Rothschild loans to the Holy See
![](http://upload.wikimedia.org/wikipedia/commons/thumb/e/ef/Gregory_XVI.jpg/220px-Gregory_XVI.jpg)
Rothschild loans to the Holy See refers to a series of major financial
1832 loan under Pope Gregory XVI
Background
In the aftermath of the
![](http://upload.wikimedia.org/wikipedia/commons/thumb/a/a6/James_de_Rothschild_%281792-1868%29.jpg/220px-James_de_Rothschild_%281792-1868%29.jpg)
In 1831, Cardinal Bartolomeo Cappellari was elected
James Mayer de Rothschild, head of the French Banque Rothschild, became the official Papal banker.[2] His Naples-based brother, Carl Mayer von Rothschild, geographically closer to Rome, went to meet with Pope Gregory XVI in January 1832. Here Carl Mayer was presented with the ribbon and star of the Sacred Military Constantinian Order of Saint George. It was customary for Catholics to show reverence for him whom they regarded as the Vicar of Christ, to kiss the Pope's feet when meeting him. As a Jew, Carl Mayer von Rothschild was permitted to simply kiss the ring on his hand instead.[2] This outraged Catholic critics of the deal at the time. It even garnered a reference centuries later, by Philippe de Rothschild, a direct descendant of James and Carl, in his autobiography Milady Vine (1984).
This loan agreed on was for a sum of £400,000 (equivalent to £3.7 billion in 2019). A second loan occurred during the Pontificate of Pope Pius IX ("Pio Nono") in the early 1850s with the same members of the Rothschild family after the collapse of Giuseppe Mazzini's short-lived revolutionary Roman Republic and the restoration of the Papal States.
Reactions
Reports of the transaction led to stinging criticisms of Pope Gregory XVI in the Christian (in particular, Catholic) world, almost all of which circulated around the Jewishness of the Rothschilds. The French romantic poet Alfred de Vigny said "a Jew now reigns over the Pope and Christianity. He pays monarchs and buys nations."[2] Ludwig Börne, a Jewish convert to Lutheranism and member of the Young Germany movement stated, "A wealthy Jew kisses his hand, while a poor Christian kisses the Pope's feet. The Rothschilds are assuredly nobler than their ancestor Judas Iscariot. He sold Christ for 30 small pieces of silver: the Rothschilds would buy Him, if He were for sale."[2] Another prominent example, is the mention of the loan in a sonnet of Giuseppe Gioachino Belli, Er motivio de li guai. While Belli found the Rothschilds highly objectionable, for him the Pope was even worse as a weak man who had "sold both Rome and the State" and was thus no longer worthy of wearing the Papal robes.[4]
Cardinal Tosti
![](http://upload.wikimedia.org/wikipedia/commons/thumb/d/df/Antonio_Tosti.jpg/220px-Antonio_Tosti.jpg)
Pope Gregory XVI appointed Cardinal Antonio Tosti as the new Papal Treasurer (also known as the Apostolic Camera) at Rome in July 1834. Considering stock market conditions and a recent Rothschild offer to Egypt to refinance its debt, Tosti attempted to refinance the debt in more favorable terms; Rothschild opposed such an early refinance, fearing losses to his own bank and disrepute to Vatican bond issuances.[5]
As part of a plan to gain better conditions, Tosti reached out to a number of banking firms in
The leading element among these interests who were rivals to the Rothschilds on the
All of this had been done in a discreet manner, without the Rothschilds being informed. But when agents of the Rothschild banking family of Naples had learned that an agent of the "six banks" of Paris, had been in Rome, their suspicions were heightened.[10] After learning about the situation, Carl Mayer von Rothschild set out to Rome to find out the truth about the matter from Cardinal Tosti.[11] While there he produced a copy of the original 5% contract, signed by Rothschild and Torlonia (before Tosti had been involved with Papal finance) which contained an until now secret condition;[11] the Holy See may not approach any other firm for a new loan without first informing the Rothschilds and giving them preference if it offered equal conditions to its competition.[12] The six Parisian firms at first considered trying to offer such conditions that, if the Rothschilds tried to match it then it would damage their own interests; however, in the end, the two sides reconciled and went in on the new loan terms together.[13]
Catholic–Jewish relations
Whether the loan had any significant effect on the relationship between
See also
- Paris Bourse crash of 1882
- Chemins de Fer du Nord
- Cardinal Giacomo Antonelli
- André Langrand-Dumonceau
- Edward Charles Blount
References
- ISBN 978-1416576570. Retrieved 3 August 2019.
