard standing by is a mystery that the history books fail to examine.

The East India Company was established in 1600 and was made up of patient and determined men. It took control of international commerce as early as 1624 when it established a foothold on the shores of the Hudson River in America and especially when it took possession of Cape Town in 1652. The owners created democracy by financing an independent parliament in 1689, and creating the Bank of England in 1694. Sure of having their loans repaid by the people’s parliament, they financed unlimited research and development which became known as the Industrial Revolution.

Following a hundred years of mindboggling growth and wealth, they were ready to launch the French Revolution in 1789. In 1810, even though the Bank of England was taken over by the banking dynasty that had created the Bank of North America in 1781, the transition was harmonious, and investments in R&D continued to grow exponentially worldwide. The dynasty that took control of the Bank of England and the City then is the same that rules the financial world today, and we should consider ourselves very fortunate indeed.

10-EAST INDIA COMPANY

 

In the Netherlands, William the Silent, also known as William of Nassau and Prince of Orange, was a robust champion of Protestantism who encouraged thousands of Jews, new Christians as he called them, and Huguenots, Christian Protestants from France, to migrate to Amsterdam. Thanks to this influx, Amsterdam became the trading capital of the world and the Dutch ruled the oceans for much of the 17th century.

Sephardim were money men while Huguenots were entrepreneurs, and together, they formed a formidable team. They created the East India Company in 1600, in London. but in 1602 they decided to move their headquarters to Amsterdam. Even though Jews and Protestants had been free to enter England, a development that had started under Henry VIII, the people were still very much brainwashed by the old ideas of the Roman Church. So, because the Marranos weren’t free to practise their religion, and because Protestants were still viewed as enemies, the company shareholders decided to set up their headquarters in Amsterdam.

Once established in Amsterdam, they got right down to business. In order to protect the North American fur trade, the company shareholders built a fort at the tip of Manhattan in 1609 which would become New Amsterdam in 1624, and later, New York. In 1652, they expanded and created a colony on the Cape of Good Hope in South Africa, in order to protect the spice trade with Asia. The Dutch East India Company ruled the waves, and its founders, Jews and Huguenots, became so rich and powerful, that they could start planning the demise of the Holy Roman Empire.

But they hadn’t given up on re-establishing the company’s headquarters in London, for England was across the channel from France and its economy had much more potential. However, before they could return, they would have to find a way to get rid of the papist kings and get a king that would accept parliamentary rule. As it so happened, there were strong anti-royalist feelings in the English parliament, and the word Catholic was starting to be used to distinguish the papist followers from the Anglicans. Because Charles I, a Catholic, had just been crowned after marrying the Catholic Bourbon Princess Henrietta, it wouldn’t be too difficult to finance an army that would answer to an anti-royalist parliament, defeat the catholic king, and force him to accept parliamentary rule. The country was ripe for civil war.

Oliver Cromwell came to the financiers’ attention in 1642, when he joined the roundheads, the pro-parliamentarians. At the outset of what became known as the English civil war, he distinguished himself militarily and was subsequently promoted to commander of the New Model Army. Over the next few years, the royalist forces were defeated, and when Charles 1, the divine right king, was captured following a battle in Scotland in 1645, he was handed over to the English parliament which was under the protection of Oliver Cromwell’s New Model Army. However, Charles refused to accept a constitutional monarchy and escaped. In 1647, he was recaptured, and in 1648, he was tried, convicted and executed. Cromwell then dominated the Rump Parliament created in 1649.

But Oliver Cromwell was a puritan fanatic who had been extremely aggressive towards Ireland and Scotland, both catholic strongholds. Not able or not wanting to work with the Irish and Scottish parliamentarians, he simply dissolved parliament. After assuming the title of Lord Protector of England, Wales, Ireland and Scotland, he turned the powerful English navy against the very financiers that had financed it, the shareholders of the Dutch East India Company. He wanted England to take charge of the Atlantic trade. Of course, that was not to be, and Cromwell was doomed.

When Cromwell died from natural causes in 1658, his inept son couldn’t hold the Protectorate together, and the Convention Parliament decided to recall the Catholic kings. During the Restoration period (1660-1688), two kings of divine right, the two sons of Charles I, James II and Charles II, ruled in turn and fought the East India Company for trade supremacy.

The Jews and Huguenots both in Amsterdam and in London had to find a way to put a stop to the fratricidal naval wars and especially to the rule of papist kings in England. An arranged marriage between William of the House of Orange and Mary of the House of Stuart would be a very good way to do just that. In the interim, the financiers turned their attention to France.