22-CONGRESS OF WILHELMSBAD

It’s a nice spring day in 1782. Gretel is sitting on the grass in front of the newly-built Green Castle watching a gentle brook trickling down into a pond. The grazing deer, and the swans paddling around the water lilies, completes the idyllic landscape. Mayer is by her side, her boisterous children are running around chasing the strange creatures that populate the marvelous gardens, and she is as happy as can be. However, even though Mayer owns the property, it is part of the goy world, a world that threatens her family with its artificial values.

Peter Heinrich von Bethmann, who fronts Mayer’s financial operations in Frankfurt, is the official resident and lives in the east wing with his family. The west wing is reserved for Mayer’s private use. The many offices needed for the considerable office staff along with the reception areas are located in the central area. With young Carl Friedrich Buderus, his assistant, in the counting house in Hanau, and a very able Moses Kuhn running his Fahrgasse office in Frankfurt, Mayer is able to spend ever more time at Green Castle, the headquarters of his fast developing international banking network.

Mayer is forever trying to reassure his worried wife. He tells her that though their children will know a different kind of world, the family’s roots are so deep, its values so time-honoured and its commitment to honesty so true, that the children will never forget their upbringing. The boys will become powerful men and live with goys, but they will always remember who they are and where they come from.

Gretel knows Mayer is right. Judengasse may be a narrow sunless street but it is the artery that has brought life, love, and joy of living to them all. Nobody who has lived there can ever forget the bonds that holds the community together. But now that Mayer’s bank, the Bank of North America, had been accepted as the official bank of the United States of America, Gretel has reason to worry.

Mayer is more concerned with what is about to take place in Hanau. Prince William is hosting a meeting in Wilhelmsbad, and the participants are coming from all over Europe. The Illuminati, or Enlightened Ones as they like to call themselves, are preparing to free Europe from the yoke of the Holy Roman Empire. The Huguenots and the Sephardim in the City are apparently planning the destruction of the Ancien Regime of France, the cornerstone of that Empire.

After the Huguenots and Sephardim created the East India Company in 1600, they had immediately started undermining their enemy’s stronghold. In early 17th century, they decided to isolate the French King from Paris, the center of French political power, by financing the construction of the Chateau de Versailles. Now, a century later, they were getting ready to topple Louis XVI, and they needed a communications network on French soil. Since 1773, many Masonic Lodges had opened throughout France, and the City bankers had even recruited the king’s cousin, Louis Philippe d’Orléans, as Grand Master of the Grand Orient of France. At the Congress of Wilhelmsbad, the Illuminati’s intention was to have the French lodges break away from the Scottish rite in order to make them available to all faiths. Members had always been required to swear on the Roman Catholic bible in order to become a freemason, and they wanted to do away with that requirement. Prince William, a Calvinist, had embraced the idea, and had allowed them to hold a meeting in Wilhelmsbad, a spa near Hanau.

Jean-Baptiste Willermoz, a very prominent and well-respected French Freemason, organized the meeting, but violent men like Adam Weishaupt also participated. Weishaupt was heard to say that his only hope was to one day see the last priest strangled with the guts of the last king left standing. This did not augur well for France who was the main target.

With the Scottish rite gone, the Illuminati would then start undermining the French political structures, and force the absentee King in Versailles to agree to a Constitutional Monarchy like they had done in England a hundred years earlier. In order to separate Church and State, they would confiscate all Church property and sell it at auction instead of doing what Henry VIII had done in England. They had already recruited a very powerful individual by the name of Mirabeau, who just happened to be a physiocrat. Mirabeau believed like many French economists of the times that the wealth of nations was derived from the value of land. Benjamin Franklin had held similar ideas when Mayer had first met him, but his thinking had since changed.

Notes backed by Church property would be a huge success at the outset, but the bankers in the City as well as Mayer knew that human nature being what it is, the people’s representatives would be inclined to print ever more notes based on that success. The Bank of England would then surely take advantage of the situation by dumping a gigantic amount of counterfeit notes into the French economy in order to have the currency depreciate. The bankers would then facilitate the creation of a Constitutional Monarchy with Louis Philippe d’Orléans as king, and Mirabeau as Prime Minister.