The economy stagnated, and over decades tax revenues steadily declined. By the time Gregory XVI, the son of a lawyer, became pope in 1831, the situation was so dire [...]
- ^ a b c d e f Posner 2015, p. 12.
- ^ Felisini 2017, p. 88.
- ^ Feinstein 2003, p. 151.
- ^ Felisini 2017, pp. 109–110: "Encouraged by the positive movement of stock market quotations for the Roman bonds, as well as by a comparison with conditions offered by the Rothschilds to other countries (i.e. Egypt, ruled by Muhammad Ali) [...] Rothschild stated his firm opposition, fearing the losses that this operation would bring to the Maison, but perhaps also concerned about disaffection on the part of investors. The idea of a conversion such a short time after the issue might have made subscribers fearful, driving them away from the Roman bonds"
- ^ a b Reeves 1887, p. 266.
- ^ Balla 1913, p. 224.
- ^ a b Nolte 1854, p. 391.
- ^ Nolte 1854, p. 392.
- ^ Nolte 1854, p. 393.
- ^ a b Balla 1913, p. 228.
- ^ Balla 1913, p. 229.
- ^ Balla 1913, p. 230.
- ^ Felisini 2017, p. 94.
- ^ Kertzer 2003, p. 79.
- ISBN 9781416576594. Retrieved 7 August 2019.
the Rothschilds tried leveraging their influence to beseech the Holy See to improve conditions for the fifteen thousands Jews in the Papal States [57]. They asked that the Pope cancel extra taxes levied solely on Jews, the prohibition on taking property from the ghetto, and the ban on working on professions, and that he abolish onerous evidentiary standards that put them at tremendous disadvantage in court cases
Bibliography
- Balla, Igantius (1913). The Romance of the Rothschilds. E. Nash. ISBN 978-1331118770.
- Berry, Jason (2012). Render Unto Rome: The Secret Life of Money in the Catholic Church. Broadway Books. ISBN 978-0385531344.
- Corti, Egon Caesar (1928). The Rise of the House of Rothschild. Insel-Verlag. ISBN 978-1482385991.
- Cowles, Virginia (1973). The Rothschilds: A Family of Fortune. Knopf. ISBN 978-0394487731.
- Feinstein, Wiley (2003). The Civilization of the Holocaust in Italy: Poets, Artists, Saints, Anti-semites. Fairleigh Dickinson Univ Press. ISBN 978-0838639887.
- Felisini, Daniela (1990). Le finanze pontificie e i Rothschild. 1830-1870. Facoltà di Economia dei Trasporti e del Commercio Internazionale, Istituto Universitario Navale. ISBN 978-8871043265.
- Felisini, Daniela (2017). Alessandro Torlonia: The Pope's Banker. Springer. ISBN 978-3319419985.
- Ferguson, Niall (1998). The House of Rothschild: Money's prophets, 1798-1848. Viking. ISBN 978-0670857685.
- Johnstone, Robert Matteson (1901). The Roman Theocracy and the Republic, 1846-1849. Macmillan.
- Kertzer, David I (2003). Unholy War: The Vatican's Role in the Rise of Modern Anti-semitism. Pan Macmillan. ISBN 978-0330390491.
- Lottman, Herbert R. (1995). Return of the Rothschilds: The Great Banking Dynasty Through Two Turbulent Centuries. I. B. Tauris. ISBN 978-1850439141.
- Nolte, Vincent (1854). Fifty Years in Both Hemispheres: Or, Reminiscences of the Life of a Former Merchant. Redfield.
- Pollard, John F. (2008). Money and the Rise of the Modern Papacy: Financing the Vatican, 1850-1950. Cambridge University Press. ISBN 978-0521092111.
- Posner, Gerald (2015). God's Bankers: A History of Money and Power at the Vatican. Simon and Schuster. ISBN 978-1416576570.
- Reeves, John (1887). The Rothschilds: The Financial Rulers of Nations. A. C. McClueg & Co. ISBN 978-1428621732.
- ISBN 978-0224022088.