The Reign of the House of Rothschild (1830–1871) by Count Egon Caesar Corti.

Chapter 8: From the Crimean War to the Italian War of 1859

Count Egon Caesar Corti’s The Reign of the House of Rothschild (1830–1871), published in 1928, provides a comprehensive account of the Rothschild banking dynasty’s influence during a pivotal period in European history. Chapter 8, titled “From the Crimean War to the Italian War of 1859,” examines the Rothschilds’ financial and political maneuvers during the mid-1850s, a time marked by the Crimean War (1853–1856) and the Italian War of 1859, which reshaped European alliances and accelerated the push for Italian unification. This 1300-word description summarizes the chapter’s key themes, events, and insights, highlighting the Rothschilds’ strategic adaptability, their role in financing wars and infrastructure, and their navigation of the complex geopolitical landscape.

The Crimean War and the Rothschilds’ Financial Role
Chapter 8 begins by situating the Rothschilds in the context of the Crimean War, a conflict pitting Russia against an alliance of Britain, France, and the Ottoman Empire. Corti emphasizes the war’s economic implications, as it strained the finances of the belligerent powers and created opportunities for the Rothschilds to assert their financial dominance. The family’s London and Paris branches, led by Lionel de Rothschild and James de Rothschild respectively, played a central role in providing loans to the allied powers, particularly Britain and France, to fund their military campaigns. Corti details how the Rothschilds’ ability to mobilize large sums of capital quickly gave them leverage over governments desperate for funds. In Britain, Lionel worked closely with the government to issue war bonds, ensuring a steady flow of capital to support the war effort. In France, James de Rothschild navigated a delicate relationship with Napoleon III, whose ambitious foreign policy required substantial financing. The chapter highlights James’s cautious approach, as he balanced the risks of war financing with the need to maintain the Rothschilds’ influence in French financial markets. The Crimean War also underscored the Rothschilds’ innovative financial practices. Corti describes their use of telegraphic communication and private couriers to coordinate loan agreements across their European branches, allowing them to respond swiftly to market fluctuations caused by the war. This global network gave them a competitive edge over rival banks, such as the emerging Crédit Mobilier in France, which sought to challenge their dominance. The chapter notes that the Rothschilds’ loans were often secured at favorable terms, reflecting their ability to negotiate from a position of strength. 

Economic and Political Shifts in the Mid-1850s
Following the Crimean War, the chapter explores the Rothschilds’ efforts to adapt to the post-war economic landscape. The Treaty of Paris (1856) ended the conflict but left Europe’s powers grappling with depleted treasuries and shifting alliances. Corti highlights the Rothschilds’ role in stabilizing European economies through their continued financing of government bonds and infrastructure projects. Their investments in railways, particularly in France and Austria, positioned them as key players in the continent’s industrialization, a trend that gained momentum in the 1850s. The chapter also examines the Rothschilds’ political maneuvering during this period. In France, James de Rothschild strengthened his relationship with Napoleon III, whose regime sought to modernize the French economy. The Rothschilds provided loans for urban redevelopment projects, such as Baron Haussmann’s transformation of Paris, which cemented their influence in French financial circles. However, Corti notes the challenges posed by Napoleon III’s unpredictable foreign policy, which often prioritized prestige over fiscal prudence, creating risks for the Rothschilds’ investments. In Austria, Salomon von Rothschild faced a different set of challenges. The Habsburg Empire, weakened by the Crimean War and internal unrest, relied heavily on Rothschild loans to maintain stability. Corti describes Salomon’s efforts to balance the family’s Austrian interests with the growing tensions between Austria and the emerging nationalist movements in Italy and Germany. The chapter underscores the Rothschilds’ pragmatism, as they sought to maintain ties with both established powers and rising forces to safeguard their financial empire.