Mayer had good reason to believe what he was hearing, and he came up with a plan of his own. He would ask François, the silk manufacturer, who had been a very successful printer in Lyon before coming to Frankfurt, to meet with him. A few years back, his silk mill had not been doing all that well in Frankfurt, and Mayer had asked him to run the goldsmith house in Hanau. He had since taught gold engraving while working on stereotype printing in his spare time. Printing was his first love, and since he missed France, Mayer would ask him if he would like to return to Lyon. Mayer would be willing to kick-start his printing business.

If the Bank of England could print counterfeit French notes, so could Mayer. If François returned to France and started his printing business, he would be ready to print the counterfeit notes in tandem with the government. Having perfected a wet mat method for creating matrixes for stereotype printing, and having access to the same paper as the one used by the French Government through Julien Ouvrard, he would be able to produce quality notes many times faster at a fraction of the cost.

Gretel was shocked to hear she was about to become a counterfeiter’s wife, and Mayer was quick to explain that his action wouldn’t hurt anybody. He wouldn’t be taking property from anyone, for the properties would already be confiscated. All Mayer would be doing is buying the confiscated properties at auction with counterfeit notes and selling them back to anxiously waiting Frenchmen for gold. The English bankers wanted to destroy the Ancien Regime of France and create a market economy tied to England, but what Mayer wanted was to take control of the Bank of England and have America, France, England and the rest of Europe trade fairly and freely with each other. Mayer told his wife that the only way to accomplish such a feat was by accumulating all the French gold he could while maintaining total anonymity.

Mayer calmed Gretel’s fears by telling her that he was an Ashkenazi first and a banker second, and though he was very rich, he hadn’t changed as a person. He was still Mayer, the happiest man alive, and it was not due to his business activities, but rather to his family. He admitted his ego did influence his business persona, for it was only natural to be proud. After all, he had found a way to take over the Bank of England. One thing was certain, the Bank of England would be printing counterfeit notes in order to bring down the Ancien Regime of France, and Mayer would join in, but it would be to amass huge quantities of French gold in order to overtake the Bank of England itself.

Mayer started explaining how he planned to do it. Huguenot agents recruited in England, the Netherlands and Germany would use the Masonic Lodges as drop-off points, where the counterfeit bills produced by Johannot would be delivered by Thurn and Taxis. Speaking French and having an unlimited supply of notes, the agents would easily outbid everybody as the properties came up on the auction block. The properties would be immediately flipped to waiting buyers for gold, and the law firm of Jean-Jacques Cambacérès would do the necessary title transfers. Ouvrard, a young financial wizard working in tandem with Cambacérès, would have the Thurn and Taxis immediately transport the gold bullion down the Seine to a waiting ship in Le Havre headed for London. With the properties being the choicest in the world, and the French currency depreciating at a rapid rate, the wealthy Frenchmen would want to invest in real estate directly and bypass the worthless yet very expensive government bills. Mayer expected to have accumulated several thousand tons of gold by the time it was all over. The agents, Cambacérès and Ouvrard would all be compensated beyond their wildest dreams, and the gold bullion transported by Thurn and Taxis would be sure to reach the vaults of the Goldsmid Bros. in the City in London.

Mayer would not be involved directly, and the French authorities wouldn’t know which way to turn, especially with the English bankers flooding the market with their own counterfeit notes. Within two or three years, Mayer expected to have accumulated more gold than any other individual in the world. In a few years’ time, Nathan would replace the Goldsmid Bros. and personally take charge of things in the City.

Gretel wondered what the City was, and Mayer was more than willing to explain. He told her that, in 1694, the Jewish and Huguenot bankers, in wanting to be completely independent of the English Government, had created their own state within the state. The City was a financial district on the banks of the Thames and had the status of a territory. It had its own administration and was off limits to English authority. It was unassailable financial ground from which Nathan would soon launch international banking.

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16-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 Gretel, 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. Gretel 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 last many times longer, so people would flock to buy it. And before Gretel 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.

