sums to the elector's consort, who was staying at Gotha, and to her business manager Kunkel, who also acted as an agent of the elector in promoting the revolution of Hesse against France.

These facts in themselves furnished sufficient material for dealing ruthlessly with the family-if that had been seriously desired; but the Rothschilds benefited by the inhibitions of the rulers of Frankfort and Cassel, who at heart were pleased to have remained faithful to the elector, although they had maintained practical relations with the new French powers. Everything had resulted happily, and the Rothschilds could breathe freely, but it had been a warning to act with even greater precaution in the future. The most important thing was to get the chests belonging to the elector out of the house at once, for in the course of another search the yard cellar might perhaps be discovered. The chests were therefore sent successively through the mediation of a Jewish friend to a business acquaintance of the Rothschilds at Darmstadt -a certain Abraham Mayer-and they stayed with him until the elector returned to his country.

While these events were taking place at Frankfort, Napoleon's campaign against Austria was proceeding. Swift as lightning, Napoleon's genius was thrusting down the Danube to Vienna. He sustained a reverse at Aspern, but on July 6 he made good this defeat by the decisive victory at Wagram.

The elector at Prague had been anxiously watching the changing vicissitudes of the campaign. He had hoped that his tormentor would be speedily beaten and he now saw him coming ever closer to his place of refuge at Prague. When Napoleon was at the gates of Vienna, the elector was seized with terror. He would have to flee again, and in great concern he took counsel with his advisers, and with Amschel Rothschild, who was staying with him, and who was no less terrified than his electoral master, as to whether they should not take refuge

in the fortress of Olmütz. At any rate the more valuable articles were sent on there. Seven chests containing securities, and one containing jewelry were actually sent off.

Then came Wagram; Napoleon advanced to Mähren, and Olmütz was seriously threatened. The boxes had to come back, and the elector set out for Berlin, as the king had already offered to shelter him there. But the king now rather regretted having made this offer; Napoleon was too powerful and might resent the elector's being granted asylum in Berlin. The king therefore wrote on January 29, 1810, to put him off, on the ground of "ménagements délicats" obtaining between himself and Napoleon at the time. Meanwhile peace was signed at Schönbrunn, no mention whatever of the elector being made in the treaty. Napoleon returned to Paris, whereupon William decided to remain at Prague.

The unsuccessful campaign of 1809 had resulted in the retirement of Count Stadion, the Austrian Minister for Foreign Affairs, and this brilliant man and bitter opponent of Napoleon withdrew for some years into private life. On October 8, 1809, he was succeeded by Prince Clemens Metternich, who was to play such a decisive rôle in the destinies of Europe during the following half-century.

Metternich had only just entered upon his duties when he received a letter from the Elector of Hesse, requesting the minister to support him, and "to restore to his orphaned subjects their native prince, whose presence they so ardently desired." He had great hopes that Metternich would use his influence with the emperor, and he was bitterly disappointed when he learned that he had not even been mentioned during the peace negotiations. He wrote a bitter letter of complaint to Stadion:45 "So many worthless people, relying on French protection, are enabled to sin against me with impunity, and

nobody now feels that he has any duties toward me; everybody does as he pleases and is actuated by base and selfish motives. I have thus lost more than two-thirds of a fortune that was never very large. That is hard, but harder than everything else is my present condition."

It was highly typical of the elector to suggest that he was badly off; in spite of his losses he was still actually one of the wealthiest princes of his time; but if there were spoils to be divided, he did not want to be left out in the cold on the ground that he was rich enough already. The money motive was always the principal one with the elector, and in this matter he had a perfect understanding with his crown agent Rothschild. Rothschild always advised the elector to ask concessions at every possible opportunity-as, for instance, that claims on him in respect of the troops should be waived, etc.-and the elector got more and more accustomed to following Rothschild's advice, and scarcely took any important financial step without consulting him.

A sum of £150,000 had been invested as recently as December 18, 1809, in three per cent British Consols from interest received on behalf of the "poor" elector. The business in connection with this transaction naturally entailed voluminous correspondence, for the conveyance of which between Frankfort and Prague Meyer Amschel made himself personally responsible. He traveled in a private post-chaise which contained a secret drawer.

The French were anxious to intercept if possible the correspondence between the elector and his Frankfort agents; once they did actually succeed in seizing a letter destined for England which clearly revealed the fact that the Rothschilds were responsible for the management of the elector's funds in that country.46

In the meantime an important change had taken place in general European politics. The new personality directing Austria's foreign affairs had brought about a

complete reversal of the policy followed previously. Nothing could be achieved against Napoleon by the use of force, and therefore Metternich tried other means.

Napoleon's marriage with Josephine was childless. His union with an imperial princess would increase his prestige and might produce the heir he so much desired. The hitherto hostile states were thus reconciled by the prospect of a marriage, and in January, 1810, the imperial house of Austria gave Napoleon to understand that if he asked for the hand of Marie Louise, the eighteen-year-old daughter of the emperor, he would not be refused. The contract of marriage was signed as early as the 7th of February.

One of the first to be informed of this complete change in the situation was the Elector of Hesse. He immediately wrote again to Metternich to the following effect: "I am writing to your Excellency trusting to enlist your sympathy for my most cherished desires. The marriage. which is to unite the two greatest monarchies causes me to hope that I may regain the Emperor Napoleon's goodwill, if our emperor .. will but intercede in my favor. One word from him to the plenipotentiary of France will secure my happiness, and will at any rate establish me as ruler of one of the liberated states in Germany, even if I cannot regain my own Penates. . . . Surely that monarch will not be able to resist the intervention of his exalted father-in-law, and of an adored wife on behalf of a prince who has never yet understood how he has incurred his displeasure." 47

The elector also repeatedly pressed Count Stadion to use his influence with the Austrian ruler in William's behalf. The minister had great difficulty in dissuading him from traveling to Vienna.

Although in these letters the elector gave such a woeful account of his condition, he was faring exceedingly well at Prague. He had bought a palace on the Kleinseite where he held court, and he maintained a house

hold of thirty-six persons. He had also acquired the magnificent castle and grounds of Bubenetsch, which was finely furnished throughout, but with due regard to economy. The firm of Rothschild carried through the business matters connected with these purchases.

The actual state of the elector's affairs was well known at Vienna. The financial affairs of the court and of the public departments were getting steadily worse, and the new friendship with France had done but little to lighten the burdens of debt incurred under the recent peace treaty. In the negotiations between France and Austria the Austrian Treasury official Nikolaus Barbier had been. so vehement in his advocacy of Austria's interests that the French plenipotentiary on one occasion actually protested against his being present. This clever financial expert had played a considerable part in all the various loan operations which Austria had had to carry out during these wars.

At that time the imperial state had no business relations with the Rothschild banking firm. There were four more or less official discount houses at Vienna, through which the Austrian government arranged its loans and other monetary business. They were the banking firms, Geymüller and Company, Arnstein and Eskeles and Company, Graf Fries and Company, and Steiner and Company. The Austrian government also dealt with the banking firm of Parish at Hamburg in 1809, in matters relating to remittances and realizations such were the technical terms used at the time-of English subsidy moneys.

The condition of the Austrian state finances was lamentable. The value of her bank notes had fallen steadily during the wars, and the amount of paper money in circulation had risen to the enormous figure of over a thousand million gulden; it was already necessary to pay five hundred paper gulden for one hundred gulden in coin of the realm, this amount soon rising to twelve hun