As the wealth and power of the Rothschilds grew in size and influence so did
their intelligence gathering network. They had their 'agents' strategically
located in all the capitals and trading centers of Europe, gathering and
developing various types of intelligence. Like most family exploits, it was
based on a combination of very hard work and sheer cunning.
Their unique spy system started out when 'the boys' began sending messages to
each other through a networh of couriers. Soon it developed into something
much more elaborate, effective and far reaching. It was a spy network par
excellence. Its stunning speed and effectiveness gave the Rothschilds a clear
edge in all their dealings on an international level.
"Rothschild coaches careened down the highways; Rothschild boats set sail
across the Channel; Rothschild agents were swift shadows along the streets.
They carried cash, securities, letters and news. Above all, news - the latest
exclusive news to be vigorously processed at stock market and commodity
"And there was no news more precious than the outcome at Waterloo..." (The
Rothschilds p. 94).
Upon the battle of Waterloo depended the future of the European continent. If
the Grande Armée of Napoleon emerged victorious France would be
undisputed master of all she surveyed on the European front. If Napoleon was
crushed into submission England would hold the balance of power in Europe
and would be in a position to greatly expand its sphere of influence.

Historian John Reeves, a Rothschild partisan, reveals in his book The
Rothschilds, Financial Rulers of the Nations, 1887, page 167, that "one cause
of his [Nathan's] success was the secrecy with which he shrouded, and the
tortuous policy with which he misled those who watched him the keenest."
There were vast fortunes to be made - and lost - on the outcome of the Battle of
Waterloo. The Stock Exchange in London was at fever pitch as traders awaited
news of the outcome of this battle of the giants. If Britain lost, English consuls
would plummet to unprecedented depths. If Britain was victorioug, the value of
the consul would leap to dizzying new heights.
As the two huge armies closed in for their battle to the death, Nathan
Rothschild had his agents working feverishly on both sides of the line to gather
the most accurate possible information as the battle proceeded. Additional
Rothschild agents were on hand to carry the intelligence bulletins to a
Rothschild command post strategically located nearby.
Late on the afternoon of June 15, 1815, a Rothschild representative jumped on
board a specially chartered boat and headed out into the channel in a hurried
dash for the English coast. In his possession was a top secret report from
Rothschild's secret service agents on the progress of the crucial battle. This
intelligence data would prove indispensable to Nathan in making some vital
The special agent was met at Folkstone the following morning at dawn by
Nathan Rothschild himself. After quickly scanning the highlights of the report
Rothschild was on his way again, speeding towards London and the Stock
Arriving at the Exchange amid frantic speculation on the outcome of the battle,
Nathan took up his usual position beside the famous 'Rothschild Pillar.'
Without a sign of emotion, without the slightest change of facial expression the
stony-faced, flint eyed chief of the House of Rothschild gave a predetermined
signal to his agents who were stationed nearby.

Rothschild agents immediately began to dump consuls on the market. As
hundred of thousands of dollars worth of consuls poured onto the market their
value started to slide. Then they began to plummet.
Nathan continued to lean against 'his' pillar, emotionless, expressionless. He
continued to sell, and sell and sell. Consuls kept on falling. Word began to
sweep through the Stock Exchange: "Rothschild knows." "Rothschild knows."
"Wellington has lost at Waterloo."
The selling turned into a panic as people rushed to unload their 'worthless'
consuls or paper money for gold and silver in the hope of retaining at least part
of their wealth. Consuls continued their nosedive towards oblivion. After
several hours of feverish trading the consul lay in ruins. It was selling for about
five cents on the dollar.
Nathan Rothschild, emotionless as ever, still leaned against his pillar. He
continued to give subtle signals. But these signals were different. They were so
subtly different that only the highly trained Rothschild agents could detect the
change. On the cue from their boss, dozens of Rothschild agents made their
way to the order desks around the Exchange and bought every consul in sight
for just a 'song'!
A short time later the 'official' news arrived in the British capital. England was
now the master of the European scene.
Within seconds the consul skyrocketed to above its original value. As the
significance of the British victory began to sink into the public consciousness,
the value of consuls rose even higher.
Napoleon had 'met his Waterloo.' Nathan had bought control of the British
economy. Overnight, his already vast fortune was multiplied twenty times over.
Owing to Napoleon's seizure of Holland in 1803, the leaders of the anti-
Napoleonic league chose Frankfort as a financial center where-from to obtain
the sinews of war. After the battle of Jena in 1806 the Landgrave of Hesse-
Cassel fled to Denmark, where he had already deposited much of his wealth
through the agency of Mayer Amschel Rothschild, leaving in the hands of the