Gretel 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 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 Gretel get over her choc, he starts relating the adventures of François’ party to France. They 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 as a fuel instead of charcoal 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 excited and were 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 very short day 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 Gretel 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. 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 was the most democratic colony, and its leaders had always been stalwart supporters of the Crown. Nonetheless, 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 was worth 1 oz. of silver or 1 Piece of Eight, and 1oz of gold was worth 15 oz. of silver. And since the British insisted on a colonial conversion rate of 4 Pieces of Eight to the Pound, it gave Mayer’s 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 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. The Americans would surely gain their independence, and 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 through Haym Salomon and Robert Morris.

11-MAYER AMSCHEL

 

Mayer Amschel, the greatest man who ever lived, though almost completely unknown to most of us, was born in 1744 in the Frankfurt Jewish ghetto of Judengasse. In August, 1770, when he married Gretel, he was already important enough to have the open street sewer replaced by state of the art sewers running behind the rows of high narrow houses on either side of the street, making sure plenty of fresh water from the Main River flowed through them.

When he was eleven, his parents, who lived in Judengasse, had sent him off to a yeshiva near Nuremberg to study the Torah in the hope of his becoming a rabbi. Unfortunately, they died during a smallpox epidemic, and he was orphaned at twelve. That’s when his future father-in-law, Wolf Salomon Schnapper, contacted Wolf Jacob Oppenheimer in Hanover and asked him if he would take in the young man as an apprentice in his bank.

At the Oppenheimer Bank, everybody thought very highly of him because he had developed, thanks to his father, a very quick mind when it came to handling money and buying and selling rare coins. Then, he got his first big break. Frederic II, Landgrave of Hesse-Kassel, needed a favor. His court Jew was Jacob Oppenheimer, and he had sent for him because he was worried about his son William. Frederic had converted to Catholicism, and his Protestant wife had divorced him. When his father, the previous landgrave, died in 1760, he had sent Frederic to Kassel and given the principality of Hanau to his grandson William. William had been raised a Calvinist, and the thriving Calvinist community in Hanau wanted nothing to do with Catholics.

The Calvinists, also called Huguenots, came from France. They were the great businessmen of the day. The French kings, had always enforced the ‘one God, one king, one nation’ concept, and for centuries the Catholic Church had persecuted and massacred those who didn’t agree. After repeated atrocities committed against them, hundreds of thousands of Huguenots immigrated to more clement lands, places like the Netherlands, Hesse-Hanau, England, America and South Africa. Having endured unspeakable ills at the hands of the papist kings, Huguenots developed a deep hatred for Catholics, and by the same token, became more tolerant towards Jews.

Because of William’s young age, Frederic’s English ex-wife, Mary, was made regent. In wanting to protect William, in spite of his feelings for his ex-wife, Frederic decided to provide him with a financial advisor. He had hoped that Jacob Oppenheimer would personally take on the job. But because Hanau was five days by stagecoach from Hanover, Jacob told him it wasn’t practical for him to do so and recommended Mayer instead.

Frederic knew that Mayer lived in Frankfurt which was near Hanau. He also knew that Mayer had met his son William when they were boys. When Frederic had been Prince of Hanau, Mayer had accompanied his father Moses on one of his trips to the principality. His father had rare coins to offer Frederic who happened to be an avid coin collector. Young William had been curious about Mayer’s clothes and had wanted to have a yellow star like the one stitched to his coat. William never forgot the boy with the funny clothes.

Frederic remembered him as well, but because he was still only nineteen, he wondered how much wisdom and experience that young man could have. After being assured by Jacob that the Oppenheimer Bank would stand behind him and advise him, Frederic agreed to meet with him, and was satisfied with what he saw. Mayer then went to Hanau to meet with William and his mother who were quite pleased with him as well. So Mayer started putting the principality’s finances in order, and unavoidably, he met a General von Estorff who had been sent by Frederic to take charge of the principality’s troops. Hanau was a garrison city, but Mayer didn’t yet know what that implied.

