investments for all the money that he had at his disposal, and as late as December 2, 1805, he had lent ten million thalers to Prussia. He had hoped that the Austro-RussoEnglish war against Napoleon would end in victory; but Austerlitz put a speedy end to such hopes.

During the war, England sent financial assistance to Austria in the shape of a monthly payment of a third of a million pounds in cash, which was sent to Austria by the most difficult and circuitous routes. The Rothschild method of transferring large sums of money was as yet unknown, and the only method in use was the dangerous one of sending actual bullion by road. A consignment of money was actually on the way when Austerlitz was being fought, and, in fear of a defeat, orders were issued from imperial headquarters instructing this consignment to be diverted in a wide circuit through Galicia and the Carpathians.

The war complications in which Europe was involved forced almost all states, whether they wished to or not, to take sides. The Elector of Hesse characteristically wished to attach himself to that party out of which he could make the greatest profit. As Prussia was now also being drawn into conflict with Napoleon, she attempted to draw the elector in on her side. On the other hand, the French Court gave him to understand that substantial advantages would be gained by the electorate if he kept himself completely free from Prussian influence. This suggestion was unpleasantly underlined by the gathering of bodies of French troops in the neighborhood of Hesse.

The elector bargained with everybody and secured from Paris accessions of territory and the incorporation. of the town of Frankfort within his domains. The only awkward point was that Napoleon demanded that the British ambassador, through whom the subsidy arrangements were carried on, should be sent home; and when the elector delayed about doing this, Napoleon expressed

his displeasure in no uncertain language, until the elector gave way, and sent the ambassador away.

Annoyed at France's threatening attitude the Hessian ruler again endeavored to attach himself to Prussia. Then, on July 12, 1806, the document regarding the Confederation of the Rhine was published, through which Napoleon, with the assistance of Prince Theodor von Dalberg, Electoral High Chancellor, won sixteen German states by promising them separation from the German Empire.

As a counterblast to this, Prussia attempted to bring about a union of the princes of Northern Germany, and to gain the support of the Elector of Hesse by offering him the prospect of an accession of territory and the dignity of kingship which he so much desired. These moves were followed by threats and promises on the side of France. The attitude of the elector remained undefined. He now thought it best to preserve the appearance of neutrality until the actual outbreak of war, and then simply to join the side which was winning, although a signed, if not ratified, treaty with Prussia was in existence.

He had, however, not reckoned sufficiently with the forceful personality of Napoleon. It was impossible to conduct a nebulous diplomacy with such a man. He had long been tired of the vacillating attitude of Hesse. A state of war was declared in early October, 1806. On the 14th of that month, Prussia was decisively beaten through Napoleon's lightning advance at Jena and Auerstedt. Napoleon now scorned Hessian "neutrality." He ordered that Cassel and Hesse should be occupied, and that unless the elector and the crown prince left they should be made prisoners of war as Prussian field-marshals.

"You will," commanded Napoleon, "seal up all treasuries and stores and appoint General Lagrange as governor of the country. You will raise taxes and pronounce judgments in my name. Secrecy and speed will be the

means through which you will insure complete success. My object is to remove the House of Hesse-Cassel from rulership and to strike it out of the list of powers.

99 10

At Frankfort, Meyer Amschel Rothschild had been watching the precipitate development of events with terror; and his son Amschel, at Cassel, as well as he himself at Frankfort, took all possible measures to prevent themselves and the elector from suffering too great financial loss. Business had just been going so exceedingly well. The firm of Bethmann, which had felt that it was being driven into the background, and had just been making strenuous efforts to get a share in the elector's loan business with Denmark, was forced to withdraw from the contest, on account of the political conditions and the resulting shortage of money, and thereby left the way open to Rothschild, who still had resources available.

In the meantime Lawaetz in Hamburg had definitely decided in Rothschild's favor. On July 2, 1806, he wrote himself to Buderus 11 to say that he would stand by their good friend Rothschild as far as he could, saying: "I hope that in the end people will realize that he is a good fellow who deserves to be respected; the envious may say what they like against him."

In spite of all that Rothschild had hitherto done in the service of the elector, he had not won his confidence to the extent of being called in in a matter which had become pressing on account of the developing military situation; for although the elector continued to hope that the notices naïvely posted on the roads leading to Hesse, bearing the words "Pays Neutre" would be respected, he was sufficiently concerned for the safety of his treasures to send away and conceal his more valuable possessions. But it was no light task to deal with the extensive banking accounts of the electoral loan office, and with his vast accumulations of treasure, and after several months the work was still far from complete.

There being no distinction between the treasury and

the prince's private purse, it was necessary to get out of the way, not only his own valuables, but also the cabinet, war and chancery cash records, for a period covering several decades; for so the books of his financial administration were called, in order to make it impossible to examine into the state of his affairs. There were large volumes of these records, representing vast sums; in the war chest alone there was over twenty-one million thalers, sixteen millions of which were out on loan in various places, and bringing in interest to the tune of many thousands of thalers. All this had to be concealed as far as possible, and this business was done by trusty officials, under the guidance of Buderus. But there is nothing to show that any of the Rothschilds were employed in the long-continued work of transport and concealment.

Time was pressing; some of the things were sent to Denmark; but it was impossible to get everything out of the country, and to have done so would have attracted too much attention. So the elector, who gave the closest personal attention to the plans for insuring the safety of his possessions, decided that the most precious articles should be buried within the walls of three of his castles. Under the stairs of the castle of Wilhelmshöhe were hidden twenty-four chests, containing silver and mortgage documents to the value of one and a half million gulden, amongst which were certain Rothschild debentures, while twenty-four chests with cash vouchers and certain valuable volumes from the library were concealed in the walls under the roof. A similar number of chests were concealed in the picturesque castle of Löwenburg, built in the Wilhelmshöhe park, while further treasures were conveyed in forty-seven chests to the Sababurg, situated in a remote forest.

The elector had originally intended to send the last consignment down the Weser to England, but he and the shipowner disagreed over a matter of fifty thalers and so they were not sent away. It was impossible to carry

through such measures in secrecy, as too many persons were involved in the transaction; and long before the French invaded the country, there was general alarm throughout the district, because the elector was said to be hiding all his treasures.

Meanwhile Napoleon's commands were being carried out. French troops, coming from Frankfort, were already encamped on the night of October 31 on the heights surrounding Cassel. The elector gazed anxiously from the windows of his castle at the enemy's camp-fires, and sent adjutant after adjutant to Mortier, the French marshal. In due course the French envoy was announced, and brought an ultimatum from Napoleon, significantly addressed: "To the Elector of Hesse-Cassel, FieldMarshal in the service of Prussia.'

In short, biting sentences William's double game was exposed, and the occupation of the country and the disarmament of its inhabitants was proclaimed. The elector immediately decided to throw in his lot with Napoleon and to join the Confederation of the Rhine. But it was too late; Marshal Mortier would no longer listen to the elector's messengers. The elector realized that there was nothing for him but flight.

In the few hours before the French entered the country he would have to move as many of his remaining possessions as he could, and make the more urgent dispositions. regarding outstanding accounts. William William gave Buderus power of attorney to receive the interest payments due from the Emperor Francis in Vienna; and Buderus transferred this power of attorney to Rothschild, who proceeded to collect these payments for the elector, through a business friend in Vienna, the banker Frank.

Besides this, Buderus that night brought two chests containing securities and statements of accounts to the house of the Austrian ambassador at Cassel, Baron von Wessenberg, and begged him to take charge of them. In addition, a member of the elector's bodyguard roused the