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'1873': How the first financial crisis made the world turn on the Rothschilds - review

From Jerusalem Post · () English

Summarized and contextualized by DistantNews.

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  • A review of Liaquat Ahamed's book analyzes the first modern international financial crisis in 1873 and the dominant role of the Rothschild family.
  • The Rothschilds, once the world's richest family, built their fortune through strategic capital raising and strict internal policies, including co-investment and reinvestment of profits.
  • Despite weathering the 1873 depression and subsequent deflation, the family's reputation and influence waned as the crisis exposed vulnerabilities in global finance.

Glenn C. Altschuler reviews Liaquat Ahamed's "1873," an analysis of the first international financial crisis of the modern era. The book details an unprecedented economic boom in the 1850s and '60s, fueled by capital investment in bonds, primarily for railroad construction. This speculative bubble burst in the early 1870s, leading to market crashes, defaults, and a global depression.

one name kept reappearing: Rothschild.

— Liaquat AhamedDuring his research for the book on the first international financial crisis.

Ahamed's research highlights the Rothschild family's central role during this period. Having amassed wealth during the Napoleonic wars, they established banks across Europe and became dominant players in raising capital for governments and corporations. By the mid-19th century, they were the world's richest family, wielding significant influence and evoking an

aura

— Liaquat AhamedDescribing the perception of the Rothschild family's influence.
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Originally published by Jerusalem Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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