He was becoming a sort of a one-man branch of the Oppenheimer Bank, and things were going smoothly when he found out why Frederic had sent the general to Hanau. For years, Hesse-Kassel had been receiving huge annual retainer fees from England in order to keep an army of Hessian soldiers at the ready. Up until then, the soldiers had been mainly recruited in Kassel. However, in wanting to improve Prince William’s finances, Frederic, who was now Landgrave of Hesse-Kassel, figured that more soldiers could be recruited in Hanau. Huge sums of money representing that portion of retainer fees due Hanau were sent to William, and Mayer suddenly had the responsibility of managing millions of thalers. He had taken it in stride and had made sound investments. With the help of the court Jews in the ghetto, he got the highest return on the investments, and he gave Prince William useful advice regarding expenditures. He was much appreciated, and was given the official title of court Jew which allowed him to get married.

Frederic was related to the English King who was thinking of using Hessian soldiers in America. In an armed conflict, the English Parliament could intervene more quickly without having to explain everything to taxpayers, thereby avoiding arousing passions. The English parliamentarians preferred having German troops fighting English settlers, and by paying a retainer fee to Hesse-Kassel, they could have troops on the ground at a very short notice and at a much lesser cost.

Prince William used the huge retainer fees to improve the infrastructure of the Principality of Hanau. He always paid Mayer well, and the recruits received their pay whether in training or on active duty. When they were required to go and fight, they did so for a specified amount of time, and Mayer made sure their families were properly compensated.

William’s father, Frederic, maintained around ten thousand troops in Kassel, and William, with the help of General von Estorff, maintained around two thousand in Hanau. The Oppenheimer Bank had always invested the retainer fees for Frederic, but in wanting to help his son, it was now Mayer who was investing the huge sums handed over to William in Hanau. Mayer made huge commissions, and after convincing the Prince that Hanau should have its own mint, it was set up in the Walloon House, also called the Goldsmiths’ House, a building adjacent to the castle.

The silver bullion coming in from Kassel represented millions of thalers, and most of it had to be minted and invested by Mayer, and his personal fortune increased dramatically. Court Jews invested money for the princes, but also lent them money, and very often commissions weren’t paid and loans not repaid. On a whim, the princes would even do away with the court agent altogether. The horrible execution of Joseph Suss Oppenheimer just a few years back in Stuttgart was still fresh in everybody’s mind. But although Prince William was an honorable man, Mayer decided to be secretive and keep his personal business to himself just in case. He was not at all interested in flaunting his talents or his wares, he just wanted to be the best he could be at what he was doing. Nobody knew how much money he had, they just knew he wasn’t poor. Humility was a better route in reaching ones goals anyway. As far as Mayer was concerned, the most important thing in the world was to have a family, and to live among a trusting caring people, for if one didn’t have that, he had nothing.

But he was ambitious, and since Frederic, William and Jacob had full confidence in him, he decided to make them a proposition. The German people weren’t united, and there were hundreds of principalities who did as they pleased with currency, so Mayer decided to standardize the thaler in the State of Hesse. In other words, he wanted to mint a thaler that would be accepted throughout the state and beyond. Because Frederic and William, thanks to the English, had more silver bullion than any other German prince, and because Frankfurt, one of the most important German trading center, was in Hesse, his initiative was bound to succeed.

9-GLORIOUS REVOLUTION

The word revolution is a banker’s term. It was used by the owners of the East India Company when they launched their first revolution, in England, in 1688. It was called the Glorious Revolution. A revolution is a well-planned, well-financed affair that succeeds and is permanent in nature. It is always part of a bigger plan for a better world. The Glorious, Industrial, American and French revolutions are all interrelated, and they opened the door to the great world we live in today. A war, an uprising, a rebellion, a revolt, or a military coup can only be called a revolution if it succeeds and is permanent in nature, in other words, if it has the international financiers’ approval.

When the owners of the East India Company decided to finance the construction of the chateau de Versailles, they wanted to destroy the Holy Roman Empire. Naturally, they started with the most obvious target, France, its crown jewel. The construction of the chateau was the first step in a long series of events that would lead to the French Revolution. Construction of the chateau began in 1661, and by 1678, it looked like the chateau we know today. Once things were well under way in France, the owners of the East India Company started planning the Glorious Revolution, the revolution that would lead to a new form of government, democracy.

