ROTHSCHILD AND BANK

Wanganui Chronicle, Volume 79, Issue 65, 17 March 1936, Page 10

ROTHSCHILD AND BANK

Cheque That Was Not Honoured

When Nathan Rothschild, one of the five sons of Meyer Anischel, was head of their London house, the Bank of England refused one of his cheques which had been endorsed by him and his brother, Anselm Rothschild in Frankfort, on the grounds that they made payment only in their own notes and not on private currency. “I’ll show the gentleman what sort of private people they are dealing with,” shouted Nathan Rothschild when this refusal was reported to him. A few weeks later Rothschild appeared personally at the Bank of England and handed a five pound note to the cashier. He said he wanted gold money for it. They wondered that 1 ‘the great banker should come himself for such a trivial sum, but the surprise became still greater when he exhibited a second, after the first had been honoured. Then he laid down a third, a fourth, a fifth, and so on. He tested each coin which they gave him. When his brier case was empty—he had collected fivepound notes for weeks .... and the first gold sack was full, one of his servants brought him a fresh bundle of banknotes. These he converted into gold tqo. Thus he worked the whole

day. He began when the bank opened in the morning and did not stop until closing time For seven hours changed five pound notes, and in so doing had received 21,000 pounds sterling in gold. He had entrusted none of his employees with the same task. The Bank of England had become lighter during the day by 21,000 pounds sterling. On top of it all, the bank was so busy exchanging the Rothschild notes, that they could not think of handling any other business. Therefore, the managers got worried when Rothschild turned up again at the cashier’s wicket next day along with his nine employees. During th® exchanging, Rothschild remarked ironically, “The gentlemen did not want to honour my cheque. For that reason I will not accept their notes. But I have enough of them to keep their cashiers busy for some weeks yet.” This disturbed the bankers. Thev yielded. £11,000,000 had been paid out in gold according to the gold redemption obligation of the bank. This could not go on. The following day, a notice appeared stating that in future the Bank of England would bo ready to accept and honour the Rothschild cheque.