It has been 150 years since a peace treaty was concluded between France and Germany in Frankfurt am Main on May 10, 1871, which put an end to the Franco-Prussian war of 1870-1871. The most important result of the war was the unification of the scattered German lands into a single Germany (Second Reich). However, there is another important result: the victory of Prussia over France marked the beginning of the creation of the gold standard.
The history of the Franco-Prussian war is connected with the history of the Napoleonic wars of the early 19th century. As a result of numerous usurious operations (any war is a fertile time for usurers), the Rothschild family concentrated a large amount of gold in their hands. The Napoleonic Wars spawned the Rothschilds as the most powerful financial clan.
However, gold had to be converted into profitable capital. The easiest way to do this was to establish a gold standard. The issue of banknotes (banknotes, bargaining chips) should have been tied to the gold reserves of the Central Banks (treasuries) and guaranteed free exchange of banknotes for metal from the reserves. As the economy must develop, the need for banknotes must increase. And to increase the volume of money issue, it would be necessary to increase the gold reserve. The easiest way to build up the gold reserve was to be gold loans. And the Rothschilds were ready to act as gold creditors. This scheme was later called the gold standard.
The gold reserve did not leave the hands of the Rothschilds, it even grew in interest. And the most important thing: with such a scheme, gold should have constantly increased in price. The gold stock grows physically very slowly, and the commodity mass grows much faster. The world of gold is opposed to the world of goods. At different rates in these two worlds, the purchasing power of every ounce, every gram of gold will inevitably grow. If, relatively speaking, yesterday you could buy one ton of iron for one ounce of gold, then tomorrow you can buy two, and the day after tomorrow – three tons. HELL. Nechvolodov very convincingly revealed this secret of gold (carefully hidden by the Rothschilds) in his small booklet “From ruin to prosperity” (1906).
Five sons Mayer Amschel Rothschild settled in the main cities of Europe: London, Paris, Vienna, Naples, Frankfurt am Main. All of them achieved the introduction of the gold standard in their countries of residence, but achieved success only Nathan Rothschild in London. He established complete control over the Bank of England, and in 1816 the English Parliament voted to introduce the gold standard. Other European countries refrained from introducing such a standard, realizing that it would become a “golden mousetrap” for them. Until the middle of the 19th century, England was in the “golden club” in splendid isolation. In the end, with great difficulty, it was possible to draw Australia and Canada into this club (in 1852 and 1854, respectively). and also in 1854 Portugal, which had a large influx of gold from the colonies.
The world lived mainly with silver money or used both metals as money (bimetallism). Some countries (primarily Russia) relied on paper money (such money was tied to silver, but there was no exchange for metal).
On the initiative of France in 1865, a number of Western European countries (France, Belgium, Italy, Switzerland) signed an agreement on the creation Latin monetary (monetary) union… Bimetallism was installed, i.e. the monetary systems of the member countries of the union were based on both gold and silver. A ratio of 15.5: 1 was recorded between gold and silver. Later, several more countries joined the Latin Monetary Union (Greece, Spain, Romania, Bulgaria, Venezuela, etc.). They started minting unified coins (the same weight, the same content of the precious metal, the same size of the coins), only the names of the coins and the images were different.
The last attempt by the Rothschilds to persuade the leaders of European countries to abandon bimetallism and switch to gold money was made in 1867: an international monetary congress was held in Paris (later called the Paris Currency Conference). The Congress was held at the initiative of the French Emperor Louis Napoleon III, who invited representatives of twenty countries to the meeting (there was also a representative from Russia). The emperor was heavily influenced by London and the Rothschilds (both English and Parisian).
Economics textbooks often erroneously indicate that this congress established the international gold standard, that congress gave birth to a new international monetary system, which came to be called the “Parisian” one. This is not true. Most of the meeting participants did not support the idea of an international gold standard; delegates said they remain committed to the Latin Monetary Union. (See: Steven P. Reti, SilverandGold: The Political Economy of International Monetary Conferences, 1867-1892. Westport, CT: GreenwoodPress, 1998).