After his father’s execution in 1649, Charles II of England had fled to the Netherlands where he had lived in exile until he had been invited back in 1660. He subsequently wore the English crown from 1660 until his death in 1685. Much of England grumbled under his rule because he was for letting Catholics sit in parliament, and because he had befriended King Louis XIV of France. The owners of the East India Company, who effectively ran the Netherlands, were quite annoyed with Charles for associating with France’s king of divine right, but when, in 1672, he did Louis XIV a favor by having England declare war on the Netherlands, that was the last straw.

Since Charles II had no legitimate heir, his younger brother, James II, was next in line. While they waited for Charles’ term to run out, the financiers did their best to stoke the anti-royalist feelings among the English parliamentarians. And since James II had a daughter who was being raised as an Anglican, arranging a marriage between her and William III seemed to be the answer to their long term goal. Because James II was catholic, he would be easy to overthrow when the time came, and the crown would then be handed to his Anglican-raised daughter Mary who was next in line.

In 1677, the marriage between Mary II of England and William III of Orange was celebrated in St. James Palace, and it wasn’t a happy affair. At fifteen, an arranged marriage with a much older and repulsive William was not meant to make Mary happy, and she cried throughout the whole ceremony. She had a very unhappy life, especially while in the Netherlands, where she lived for the first eleven years of their marriage. William was a homosexual who spent most of his time leading a double life away from home, and Mary spent all that time in a big cold castle on the outskirts of The Hague. She returned to England in 1688 after the “Immortal Seven” invited her and her husband to come to England and wear the crown. William landed in England with a small army, and he marched on London without hardly firing a shot. James II took off for France, and parliament subsequently declared the crown vacant. William and Mary were then both offered the crown after signing the Bill of Rights which precluded that they submit to parliament’s authority and have no catholic descendants. That series of events is known in the history books as the Glorious Revolution.

However, that was only half of what was to be democracy, England now needed a financial institution. And as it so happened, not about to throw in the towel, and wanting James II to reclaim the crown of England, the Roman Catholic Church gave the financiers the perfect opportunity to create the Bank of England. France’s absolute king of divine right and his powerful navy had just given England a good drubbing, and he was in the process of invading England by way of Ireland. Naturally, the English parliament was asked by King William to retaliate and build a strong navy. But since no public funds were available, and since the credit of William III’s government was non-existent, it was impossible for parliament to borrow the huge sums needed. To induce subscription to the loan, the private subscribers were incorporated into a company that became known as the Bank of England. The Bank was given exclusive possession of the government’s debt, and became the only corporation allowed to issue bank notes. The necessary funds were raised in matter of days, and the private financial institution known to this day as the Bank of England was created

For the first time in the history of mankind, the bankers were sure of being repaid in an orderly and just fashion. Parliament got rid of the antiquated tax collection system inherited from France, and proceeded to develop the country’s infrastructure in order to be better able to collect taxes. The owners of the East India Company had wanted an autonomous parliament because they were banking on a human foible whereby the people’s representatives, once their political campaigns, elections and salaries properly funded, would want to prove their worth and do things before taxes were collected. Since the Bank of England controlled the purse, its shareholders now established in the City could accept or refuse to finance the parliamentarians’ projects, thus indirectly controlling all important developments in the country. That was democracy then, just as it today, and it’s the owners of the East India Company who created the concept. Democracy can only work if the concerned country is indebted, and a democracy is always indebted.

If democracy has proven itself to be the best political system in the world, it’s because people representation and monetary control are separate. The people’s representatives manage things while the bankers decide what’s to be managed by increasing or decreasing the flow of credit. If the one who prints the money is the same as the one who spends it, that is, if the parliamentarians do the printing and the spending, the system can only implode.

6-HUGUENOTS

The Christian Church was intolerant and sanguinary from the very beginning and it fostered much hate throughout the Holy Roman Empire. The absolute kings of divine right, anointed by the Pope, ruled over the different parts of the empire and not only persecuted the Jews, the ‘Christ killers’, but all those who refused to follow the Roman Church’s liturgy as well. For instance, the Pope would suggest the need for a crusade, and the kings and nobles fearing excommunication, or wanting to earn their passage into heaven, would be quick to raise an army, France leading the way. The first crusade was against the Muslims in 1099. After slaughtering the Muslims in Jerusalem, the French conquered Palestine and established the Kingdom of Jerusalem which lasted until 1291. In 1209, Pope Innocent III asked the French king to carry out a crusade against his own people, the Cathars, and it lasted from 1209 to 1229. The Cathars were completely annihilated down to the last ‘good man’ who was executed in 1231, more than a million in all. All this because the peaceful Cathars refused to accept the Roman Church’s liturgy.