The Italian War of 1859 and the Rothschilds’ Involvement
The second half of Chapter 8 focuses on the Italian War of 1859, also known as the Second Italian War of Independence, which pitted the Kingdom of Sardinia and France against Austria. This conflict was a critical step toward Italian unification, driven by the ambitions of Camillo Benso, Count of Cavour, and supported by Napoleon III. Corti details the Rothschilds’ complex role in this war, as their financial interests spanned both sides of the conflict. In France, James de Rothschild provided loans to Napoleon III to finance the French military campaign, which aimed to weaken Austrian influence in Italy. These loans were substantial, reflecting the Rothschilds’ confidence in Napoleon III’s ability to achieve a swift victory. However, Corti notes that James was cautious about overextending the Paris branch, given the war’s potential to disrupt European markets. The chapter describes how James used his international network to monitor the conflict’s progress, ensuring that the Rothschilds could adjust their financial strategies in real time. In Austria, Salomon von Rothschild faced a more precarious situation. The Habsburgs, as a long-standing Rothschild client, relied on the family’s loans to fund their defense against France and Sardinia. Corti highlights Salomon’s efforts to maintain Austria’s financial stability, even as the empire suffered military defeats at Magenta and Solferino. The Rothschilds’ Vienna branch also played a role in financing Austrian railways, which were critical to the empire’s economic recovery but vulnerable to the war’s disruptions. The chapter also explores the Rothschilds’ engagement with the Kingdom of Sardinia. Anselm von Rothschild, based in Naples, navigated the delicate balance of supporting the Bourbon monarchy while cautiously engaging with Cavour’s government in Turin. The Rothschilds provided loans to Sardinia to fund its military efforts, a strategic move that positioned them favorably with the rising power in Italy. Corti emphasizes the family’s ability to hedge their bets, maintaining ties with both the declining Bourbons and the ascendant Piedmontese to minimize losses.

The Rothschilds’ Broader Strategy and Innovations
Throughout Chapter 8, Corti underscores the Rothschilds’ ability to adapt to the rapidly changing political and economic landscape. Their investments in railways and other infrastructure projects were not only profitable but also aligned with the broader trend of European industrialization. The chapter details their role in financing the expansion of railway networks in France, Austria, and Italy, which facilitated trade and economic growth. These investments diversified the Rothschilds’ portfolio, reducing their reliance on government loans and enhancing their resilience. Corti also highlights the Rothschilds’ use of advanced communication systems, such as telegraphs, to coordinate their operations across Europe. This allowed them to respond quickly to political and military developments, giving them an edge over competitors. The chapter notes their strategic foresight in anticipating the economic impact of the Crimean and Italian wars, enabling them to adjust their investments to mitigate risks.

Corti’s Perspective and Key Themes
Corti portrays the Rothschilds as financial architects who thrived in an era of uncertainty. Their ability to finance wars while investing in peacetime infrastructure projects demonstrates their versatility and foresight. The chapter emphasizes their pragmatic approach to power, as they aligned with both established monarchies and emerging nationalist movements to protect their interests. Corti admires their financial acumen but also acknowledges the controversies surrounding their wealth, including public resentment and anti-Semitic sentiments that targeted their dominance. The chapter also explores the broader implications of the Rothschilds’ activities. Their loans and investments helped shape the modern European economy, but their close ties to governments and monarchs fueled perceptions of undue influence. Corti balances this critique with recognition of their contributions to economic stability and modernization, presenting a nuanced view of their legacy. 

Conclusion
Chapter 8 of The Reign of the House of Rothschild offers a compelling account of the family’s role during a transformative period in European history, from the Crimean War to the Italian War of 1859. By detailing their financial support for warring powers, their investments in infrastructure, and their navigation of complex political alliances, Corti illustrates the Rothschilds’ enduring influence. The chapter serves as a case study in the intersection of finance and geopolitics, highlighting how the Rothschilds shaped Europe’s economic and political trajectory through their wealth, adaptability, and strategic vision. For readers interested in the dynamics of 19th-century Europe, this chapter provides a rich exploration of the Rothschilds’ pivotal role in a time of war and change.