After this congress, the Rothschilds realized that they should act more purposefully, try to impose the gold standard on any one European country. The Rothschilds managed to find a common language with the Prime Minister of Prussia Otto von Bismarck… The Franco-Prussian war was prepared ahead of time with the participation of the Rothschilds. It began, continued and ended without deviating much from the plan. Prussia won. Otto von Bismarck became a hero and indisputable authority, who managed to unite the German lands and create the Second Reich without much difficulty. The Bismarck Rothschilds were expected to fulfill his promise about the gold mark, but the introduction of such a mark required a solid supply of precious metal, which Bismarck did not have.
And then a lifesaver appears in the form of an indemnity that France must pay to the winner. Under the Frankfurt Peace Treaty, France was assigned an indemnity of 5 billion gold francs – an unprecedented tribute in the history of modern wars. France was devastated by the war with Prussia, and it had no such money. As S. Sharapov notes in his work “Monetary power of France“,” All the cash coins in gold and silver that were in the country would not have been enough to pay even a quarter of the indemnity “(S. Sharapov Monetary Power of France. An Economic Study. – Yekaterinburg: Typ. Newspaper” Ural “, 1900, p. eighteen).
And then a miracle happens. France receives loans from a number of European countries. The “miracle” was organized by the Rothschilds, thanks to their efforts it was possible to arrange a common European loan in favor of the “poor” France, but in fact in favor of the German gold mark.
Bismarck kept his promise, in 1873 the gold mark appeared. Bismarck is called the “iron chancellor”, and I would call him “golden”. A united Germany dealt a crushing blow to bimetallism, which operated within the framework of the Latin Monetary Union. Germany, which relied on the gold mark, began to accumulate gold reserves, including converting silver into a yellow metal. The silver price began to fall rapidly. France was no longer able to fulfill its obligations to maintain a parity of prices for the two metals in a ratio of 15.5: 1. In Europe, a rapid flight from silver to gold began. Bimetallism ordered to live long. This is how the modern gold specialist describes the process. Peter Bernstein: “Germany reaped the fruits of the 1871 victory over France. The contribution paid by France reduced the need to sell silver in order to purchase gold. The Germans waited until 1873 to start selling silver, and even hoped that France would buy some of it. The French not only refused to cooperate on this issue, but even went even further. On September 5, 1873, the day after the end of the payment of the contribution, France reduced the daily issue of silver coins to 280 thousand francs per day, and in November again reduced it to 150 thousand francs. This led to another sharp drop in demand for silver. France stopped raping herself. Too many countries have joined the selling wave, trying to get rid of stocks of silver money, which were getting cheaper by leaps and bounds. The process was growing like a snowball. A decision made by France for tactical rather than strategic reasons led to a drop in silver prices from over 60p an ounce in the 1860s to 52 52p in 1876 and 51p by the end of the 1870s. By this time on the market, an ounce of gold was worth 18 times more than an ounce of silver; by the end of the century it was already 30 times more expensive than an ounce of silver “(Peter Bernstein. Power of gold. The history of obsession. – M .: JSC” Olymp-Business “, 2004, p. 219).
The process of rapid transition of many countries to the gold currency began. Sweden (1873), Netherlands (1875), Norway (1875), Finland (1877), France (1878), USA (1879), etc. (see: Moiseev S.R. Monetary policy: theory and practice. – M .: Economist, 2005, pp. 92-98). The world usurers managed to drag Russia into the “golden club” only a quarter of a century after the start of the victorious march of the gold standard around the world. This happened in 1897, when it was completed started by the then Minister of Finance Sergei Yulievich Witte monetary reform. Its essence boiled down to the introduction of the gold ruble. To maintain the gold ruble, Russia had to repeatedly turn to gold loans from the Rothschilds. On the one hand, the gold standard introduced in Russia hindered the country’s economic development (the emission of money by the State Bank was limited by the gold reserve and did not keep up with the needs of the economy). On the other hand, there was a rapid increase in the state external debt. S.F. Sharapov, G.V. Boutmy, A.D. Everyone called Nechvolodov by their proper names: the Rothschilds lured Russia into a golden mousetrap.