The Church committed so many atrocities and was so inflexible that opposition to it could only grow. So, when Gutenberg’s printing press came along in 1440, it slowly paved the way for the Protestant Reformation that was to come. At first, printing had a very limited impact, for it was used mainly to print the Bible and such. The Church controlled operations, the language used was Latin, and only a few scholars could read, and fewer still could write.

In Germany, in 1517, the pamphlet was first used by the leaders of the protestant movement to inflame popular opinion more directly against the Pope and the Church. Martin Luther was one of the earliest and most effective pamphleteers. The coarseness and violence of the pamphlets on both sides and the public disorder attributed to their distribution led to their prohibition. Many scholars, disgusted by the abuses and barbarism of the Church, rallied to Luther’s side, and started reading the contents of the pamphlets to the masses. The Protestant Reformation would not go away.

By 1520, Luther’s ideas had spread in France, and as early as 1521, at the initiative of the Sorbonne, the condemnations of the Protestant heretics began. Fines and prison sentences were imposed on lowly infidels, while heretical monks and priests were condemned to the stake.

Then came along Jean Calvin, a follower of Luther, who would do something Luther hadn’t considered doing. Luther had mainly been a reformer trying to change the Church from the inside, but Calvin, a French humanist, wanted much more, he wanted to lay down the rules for a new religion. He had great success among the French bourgeoisie, which comprised the greatest entrepreneurs of the day. Wanting to make up for lost time after the Hundred Years’ War, these businessmen wanted the backwards and cruel Roman Church out of their way. They of course used pamphlets to make their views known, and after the ‘Affaire des Placards’ in 1534, King François I, having lost patience with them, had several of their leaders hanged or sent to the stake. Following these events, Jean Calvin left France and settled in Geneva. Other French Calvinists started emigrating to Hanau, Amsterdam and London.

While Latin continued to be the language of the Roman Church, French became that of the Calvinists in France and French-speaking Switzerland. As of 1570, the printing houses in Geneva and Amsterdam became major centers for the dissemination of French, and consequently of Calvinism. From 1555, the French nobility had massively adhered to Calvinism. The French Roman Christians, feeling threatened by the Calvinists, perpetrated the Wassy massacre in 1562, when several hundred innocent Huguenots, as Calvinists began to be called, were slaughtered like animals. Then, in 1572, with printing becoming widespread in France, the Huguenots were on the verge of tipping French political power in their favor, and King Charles IX, no doubt with papal approval, engineered the massacre of St. Bartholomew. On the night of August 24, 1572, more than 10,000 noble and notable Huguenots were killed, in Paris and in the provinces.

Because of the Placards Affair in 1534, the massacre of St. Bartholomew in 1572, the siege of La Rochelle in 1627, and the dragonnades under Louis XIV in 1681, hundreds of thousands of Huguenots migrated to more clement lands, and it was the biggest brain drain in the history of any country. That’s why, when Henry VIII was forced to open the door to those with financial and business skills in 1534, many Huguenots ended up in England where French was still widely spoken among aristocrats.

But in 1573, when William of Nassau-Orange converted to Calvinism, and later, in 1579, when the Treaty of Union was signed at Utrecht in 1579, making the Netherlands independent from Spain, Amsterdam became a Huguenot haven and many Calvinists were encouraged to join up with their brothers who were already established there. More importantly, when the Marranos started arriving after their expulsion from Portugal they joined forces with the Huguenots in both London and Amsterdam, and their union changed the face of the earth.

