Last year I wrote an article refuting the claims made by Matthew Heimbach in his "Death to America" speech. In this post, I would like to expand on one of the falsehoods that Heimbach promoted in his speech: that monarchs are somehow immune from the corrupting influence of usury. As I mentioned in my previous post, Heimbach seems to have a "fairy tale" understanding of how monarchy works. Students of European history will know that monarchs throughout the ages were frequently drowning in debt. This included the Russian Tsars who sent loan agents throughout the West to secure capital. Many of these monarchs also had very close relationships with the Jews, and even used the Jews (and Jewish bankers) to consolidate their own power at the expense of decentralized, feudal systems built on the principle of limited powers and mutual obligations. As Jewish banking power grew in the 19th century, the great monarchies of Europe were forced to treat the new Jewish rulers as equals, and sometimes even as superiors. The inherited power of these monarchs does not seem to have given them any special ability or desire for combatting Jewish usury.
The following quotes are from the article "The Alien as a Servant of Power: Court Jews and Christian Renegades" (Lewis A. Coser. American Sociological Review, Vol. 37, No. 5 (Oct., 1972), pp. 574-581). These quotes show how German princes in the 17th and 18th centuries helped to bring about the anti-traditional order that now dominates the West:
The German princes and Hapsburg Emperors, wishing to
rebuild and modernize
their states and armies after the bloodletting
of the Thirty-Years War and to emulate
the splendor and power of the Sun King in
Versailles, searched for suitable instruments.
Their sixteenth-century predecessors had
used the financial power of great South-
German bankers and merchants such as the
Fuggers for borrowing large sums of money
and streamlining their financial administration. But such patricians
no longer existed.
Under the pressure of such structural limits all German rulers, great or small, turned to the Jews.
Jewish communities had existed in Germany since the early Middle Ages. Living in ghettos, the Jews at times enjoyed the special protection of the Emperor or other potentates against payment of high taxes. Persecuted and despised by the population in general and by guilds in particular, they were often driven from certain states then readmitted...
At court Jews lived in a social no-man's land. There they became the ruler's instrument for destroying feudal forces, estates, and guilds restricting his power. They were his financiers and bankers, advisors and collaborators, in his drive to establish a modern mercantilist economy and a unified, bureaucratized government. Only men free from corporative and traditional restraints, having international ties and no connections with feudal dignitaries or the urban institutions of commoners were able to play such auxiliary roles...
Their effectiveness rested on mutual confidence and mutual support. They and the ruler were partners who, for reasons of their own, stood opposed to the traditional powers and the adversaries of modernity. Though the Jews were by far the weakest in the triad of forces contending for power and influence, their support was nevertheless central to the victory of absolutist rulers.
Jewish financiers and entrepreneurs supplied the armies of their prince, financed his wars, arranged new loans and settled old debts. They supplied the jewels for the prince's wife and his mistresses, but they also were innovators in building up trade and industry in defiance of guild restrictions. At times they monopolized the trade in silver, salt, or tobacco. They built silk, ribbon, cloth, and velvet factories in Prussia; they were chief tax collectors and diplomatic representatives, financial administrators and bankers, but above all confidants of the prince.
The closeness that often developed between the ruler and the Court Jew was based on their common distance from the population at large.
Prince and Court Jew were one in wishing to break down those intermediary powers of estates and guilds, which prevented the direct subordination of the prince's subjects to his personal rule...
The dues and taxes paid by the Jews went directly to the prince and were not subject to the financial controls ordinarily exercised by estates and towns...
Of course the Jews had the last laugh on the old monarchs, whose base of power was destroyed along with all other traditional institutions in the West. What we see in the emergence of modernism is not simply a struggle between monarchical and republican forces, but a struggle between localism and centralization. The American Patriots and the Constitution were firmly on the side of localism and distributed powers, ideas deeply rooted in our feudal heritage. It appears that the Jews were always on the side of centralization, often working together with rapacious monarchs who had no real loyalty to their subjects. The monarchies of Europe were destroyed because of their greed. The push for centralization and modernization destroyed traditional safeguards against poverty and oppression, which in turn prompted the spread of revolutionary socialism, another phenomenon that the monarchies completely mismanaged.
A particularly embarrassing episode in the history of the old European regimes comes from mid-19th century Austria. In the 1860s, the Imperial Austrian government was in horrible debt and had to beg for funds from the Jewish Rothschild banking family. In a paper by Lawrence D. Steefel ("The Rothschilds and the Austrian Loan of 1865." The Journal of Modern History, Vol. 8, No. 1 (Mar., 1936), pp. 27-39), we read that Austrian noblemen had to use flattery when coaxing a loan from Baron James Rothschild. Steefel quotes a letter by Count Mulinen, one of the Austrian officials in contact with the great Jewish usurer:
"The baron is, above all else, vain and be could not but
appreciate my alacrity. So he consented receive me today [September 2]
he is immured for two days on account of the great Jewish holidays...
Permit me to add a few more words about Rothschild. Baron Becke
[another Austrian] is of the opinion
that our financial fate is in his hands and that if we don't succeed
with him, we won't accomplish anything of consequence with the others.
We must, then, make the sparks fly and, especially, flatter old man
James. Anything pleasing to his conceit is worth one or two per
cent...How would it be if we gave him a grand
cordon? It was the cross
of Stanislas that made the Russian loan. Has he the iron crown of
class? If not, can we let him hope for it?"
Steefel adds, "Mulinen's hint was taken and he was authorized to let Baron James hope for the grand cordon of the iron crown if the loan was made. Baron Becke found his attitude toward the loan much more favorable after this intimation"(page 30). It seems that the great monarchs of Europe (including the Tsar) were not above prostituting their highest honors in order to win the favor of Jewish usurers. But even with these flatteries and promises of great honors (in addition to the massive interest that the loan would have brought), Rothschild still insisted on very severe terms. This led the Austrian agents to take a loan from a French group of bankers instead. Steefel describes this "better deal" that the Austrians received:
In round numbers, the treasury received 90,000,000 gulden and contracted to repay 157,000,000. The resulting rate of interest was about 9 percent and the bankers' profit 28,500,000 francs. The State Debt Commission, in its report of May 11, 1866, stated that the conclusion of this loan, at a time when peace was not yet threatened, had been under the most unfavorable and burdensome conditions and had exerted a depressing effect on Austria's finances.
So much for monarchs protecting their subjects from the sting of usury.