latter specie and works of art of the value of 600,000 pounds. According to
legend, thse were hidden away in wine-casks, and, escaping the search of
Napoleon's soldiers when they entered Frankfort, were restored intact in the
same casks in 1814, when the elector returned to his electorate (see Marbot,
"Memoirs," 1891, i. 310-311). The facts are somewhat less romantic, and more
business-like. Rothschild, so far from being in danger, was on such good terms
with Napoleon's nominee, Prince Dalberg, that he had been made in 1810 a
member of the Electoral College of Darmstadt. The elector's money had been
sent to Nathan in London, who in 1808 utilized it to purchase 800,000 pounds
worth of gold from the East India Company, knowing that it would be needed
for Wellington's Peninsular campaign. He made no less than fonr profits on
this: (1) on the sale of Wellington's paper, (2) on the sale of the gold to
Wellington, (3) on its repurchase, and (4) on forwarding it to Portugal. This
was the beginning of the great fortunes of the house,
Following their crushing defeat at Waterloo, the French struggled to get back
on their feet financially. In 1817 they negotiated a substantial loan from the
prestigious French banking house of Ouvrard and from the well-known bankers
Baring Brothers of London. The Rothschilds had been left on the outside
looking in.
The following year the French government was in need of another loan. As the
bonds issued in 1817 with the help of Ouvrard and Baring Brothers were
increasing in value on the Paris market, and in other European financial
centers, it appeared certain that the French governmant would retain the
services of these two distinguished banking houses.
The Rothschild brothers tried most of the gimmicks in their vast repertoire to
influence the French government to give them the business. Their efforts were
in vain.
The French aristocrats, who prided themselves on their elegance and superior
breeding, viewed the Rothschilds as mere peasants, upstarts who needed to be
kept in their place. The fact that the Rothschilds had vast financial resources,
lived in the most luxurious homes and were attired in the most elegant and

expensive clothes obtainable no ice with the highly class conscious French
nobility. The Rothschilds were viewed as uncouth - lacking in social graces. If
we are to believe most historical accounts, their appraisal of the first generation
Rothschilds was probably valid.
One major piece of armament in the Rothschild arsenal the French had
overlooked or ignored - their unprecedented cunning in the use and
manipulation of money.
On November 5, 1818, something very unexpected occurred. After a year of
steady appreciation the value of the French government bonds began to fall.
With each passing day the decline in their value became more pronounced.
Within a short space of time other government securities began to suffer too.
The atmosphere in the court of Louis XVIII was tense. Grim faced aristocrats
pondered the fate of the country. They hoped for the best but feared the worst!
The only people around the French court who weren't deeply concerned were
James and Karl Rothschild. They smiled - but said nothing!
Slowly a sneaking suspicion began to take shape in the minds of some
onlookers. Could those Rothschild brothers be the cause of the nation's
economic woes? Could they have secretly manipulated the bond market and
engineered the panic?
They had! During October 1818, Rothschild agents, using their masters'
limitless reserves, had bought huge quantities of the French government bonds
issued through their rivals Ouvrard and Baring Brothers. This caused the bonds
to increase in value. Then, on November 5th, they began to dump the bonds in
huge quantities on the open market in the main commercial centers of Europe,
throwing the market into a panic.