5-MARRANOS

When the prelates decided to revamp the image of the revered messiah Apollonius by changing his name and turning him into the son of God, the founding fathers had a problem. The Apollonius look alike had to be an Essene from Palestine, and that meant he had to be a Jew. How does one build a Roman religion based on the teachings of a Jew? Well, they did it by likening the money-lending Jews of the Temple of Jerusalem to Jews in general. By conjuring up a story where the invented messiah was violently opposed to the Jewish usurers, and where these same usurers were responsible for his horrible death on the cross, it would be one way to turn him into a very acceptable Jew. Furthermore, the faithful would readily accept the idea that Apollonius, their long-departed messiah, had, some 300 years prior, accomplished miracles and was indeed the Son of God as touted by the prelates of the Church of Rome. Whether the results were desired or not, Jews would henceforth bear the Christ-killer stigma. Christians, believing that Jews were responsible for the death of their Christ, wouldn’t be unduly upset to see them tortured, burned at the stake, or despoiled and banned from their homes.

Geographically, France is the hub of Europe, and it naturally became the cornerstone of Christianity when the Church of Rome took over the administration of Gaul and the Western Roman Empire after Constantin’s departure for Byzantium. Clovis, the Church’s first anointed king of divine right was a Franc. During his reign, he did his best in persecuting and converting the ‘barbarians’ who were by then called Arians.

Once the converting tactics were well under way, the Church of Rome turned its attention to the Jews. In 629 CE, the Pope directed King Dagobert to expulse the Jews from Christian Gaul. Later, in 996 CE, when King Robert the Pious came to power in France, he burned a great number of Jews at the stake. When in 1009 the Muslims burned the alleged Holy Sepulcher in Jerusalem, the Christians blamed the Jews, and consequently, many French Jews were again tortured and massacred. Later, in 1096, Jews started being systematically despoiled, and burned at the stake or expulsed from the realm. It was the start of the first crusade, and Philip 1st and his noblemen had taken advantage of the situation in order to replenish their coffers. By despoiling the Jews and expulsing them, they were killing two birds with one stone. Philip was not only doing his Christian duty but he had found a way to finance the crusade ordered by Pope Urban II. Over the next centuries, when King Philippe Augustus and others needed money they would let the Jews back in for a fee, and the whole process would start over again. However, in 1394, Charles VI officially declared the definite expulsion of Jews from France, and as many as 100 000 French Jews made their way to Spain.

They chose Spain not only because it was close to France, but it was also because the Muslims were by then in full control of Spain and were more tolerant towards other religious groups. But when the Christians reconquered the Iberian Peninsula in 1478, the Pope ordered an Inquisition as soon as it became feasible. The Jews were again forced to convert to Christianity, and if they refused, they were burned at the stake. Understandably, many Sephardim chose to convert while continuing to practise their religion in secret, and they became known as Marranos. In 1492, they were expelled from Spain and many of them fled to Portugal and Morocco.

In 1536, there was another Inquisition directed at Jews in Portugal. Once more, facing torture and death, many Jews fled. This time, because a world shattering event had just taken place in England, many of the great banking and shipbuilding Jewish families chose to go there. It had to do with Henry VIII after the Pope had refused to annul his marriage. The Pope, who was in the habit of arranging and annulling royal marriages for political and religious reasons, had refused to grant Henry VIII his divorce, and here’s why. King Henry had married a Spaniard, Catherine of Aragon, and since the Church of Rome considered the Kingdom of Spain much more important than the Kingdom of England, it was therefore unwilling to displease the King of Spain. When the Pope refused to grant Henry VIII his request, the latter was so determined to have a son that his present wife could not give him that he declared himself head of the Church in England, separated from Rome, and divorced Catherine.

In the process, England was deprived of the financial services of Rome. At first, Henry sold off all the unprofitable Church property and even had his friends rummage through the unsold properties for possible treasures and valuable materials, but it was a futile move. Most of the revenue derived from these operations ended up in the hands of those doing the demolishing and the selling, and very little revenue reached the state coffers. Not surprisingly, many old aristocratic families are to this day indebted and loyal to the King of England.

With no other option, Henry decided to admit the Jews back into England. The Jews had been expelled from England since 1290, but these were special Jews. The Marranos or Conversos, as they were called, professed to be Christians when in fact they still practised their religion in secret. But Henry overlooked their deceitfulness, for he was in dire financial straits and needed their financial skills. However, the schism created between the world of finance and that of religion at that time would seal the fate of the Holy Roman Empire as a financial power.